BILL ANALYSIS
AB 1
Page 1
Date of Hearing: April 23, 2001
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
AB 1 (Aanestad) - As Amended: April 16, 2001
SUBJECT : Electrical restructuring: energy.
SUMMARY : This bill requires the California Public Utilities
Commission (CPUC) to establish a single, universal rebate rate
for all energy efficiency technologies used for large
nonresidential standard performance contract programs allocated
funds under the rate component.
EXISTING LAW requires electrical corporations to identify a
separate rate component to collect a system benefits charge to
fund energy efficiency, renewable energy, and research,
development and demonstration programs.
FISCAL EFFECT : Unknown.
COMMENTS : Among the many programs initiated and supported under
the system benefits charge contained in Section 399.8 of the
Public Utilities Code, are energy efficiency programs. At
specified funding levels. This bill would establish a single
rebate rate to pay to large nonresidential customers under
performance contract programs for energy efficiency technologies
used by these customers.
This measure provides a specific, additional incentive for the
largest users of electricity, and the group most likely to
benefit from the overall demand reduction efforts in the state
by implementing energy efficiency technologies. The rebate rate
would be standardized across this customer class and provide
financial incentive for investment in energy efficient
technologies in a uniform manner. The specifics of what the
rebate rate should be and how they should be paid out to
customers of investor owned utilities (IOUs) , specifically,
Pacific Gas and Electric (PG&E), San Diego Gas and Electric
(SDG&E) and Southern California Edison (SCE) would be left to
CPUC to determine. This measure ensures that all large
nonresidential customers receive the same incentive and rebate
for investment in energy efficient technologies and simplifies
the process under which rebates are implemented for this
customer class.
AB 1
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Who Gets What and Why?
Under AB 1, large nonresidential customers would continue to be
subject to oversight of CPUC as to which programs will be
administered and what types of benefits will accrue for energy
efficiency program. This measure requires that one of the
benefits be administered through a uniform rebate for all
customers within this class. The measure does not stream off
any specified funds from current disbursements and earmark them
for the rebates, it leaves that sort of latitude with CPUC. It
is certainly true to infer that this measure takes away
flexibility from IOUs in how they provide rebates or other
incentives directly to customers in this class from the system
benefits program. However, there is fairness in uniformity and
there is institutional knowledge at CPUC which is retained to
determine how much of the benefits program funds should be set
aside for these uniform rebates. This measure seems to specify
a single, equitable delivery mechanism for one type of benefit
to be paid to large nonresidential customers of IOUs under the
existing program without eliminating or altering any other
existing delivery mechanisms.
Staff Recommends:
This bill provides an equitable mechanism for encouraging use of
energy efficient technologies by large nonresidential customers
subject to performance contract programs. The author may wish
to clarify that the establishment of the single rebate rate for
this class of customers is meant to be net of energy efficiency
allocations across all customers classes, however, to clarify
that funds paid by all classes of customers into the system
benefits program continues to be spread across all classes of
customers.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
PG&E
AB 1
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Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083