Today's Law As Amended

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AB-427 Electrical corporations: uneconomic cost recovery: bottoming cycle waste heat recovery.(2013-2014)

As Amends the Law Today


 Section 371 of the Public Utilities Code is amended to read:

 (a) Except as provided in Sections 372 and 374, the uneconomic costs provided in Sections 367, 368, 375, and 376 shall be applied to each customer based on the amount of electricity purchased by the customer from an electrical corporation or alternate supplier of electricity, subject to changes in usage occurring in the normal course of business.
(b) (1)  Changes in usage occurring in the normal course of business are those resulting from changes in business cycles, termination of operations, departure from the utility service territory, weather, reduced production, modifications to production equipment or operations, changes in production or manufacturing processes, fuel switching, including installation of fuel cells pending a contrary determination by the Energy Commission,  cells,  enhancement or increased efficiency of equipment or performance of existing self-cogeneration equipment, the production of electricity using bottoming cycle waste heat recovery,  replacement of existing cogeneration equipment with new power generation equipment of similar size as described in paragraph (1) of subdivision (a) of Section 372, installation of demand-side management equipment or facilities, energy conservation efforts, or other similar factors.
(2) For the purposes of this section, “bottoming cycle waste heat recovery” means the use of waste heat from a commercial or industrial process to produce electricity without consuming fuel to supplement the waste heat and to supply electricity for onsite use without exporting electricity to the electrical grid.
(c) (1) Except as provided in paragraph (2), changes in usage occurring in the normal course of business as described in subdivision (b) are exempt from all nonbypassable charges approved by the commission.
(2) For electricity produced using bottoming cycle waste heat recovery, the exemption specified in paragraph (1) applies only to the cumulative total of 200 megawatts of load within all service areas of electrical corporations.
(d) A nonbypassable charge avoided pursuant to subdivision (c) as a result of the use of electricity produced using bottoming cycle waste heat recovery shall not be recovered from residential ratepayers and ratepayers with an average monthly usage of 500 kilowatthours of electricity or less.
(e) The commission shall ensure that customers exempt from the nonbypassable charges pursuant to subdivision (c) pay their cost of receiving service from an electrical corporation.
(c) (f)  Nothing in this section shall be interpreted to  This section does not  exempt or alter the obligation of a customer to comply with Chapter 5 (commencing with Section 119075) of Part 15 of Division 104 of the Health and Safety Code. Nothing in this section shall be construed as a limitation on the ability of residential customers to alter their pattern of electricity purchases by activities on the customer side of the meter.