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SB-692 Transmission: access charge.(2017-2018)

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Date Published: 04/18/2017 09:00 PM
SB692:v97#DOCUMENT

Amended  IN  Senate  April 18, 2017
Amended  IN  Senate  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 692


Introduced by Senator Allen
(Coauthor: Senator Wiener)
(Coauthor: Assembly Member Berman)

February 17, 2017


An act to amend Sections 399.13 and 9600 of, and to add Sections 352.8 and 354 to, add Section 350 to the Public Utilities Code, relating to transmission.


LEGISLATIVE COUNSEL'S DIGEST


SB 692, as amended, Allen. Transmission: access charge.
Existing law vests the Public Utilities Commission (PUC) with jurisdiction over the delivery of electrical services. Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to make certain filings with the Federal Energy Regulatory Commission (FERC) and to seek authority from FERC as needed to give the ISO the ability to secure generating and transmission resources necessary to guarantee achievement of planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.
This bill would require the ISO to undertake a stakeholder initiative to consider modification of the billing determinants to which the operator applies the transmission access charge, as specified. The bill would require the ISO, by June 30, 2018, to submit to FERC proposed modifications of the billing determinants for approval. The bill would require the ISO to fully implement any modification approved by FERC within one year of the date of approval.

(1)Existing law vests the Public Utilities Commission (PUC) with jurisdiction over the delivery of electrical services. Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to make certain filings with the Federal Energy Regulatory Commission (FERC) and to seek authority from FERC as needed to give the ISO the ability to secure generating and transmission resources necessary to guarantee achievement of planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.

This bill would require the ISO to adopt transmission energy downflow, as specified, as the billing determinant for the transmission access charge throughout its service territory. The bill would require the ISO to apply the transmission energy downflow for all voltage categories of transmission facilities. The bill would require the ISO to continue to use the volumetric per kilowatthour basis in determining the transmission energy downflow until stakeholders receive notice and are provided with an opportunity to comment on alternatives. The bill would require the PUC to review the process by which an electrical corporation passes through transmission access charges to ratepayers to ensure that the process achieves certain goals.

(2)The Public Utilities Act requires the PUC to adopt a least-cost, best-fit methodology for determining the integration cost of certain renewable energy resources.

This bill would require the PUC to revise the least-cost, best-fit methodology and other procurement practices of electrical corporations to reflect the ratepayer impact of the changes to the transmission access charges required by this measure.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

(3)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.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: YESNO  

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


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) California has long had a policy interest in promoting renewable energy and climate mitigation. Given its significant environmental, economic, and resilience benefits, distributed generation can and should be a significant part of California’s long-term energy strategy.
(2) Distributed generation provides unique value to energy consumers by generating clean energy in close proximity to customer need, thereby increasing the resilience of communities, freeing up capacity on the transmission grid, and decreasing the need for additional transmission infrastructure.
(3) Energy consumers are provided limited transparency into the costs for delivery of their energy, particularly the transmission costs.
(b) It is the intent of the Legislature that the Independent System Operator consider, via a stakeholder initiative, modification of the billing determinant to which the operator applies the transmission access charge and submit any proposed modification to the Federal Energy Regulatory Commission by July 1, 2018.

SEC. 2.

 Section 350 is added to the Public Utilities Code, to read:

350.
 (a) On or after January 1, 2018, the Independent System Operator shall undertake a stakeholder initiative to consider modification of the billing determinants to which the operator applies the transmission access charge and shall make consistent the basis for applying transmission cost allocation to distribution utilities and all load serving entities in a manner that fully compensates utilities and all load serving entities for local generation within their distribution grids, unless the Independent System Operator makes a finding that differential bases are in the best interest of all California end-use electricity customers and further the achievement of California’s environmental goals, including the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)) and the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).
(b) In undertaking the stakeholder initiative described in subdivision (a), the Independent System Operator shall consider all of the following:
(1) The value provided by distributed energy resources to the Independent System Operator’s balancing area, including, but not limited to, the potential to reduce the use of existing transmission infrastructure and the need for future transmission infrastructure and capacity and to further the state’s goals, including the requirements of the California Renewables Portfolio Standard Program and the California Global Warming Solutions Act of 2006.
(2) The value and equity of metering and assessing the transmission access charge at interfaces of the transmission system and distribution systems.
(3) The value of continuing to assess transmission access charges on a volumetric basis.
(c) No later than June 30, 2018, the Independent System Operator shall submit to the Federal Energy Regulatory Commission for approval proposed modifications of the billing determinant to which the Independent System Operator applies the transmission access charge.
(d) Within one year of the date of approval by the Federal Energy Regulatory Commission, the Independent System Operator shall fully implement any modifications of the billing determinant to which the Independent System Operator applies the transmission access charge.