366.3.
(a) For purposes of this section:(1) “Community choice aggregator” has the same meaning as specified in Section 331.1.
(2) “Distribution wheeling” is the transportation of electricity from an electric service provider to end use customers of a community choice aggregator, within a single local distribution system.
(3) “Electric service provider” has the same meaning as specified in Section 218.3.
(4) “Eligible renewable electricity generation source” means an electrical generating facility that is either an “eligible renewable energy resource” as specified in Section 399.12 or that meets the definition of “in-state renewable electricity generation technology” as specified in Section 383.5.
(5) “Local distribution system” means an electrical distribution system operated by an electrical corporation that may be served from a single interstate transmission facility. “Local distribution system” includes an electrical distribution system that is served from two or more interstate transmission facilities for the convenience of the electrical corporation, that could be served from a single interstate transmission facility. ‛Local distribution system‛ includes primary and secondary distribution lines, which deliver electricity, and substations and distribution transformers, which lower electric voltage from high voltage transmission levels (generally between 50,000 and 500,000 volts) to primary and secondary distribution and utilization levels.
(b) Upon petition or other appropriate procedure established by the commission, the commission shall establish separate distribution service rates and charges by an electrical corporation, for distribution wheeling between an electric service provider supplying electricity from an eligible renewable electricity generation source to end users of a community choice aggregator that are within the same local distribution system, that do all of the following:
(1) To the extent permissible under federal law, avoids charges for transmission services. To the extent transmission service charges are applicable, those charges shall be allocated as noncustomer specific costs within the electrical corporation’s otherwise applicable cost-allocation methodology. To the extent transmission charges are applicable, they shall be recovered from all customers within that same customer class or proportionately from subclasses of the customer class.
(2) Pass any distribution system cost savings resulting from the development of distributed energy resources to the end use customers of the community choice aggregator.
(c) The commission shall require, as a condition to establishing the separate distribution service rates and charges, that:
(1) End use customers have interval metering.
(2) Electric service providers providing electricity from an eligible renewable electricity generation source, employ suitable safety monitoring or instrumentation, in accordance with industry standards, as determined by the commission.
(d) The California Independent System Operator shall impose no fee or charge upon electricity delivered by an electric service provider from an eligible renewable electricity generation source, to end use customers of a community choice aggregator, that is delivered through distribution wheeling. The California Independent System Operator shall not impute the impact of any net load or net generation, including net ancillary services, of any activity not directly interconnected to transmission, on transmission system costs without also allocating the benefit of all probable load and generation diversity, methodological inaccuracies or measurement errors to such loads and generation not directly interconnected or to the distribution system to which they are directly interconnected. The California Independent System Operator shall not calculate charges for any transmission service component of electricity delivered by an electric service provider from an eligible renewable electricity generation source, to end use customers of a community choice aggregator, that is delivered through distribution wheeling, from any gross load or gross generation activity not directly interconnected to the transmission system. The California Independent System Operator shall not attribute cost causation on a transmission system to any electrical load delivered by distribution wheeling.