HomeMy WebLinkAboutAgenda Bill 3.J 05/16/2011Ltr�
I'g 5.8
DATE: May 16, 2011:
TO: Honorable Mayor, and Members of the City Council
FROM: John C. Brown, City Manager
pproving of the Pubh� Utilitles Code R latlBg to 0 (SB 790) Which
SUBJECT: Resoluton,A pp 79
Amends Sections Electricity and
Communit'y Aggregation.
RECOMMENDATION.
It is recommended that the City Council adopt the attached Resolution Approving Letter of
Support for Senate Bill 790 (SB 790), Which:Amends Sections of the Public Utilities. Code
Relating to Electricity and Community Choice Aggregation.
BACKGROUND
In 1996, the Legislature passed AB 1890 to restructure and deregulate -the electric industry,
which ended the servce.monopoly of utilities and authorized retail customers to purchase energy
directly from suppliers. Community Choice Aggregation (CCA) programs are governmental
entities formed by cities and counties to. serve the, energy requirements of'their local
and businesses by enab'lirig them.to purchase power on,behalf of their communities. The state
Legislature enacted AB 117 in 2001 that authorized the creation.,of CCAs,, described essential
program elements and services, and established methods to protect existing utility customers
from liabilities they might in "cur `if, a portion o f the electrical corporation's customers transferred
their energy services-to a. CCA.
DISCJSSION
Many communities have unsuccessfully. attempted CCAs and only one county (Marin) ha&been
successful in the,state of California. SB 790 strengthens existing.law by clarifying, amending and
adding key,,proyisions that enable. CCAs to function as originally' intended and to allow
jurisdietions to pursue: CCAs without undue ,barriers and excessive burdens. The defeat of
Proposition 16 n,June 2010 reaffirmed the public's support of the right, to form CCA programs.
ATTACHMENTS
1. Letter of support
2. Resolution
3. Senate Bill 790 (as amended April 14, 2011)
Agenda Review:
City Finance Director City Manager
ATTACHMENT 1
May 16, 2011
Senator Mark Leno ,
Attn: Barry Steinhart via'fax (916) 445 -4722
RE: SB 790 _ SUPPORT
Dear Senator Leno;
The City of Peetaluma supports California Senate Bill 790 to strengthen existing law related to
Community Choice Aggregation (CCA), foster fair competition and allow local jurisdictions to
pursue CCA without undue barriers and excessive burdens.
CCA programs procure eleciricity:for their customers and partner with existing electrical
corporations for power transmission and, "distribution line maintenance, and customer billing.
Local governments would like to use CCA programs as a tool to foster healthy competition, to
i as emissions and create new l local jobs c These programs buppoal reductions in greenhouse
g rt state goals in the energy
sector and state law should.fac litate th'e expansion of Community 'Choice Aggregation by local
governments.
Although
a CCA, utilit existing law cq ' avetties to cooperate fully with communities seeking to establish
,.
y corporations consistently blocked their formation. Since the passage of the
law enabling CCAs in. 26Q1,' only, one :local government has suceessfully'launched a. CCA while
others have tried and failed. In fact, the California Public Utilities Commission, recently found
that utility opposition to CCA has forced some CCA efforts to be abaindoned altogether. The
defeat of state Proposition 16 in June 2010 reaffirmed the public 's support of the right to form
CCA programs.
Existing CCA law givingaocal governments the right to pursue Community Choice Aggregation.
has not worked..,Reforms. are needed to make CCA more viable, encourage , customer choice,
increase the use <of renewable energy, and to allow healthy competition to improve electric
service for all customers.
Sincerely,
David Glass
Mayor
Im
ATTACHMENT '2
RESOLUTIONvAPP1zO" N'G :LETTER OF SUPFORT FOR SENATE PILL
) ECTIONS OF' THE. PUB UTILITIES
790 SP 790 , WI�ICI3 AMENDS S
CO_ DE RELATING TO ELECTRICITY AND COMMUNITY CHOICE
AGGREGATION
WHEREAS in 1996 the California Legislature passed.AB 1890 to restructure and
deregulate the electric industry, which ended. the service monopoly°of utilities and authorized
retail customers to purchase energy directly from suppliers, and
WHEREAS Community Choice Aggregation (CCA) programs are governmental entities
formed by cities and counties to serve-the energy requirements "of their'local residents and
businesses by enabling them to•purchase power on behalf of their communities; and
WHEREAS, the•California Legislature enacted AB 11'7 in 2001 that authorized the
creation of CCAs, described essential program elements and services, ,and- established methods to
protect existing utility customers. from liabilities they might incur if a portionof the. electrical
corporation's customers transferred their' energy services to -a CCA; and
WHEREAS, Senate''Bilt79,0 ($I3 790) seeks to,strengthen;,,existing law by,clarifying,
amending and addin ke p rovisions , that originally - g g: y p t enab e CCAs;to•function as on mall intended and to
allow jurisdictions to pursue CCA Is without undue barriers; and excessive burdens.
NOW; THEREFORE, BE TT RESOLVED THAT the Petaluma,City Council!does hereby. '
a . rove'and authorize th6M1
pp t ayor to sign the;,letfe "r of support for SB 790': '
i e
SB 790 Senate Bill AM ND'ED
,
BILL NUMBER: SB 790' AMENDED
BILL .TEXT"
AMENDED IN SENATE APRIL .14, 2011
INTRODUCED BY Senator Leno
FEBRUARY 18, 2011
An act to amend Sections 331, 366,.2, 3:8'0, 381.1, 395.5,
1802, and 8380 of, and to add Section 707 to, the Public Utilities
Code, relating to electricity.
LEGISLATIVE`COUNSEL''S' D -IGEST
SB 790,,as amended, Leto. Electricity: community choice
aggregation,.
Page 1 of'20
ATTACHMENT 3
(1) The federal Public Utility'Regulatory Policies Act of 1978
( PURPA) requires every state regulatory authority with :respect to
each electric utility, as defined, for which it has ratemaking
authority, to determine whether to adopt certain federal standards if
consistent With' otherwise applicable state law. The 'federal
standards include that no electric utility may recover from any
person other than the shareho'l'ders or other owners of the utility,
any direct' or indirect expenditure by the electric utility for
promotional or political advertising, as defined..
This bill would require the commission to institute a rulemaking
proceeding by March 1, 20,12, for the purpos °e of considering and
adopting a code of conduct„ associated rule's, and enforcement
procedures, to: govern the conduct of.an "electrical corporations
relative to the consideration, ;formation, and implementation of
community choice aggregation programs and to implement the code of
conduct, associated rules,, and enforcement procedures by January 1,
2013. The bill would require the code of conduct, associated rules,
and enforcement procedures, to do the •following: (A).ensure that an
electrical corporation does not market against a community choice
aggregation program, except through an independent marketing division
that is funded exclusively by the electrical corporation's
shareholders, (B) limit the electrical corporation's independent
marketing division's use of support services from the electrical
corporation's ,ratepayer funded divisions, (C) ensure that the
electrical corporation's independent market -ing division does not have
access to competitively sensitive,information, (D) incorporates
rules that the commission finds to he necessary or c onvenient in
order to promote the dewelopment.,of community choice aggregation
programs, to foster fair' • competition, or to protect
against cross - subsidization paid by ratepayers, and
O (E) other matters that the commission
determines to be necessar,:y or advisable to protect a ratepayer's
right to be free from forced speech or to implement that.portion of
PURPA that estab!lishe,s the fed'eral.standard that -no electric utility
may recover from any person other than the shareholders or other
owners of the utility, any direct or indirect expenditure by the
electric utility for political advertising.
(2) Existing 'law authorizes a community choice aggregator to
aggregate the electrical load of interested electricity consumers
within its boundaries and requires a community choice aggregator to
file an implementation plan with the commission. Existing law
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SB:`79'0 Bill'- AMENDED
'requires an electrical corporation to cooperate ny
community choice 'aggregator that investigates, pursu'es-, Or implements
ccmmuni•ty qhoice aggregation programs,, including" providing
appropriate billing and electrical load data
This bill would expand 'the entities that are permitted to
undertake 'communit'y choice aggregation. The bill would require that
'the electrical load data to be supplied by an electrical corporation
as part of its duty to cooperate fully with any community choice
aqgregator, include, electricail- consumption data,, as defined. The bill
would, if �'t !FiT�60_ Hiftt. e� eprnm�ttnity che-
beert f +n6re-ift! ly 661n6;ge4 by t1te ttnee��re rat �-ee er
,
ee I fflffits rt-- the commission finds
that an electrical corporation has violated the requirement to
cooperate fully -with a community -choice aggrega require that the
commission consider the 1mp of the violation upon community choice
aggregat&rs and would Eiuthorize the commission to
allocate ice the eemmttr4ty all
or a portion of any fine co'llecte'd from the electrical company
ets de�ltt to
an af fected fected Community choi.ca.aggre I gation program. The.bill
would revise certain ;resource .. and cost responsibility
requirements as they relate ta community choice aggregators. The bill
would require.that certain •energy efficiency, renewable: energy
resource,, and energy research programs. financed through a
nonbypassable system benefits Charge authorized,purs- uant,to the
Reliable Electric Service Investments Act be adminis"tered on a
nondiscriminatory basis so that the electric service,customers a
community choice aggregator may participate in the pro6ram.on an
equal basis with ;the customers of an electrical corporation. The b.i 11
would require the commission to . authorize. a community
choice aggregator to. elect to become a 3rd-party admi,m'1`s for
the energy efficiency programs financed through the n - onbypa(ssable
system benefits, charge�. for Its'. electric' service customers .. The bill
would authorize a community choice aggregator that has expressly been
authorized by its enabling ordinance nance to represent the interests of
residential and small Commercial customers for whom the aggregator
supplies or proposes to supply.,electric
service, io seek intervenor qompens.ation through the commission's
procedures for awarding such compensation.
(3) Under existing law; a violation . of the Public Utijities or
any order, decision, rule, dire-ct demand, or requirement of the
commission is a crime.
Because this bill would expand the duties owed bu an electrica - 1
corporation pursuant t6 the act,, the Ijill would impose a
state-mandated local by creating a new crime or expanding the
definition of an existing crime.
The California Constitution requires the :state to reimburse local
ag,encies and school districts for certain costs mandated by the
state. Statutory provisions establi'sh procedure's for making that -
reimbursement.
This bill would, provide that no reimbursement is required by this
act for a specified rea.so I n .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated localprogram: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION'l. The Legislature finds 'and declares all of the
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I
SIB 79..0, Senate Bill - AMENDED
following:
(a) I.t is the policy of the state to provide for the
consideration,.formation, and implementation of. community choice
aggregation programs authorized in Section 36!6.2 of the Public
Utilities Code. r'
(b) Since community choice aggregation programs were first
authorized in 2002, only one community choice aggregation program has
been implemented.
(c) Electrical corporations have inherent market,•pbwer derived
from, among other things, name recognition among customers,
lon 'customers, joint control over
u;.
re .o erations rel
generation services, access to
p
competitive customer I nformati ; on, and the potential to
cross - subs competitive generation services.
(d) The:Publi'c Utilities Commission has found that conduct by
electrical corporations to oppose community choice 'aggregation
programs ha the,effect of causing community choice aggregation
programs to be abandoned.
(e) The Public Utilities Com mission has made considerable progress
in identifying and addressing .the..conduct that has hindered the
creation of community choice aggregation programs, and is is now
appropriate to- further addres''s these issues in statute .
(f) :The exercise of'mar"ket, power by electr.ical
corporations is a deterrent,`to the consideration, development, and
implementation of commun'ity';ehoice aggregation programs.
(g) California has a substantial governmental interest
in ensuring that'conduct.,by electrical corporations�ldoes'not threaten
the consideration, development, and implementation' of community
choice'aggregat "ion programs.
(h) It is therefore necessary to establish a code of
conduct, associated rules,, and enforcement procedures, applicable to
electrical corporations in order to promote the;consideratiori.,
development„ and implementation of, community choice aggregation
programs, to .foster fair competition, and to protect against
cross - subsidization by ratepayers.
SEC. 2. Section 331.1,of the-.Public Utilities „Code is amended to
read: j
33. o
means any of follow entdities if that entity'lis not aggregator”
ur oses of�this chapter, communit
Y g Y'is not with
the jurisdiction of a local publicly owned electric utility that
provided' electrical service as,of - January 1, 2603:
('a) Any city, county, 'or city and county whose governing board
elects to, combifte' the loads of its residents, businesses, and
municipal facilities; in a.,communitywide electricity "buyers' program.
(b) An rou of cities-, Any g p. s counties, or cities and'lcoun;tes whose
governing boards have elected to combine the loads of their programs,
through.the format•on,of ,a joint powers agency established under
Chapter '5 (commencing with Section 6500) of Division 7 of Title l,of
the Government Code_
(c) Any California public agency possessing powers authorizing it
to generate —and- or deliver electricity
within its designated jurisdiction, provided the agency may only
.combine the loads of residences businesses, and governmental,
facilities of cities and counties within its jurisdiction that have,
by resolution exercised.pu-rsuant to paragraph (11) of subdivision (c)
of Section 366.2, requested the agency to implement a community
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90 '
, SI.B 796, Senate Bill - AMENDED
choice aggregation program.
SEC. 3. Section 365. Public Utilities 'Code is amended to
•
read;:
365.1.. '(a-) Except as expressly authorized by this section, and
subject to the limitations in subdivisions - (b.) and
('d) , the right of
retail end,-use customers pursuant to this chapter to acquire service
from other providers is suspended until the Legislature, by statute,
lifts thezuspensionbr otherwise authorizesdirdct transactions. For
purposes of this section, "other provider" mean ' ay - ,person,
_ n
corporation, or other' entity that is authori to provide electric
service within the service territory of an electrical corporation
pursuant, to this dhapter, and includes an aggregator, broker, or
marketer, as defined in , ,Section 331, and an electric service
provider, as 'def ined,in Sec'tioh 218.3. "Other provid6rll does not
include, a community choice aggTe gator, as defined in Section, 331.1,
and the limitations in this�sect` do not apply to sale of
electricity by "other.prov . to a community choicei'agg for
resale to community choice aggregation electricity.consumers
pursuant Ito.,Sect-don 366.2.
(b) The
commission shall•allow individual retail,notresidential
end-use customers ,to acquire- electric service from other providers in
each e lectrical corporation's distribution service territory up to
a max - i , mum,allowable total kilowatthours annual lim maximum
allowable annual limit shall be',e;stablished by the commiss=ion 'for
each electrdcal corporation at the maximum total kilowatthours
supplied by all other prov ders,.to distribution customers of that
electrical corporation during any sequential 12 period ,between
April 1, 19,98, and.the effective date of this section.'Within-six
months of the effective date of this section, or by July.1,2010,
whichever is 'sooner,. the commission shall adopt and.implement,a
reop6 schedule that commences immediately and will phase in the
allowable 'amount of increased' kilowatthours over a period of not less
than three years, and not more than five years., raising the
allowable ;limit of kilowatthours supplied by other providers in each
electrical corporation's distribution service territory from the
number of kilowatthours provided by other providerslas of the
effective date of this section, to the maximum a:llowable annual limit
for that electrical corporation's distribution service territory.
The commission shall review and, if appropriate, modify its currently
effective rules governing direct transactions, but that review shall
not delay the start of the p4ase-in schedule
(c) once the commission has authorized additional direct
transactions pursuant to subdivision (b), it shall do.both of the
f ollowing;.
I
(1) Ensure that other providers are subject to the same
requirements that are applicable to.the state's three largest
electrical corporations under any programs or rules adopted by the
commission to implement the resource adequacy provisions of .Section,
380, the renewabl portfolio, standard provisions of Art-ic.la 16
(commencing with Section 3'9 and the requiremen'ts,for the
electricity sector adopted by the State Air pursuant
to the California Global Warming Solutions Act of 2006 (Division 25.15
(commencing with Section 18500) of.the Health and Safety code). This
requirement applies -notwiths:tanding any prior decision of the
commission to the contrary.
(2,) (A) Ensure that in,the event that the commission authorizes,
in the situation of a contract- with a third party, or orders, in the
situation ofutility-owned generation, an electrical corporation to
obtain generation resources that the commission determines are needed
to meet system or local area reliability needs for the_ benefit of
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SR 790 Senate Bill - AMENDED
all customers in the electrical corporation's distribution service
terrni ; the-net capacity 'costs of those generation resources are
_Ty
allocated on a fully n6nbyp'a!ssable basis consistent with ;departing
load provisions as 'determined by,the commission, to all of' the
f ol lowifig:
(i) Bundled service customers of the electrical corporation.
•ii) Customers. that purchase electricity through 'a direct
transaction with other prqvid
(iii) Customers of community choice aggregators.
(B) The commission shall not authorize or order an
ele,ctrical corporation. t'o obta generation resources pursuant to
subparagraph (A), uiiles.s' the commission finds, after adequate notice
and an opportunity -for public hearing, that a load serving entity has
failed to meet the resource adequacy requirements of Section 380
and that this ,
s
failure has cauedd serious threat: system or local
.1 1 1 - caused .a I I y
reliability that is remedied by the In
or other load servi l ,System Operator
' t E he
Ag en tit f� t icommission authorizes or
orders an electrical corporation to obtain. generation
resources;, the commission shall.ensure that those resources meet a
system or . local reliability need in a manner that benefits all'
customers of the, electrica corporation in proportion.to the costs
recovered fr,6rd those ratepayers.
(C) The resource adequacy benefits of generation resources
acquired' by an electrd,cal corporation pursuantito subparagraph (A)
shall be a1locat'ed to all customers who pay their net capacity costs.
Net capacity shall be determined by subtracting the energy and
ancillary services value of the resource from the total costs paid
by the ele corporation pursuant to a contract with a third
, party, or the annual revenue requirement for the resource if the
electrical corporation directly•owns the resource. An, auction
shall not be;,r6quired as A "condit for applying this.allodati
but may'b'e ' al lowed as a means to establish the energy and ancillary
services v of the xesource of determining the net
costs of capacity to be recovered f rom customer pursuant to this
paragraph and the allocatdon of..the net capacity c6sts contracts
with third parties shall be .allowed for the terms of those contracts.
(D) It is the intent of theitegislature—in,enacting this
paragraph., to: provide additional guidance to the commis'si.on with
respect t o the implementation of' subdivision (g) of:Section 380,.as
well as to ensure that.the�cpstomers to whom the net costs and
benefits of capacity are allocated are not requir6d,to Y for the
-
cost of electricity they do not consume.
ons ume.
(d) if the cc - mm. , iiq I s,i I on app I roves a centralized'resource adequacy
mechamism P to:silbdivisions (h) and (i) of S6ction 380,. upon
the iffipl,ementat' ion of the centralized resource ad.equacy,me.ch the
requirements of paragraph 1 (2) `of, subdivision (c) sh&l be
If the commission later orders that electrical corporations cease
procuring capacity through a centralized resource adequacy acy mechanism,
the requirements of paragraph (2) of subdivision (c) shall again
apply- i
(2) If, the use of a centralized resource adequacy mechanism is
authorized by:the•c,ommi,sslion and has been implement"d as set f orth orth in
paragraph :(1), the net capacity posts of generatdon,re.sburces that
the commission determines are required to meet urgent system or
urgent local grid reliability needs, and that the commission
authorizes to be procured outside of the Section 380 or Section 454.5
processes,, shall be recovered according to the p•ovi•sions of
paragraph (2) of subdivision (c)..
(3) Nothing in this subdivision supplants the resource, adequacy
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SB` 790, Senate Bill:- AlV1ENDBD Page 6 of 20
requirements of Section.380 or the resource procurement procedures
established,c in Section 45`4'.,5.
(e) The commission may report to the Legislature�on the efficacy
of authorizing individual retail end -use residential customers to
enter into direct transactions, including appropriate consumer
protections. -
SEC.. 4,. Section 366.2 of the Public Utilities Code is amended to
read:
,
366.2. (a) (1) Customers shall be entitled, to aggregate their
electric loads as members of"the'ir local community with community
choice aggregators.
(2) Customers may- aggsegate.their loads through a public process
with community choice aggregators, if each customer "is. given an
opportunity to opt out of:their community's aggregat °ion ^program.
(3) I -f a customer,opts out of,a community choice a re ator's
program, � y p g ggt ' customer
. or has no commun..t choice program avai a e
shall have the ri to contin
g ue,,'to be served by the existing
electrical corporation its
or' ^' successor in interest.
;
(b) If a public agen'y'seek "s to °serve as a community choice
aggregator, it shall off er °the',, opportunity to purchase electricity to
all residential ".customers 'with'in' ' its jurisdiction
(c) (1) Notwithst'andi '366,, a community choice aggregator
is hereby authorized to aggregate the electrical load of interested
electricity n its boundaries to reduce transaction
consumers within
costs to consumers, provide consumer protections sand leverage the
negotiation of contracts However, 'the community choice aggregator
may not aggregate electrical load if that load is served by a Local
publicly owned electric utility. A..community choice aggregator may
retail electricity"
group' customers ,t o solicit bids,,broker, and
"
contract for electricty. and' °,energy services for those customers. The
community choice aggregator may enter into,agre'ements for services
to facilitate the sale and, Purchase of electricity and other related
services. .Those service agreements may be entered into by a single
city or county, a city and county, or by a group of cities, cities
and counties, or counties:
(2) Under community choice aggregation, customer participation may
not require a positive written declaration, but all customers shall
be informed of their right to opt out of the'communty choice
aggregation program. If no negative declaration i�s'made by a
customer, that customer shall "be served through the'community choice
aggregation program. If an existing customer moves the location of
their electric service within the 'jurisdiction of the'community
cho=ice a re ator, the Gusto
gg g mer shall retain the same subscriber
s "ta'tus, has prior to the move, 'unless the cu'st'omer affirmatively,
changes their subscriber 'statiis.. If the customer is moving from
outside to inside the jurisdiction of the community choice
aggregator, 'the'customer shall become a customer of the community
gg g less the customer affirmatively opts out after
hawing rece ved'o choice aggregator's terms.and "
conditions of service.
(3) A community choice aggregator establishing electrical load
aggregation pursuant to this seeton,shall develop an implementation
plan detailing the process and consequences of aggregation. The
implementation plan, and any subsequent changes to it, shall be
considered and adopted at a duly noticed public hearing. The
implementation plan - ,shall contain all of the following:
(A) An organizational structure of the program,, its operations,
and its funding.
(B) Ratesett -ing and other costs to participants.
(C) Provi-sions.for disclosure and due process in setting rates and
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SB 700 'Senate Bill AM'ENDE'D
allocat -ing costs among 'participants.
(D) 'The methods for entering and terminating agreements with other
entities.
('E) The rights and responsibilities of program participants,
including, but not limited :to, consumer protection procedures, credit
issues, and shutoff procedures.
(F) Terminat of the program.
(G) A description of the third parties that will be supplying
electricity under the program, including, but not limited to,
information about financial, technical., and operational capabilities.
(4) A community choice aggregator establishing electrical load
aggregation shall prepare a statement of intent. with the
implementation plan. Any community choice load aggregation
established pursuant to this section shall provide for the following:
(A) Universal access.
(D) Reliability.
(C) Equitable treatment of all classes of customers-
(D)Any requirements established by state law or by the commission
concerning aggregated service: including those rules adopted
by the commission pursuant to paragraph (3) of subdivision (b) of
Section 8341 for the application of the greenhouse.gases emission
performance standard to community choice aggregators
(5) Tn order to determine the cost- recovery mechanism to be
imposed on the community choice aggregator pursuant to. subdivisions
(d) , (e), and (f) that shall be-paid by the customers ,of the
community choice aggregator to prevent shifting of "cost,s., the
community choice aggregator shall file the implementation plan with
the commission, and any other information r.equested,by the commission
that the commission determines .is necessary to develop the
cost - recovery mechanism in subdivisions (d), (e'), and (f).
(6) The commission shall notify any electrical corporation serving
the customers proposed for aggregation that an implementation plan
initiating community choice,aggregation has been filed, within 10
days of the filing.
(7) Within 90 days after the community choice aggregator
establishing load aggregation files its implementation plan., the
commission shall certify that it , has received the implementation
plan, including any..addit °onal information necessary to determine a
cost - recovery mechanism.. After certificat =ion of receipt of the
implementation plan any additional information requested, the
commission shall then provide the community choice aggregator with
its findings I regarding any :cost recovery that must be paid by
customers of the community choice aggregator to prevent a shif:t'ing ofi
costs as provided..for in subdivisions (d), ..(e), and (f.).
(8.) No entity proposing community choice aggregation shall act to
furnish electricity to electric =ity consumers within its boundaries
until the commission determines the cost - recovery that must be paid
by the customers of that proposed community choice aggregation
program, as provided for in, subdivisions (d), (e), and (f). The
commission shall designate the earliest possible effective date for
implementation of a community choice aggregation program, taking into
consideration the impact on any annual procurement plan of the
electrical corporation that has been approved by the commission.
(9) All electrical corporations shall cooperate fully with any
community choice aggregators that investigate, pursue, or implement
community choice aggregation programs. Cooperation shall
providing the entities with appropriate billing and electrical load
data including, but.not limited to, electrical consumption data as
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i. I d'
SB 7:90 Senate Bill';'- AMENDED ,
.def ined° in' Sec,tion '8'3'8 -0 ' and other data detailing electricity needs
and p;att'erns ofv usage, as determined by the ,commiss,ion, and in
accordance with procedures established by the commission, and
pursuant to the procedures established by the - commission. Those
procedures shall not require electrical corporations to obtain a
customer's consent for the provision of billing and electrical load
data'f the community choice aggregator agrees to reasonable
safeguards appropriate ,to the natu -re of the data to.preven't the_
disclosure of the data to third parties. The .commission shall
exercise its authority pursuant to Chapter.11 (commencing with
Sec,tio 2100) to enforce the requirements of this; paragraph when it
finds that the requirements this paragraph have been
p-
violated., Electrical corporations shall continue
to provide all metering, billing,, collection, and customer service to
retail customers that participate in community choice aggregation
programs. Bills sent by-the - electrical corporation to retail
customers , shall identify ;the community choice aggregator as providing
the electrcal energy component.of the bill. The commi shall
determine the terms and conditions under which the electrical
corporation.provides services to community choice aggregators and
retail customers.
(10 ) I -f the commission on f Inds^ that et
,.
co she an elec tri corporation has
violated this section, the commission shall consider the impact of
the violation upon <comrnunit_ ch oi and may ,
allocate all or a portion of•any'fine collected piurs`uan•t to Chapter
11 (,.commencing, with ;Section, 2100) fts eletmetges t,
to an affected community choice
aggregation program. Any allocation shall be,subje.t to the condition
that the moneys' collected from.a fine may only be•us,e.d for the
direct benefit of ,the . customers,of -the c,ommunit:y choice aggr- e,gation
program to procure eligible renewable. energy resources pursuant to
Article 16 (commencing with Section 399.11). The
(11) The commission, sha
proactive -lye expedite the complaint' process ;for disputes regarding an
electrical corporation's' violation, of its obligation's pursuant to
this section in order to provide for timely resolution of complaints
made by community choice aggregation programs, so that -al -1 ;complaints
are resolved in no more than 180 days following the'filing of a
complaint by a community chc,lce.aggr'egation program "concerning the
actions of the incumbent electrical.corporatlon. Thus deadline• may
only _b'e extended'upon the agreement of all parties to the complaint'
(12). (A) An entity, authorized to be a community choice
aggregator, as defiped in, Section 3.31-1, that, elects to' imp;l;ement a
community choice aggregation program within its juri'sd'iction pursuant
to this, chapter,, shall do so by ordinance. A city or,county may
request, by affirmative resolution of its govern'ing:council or board,
that another entity- authorized to bevy community choice aggregator
act as the community choice aggregator on its behalf. I'f' a city or
county, by resolution, requests• another authorized entity,be; the
g
community choice aggreator for the city or county', that authorized
entity shall be responsibhe for adopting the ordinance to implement
the community choice aggregation program on behalf of the city or
county.
(B) Two or more entities authorized to be`a,community choice
aggregator, as defined in Section 331.1, may participate as.a group
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SB 79:0 Senate Bill' - AMENDEID .
community a gregation pursuant to this chapter, through a
g
jointpoweragency "shed pursuant to Chapter'5 (commencing
with Section 650'd) of Divi`sion,7 of Title 1 of the Government Code,
if each entity adopts an, „ordinance pursuant to subparagraph (A).
Pursuant to Section 65081 of the Government Code, members of a joint
powers agency "that is a community choice aggregator may specify in
their joint powers agreement-that, unless otherwise agreed by the
members of the agency, the debt's., liabilities, and obligations of the
agency shall not be the debts, liabilities, acid obligations, either
jointly or severally, of the members of the agency. The commission
shall not,. as a condition of registration or otherwise., require an
agency's members to voluntarily assume the debts, liab lities, and
obligations of the agency to the electrical corporat "ion unless the
commission finds that'the agreement by the agency's members is the
only reasonable means by which the agency may 'estab.lish its
creditworthiness under, the electrical corporation 1 :is'tariff to pay
charges to the electrical,corporation under the tarifft.
(13) Following adopt- ion,of'aggregation through the
ordinance described in paragraph,) (12)
the programshall' allow any retail customer to op ,out and to
continue to be served as a bundled service customer "'by"the existing
electrical corporation, or its successor in interest.' Delivery
P ,
services, shall.be provided at the same rates, terms,,.and conditions,
as approved by the commis's;ion, for community choice: ^aggregation
customers and customers that have entered into aid'irect transaction
where applicable, as determined,by the commission. Once enrolled in
Y Y, - O Y pt out within
the aggregated enti it an rate a er that chooses to 0
60 days or two billing cycles of the date. of enrollment: may do so
without penalty and.shall'be entitled to receive default service
pursuant to paragraph (31 ) o subdivision (a). Customers that return
to the electrical corporat -ion for procurement .services. shall be
subject to no more than a 'six -month stay requirement with the
electrical corporation. A y reentry °fees to be imposed after'the
opt-out period specified in this paragraph, .shall be approved by .the
commission. and shall,re,flect the cost of reentry. The.commission
shall exclude any amounts previously determined and paid pursuant to
subdivisions (d), (e), and (,f) from the cost of reentry.
� EB )
(14.) Nothing in.this +section shall be construed as,-
authorizing any city or any community choice retail load aggregator
to restrict the ability of retail electricity customers to obtain or
receive service from any authorized:electric service provider in a
.manner consistent with law.
(15) (,A) The "communi;ty choice aggregator shall fully
inform participating,customers at least twice within two calendar
months, or 60 days, in advance of. the date of commencing automatic
enrollment. Notifications may occur concurrently with billing,cycles.
Following enrollment, the aggregated entity shall fully inform
participating customers for not less than two consecutive billing
cycles. Notification may include,, but is not limited to, direct
mailings to customers, or inserts in water, sewer, or other utility
bills..Any notification shall inform customers of both of the
following:
(i) That they are to be automatically enrolled and that the
customer has the right 'to opt out of the community choice aggregator
without penalty.
(ii) The terms and conditions of_the services offered.
(B) The community choice aggregator may request the commission to
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approve and order the,electrical corporation to provide, the_
notification required in subparagraph (A). If the commission orders
the electrical corporation to send one or more of the not- ifications
required pursuant to subparagraph (A) in the electrical corporation's
normally scheduled monthly billing process, the electrical
corporation shall be entitled to recover from the community choice
.aggregator all reasonable incremental costs it incurs related to the
notification or notifications. The electrical corporation shall fully
cooperate with the community choice aggregator in:d'etermining.t'he
feasibility and 'cost's associated with using the el,ec.trical
corporation's normally scheduled..monthly billing process to provide
one or more of the notifications required pursuant to :subparagraph
(A) .
(C) Each notification shall also include a mechanism by which a
ratepayer may opt out of community choice aggregated service. The opt
out may take the form of :a self- .addressed return postcard indicating
the customer's 'election to remain with, or return to.;, electrical
energy service provided by the electrical corporation, or another
straightforward means by which the customer may elect to derive
electrical energy service through the electrical corporation
providing service in the:area.
HE 5;-
(16) A community choice aggregator shall have an
operating service agreement° with the electrical corporation prior to,
furnishing electric service' to consumers within its- 3urisdicticn. The
service agreement shall include performance standards that. govern
the business and,operational relationship between the community
choice aggregator.and the corporation. The commission
shall ensure that any service agreement' between the,corrimunity choice
aggregator and the electrical corporation
includes :equitable responsibilities and remecfi es for
all parties.. The parties may negotiate specific terms of the "service
agreement, provided the 'service agreement is consistent with this
chapter.
H6)
(17) The community choice aggregator shall register
with the commission -which may'requ re additional information t'o
ensure compliance with basic consumer protection rules and other
procedural matters.
(18) Once the community choice aggregator's contract is
signed, the.community choice aggregator shall notify the applicable
electrical corporation that community choice service will commence
within 3 0 days.
8 °
(19) Once n'otif'ied of a community choice
a regator
program, the electrical corporation shall transfer all applicable'
accounts to the "new supplier within a 30 -day period from the date of
the close of their.normakly scheduled monthly metering and billing
process.
(±9)
(20) An electrical corporation shall recover from .the
community choice - aggregator- any costs reasonablyattributab'le t:othe
community choice aggregator,, as determined by the commission, of
implementing this section, - including, but not limited to; .all
business and information system changes, except for transaction- based
costs as described in this paragraph. Any costs not reasonably
attributable to a community choice aggregator shall be recovered from
ratepayers, as determined by the commission. All reasonable
transaction -based costs of notices, billing, metering, collections,
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SB 790 - Senate Bill-A , Al ' E NDED
and customer co[Tmunic'ationS or other services, provided to ran
aggregator or it:'s customers shall be recovered from the aggregator or
its'customers on, terms and at rates to be approved by the
commission,.
(2 1) At the, request and expense of any
community choice aggregator; electrical corporations shall inst'ald,
maintain and' calibrate metering, devices at mutually agreeable .
locations within or adjacent to the community aggre,g , ator's political
boundaries. The electrical corporation shall read the metering
devices and provide the data.collect:ed to the community aggregator at
the, aggregator's expense. To the extent that the community
aggrega'to'r requests a met -ering location that would require alteration
or modification of a circuit,, the electrical corporation shall, only
be required to alter or modify a circuit if such alteration or
modification does not compromise the.safe.ty, reliability or
operational flexibility of the 'electrical corporation' "s, facilities.
All costs, ncurred to modify circuits pursuant to this' paragraph,
shall be borne by the community aggregator.
(d) (1) It is the intent of °,the Legislature that each retail
end -use customer that has purchased power from an electrical''
corporation on or after February -1, 2001,, should bear a fair -share of
. P
the Department of Water Resour`ce.sI elect- ric -ity purchase cost's, as
well as electricity purchase contract obligations incurred,a's of the
effective date of the act ,adding this section that are. recoverable
from electrical corporation customers in commission-approved rates.
It is, further the intent of Ithe Legislature to ;prevent any shifting
of,recoverabl_e costs ,between customers..
(2) The.,L°egis'lature finds and declares that this 'subdivision is
consis.tent, with 'the requirements of Division 27 ( with
`Section 800 00) of `the Water Code and'Section 360.5 and is therefore
declaratory of existing law.
(e) A retail end use customer O at purchases electricity from a
community choice aggregator'pursu`ant to this section shall pay both
of the following:
(1.) A charge equivalent to' the charges, that. would, otherwise be
imposed on. 'the customer by:the'commission to :recover bond related
costs 'pursuant to any agreement between the commission and,the
Department of Water Resources' pursuant,, to Section 8011,0 of the 'Water
Code,, which. charge. . shall ��b,e�
g payable until any obligations of the
Department of Water Resources•pur;suant to Division '-27 (commencing
with Section 8000;0) of the water are fully paid or otherwise
dis (2) r Any ,additional costs of the Department, of Water Res
V p ources,
j equal' to ;the custbmer''s proportionate share of the Department .of
_ Water Re's'ou- rces,''estmated net unavoidable electricity purchase
contra'et,,co" �. s determined by the commission, for the period.
.sts a
` commencin g with the'':cust:omer's,.purchases of electrici -ty from the
community choice aggregator, through the expiration of all Cheri
existing electricity purchase contracts entered into by the
'Department of Walter Resources
(f) A retail end, customer pu- rchasing electricity from a.
community choice'aggregator pursuant to this section shall reimburse
the electrical corporation that-previously served the.customer for
all of the following:
(1) The electrcal_ corporation's unrecovered past unde`-rcollections
for electricity, purchases;, including any financing costs,
,I ,
attributable,ty that customer, that the commission lawfully
determines may ybe recovered yin rates.
(2) Any additional costs of the electrical corporation recoverable
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SB 790 Senate Bill,- AMENDED
in commission- approved rates., equal to the share of the electrical.
corporation's estimated net unavoidable electrci•ty,pur..chase'contract
costs attributable to the customer, as determined`by the commission,
for the period commencing with the customer's purchase's of
electricity from the community choice• aggregator,. through the
expiration of all then existing electricity purchase contracts
entered into by the electrical corporat oh,, provided that the costs
shall not continue for a.peri in excess of'36 months. 'In
establishing the share of ;net unavoidable electricity purchase
contract costs attributable to customers of a community choice
aggregator, the commission shall exclude electricity purchase .
contracts, or other resource commitments, made after- adoption of the
community choice aggregator's; implementation plan' for all customers
served by the community choice aggregator within five years of its
adoption.
(g) To the extent that the estimated net unavoidable .electricity
costs paid by the customers ofl a community choice aggregator
reimburse an electrical corporation for its costs to comply with the
resource adequacy provisions'of„ Section 380, the renewables portfolio
standard requirements of Article 16 (commencing with Section
399.1.1.), or the requirements for tie electricity sector adopted by
the State Air Resources Board pursuant to the California Global
Warming Solutions Act of 2006 (Division 25.,5 (commencing with Section
38500) of the Health and Safety Code),, or for any other electrical
or environmental attribute..of the electric utility's resources, the
community choice aggregator shall annually be given commensurate
credit towards its own obligations to with.the resource
adequacy, renewables portfolio standard, and global warming`
requirements.
(h) (`1) Any charges imposed pursuant to subdivision (.e) :shall be
the ,proper y of the Department, o'f. Water Resources. Any . charges
imposed pursuant to subdivi's'ion (f,) 'ahall be the property of the
electrical ,corporation. The commission 'shal'l establish mechanisms,
including agreements.with,, or orders with respect to, electrical
corporations necessary ',to :ensure that charges- payable.pur•suant to
this ~section shall be promptly remitted to the party entitled to
payment.
(2) Charges imposed pursuant to subdivisions (d), (e), and (f)
shall be nonbypassable.
(i) The commission !shall
authorize community choice aggregation only if the commission imposes
•a 'cost recovery mechanism pursuant to subdivisions (d) , (e) , (f):,
and (h) . Except ,as p,rovdded. by `this subdivisiori 'chi's section, .shall
not alter the suspension by the commission of direct purchases of
electricity from al;te'rnate providers other than by community choice
aggregators, pursuant 'to Section b{
365.1
(j) (1) The commission shall not authorize community choice
aggregation until it ,implements a cost - recovery mechanism, consistent
with subdivisions (d) , (' e7, and (f) , that is applicable to customers
that elected to purchase electricity from an alternate provider
between February 1, 2001, . and January 1, 2&03.
(2) The commission shall not authorize community choice
aggregation until it has adopted rules for implementing community
choice aggregation.
(k) Except for programs funded through the nonbypassable system
benefits charge authorized pursuant to the Reliable Electric Service
Investments Act (Article 15 (commencing with Section 399:)), electric
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SB 790 Senate `B' 11 - '
service customers of; a' community choice aggregator shall not be
required to pay;nonbypass'able charges for goods, services, 'or
programs that do not directly benefit either, or where applicable,
both, the customer and the community choice aggregator serving the
customer. The commission, Energy Commission„ electrical corporation,
or third -party administrator shall administer those programs funded
through the nonbypassablesys.tem benefits charge on a
nondiscriminatory basis so that the electric "s "ervice customers of a
community-choice aggregator may participate in the .program on an
equal basis with the customers, of an electrical corporation..
(1) (1) An electrical. corporation shall 'no t
terminate the services of a community choice aggregator unless
authorized by a vote of -the full commission. The commissIi'on,shall
ensure that prior to.authorizi"ng a termination of service, that the
community choice aggregator has been provided adequate notice and a
reasonable opportui'ity to be heard - - - regarding any electrical
corporation contentions, 'in suppor-t of termination. I=f the contentions
made by the electrical corporation in favor of termination include
factual claims, ;the community choice.agg "regator shall be afforded an
opportunity 'to address those claims in an evidentiary hearing.
(2) Notwithstanding paragraph (1), if the independent system
operator has transferred the community choice aggregator's scheduling
coordination responsibilities to the incumbent electrical
corporation, an administrative law judge or assigned commissioner,
after providing the aggregator with notice and an opportunity to
respond, may suspend the aggregator's service to customers pending a
full vote of the commission,.
(m) Any meeting of an - entity authorized to be a community choice
aggregator, as defined in Section 331.1, for the purpose "of
developing, implementing', or administering ;a program of community
choice aggregation shall" be conducted in the manner prescribed by the
Ralph M.. Brown Act (Chapter.9 (commencing with 'Section 54950) of
Part 1 of Division 2 of °Title.5 of the Government Code).
SEC. 5. Section 380 of .the. Public Utilities Code is amended to
read:
380. (a) 'The commission, in consultation with the Independent
System Operator, shall establish 'resource adequacy requirements for
all load - serving entities.
(b) In establishing resource adequacy requirements, the commission
shall achieve all of the following objectives:
(1) Facilitate development of new generating capacity and,
retention of existing generating capacity that is economic and
needed.
(.2) Equitably allocate the cost of generating cap'aci'ty and prevent.
shifting of 'costs betwe'en customer classes.
(3) Minimize enforcement.requirements and costs,.
(4) Maximize .the;ability'of community choice aggregators
to determine the generation.
resources used to serve their customers.
(c) Each load serving entity shall maintain physical- generating
capacity adequate to meet its load requirements, including„ but not
limited to, peak demand and planning and operating reserves. The
generating capacity shall be deliverable to locations and at times as
may be necessary to provide reliable electric service.
(d) Each load - serving entity shall, at a minimum, meet the most
recent minimum planning reserve and reliability criteria approved by
the Board of Trustees of the Western Systems Coordinating Council or
the Western Electricity Coordi- nating Council.
(e) The commission shal implement and enforce the resource
adequacy requirements established in accordance with this section in
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S-13 140 Senate Bill -
anondi's manner. Each load-serving'entity shall be subject
to the same'requirements for re adequacy and the renewables
portfolio standard program that are applicable to electrical
corporations pursuot to this section, or otherwise requi--ted,by
or by order or decision of the commission. The commission shall
exercise its enforcement powers to ensure compliance by all
load-serving entities- Except for the commiissdon's authority to
enforce resource adequacy requirements pursuant to this section, the
renewables portfolio standard procurement requirements pursuant to
Article 16 (commencing with Section 399.11), and providing for system
and local reliability pursuant to paragraph (2) of subdivision (c)
of Section 365.1, the,commi'sbion has no authority o r jurisdict-ion
with respect to the generation procurement activities of community
choice aggregatorsand shall'not authorize an electrical corporation
to procure generation resources�.on behalf of'customers of a,community
choice aggregator.
(f) The 'commission shall require ,suf information,
.,
including, but not limited to anticipated load, 'act.uaL, load, and
measures undertaken by 4 'load - serving entity to ensure resource
adequacy, to''beieported to'enable,�the commission to determine
compliance with the res'ourde d established by the.
a equacy requi s:
commission.
(g) An electrical c,or _t costs of. me td
pora ion s e ng resource adequacy
requirements, including but limited to, the costs associated .
with system reliabilit and dbc��Ll a"t reliability, that are,
determin&d''to be reasonable by tithe commission, or are otherwise
recoverable under a prbc'urem plan a Py the commission
Pursuant, t6.Sectibh 4541�.,5, `shall- be fully recoverable from those
customers 'on whose beha"If the cost's are incurred, as determined by
the commission, at the I t4me t,h,6. 'commitment - to incur the, cost is made,
on a I rf ul-ly non bypas'sabie _ha,.s!i.s,, as 'determined by the commission. The
commission,' shall exclude any 'amounts 'authorlzed to be 'recovered-
pur,suant to Sectibn 36 when authorizing the amount, of costs to be
reqo customers of a community choice aggregator or from)
customers,; that purchase ele'dti through a dire transaction
pursuant: to this subdivision.
(h) The commission shall determine and authorize the most
efficient andequ'itable means for achieving all,of the following:
(1) Meeting the obj bf this section.
(2) Ensuring that investme " nt,is made in new generating, capacity.
(3) Ensuring that existinq- capacity that is, economic is
retained. 1 1
(4) Ensuring, that the cost of generating capacity is a-1
equitably,,.''
(5) , Ensuring that community choice aggregatprs e
can determine the generation
resources used t 8 's their customers.
mng e termination pursuant to subdivision the
commissi , on ma I y ''I consider 'a centralized resour �adequacy mechanism
among other op,tions..,
(j ) For purposes'' of this section, "load- 'serving entity" means; an
electrical corporation..,,,, electric service provider, or community'
choice aggregator. ".Load'-serving entity" does not include any of the
following:
(1) A local"publicly'owned electric utility.
(2) The State 'Nater Development System commonly known as
the State'Water Proj
(3) Customer generation located on the customer's :site or
providing electric service through arrangements authorized by Section
218, if the customer generation, or the load it serves, meets ,one of
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SB'790 Senate Bill AMENDED, ;� _'
the following criteria:
(A) It 'take's standby service from the electrical corporation on a
commission - approved rate schedule that provides for adequate backup
planning and operating reserves for the standby customer class.
.(B) It is not physically interconnected to the electric
transmission or distribution grid, so that, if the customer
generation fails, backup electricity is not supplied from the
electricity grid.
(C) There is, physical assurance that the load served by the
customer generation.will be curtailed concurrently and commensurately
with an outage of the customer generation.
SEC. 6. Section 381.1 of the Public Utilities: Code is amended to
read
381.1. (a) No later than July 1`5, 2.003,, the commission shall
establish policies and procedures by which any party, including, but
not limited to, a local entity that establishes a commun'ity'choice
aggregation program, may apply to become administrators for
cost - effective energy efficiency and conservation programs
established pursuant °to Section 3:_81 or the Reliable Electric Service
Investments Act (Article' 15 '(commencing with Section 399)). In
determining whether to approve an application to become
administrators and subject to an aggregator's right to elect to
become an administ -rator pursuant to subdivision (f) the
commiss =ion shall consider the value of program continuity and
planning certainty and the value of allowing competitive
opportunities for potentially new 'administrators. The commission
shall weigh the benefits of the party's proposed program to ensure
that the program meets the following objectives.
(1) Is consistent with the goals of the existing programs
established pursuant to Section 3,81 or the Reliable Electric Service
Investments Act (Article 15 '(c,ommencing with Section 399) ) .
(2) Advances the public 'interest in maximizing cost- effective
electricity savings and rel'ated`benefits..
(3) Accommodates the need for broader statewide or.regional
programs.
(b) All audit and reporting requirements established by the
commission pursuant to Section,38'1 or the Reliable Electric Service
Investments Act (Article 15 ('commencing with Section 39,9)), and other
statutes shall apply to the parties chosen as administrators under
this section.
(c) If a community choice aggregator is not the administrator of
energy efficiency and conservation programs for which its customers
are eligible, the commission shall .require the admin stra,t'or of
cost- effect -ive energy eff:ici.ency and conservation programs to 'direct
a,proportional shareiof' its approved °energy efficiency program
activities for mh'ich,the'community choice aggregator!s customers are
eligible, to the c i
community choice aggregator's territory without
regard to customer class;. To the extent that energy efficiency and
conservation programs are targeted to specific locations to avoid or
defer transmission or distribution system upgrades,, the 'targeted
expenditures slald continue irrespective of whether the loads in
those locations are served by an aggregator or by an e-lectri;cal
corporation. The.c.ommisson shall also direct the administrator to
work with the community choice aggregator; to provide advance
information where appropriate about the likely ;impacts of'energy
efficiency programs and to accommodate any unique community program
needs by placing more, or less,, emphasis on particular- approved .
programs to the extent that these special shifts in emphasis in no
way diminish the ef'fective.ness of broader statewide or regional
programs. If the community choice aggregator proposes energy
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SB 790 Senate Bill - AMENDED
efficiency programs other than programs already approved for
implementation..in its territory, it shall do so under established
commission policies and procedures. The commission may order an
adjustment to the share of energy efficiency program activities
directed to a community aggregator's territory if necessary to ensure
an equitable and cost- effective allocation of energy efficiency
program activities.
(d) The commission shall establish an impartial for making
the determination of whether a third party, including:a community
choice aggregator, may become administrators for cost- effective
energy efficiency and conservation programs pursuant to -lbirre
seetilt)n - subdivision (a) and shall not
delegate or otherwise transfer `''
the commission's to make this determination to an
electrical corporation.
(e) The impartial process established
by the commission shall allow a registered community, choice
aggregator to elect to become the administrator- of fund's
collected from the.a re ator's electric service customers and
gg 9 . o
pursuant through a n'onbyplectric system
ce Act .(Article to the Reliable E Service e 15
(commencing with Section 3:9.9);),. or other nbnbypass'able charge
authorized by the commission, for cost - effective energy ef''ficiency
and conservation programs
including nonbypassable ;charges for procurement- related energy
efficiency and conservation
programs of the incumbent; electrical corporation.
(f) A community choice aggregator
electing to become an administrator ishall = ________
submit 'a plan to the commission .for the administration
of cost- effective.energy efficiency and conservation programs
for the aggregator's electric service customers, that -meet
includes funding
requirements, a program description, and the duration of the program.
The program shall do all of the following
(1) Be consistent with the goals of programs es.tabl -ished pursuant
to Section 381 and the Reliable Electric Service Investments Act
(Article 15 (commencing with Section 399)).
(2) Advances the public interest in maximizing cost - effective
electricity savings and re lated'benef,its.
(3) Accommodates the need for broader statewide or ,regional
programs.
(4) Includes . audit and reporting requirements consistent with .the:
audit and reporting requirements established by the commission
pursuant to Section 381 or' the Reliable Electric Service Investments
Act (Article 15 (commencing with Section 399)).
(5) Includes evaluat measurement, and verification protocols
established by the community choice aggregator.
SEC. 7. Section 3�95..5.of the Public utilities Code is amended to
read:
3.95.5. (a) For purposes of this section, the following terms have
the following meanings;.
(1) "Nonprofit charitable organization" means any charitable
organization described in Section 501(c)(3) of the federal Internal
Revenue Code that has as its primary purpose serving the needs of the
poor or elderly..
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SB, 790 Senate 1 8'ffl -AMENDED
'(2) "Electric"t commodity" means electricity.,, - used by the customer or
a supply of electricity available for ' u se by the customer, and does
not include services . associated with the transmission and
distribution of electricity.
(b) Section 80110' of the Water Code, a, ' nonprofit
charitable organization,m ay acquire electric-commodity
through a direct transaction withlan electric service provider r - if
electric commodity service is donated free of charge without
, compensation.
(c) A nonprofit charitable'organi zatIon that'acquires donated
electric commodity servi!c& through,'a dire,.q.t, transaction pursuant to
this section shall be respo , nslblefor paying.,al of the.,fo
(1) Those charges,and surcharqes wouid'be - imposed",upon a
retail end-use customer 'of a',community aggregator pursuant to
subdivisions (d) , (�e) ,, � , , and. , (h) of Section 16:
(2) The transmissi6ii,land charges of an electrical
corporation or a local publicly owned electric ut'i
(3) A nonbypassable, imposed pursuant to Article 7
(commencing with,gedtion,138.1'), Article 8 (commencing.with,Section
385)i or Article 15 (commencing With Section 3
(4) Costs imposed upon . a load-serving entity pursuant to Section
380.
(d) Existing direct access' rules and all service obligations
otherwise applicable . to el61c..tr,iC service providers govern
transactions under this, section.
(e) This section shall, remain in effect only up til I January 1,
2015 and as of that date.is repea =led, unless a later enacted
statute, that is enacted before January 1, 2015, de or extends
that date. ,
SEC. 8. Section 707 i-s added to. Public to
read:
707. (�a) Not later "tha Maltchl, 201-2, the commission shall
institute a rulernaking proceed-i-rig' for the purpose of considering and
adopting a code of conduct, associated rules, and enforcement
procedures, to govern the conduct of the electrical corporation's
relative to the Consideration, formation, and implementation of
community choice aggregat"ionprograms authorized i-n Section 366.2.
The code 'of conduct, associated -rules, and enforcement procedures,
shall do all of the fol lowing:
(1) Ensure that an electrical corporation-does not•arket'against
a community choice aggregation 'program, except through an independent
marketing division that is by the electrical
corporation functionally and physically
' 'separate from" the electrical cQrp6rationls ra-tepayer -,funded
divisions..
(2 ) Limit the electrit cbrobratio independent marketi=ng
division's use of support service's from'the-electrical corporation's
ratepaye-t-fluhded divisions,and ensure that the.e'lec'�rical
� s
corporation nde
ipe i marketing division has�allocated costs,of
any permissible support services from the electrical corporationl�s'
ratepayer-funded.divisions on a fu.11y,allocatedenibedded cost basis,
providing detailed pub reporta of such use.
(3) Ensure that ,the',electrical corporation's, independent marketing
division does not have access to competitively sensitive
information.
(4) (A) Incorporate rules that the
commission hets deberm�Tted etrie neeessetry +Ti new eefflPe`e+t+
Markets nPOTT et !E�nd+n b�- the C_' Hlett t
finds to be nece's'sary or,convenient in order to
promote the development of community choice aggregation.,programs, to
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SA 1.90 Senate Bill- AMENDED Page• 18 of 20
foster fair , competition, or to protect against cross- subsidization
paid by ratepayers_ it -
(B) It is the intent.of the
Legislature that the, rules include in whole or in part,
the rules approved by the commission in Decision 97 -12 -08'8 and
Decision 0'8- 06-016. errs
(C) This paragraph does not limit
the authority of the commission to adopt
rules that it-determines are necessary or convenient in
addition to those adopted in Decision 97- 12 ,08's' afid Decision
08 -06 -016 or to modify any rule adopted in those decisions
(5)
Provide for any other matter that the commission determines to be
necessary or advisable to 'protect a ratepayer''s •rig't to be free from
forced speech or to implement that portion of the federal Public
Utility Regulatory Policies Act of 1978 that establishes the federal
standard that no electric Aitility may recover from any.person other
than the shareholders or other „ of the utility, any direct or
indirect expenditure by - the electric utility for promotional or
political advertising (16'U.S,CC. Sec. 262'3(b)(5)).
(b) The commission shall ensure that the code of conduct,
associated rules, and enforcement procedures are implemented by no
later than January 1, 2013.
(c) This sect'ion.'does not Limit the authorit., of
' ,y he commission to
require that any marketing ag&ihs.t a community choice aggregation
plan shall be conducted an .a
p y ff:ilate of the electrical
corporation, or t'o` require - that marketing against a community choice
aggregator not be conducted by a marketing division of the electrical
corporation.; subject to affiliate transaction rules to be developed
by `the commission.
SEC. 9.' Section 1`8'02 of, the 'Public Utilities Code is amended to
read:
1802. As used in this article.
(a) "Compensation” means payment for all or part, as ,determined by
the commission, of reasonable advocate's fees,.reas'onable expert
witness fees, and other reasonable costs of preparation for and
participation in a proceeding, and includes the fees and costs of
obtaining an award under this article and of obtaining judicial
review, if any.
(b) (1) "Customer" means any of the following:
(A) A participant representing consumers, customers, .or
subscribers of any electrical,, gas, telephone, telegraph„ or water
corporation that is subject to the jurisdiction of the commission.
(B) A .repr-:es`entative who `h'as been' authorized by a
n f n met 4 comnlrere ti-- ettsratlters —f e
customer.
(C) A representative of a group or organization authorized
pursuant to its articles of incorporation or bylaws to represent the
interests of residential customers, or to.represent small commercial
customers who receive bundled electric service from an electrical
corporation.
(D) A community choice aggregator or an entity seeking to
establish a community choice aggregation program, prior to its
commencement of service to customers, that has been expressly
authorized by i:ts enabling ordinance to represent- interests of
residential and small commercial customers for whom the aggregator
supplies or proposes to supply electric service.
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SB 790 Senate Bill - AMENDED Page 19 of 20
(2) Except for a community choice aggregator meeting the
requirements of subparagraph (B) of paragraph (1), "customer" does
not include any state, federal, or local government agency, any
publicly owned public utility, or any entity that, in the commission'
s opinion, was established or formed by a local government entity for
the,purpose of participating in a commission proceeding.
(c) "Expert witness fees" means recorded or billed costs incurred
by a customer for an expert witness.
(d) "Other reasonable costs" means reasonable out -of- pocket
expenses directly incurred by a customer, that are directly related to
the contentions or recommendations made by the customer that
resulted in a substantial contribution.
(e) "Party" means any interested ' pa -rty, respondent public utility,
,or commission staff, in a hearing, or proceeding.
(f) "Proceeding" means an.application, complaint, or
investigation, rulemaking, alternative dispute resolution procedures
in lieu of formal proceedings as may be sponsored or endorsed by the
commission, or other formal proceeding before, the commission...
(g) "Significant financial hardship" means either that the
customer cannot afford, without undue hardship, to pay the costs of
effective participation,, - including advocate's fees, expert. witness
fees, and other reasonable costs of participation, or that, in the
case of a group or organization, the economic interest of the
individual members of the••,group,or organization is small • in
comparison to the costs of- effective participation in the proceeding.
(h) "Small commercial.cu'stomer" means any nonresidential customer
with a maximum peak demand of less than 50 kilowatts. The commission
may establish rules to modify or change the definition of "small
commercia customer," including use of criteria other than a Aeak
demand threshold, if. the commission determines that the modification
or change will promote participation in proceedings at the".commission
by organizations representing small businesses, without
incorporating large commercial and industrial customers..
(i) "Substantial contribution" means that, in the judgment of the
commission, the customer's presentation has substantially assisted
the commission in the making Of its order or decision because the
order or decision has ado"
pted ,i' 'l
n.whoe or in part one or more factual
contentions, legal contentions, policy or procedural
recommendations presented by the customer. Where the customer's
,participation has resulted in a substantial contribution;', even if the
decis'i'on.adopts that customer -'s contention or recommendations, only
in part, the commission ma y aw r x ert fees, and other ard the customer comp.ensatson for all
reasonable,;advocate's fees reasonable e p j
reasonable costs ifncurred by the customer in preparing or pres'enti_ng
that contention or, r•;ecommendation.
SEC. 10. Section 8380 of the Public Utilities Code is amended to
read:
8380. (a) For purposes of this section, "electrical or gas
consumption data" means , idata.about,,,a,,customer's electrical or'natural
gas usage that is fader available as part of. an 'advanced metering
infrastructure, and includes the name, account number, or residence
of the customer.
(b) (1) An el'ectrica&l,'corporation or gas corporation shall not
share`, disc los'e,. o'r� othe' rwise make accessible to any third party a
customer's electriaca'1; "or gas consumption data, except as provided.in
subdivision (e) or upon the,consent of the customer.
(2) An 'electrical corporation or gas corporation shall not sell a
customer's electrical or gas consumption data or any other personally
identifiable information for any purpose.
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SB .790 Senate Bill AMENDED
Page 20. of 20
(3) The electrical corporation or gas corporation.or its
contractors shall not provide an incentive or dis.count to the
customer for accessing the customer' °;s electrical or gas, consumption
data without the prior consent of the customer.
(4) An electrical or gas corporation that utilizes an advanced
metering infrastructure that allows a.customer to access ,the customer'
s electrical and gas °consumption data. shall ensure that the customer
has an option to access that data without being required to agree to
the sharing of his or her personally d- dentifiable information,
including electrical or gas 'consumption data, with a third party.
(c). If an electrical corporation or gas ,corporat'ion.contracts with
a third parity for a service that allows a customer, to;moni.tor his or
her electricity or gas usage, and'that third party uses the data for
a secondary commercial purpose,, the contract between the electrical
corporation or gas corporation and the third party shall provide that
the third party prominently 'discloses that commercial
purpose to the customer.
(d) An electrical corporation or gas corporation shall use
reasonable security procedures and practices to protect a customer's
unencrypted electrical or "gas consumption data from unauthorized
access, destruc,tion,, use, modification, or disclosure.
(e) (1) Nothing in this section shall preclude an electrical
corporation or gas corporation from using customer aggregate
electrical or gas consumption data for analysis,, reporting, or
program management if all information has been, removed. - regarding the
individual identity of 'a ° cus,tomer,:
(2) Nothing in this section shal -1 preclude an electrical
corporation or gas corporation, from disclosing a customer's
electrical or consumption data to a third party for system., grid,
or operational. needs, or the implementation of demand response,
energy any ement en ergy gy g gy :effic or community choice aggregation
programs, p _
provided that, f'or contracts entered „into of ter January 1,,
2011, the utility has required by contract that the thi "r& arty
implement and.maintaan reasonable, security procedures and practices,
zed the information, protect the personal
appropriate to the nature of tYi � ,
information from unauthori t_ion,� use,
isc
o losure, and prohibits the use
of the data for a
modification, r d'
the thepcoustomerrslconsent the prima -ry purpose of
(3 ) Nothing` .in this ;section• shall preclude an. e-le'ctrical
corporation:or gas- corporation't rom disclosing electrical or gas
consumption data,as required or permitted under state or federal law
or by an order of the commission:
1 ",chooses to disclose hi,s or her 'electrical or gas"
(f,) I�f a � customer ”,
consumption data:to a third party that is unaffiliated with, and hasp
no other business relationship >with., the electrical or gas,
p y gas corporation shall, not be
corporation,, tYie electrical or •
res for the s'ecuri't of that. data, or its use or
SEC. ll. No reimbursement is required by this act pursuant to
Section 6. 'of Article ;XIII . B of the California Constitution because
,the only costs that, may be _incurred' by a local agency or school
d'istric't will be incurred because this act creates a new crime or
inf'ract'ion, eliminates; a crime or-infraction, or changes the penalty
f'or a crime or infraction, within the meaning of Section 1755:6 of the
Government Code, ,or changes the definition of. a crime within the
meaning of ;Sec ion.6 of Article XIII`B of the California
Constitution.
http://VVWW.I-e 0751- 0800 /sb_790 bill - 20110414 amend.
5/3%2011