| Old | New | Differences | |
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| 1 | - | Amended IN Assembly | |
| 1 | + | Amended IN Assembly March 11, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1117Introduced by Assembly Member SchultzFebruary 20, 2025 An act to add Section 729.3 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 1117, as amended, Schultz. Electricity: rates: optional dynamic rate tariffs.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits, and requires that the rate component be a nonbypassable element of the local distribution service.This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic transmission and distribution rates that reflect real-time grid conditions and certain nonbypassable charges, as specified. The bill would require the commission to ensure, among other things, any overcollection of a generation-related revenue requirement transmission-, distribution-, and generation-related revenue requirements from participating bundled customers is returned to the participating bundled customers and any undercollection of a generation-related revenue requirement those revenue requirements is borne by those same customers. The bill would additionally require that any overcollection of transmission- or distribution-related revenue requirements from unbundled customers be returned to the same unbundled customers, and any undercollection of those revenue requirements be borne by those same customers.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates.(2) Creating downward pressure on electricity rates is critical to maintaining the competitiveness of California businesses and alleviating overall cost pressures on individual households.(3) The electrical grid supporting Californias economy is subject to dynamically shifting conditions due to factors such as weather-driven electricity demand, variable generation output, and line capacity constraints.(4) Dynamic grid conditions often result in widely fluctuating wholesale electricity prices. The volatility of wholesale prices affects the overall cost of electricity that is ultimately borne by the states ratepayers.(5) Enabling greater demand flexibility through dynamic retail pricing, based on the conditions of the grid and the wholesale market, as a universally available option for all customers will minimize the short-term and long-term costs of electricity by reducing electricity demand during high-price periods and shifting demand to time periods when renewable energy is low cost and abundant.(6) Increased customer adoption of dynamic retail electricity rates that reflect real-time grid and wholesale market conditions will allow the state to meet its renewable energy and carbon neutrality goals in the most affordable and reliable manner.(b) It is the intent of the Legislature to do all of the following:(1) Establish dynamic pricing options for all commercial and industrial customers by 2028 and all customers by 2030.(2) Ensure that residential customers who do not want dynamic pricing have the right to continue to be subject to flat rates or time-of-use rates.(3) Ensure participation in dynamic retail pricing options does not create cost shifts between bundled and unbundled ratepayers.SEC. 2. Section 729.3 is added to the Public Utilities Code, to read:729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic transmission rate that reflects real-time transmission grid conditions.(2) A dynamic distribution rate that reflects real-time distribution grid conditions.(3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions.(4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf.(c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a):(1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator.(2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively.(3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers.(4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers.(d) For purposes of this section, the following definitions apply:(1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(2) Load-serving entity has the same meaning as defined in Section 380.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly March 11, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1117Introduced by Assembly Member SchultzFebruary 20, 2025 An act to add Section 729.3 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 1117, as amended, Schultz. Electricity: rates: optional dynamic rate tariffs.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits, and requires that the rate component be a nonbypassable element of the local distribution service.This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic transmission and distribution rates that reflect real-time grid conditions and certain nonbypassable charges, as specified. The bill would require the commission to ensure, among other things, any overcollection of a generation-related revenue requirement transmission-, distribution-, and generation-related revenue requirements from participating bundled customers is returned to the participating bundled customers and any undercollection of a generation-related revenue requirement those revenue requirements is borne by those same customers. The bill would additionally require that any overcollection of transmission- or distribution-related revenue requirements from unbundled customers be returned to the same unbundled customers, and any undercollection of those revenue requirements be borne by those same customers.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 11, 2025 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 07, 2025 | |
| 8 | 7 | Amended IN Assembly March 11, 2025 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 1117 | |
| 15 | 14 | ||
| 16 | - | Introduced by Assembly Member | |
| 15 | + | Introduced by Assembly Member SchultzFebruary 20, 2025 | |
| 17 | 16 | ||
| 18 | - | Introduced by Assembly Member Schultz | |
| 17 | + | Introduced by Assembly Member Schultz | |
| 19 | 18 | February 20, 2025 | |
| 20 | 19 | ||
| 21 | 20 | An act to add Section 729.3 to the Public Utilities Code, relating to electricity. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | 26 | AB 1117, as amended, Schultz. Electricity: rates: optional dynamic rate tariffs. | |
| 28 | 27 | ||
| 29 | - | Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits, and requires that the rate component be a nonbypassable element of the local distribution service.This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic | |
| 28 | + | Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits, and requires that the rate component be a nonbypassable element of the local distribution service.This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic transmission and distribution rates that reflect real-time grid conditions and certain nonbypassable charges, as specified. The bill would require the commission to ensure, among other things, any overcollection of a generation-related revenue requirement transmission-, distribution-, and generation-related revenue requirements from participating bundled customers is returned to the participating bundled customers and any undercollection of a generation-related revenue requirement those revenue requirements is borne by those same customers. The bill would additionally require that any overcollection of transmission- or distribution-related revenue requirements from unbundled customers be returned to the same unbundled customers, and any undercollection of those revenue requirements be borne by those same customers.Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 30 | 29 | ||
| 31 | 30 | Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits, and requires that the rate component be a nonbypassable element of the local distribution service. | |
| 32 | 31 | ||
| 33 | - | This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic | |
| 32 | + | This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic transmission and distribution rates that reflect real-time grid conditions and certain nonbypassable charges, as specified. The bill would require the commission to ensure, among other things, any overcollection of a generation-related revenue requirement transmission-, distribution-, and generation-related revenue requirements from participating bundled customers is returned to the participating bundled customers and any undercollection of a generation-related revenue requirement those revenue requirements is borne by those same customers. The bill would additionally require that any overcollection of transmission- or distribution-related revenue requirements from unbundled customers be returned to the same unbundled customers, and any undercollection of those revenue requirements be borne by those same customers. | |
| 34 | 33 | ||
| 35 | 34 | Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. | |
| 36 | 35 | ||
| 37 | 36 | Because a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program. | |
| 38 | 37 | ||
| 39 | 38 | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. | |
| 40 | 39 | ||
| 41 | 40 | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 42 | 41 | ||
| 43 | 42 | ## Digest Key | |
| 44 | 43 | ||
| 45 | 44 | ## Bill Text | |
| 46 | 45 | ||
| 47 | - | The people of the State of California do enact as follows:SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates. | |
| 46 | + | The people of the State of California do enact as follows:SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates.(2) Creating downward pressure on electricity rates is critical to maintaining the competitiveness of California businesses and alleviating overall cost pressures on individual households.(3) The electrical grid supporting Californias economy is subject to dynamically shifting conditions due to factors such as weather-driven electricity demand, variable generation output, and line capacity constraints.(4) Dynamic grid conditions often result in widely fluctuating wholesale electricity prices. The volatility of wholesale prices affects the overall cost of electricity that is ultimately borne by the states ratepayers.(5) Enabling greater demand flexibility through dynamic retail pricing, based on the conditions of the grid and the wholesale market, as a universally available option for all customers will minimize the short-term and long-term costs of electricity by reducing electricity demand during high-price periods and shifting demand to time periods when renewable energy is low cost and abundant.(6) Increased customer adoption of dynamic retail electricity rates that reflect real-time grid and wholesale market conditions will allow the state to meet its renewable energy and carbon neutrality goals in the most affordable and reliable manner.(b) It is the intent of the Legislature to do all of the following:(1) Establish dynamic pricing options for all commercial and industrial customers by 2028 and all customers by 2030.(2) Ensure that residential customers who do not want dynamic pricing have the right to continue to be subject to flat rates or time-of-use rates.(3) Ensure participation in dynamic retail pricing options does not create cost shifts between bundled and unbundled ratepayers.SEC. 2. Section 729.3 is added to the Public Utilities Code, to read:729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic transmission rate that reflects real-time transmission grid conditions.(2) A dynamic distribution rate that reflects real-time distribution grid conditions.(3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions.(4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf.(c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a):(1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator.(2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively.(3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers.(4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers.(d) For purposes of this section, the following definitions apply:(1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(2) Load-serving entity has the same meaning as defined in Section 380.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 48 | 47 | ||
| 49 | 48 | The people of the State of California do enact as follows: | |
| 50 | 49 | ||
| 51 | 50 | ## The people of the State of California do enact as follows: | |
| 52 | 51 | ||
| 53 | - | SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates. | |
| 52 | + | SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates.(2) Creating downward pressure on electricity rates is critical to maintaining the competitiveness of California businesses and alleviating overall cost pressures on individual households.(3) The electrical grid supporting Californias economy is subject to dynamically shifting conditions due to factors such as weather-driven electricity demand, variable generation output, and line capacity constraints.(4) Dynamic grid conditions often result in widely fluctuating wholesale electricity prices. The volatility of wholesale prices affects the overall cost of electricity that is ultimately borne by the states ratepayers.(5) Enabling greater demand flexibility through dynamic retail pricing, based on the conditions of the grid and the wholesale market, as a universally available option for all customers will minimize the short-term and long-term costs of electricity by reducing electricity demand during high-price periods and shifting demand to time periods when renewable energy is low cost and abundant.(6) Increased customer adoption of dynamic retail electricity rates that reflect real-time grid and wholesale market conditions will allow the state to meet its renewable energy and carbon neutrality goals in the most affordable and reliable manner.(b) It is the intent of the Legislature to do all of the following:(1) Establish dynamic pricing options for all commercial and industrial customers by 2028 and all customers by 2030.(2) Ensure that residential customers who do not want dynamic pricing have the right to continue to be subject to flat rates or time-of-use rates.(3) Ensure participation in dynamic retail pricing options does not create cost shifts between bundled and unbundled ratepayers. | |
| 54 | 53 | ||
| 55 | - | SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates. | |
| 54 | + | SECTION 1. (a) The Legislature hereby finds and declares all of the following:(1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates.(2) Creating downward pressure on electricity rates is critical to maintaining the competitiveness of California businesses and alleviating overall cost pressures on individual households.(3) The electrical grid supporting Californias economy is subject to dynamically shifting conditions due to factors such as weather-driven electricity demand, variable generation output, and line capacity constraints.(4) Dynamic grid conditions often result in widely fluctuating wholesale electricity prices. The volatility of wholesale prices affects the overall cost of electricity that is ultimately borne by the states ratepayers.(5) Enabling greater demand flexibility through dynamic retail pricing, based on the conditions of the grid and the wholesale market, as a universally available option for all customers will minimize the short-term and long-term costs of electricity by reducing electricity demand during high-price periods and shifting demand to time periods when renewable energy is low cost and abundant.(6) Increased customer adoption of dynamic retail electricity rates that reflect real-time grid and wholesale market conditions will allow the state to meet its renewable energy and carbon neutrality goals in the most affordable and reliable manner.(b) It is the intent of the Legislature to do all of the following:(1) Establish dynamic pricing options for all commercial and industrial customers by 2028 and all customers by 2030.(2) Ensure that residential customers who do not want dynamic pricing have the right to continue to be subject to flat rates or time-of-use rates.(3) Ensure participation in dynamic retail pricing options does not create cost shifts between bundled and unbundled ratepayers. | |
| 56 | 55 | ||
| 57 | 56 | SECTION 1. (a) The Legislature hereby finds and declares all of the following: | |
| 58 | 57 | ||
| 59 | 58 | ### SECTION 1. | |
| 60 | 59 | ||
| 61 | - | (1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates. | |
| 60 | + | (1) The transformation of Californias electrical grid system to support the states decarbonization goals will be most affordable for the states businesses and residents through improved use of grid infrastructure and demand flexibility to exert downward pressure on electricity rates. | |
| 62 | 61 | ||
| 63 | - | (2) Creating downward pressure on electricity rates | |
| 62 | + | (2) Creating downward pressure on electricity rates is critical to maintaining the competitiveness of California businesses and alleviating overall cost pressures on individual households. | |
| 64 | 63 | ||
| 65 | 64 | (3) The electrical grid supporting Californias economy is subject to dynamically shifting conditions due to factors such as weather-driven electricity demand, variable generation output, and line capacity constraints. | |
| 66 | 65 | ||
| 67 | 66 | (4) Dynamic grid conditions often result in widely fluctuating wholesale electricity prices. The volatility of wholesale prices affects the overall cost of electricity that is ultimately borne by the states ratepayers. | |
| 68 | 67 | ||
| 69 | 68 | (5) Enabling greater demand flexibility through dynamic retail pricing, based on the conditions of the grid and the wholesale market, as a universally available option for all customers will minimize the short-term and long-term costs of electricity by reducing electricity demand during high-price periods and shifting demand to time periods when renewable energy is low cost and abundant. | |
| 70 | 69 | ||
| 71 | 70 | (6) Increased customer adoption of dynamic retail electricity rates that reflect real-time grid and wholesale market conditions will allow the state to meet its renewable energy and carbon neutrality goals in the most affordable and reliable manner. | |
| 72 | 71 | ||
| 73 | - | ||
| 74 | - | ||
| 75 | 72 | (b) It is the intent of the Legislature to do all of the following: | |
| 76 | 73 | ||
| 77 | 74 | (1) Establish dynamic pricing options for all commercial and industrial customers by 2028 and all customers by 2030. | |
| 78 | 75 | ||
| 79 | 76 | (2) Ensure that residential customers who do not want dynamic pricing have the right to continue to be subject to flat rates or time-of-use rates. | |
| 80 | 77 | ||
| 81 | 78 | (3) Ensure participation in dynamic retail pricing options does not create cost shifts between bundled and unbundled ratepayers. | |
| 82 | 79 | ||
| 83 | - | SEC. 2. Section 729.3 is added to the Public Utilities Code, to read:729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic | |
| 80 | + | SEC. 2. Section 729.3 is added to the Public Utilities Code, to read:729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic transmission rate that reflects real-time transmission grid conditions.(2) A dynamic distribution rate that reflects real-time distribution grid conditions.(3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions.(4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf.(c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a):(1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator.(2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively.(3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers.(4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers.(d) For purposes of this section, the following definitions apply:(1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(2) Load-serving entity has the same meaning as defined in Section 380. | |
| 84 | 81 | ||
| 85 | 82 | SEC. 2. Section 729.3 is added to the Public Utilities Code, to read: | |
| 86 | 83 | ||
| 87 | 84 | ### SEC. 2. | |
| 88 | 85 | ||
| 89 | - | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic | |
| 86 | + | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic transmission rate that reflects real-time transmission grid conditions.(2) A dynamic distribution rate that reflects real-time distribution grid conditions.(3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions.(4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf.(c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a):(1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator.(2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively.(3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers.(4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers.(d) For purposes of this section, the following definitions apply:(1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(2) Load-serving entity has the same meaning as defined in Section 380. | |
| 90 | 87 | ||
| 91 | - | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic | |
| 88 | + | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic transmission rate that reflects real-time transmission grid conditions.(2) A dynamic distribution rate that reflects real-time distribution grid conditions.(3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions.(4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf.(c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a):(1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator.(2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively.(3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers.(4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers.(d) For purposes of this section, the following definitions apply:(1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(2) Load-serving entity has the same meaning as defined in Section 380. | |
| 92 | 89 | ||
| 93 | - | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic | |
| 90 | + | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030.(b) Each optional dynamic rate tariff shall include, at minimum, all of the following components:(1) A dynamic transmission rate that reflects real-time transmission grid conditions.(2) A dynamic distribution rate that reflects real-time distribution grid conditions.(3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions.(4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf.(c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a):(1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator.(2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively.(3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers.(4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers.(d) For purposes of this section, the following definitions apply:(1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California.(2) Load-serving entity has the same meaning as defined in Section 380. | |
| 94 | 91 | ||
| 95 | 92 | ||
| 96 | 93 | ||
| 97 | 94 | 729.3. (a) The commission shall, through a new or existing proceeding, develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporations commercial and industrial customers on or before July 1, 2028, and the large electrical corporations other customers, including residential customers, on or before July 1, 2030. | |
| 98 | 95 | ||
| 99 | 96 | (b) Each optional dynamic rate tariff shall include, at minimum, all of the following components: | |
| 100 | 97 | ||
| 101 | - | (1) A dynamic | |
| 98 | + | (1) A dynamic transmission rate that reflects real-time transmission grid conditions. | |
| 102 | 99 | ||
| 103 | - | (2) A dynamic | |
| 100 | + | (2) A dynamic distribution rate that reflects real-time distribution grid conditions. | |
| 104 | 101 | ||
| 105 | - | (3) A dynamic | |
| 102 | + | (3) A dynamic generation rate for bundled customers that reflects real-time wholesale market conditions. | |
| 106 | 103 | ||
| 107 | - | (4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf. | |
| 104 | + | (4) Nonbypassable charges associated with commission-approved public purpose programs and other costs associated with legacy generation investments made on the participating customers behalf. | |
| 108 | 105 | ||
| 109 | - | (c) To | |
| 106 | + | (c) To maintain the principle of cost causation, and to prevent cost shifts between bundled customers and unbundled customers, the commission shall ensure all of the following when implementing subdivision (a): | |
| 110 | 107 | ||
| 111 | - | (1) Each large electrical corporation shall make the same dynamic | |
| 108 | + | (1) Each large electrical corporation shall make the same dynamic transmission and distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated by the commission in consultation with the Independent System Operator. | |
| 112 | 109 | ||
| 113 | - | (2) Each load-serving entity is responsible for setting the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively. | |
| 110 | + | (2) Each load-serving entity shall be solely is responsible for setting dynamic the generation rate options for a participating customer based on wholesale market conditions faced by that customers load-serving entity. This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator or electricity service provider, consistent with Sections 366.2 and 394, respectively. | |
| 114 | 111 | ||
| 115 | - | (3) | |
| 112 | + | (3) Any overcollection of a transmission-, distribution-, and generation-related revenue requirement requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of a generation-related those revenue requirement requirements shall be borne by those same customers. | |
| 116 | 113 | ||
| 117 | - | (3) | |
| 118 | - | ||
| 119 | - | ||
| 120 | - | ||
| 121 | - | (B) Any overcollection of transmission-, distribution-, and generation-related revenue requirements from participating bundled customers shall be returned to the participating bundled customers, and any undercollection of those revenue requirements shall be borne by those same customers. | |
| 122 | - | ||
| 123 | - | (4) | |
| 124 | - | ||
| 125 | - | ||
| 126 | - | ||
| 127 | - | (C) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers. | |
| 128 | - | ||
| 129 | - | (4) The commission shall consider rules or conditions on participation by vulnerable residential customers to ensure adequate protection for those customers, including, but not limited to, those customers served through rates established pursuant to subdivision (c) of Section 739, Section 739.1, and Section 739.12. | |
| 114 | + | (4) Any overcollection of transmission- or distribution-related revenue requirements from unbundled customers shall be returned to the same unbundled customers, and any undercollection of those revenue requirements shall be borne by those same customers. | |
| 130 | 115 | ||
| 131 | 116 | (d) For purposes of this section, the following definitions apply: | |
| 132 | 117 | ||
| 133 | 118 | (1) Large electrical corporation means an electrical corporation with more than 100,000 service connections in California. | |
| 134 | 119 | ||
| 135 | 120 | (2) Load-serving entity has the same meaning as defined in Section 380. | |
| 136 | 121 | ||
| 137 | 122 | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 138 | 123 | ||
| 139 | 124 | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 140 | 125 | ||
| 141 | 126 | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 142 | 127 | ||
| 143 | 128 | ### SEC. 3. |