BILL ANALYSIS
AB 1
Page 1
ASSEMBLY THIRD READING
AB 1 (Aanestad)
As Amended May 24, 2001
Majority vote
UTILITIES AND COMMERCE 13-1 APPROPRIATIONS 21-0
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|Ayes:|Wright, Pescetti, |Ayes:|Migden, Bates, Alquist, |
| |Calderon, | |Aroner, Hollingsworth, |
| |Bill Campbell, John | |Cedillo, Corbett, Correa, |
| |Campbell, Canciamilla, | |Daucher, Goldberg, |
| |Kelley, La Suer, Leonard, | |Maldonado, Robert |
| |Maddox, Papan, Reyes, | |Pacheco, Papan, Pavley, |
| |Wesson | |Runner, Simitian, |
| | | |Thomson, Wesson, Wiggins, |
| | | |Wright, Zettel |
|-----+--------------------------+-----+--------------------------|
|Nays:|Nation | | |
| | | | |
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SUMMARY : 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 : Additional special fund costs to CPUC would
depend on the number of unresolved disputes forwarded to CPUC
for resolution. Given the 10 day response time provided in this
bill, however, any additional costs should be absorbable.
COMMENTS : Among the many programs initiated and supported under
the system benefits charge contained in Public Utilities Code
Section 399.8, are energy efficiency programs 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.
AB 1
Page 2
This bill 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 bill 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.
This bill 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 bill 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 bill 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.
This bill also provides for an expedited dispute resolution
process through CPUC's Consumer Affairs Division if an entity
has a dispute with an electrical corporation regarding the Large
Nonresidential Standard Performance Contract Program and payment
of any benefits thereunder.
Analysis Prepared by : Kelly Boyd / U. & C. / (916) 319-2083
FN: 0001073