One Direct-Access Bill Expires; Muni RPS on Life Support

A bill that would phase in direct access for large electricity consumers appears to have expired in the Senate Energy, Utilities and Communications Committee this week. AB 428 by Keith Richman (R-Northridge) and Joe Canciamilla (D-Pittsburg) was briefly revived with a phase-in approach based on load growth and state contract expirations. It would have thrown most of the decision making to the California Public Utilities Commission. The bill failed on a straight party line. Business backed AB 428, which was seen as an alternative to the Southern California Edison?sponsored AB 2006, which would limit direct access. That bill is set for a Senate committee hearing June 29. The Senate committee took action on the following this week: AB 151: The bill by Juan Vargas (D-Chula Vista) would have charged 0.01 cent/kWh on Intergen?s Mexico facility for mitigation of crossborder pollution. It died in committee. AB 426: This bill by Dave Cox (D-Sacramento) would prohibit the CPUC from imposing any cost responsibility surcharge on a customer of a new muni if the customer had not previously been served by an investor-owned utility. Committee chair Debra Bowen (D-Redondo Beach) wanted the bill parked on the floor while the CPUC decides the surcharge issue. AB 594: Although this photovoltaics bill by Mark Leno (D-San Francisco) was challenged because of the cost of the power, it passed and was sent to Appropriations. It requires Pacific Gas & Electric to buy any excess power produced by the 5 MW solar array on top of San Francisco?s convention center. AB 1684: Also a Leno bill, this expands subsidies under the CPUC?s self-generation incentive program to distributed facilities using waste gas. The committee approved this bill as the new subsidies are cheaper than the utility?s avoided costs. AB 2499: This bill by Jerome Horton (D-Inglewood) was supposed to give the CPUC oversight over new municipal utilities to ensure resource adequacy. It was amended to delete CPUC oversight but require new munis to hold hearings on power supplies. AB 2803: Another Horton bill, this would have required the CPUC to hire outside economic analysts if an administrative law judge in a case requested it. It failed but is up for reconsideration. AB 2869: The Los Angeles Department of Water & Power has swapped customers on the fringe of its territory with Edison when it?s been economical to do so. This bill, by Lloyd Levine (D-Van Nuys), would have those customers avoid exit fees when the two utilities? territories are redrawn. The bill passed. The Assembly Utilities and Commerce Committee held an informational hearing in which California Energy Commission, CPUC, and California Independent System Operator officials assured legislators that there will be more supplies available than under worst-case scenarios?largely because of expected conservation. However, legislators remain concerned that power plant owners will shut down unexpectedly, leaving the system unstable. Committee chair Sarah Reyes (D-Fresno) warned that if generators do not inform CAISO when plants are going down, they can expect legislation to penalize them. In addition to the informational hearing, the committee acted on: SB 1565: This Bowen bill requires the CEC to include in its biennial Integrated Energy Policy Report a strategic plan for the state?s electric transmission grid. It moved on to Appropriations. SB 1478: This controversial bill by Byron Sher (D-Palo Alto) is primarily to allow renewable energy credits trading so San Diego Gas & Electric and municipal utilities can meet a renewables portfolio standard. It also accelerates the RPS to 2010. It had been amended to require that munis meet the same definitions of renewables as apply to investor-owned utilities. While some legislators want to avoid discrimination between the two types of utilities and thus to promote more new renewables, the language was deleted to assuage opponents?including labor?and keep the part of the bill that allows renewables credits trading. What ended up passing both U&C and the Natural Resources Committee June 24 is a version that keeps the trading authorization but sets aside the muni renewables requirement for a year while the CEC studies what sort of incentives the state can offer to get munis on board with the same renewables requirements as investor-owned utilities. The commission is to report back to the Legislature in 2006 with its findings. These amendments got the support of all but PG&E. The utility is holding out for reciprocal renewables portfolio standards from munis.

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One Direct-Access Bill Expires; Muni RPS on Life Support

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