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AB-1584 Electricity: cost allocation.(2019-2020)

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Date Published: 09/17/2019 04:00 AM
AB1584:v94#DOCUMENT

Enrolled  September 16, 2019
Passed  IN  Senate  September 06, 2019
Passed  IN  Assembly  September 10, 2019
Amended  IN  Senate  August 13, 2019
Amended  IN  Senate  June 25, 2019
Amended  IN  Assembly  May 01, 2019
Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1584


Introduced by Assembly Member Quirk

February 22, 2019


An act to add Article 13 (commencing with Section 397) to, and to repeal the heading of Article 13 (commencing with Section 397) of, Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


AB 1584, Quirk. Electricity: cost allocation.
Existing law requires the Public Utilities Commission, in consultation with the Independent System Operator, to establish resource adequacy requirements for electrical corporations, electric service providers, and community choice aggregators, known collectively as load-serving entities, to ensure the reliability of electric service in the state while advancing, to the extent possible, the state’s goals for clean energy, reducing air pollution, and reducing emissions of greenhouse gases.
This bill would require the commission to develop and use methodologies for allocating electrical system integration resource procurement needs to each load-serving entity based on the contribution of that entity’s load and resource portfolio to the electrical system conditions that created the need for the procurement. The bill would require the commission to develop and use methodologies for determining any costs resulting from a failure of a load-serving entity to satisfy its allocation of those procurement needs.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The heading of Article 13 (commencing with Section 397) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is repealed.

SEC. 2.

 Article 13 (commencing with Section 397) is added to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, to read:
Article  13. Allocation of Electrical System Costs

397.
 (a) (1) The commission shall, in an existing or a new proceeding, develop methodologies for allocating electrical system integration resource procurement needs to each load-serving entity, as defined in Section 380, based on the contribution of the load-serving entity’s load and resource portfolio to the electrical system conditions that created the need for the procurement and for determining any costs resulting from a failure of a load-serving entity to satisfy its allocated procurement needs. Those needs and costs shall be limited to those that are subject to the commission’s jurisdiction pursuant to Section 380, 454.51, or 454.52.
(2) The electrical system integration resource procurement needs and costs described in paragraph (1) shall include, but are not limited to, those relating to the following:
(A) Resource adequacy requirements associated with system flexibility, as described in subdivision (c) of Section 380.
(B) Integration resources identified as needed, or proposed in response to system operational needs identified, through the process described in subdivision (a) of Section 454.51.
(b) The commission shall use the methodologies developed pursuant to subdivision (a) in allocating electrical system integration resource procurement needs and any costs resulting from a failure to procure resources to satisfy those allocated procurement needs pursuant to Section 380, 454.51, or 454.52.
(c) For purposes of this section, “electrical system integration resources” means resources that provide certain electrical system integration functions, benefits, or attributes, such as flexible ramping capability.
(d) This section does not require the procurement of a specific resource or technology type.