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SB-520 Electrical service: provider of last resort.(2019-2020)

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Date Published: 02/21/2019 09:00 PM
SB520:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 520


Introduced by Senator Hertzberg

February 21, 2019


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


LEGISLATIVE COUNSEL'S DIGEST


SB 520, as introduced, Hertzberg. Electrical service: provider of last resort.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Under existing law, a public utility has a duty to serve, including furnishing and maintaining adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons and the public.
This bill would authorize the commission to develop threshold attributes, as specified, for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California. The bill would authorize the commission to establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.
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of Article 13 (commencing with Section 397) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code is repealed.
13.Fuel Price Volatility

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. The Obligation to Serve

397.
 (a) The commission may develop threshold attributes for a load-serving entity to serve as a provider of last resort to provide electrical service to retail end users in California that shall include at least the following:
(1) Resource adequacy requirements.
(2) Requirements for access to carbon-free sources of electricity.
(3) Compliance with financial conditions.
(4) The ability to provide electrical service to customers without disruption if a load-serving entity fails or denies service to a customer.
(b) The commission may establish a structure, such as an auction, to determine which load-serving entity should serve as the provider of last resort and what benefits a load-serving entity would receive if selected to serve as the provider of last resort.