Usual Suspects Subject of New Bills

While the February 18 deadline for introducing legislation was extended through this week and possibly longer because of bill congestion at the Office of the Legislative Counsel, a smattering of energy bills were introduced. Topics that are, or will be, the subject of legislation include: Resource-adequacy requirements. Core-noncore markets for direct access to electricity providers. Liquefied natural gas. Distributed generation. Community-choice aggregation. Transmission planning. Hearings on the energy bills, which are far from developed, are not expected to begin before March. Under AB 380 by Assembly speaker Fabian N??ez (D-Los Angeles), the California Public Utilities Commission would be required to set resource-adequacy requirements for all load-serving entities to ensure reliability on hot afternoons. The current mandate would extend beyond investor-owned utilities and include direct-access providers and community-choice aggregators. The matter was the focus of a hearing this week. The cost of upping the supplies for reliability purposes would be borne by all consumers: ratepayers, direct-access customers, and those who are supplied by community aggregators. Assemblymember Keith Richman (R-Northridge), a champion of direct access, is attempting to rekindle a core-noncore market via AB 1704. The bill would require direct-access providers to have excess reserve power in accordance with standards that would be set by the California Energy Commission. Another of his measures, AB 515, would require the CPUC to develop direct-access rules and require businesses that work out their own energy deals to pay set tariffs, transmission and distribution fees, and exit fees. Richman also introduced AB 1009, which would require the CPUC and CEC to develop time-of-use tariffs and require real-time meters for all bundled customers. A state assessment of the role of LNG in meeting California?s gas needs, which would include a cost-benefit analysis, would be required under AB 993. The bill, by Assemblymember Joe Canciamilla (D-Pittsburg), would require the Energy Commission to develop the analysis. SB 1003 by Senator Martha Escutia (D-Whittier) would require the CEC to disclose records used to develop energy supply forecasts and other reports on the condition that the release does not cause an ?unfair competitive disadvantage? or is not prohibited by law or contrary to the public interest. There is an ongoing tug of war over access to the energy data records submitted to the commission among the investor-owned utilities, independent generators, and the agency. Late last year, for example, the CEC denied San Diego Gas & Electric?s request for confidential treatment of its load-pricing forecast data, and the utility appealed. Earlier this month, however, SDG&E withdrew its appeal after the commission agreed to develop a blueprint for confidential filings ( Circuit , Feb. 4, 2005). Another Esuctia measure would give the CEC the authority to designate feasible transmission corridors. SB 1059 would specify procedures and also require affected cities and counties to integrate the proposed corridor in their land-use plans. The CPUC and CEC would be required to meet at least monthly to discuss transmission issues in an open and public forum. AB 965 by N??ez would require the two agencies to also include the California Independent System Operator board and submit status reports to the Legislature twice a year. The agencies currently meet every two weeks, but not publicly. Irrigation districts and public power agencies would be allowed to be community-choice aggregators under a bill by Assemblymember David Codgill (R-Modesto). AB 217 would allow cities and counties to opt out. Senator Mike Machado (D-Linden) introduced a distributed-generation bill, which would expand the definition of clean DG. Machado is also expected to promote the extension of standby fees for DG. SB 431 by Senator Jim Battin (R-La Quinta) would once again promote the repowering of existing power plants. Last year?s attempt to give priority to power plant repowering failed. Lloyd Levine (D-Van Nuys) introduced a bill that would create tradable green tags and advance the renewables portfolio standard (RPS) mandate from 2017 to 2010. It mirrors much of SB 107 by Senate president pro tem Don Perata (D-Oakland) ( Circuit , Jan. 28, 2005). Yet to appear is a bill that would increase the RPS from 20 percent of load to 33 percent. The administration in its 2005-06 budget proposal said it supports increasing the amount of green power, but little has been heard on the subject of late. Joe Desmond, the state?s energy czar, said increasing the green mandate was still on the plate.

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Usual Suspects Subject of New Bills

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