BILL ANALYSIS
AB 9 X2
Page 1
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB 9 X2 (Migden)
As Amended September 13, 2001
Majority vote
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|ASSEMBLY: |71-1 |(May 29, 2001) |SENATE: |33-0 |(September 13, |
| | | | | |2001) |
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Original Committee Reference: E.C. & A.
SUMMARY : Authorizes customers to aggregate their electric loads
as individual consumers with private aggregators, or as members
of their local community with community choice aggregators.
Specifically this bill :
1)Authorizes "community choice aggregators" to form either
outside the jurisdiction of a municipal utility district
(MUD), or within such a district if MUD did not provide
electrical service as of May 14, 2001 for purposes of load
aggregation.
1)Requires the California Public Utilities Commission (CPUC) to
require the administrator of cost-effective energy efficiency
and conservation programs to direct a pro rata share of
approved energy efficiency program activities, as eligible, to
the aggregator's territory.
2)Obligates community choice aggregators to pay an amount equal
to the net unavoidable costs of Department of Water Resources
(DWR) procurement attributable to customers off the community
choice aggregator.
The Senate amendments :
1)Limit this previously broad aggregation bill to community
choice aggregators, eliminating municipal aggregators, as
defined, by eliminating participation by special districts.
2)Eliminate application of a pro rata share of energy efficiency
funds attributable to customers of an aggregator to an
aggregator group and instead addresses energy efficiency
AB 9 X2
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program activities.
3)Require aggregator administrators to direct a share of
approved energy efficiency program activities to the
aggregator's territory.
EXISTING LAW :
1)Authorizes specified entities to aggregate electrical loads,
and defines an "aggregator" as one of those specified entities
that provides specified power supply services, including
combining the loads of multiple end-use customers and
facilitating the sale and purchase of electrical energy,
transmission, and other services on behalf of the end-use
customers.
2)Requires CPUC to order specified electrical corporations to
collect and spend certain funds for prescribed public benefit
programs, cost-effective energy efficiency, and conservation.
AS PASSED BY THE ASSEMBLY , this bill:
1)Provided for municipal load aggregation and community choice
aggregation of customer electric load.
2)Allowed such aggregator groups to acquire a pro rata share of
energy efficiency funds attributable to customers within the
aggregator group. Under the original Assembly version,
irrigation districts, counties or municipal utility districts
not offering electrical service could form municipal
aggregator groups.
FISCAL EFFECT : Unknown
COMMENTS : In the electricity procurement market, aggregators of
electricity purchases benefit from certainty of supply by
purchasing in large quantities directly from the wholesale
market. An additional benefit of purchasing on the wholesale
market is the elimination of pass through charges and padded
profits which may occur in retail prices for electricity. This
bill eliminates the current, narrow definition of aggregator
from Public Utilities Code Section 331 and adds a number of
different types of aggregators to this code section to enable
AB 9 X2
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wholesale, bulk purchasing of electricity for end-use customers.
The broadened definition essentially allows for direct purchases
for end-use customers and electricity suppliers, and provides
for CPUC to facilitate these types of transactions. Under this
bill's provisions a community choice aggregator can purchase
electricity for residents and businesses absent a negative
declaration from any individual consumers. Individual consumers
may opt out of the aggregator group without any fee or penalty
if they wish, but if they choose to opt back into the aggregator
group they must pay a fee. Aggregators may not aggregate
electrical load if that load is served by a local publicly owned
electric utility as defined in Public Utilities Code Section
9604. This bill appears to protect existing municipal utilities
and existing local publicly owned utilities from bypass, and
instead has broad provisions for load aggregation which would in
part bypass investor owned utilities.
This bill offers an alternative procurement arrangement to
traditional retail end use purchase of electricity, and
community aggregation is viewed by some consumers as a
cost-effective option for groups of consumers.
Analysis Prepared by : Kelly Boyd / E. C. & A. / (916) 319-2083
FN: 0003596