BILL NUMBER: AB 58 CHAPTERED
BILL TEXT
CHAPTER 836
FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2002
APPROVED BY GOVERNOR SEPTEMBER 24, 2002
PASSED THE SENATE AUGUST 30, 2002
PASSED THE ASSEMBLY AUGUST 30, 2002
CONFERENCE REPORT NO. 1
PROPOSED IN CONFERENCE AUGUST 27, 2002
AMENDED IN SENATE AUGUST 6, 2002
AMENDED IN SENATE JUNE 20, 2002
AMENDED IN ASSEMBLY JANUARY 16, 2002
AMENDED IN ASSEMBLY JANUARY 7, 2002
INTRODUCED BY Assembly Members Keeley and Pescetti
(Coauthors: Assembly Members Kehoe, Richman, and Wayne)
DECEMBER 4, 2000
An act to add Section 25401.6 to the Public Resources Code, and to
amend Sections 2827 and 2827.7 of, to add Section 2827.8 to, and to
repeal Section 2827 of, the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 58, Keeley. Net energy metering.
(1) Under existing law, the Public Utilities Commission is
required to order the respective electrical corporations to collect
and spend funds in accordance with a prescribed schedule. Under
existing law, of the funds expended for in-state operation and
development of emerging renewable resource technologies, a certain
amount shall be used for programs designed to provide customer
credits for purchases of renewable energy produced by certified
energy providers.
This bill would require the commission, in its administration of
these provisions, to establish a separate rebate for eligible
distributed emerging technologies for affordable housing projects.
These provisions would only become operative if SB 1038 is also
enacted and amends Section 383.5 of the Public Utilities Code.
(2) Existing law requires every electric service provider to
develop a standard contract or tariff providing for net energy
metering, and to make this contract available to eligible
customer-generators, upon request. Existing law, commencing on
January 1, 2003, requires every electric service provider, upon
request, to make available to eligible customer-generators contracts
for net energy metering subject to specified limitations on the
number of contracts. Existing law requires, commencing in 1999,
every electric service provider to make available to the ratemaking
authority information on the total rated generating capacity used by
eligible customer-generators that are customers of that provider in
the provider's service area.
This bill would require every electric service provider, as
defined, commencing January 1, 2003, to make available to the
ratemaking authority information on the total rated generating
capacity used by eligible customer-generators that are customers of
that provider in the provider's service area. The bill would require
every electric service provider to ensure that requests for
establishment of net energy metering service are processed in a time
period not exceeding that for similarly situated customers requesting
new electric service, but not to exceed 30 working days from the
date the electric service provider receives a completed application
form, including a signed interconnection agreement, from an eligible
customer-generator and an electric inspection clearance. The bill
would require an electric service provider to ensure that requests
for an interconnection agreement be processed in a time period not to
exceed 30 working days from the date the electric service provider
receives the completed application. The bill would require an
electric service provider that is unable to process the requests
within these timeframes, to notify the customer-generator and the
ratemaking authority. The bill would also require every electric
service provider to make forms and contracts for net energy metering
available for download from the Internet. The bill would specify
special net-metering provisions for an eligible customer-generator
with a capacity of more than 10 kilowatts, that receives electrical
service from a local publicly owned electric utility that has elected
to utilize a co-energy metering program. The bill would require, if
the commission determines that there are cost or revenue obligations
for an electric service provider that may not be recovered from
customer-generators acting pursuant to the bill, that those
obligations remain within the customer class from which any shortfall
occurred and would prohibit those obligations from being shifted to
any other customer class. The bill would require that net energy
metering and co-energy metering customers shall not be exempt from
the public benefits charge. The bill would require the commission,
in its report to the Legislature, to examine different methods to
ensure the public benefits charge remains a nonbypassable charge.
The bill would require net metering customers to reimburse the
Department of Water Resources for all charges that would otherwise be
imposed on the customer by the commission to recover bond-related
costs, as specified. The bill would require the commission to report
to the Governor and the Legislature by January 1, 2005, on the
economic and environmental costs and benefits of net energy metering.
The bill would express legislative intent that the Treasurer
incorporate net energy metering and co-energy metering projects as
sustainable building methods or distributive energy technologies for
purposes of evaluating low-income housing projects.
This bill would require eligible customer-generators, unless
approved by the electric service provider, that utilize wind energy
co-metering, as defined by the bill, with a capacity of more than 50
kilowatts, but not exceeding one megawatt, to utilize described
meters.
The bill would provide that the consumption of electricity from
the electric service provider for wind energy co-metering by an
eligible customer-generator is to be priced in accordance with the
standard rate charged to the eligible customer-generator in
accordance with the rate structure to which the customer would be
assigned if the customer did not use an eligible wind electrical
generating facility, and that the generation of electricity provided
to the electric service provider is to result in a credit to the
eligible customer-generator.
(3) Existing law provides that generation eligible for net energy
metering installed on or before December 31, 2002, is entitled to the
net energy metering terms in effect on the date of installation for
the life of the installation.
This bill would make this provision applicable only to generation
eligible for net energy metering that has all local and state permits
required to commence construction on or before December 31, 2002,
and has completed construction on or before September 30, 2003,
regardless of any change in customer or ownership of the energy
system. The applicable terms would be those in effect on the date
local and state permits were acquired.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25401.6 is added to the Public Resources Code,
to read:
25401.6. (a) In its administration of subdivision (e) of Section
383.5 of the Public Utilities Code, the commission shall establish a
separate rebate for eligible distributed emerging technologies for
affordable housing projects including, but not limited to, projects
undertaken pursuant to Section 50052.5, 50053, or 50199.4 of the
Health and Safety Code. In establishing the rebate, where the
commission determines that the occupants of the housing shall have
individual meters, the commission may adjust the amount of the rebate
based on the capacity of the system, provided that a system may
receive a rebate only up to 75 percent of the total installed costs.
The commission may establish a reasonable limit on the total amount
of funds dedicated for purposes of this section.
(b) It is the intent of the Legislature that this section fulfills
the purpose of subparagraph (E) of paragraph (2) of subdivision (e)
of Section 383.5 of the Public Utilities Code.
SEC. 2. Section 2827 of the Public Utilities Code, as amended by
Section 11 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage substantial private investment in renewable energy
resources, stimulate in-state economic growth, reduce demand for
electricity during peak consumption periods, help stabilize
California's energy supply infrastructure, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electrical corporation,
as defined in Section 218, a local publicly owned electric utility,
as defined in Section 9604, or an electrical cooperative, as defined
in Section 2776, or any other entity that offers electrical service.
This section shall not apply to a local publicly owned electric
utility, as defined in Section 9604 of the Public Utilities Code,
that serves more than 750,000 customers and that also conveys water
to its customers.
(2) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electric
service provider, who uses a solar or a wind turbine electrical
generating facility, or a hybrid system of both, with a capacity of
not more than one megawatt that is located on the customer's owned,
leased, or rented premises, is interconnected and operates in
parallel with the electric grid, and is intended primarily to offset
part or all of the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (h). Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (h), or to collect solar
or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(4) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period is as described
in subdivision (h). Wind energy co-metering shall be accomplished
pursuant to Section 2827.8.
(5) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility, as defined in Section 9604,
has elected to apply a generation-to-generation energy and
time-of-use credit formula as provided in subdivision (i).
(6) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the local publicly owned
utility.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
exceeds one-half of 1 percent of the electric service provider's
aggregate customer peak demand.
(2) On an annual basis, beginning in 2003, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area. For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering. The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area.
(3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators exceeds one-half of 1 percent of the
aggregate customer peak demand of those electric service providers.
(d) Electric service providers shall make all necessary forms and
contracts for net metering service available for download from the
Internet.
(e) (1) Every electric service provider shall ensure that requests
for establishment of net energy metering are processed in a time
period not exceeding that for similarly situated customers requesting
new electric service, but not to exceed 30 working days from the
date the electric service provider receives a completed application
form for net metering service, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction. If an electric service provider is unable to process
the request within the allowable timeframe, the electric service
provider shall notify both the customer-generator and the ratemaking
authority of the reason for its inability to process the request and
the expected completion date.
(2) Electric service providers shall ensure that requests for an
interconnection agreement from an eligible customer-generator are
processed in a time period not to exceed 30 working days from the
date the electric service provider receives a completed application
form from the eligible customer-generator for an interconnection
agreement. If an electric service provider is unable to process the
request within the allowable timeframe, the electric service provider
shall notify the customer-generator and the ratemaking authority of
the reason for its inability to process the request and the expected
completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not provide distribution service for the direct
transactions, the service provider that provides distribution service
for an eligible customer-generator is not obligated to provide net
energy metering to the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier, and the customer is an eligible customer-generator, the
service provider that provides distribution service for the direct
transactions may recover from the customer's electric service
provider the incremental costs of metering and billing service
related to net energy metering in an amount set by the ratemaking
authority.
(g) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if the customer did not use
an eligible solar or wind electrical generating facility, except
that eligible customer-generators shall not be assessed standby
charges on the electrical generating capacity or the kilowatthour
production of an eligible solar or wind electrical generating
facility. The charges for all retail rate components for eligible
customer-generators shall be based exclusively on the
customer-generator's net kilowatthour consumption over a 12-month
period, without regard to the customer-generator's choice of electric
service provider. Any new or additional demand charge, standby
charge, customer charge, minimum monthly charge, interconnection
charge, or any other charge that would increase an eligible
customer-generator's costs beyond those of other customers who are
not customer-generators in the rate class to which the eligible
customer-generator would otherwise be assigned if the customer did
not own, lease, rent, or otherwise operate an eligible solar or wind
electrical generating facility are contrary to the intent of this
section, and shall not form a part of net energy metering contracts
or tariffs.
(h) For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period. The following rules shall apply to the annualized
net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electric service provider, and at
each anniversary date thereafter, be billed for electricity used
during that period. The electric service provider shall determine if
the eligible residential or small commercial customer-generator was
a net consumer or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible residential or small
commercial customer-generator during that same period, the eligible
residential or small commercial customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible residential or small commercial customer-generator's
consumption shall be calculated as follows:
(A) For all eligible customer-generators taking service under
tariffs employing "baseline" and "over baseline" rates, any net
monthly consumption of electricity shall be calculated according to
the terms of the contract or tariff to which the same customer would
be assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For all eligible customer-generators taking service under
tariffs employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all residential and small commercial customer-generators
and for each billing period, the net balance of moneys owed to the
electric service provider for net consumption of electricity or
credits owed to the customer-generator for net generation of
electricity shall be carried forward as a monetary value until the
end of each 12-month period. For all commercial, industrial, and
agricultural customer-generators the net balance of moneys owed shall
be paid in accordance with the electric service provider's normal
billing cycle, except that if the commercial, industrial, or
agricultural customer-generator is a net electricity producer over a
normal billing cycle, any excess kilowatthours generated during the
billing cycle shall be carried over to the following billing period
as a monetary value, calculated according to the procedures set forth
in this section, and appear as a credit on the customer-generator's
account, until the end of the annual period when paragraph (3) shall
apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
residential or small commercial customer-generator with net
electricity consumption information with each regular bill. That
information shall include the current monetary balance owed the
electric service provider for net electricity consumed since the last
12-month period ended. Notwithstanding this subdivision, an
electric service provider shall permit that customer to pay monthly
for net energy consumed.
(5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric service provider, the electric service provider shall
reconcile the eligible customer-generator's consumption and
production of electricity during any part of a 12-month period
following the last reconciliation, according to the requirements set
forth in this subdivision, except that those requirements shall apply
only to the months since the most recent 12-month bill.
(6) If an electric service provider providing net metering to a
residential or small commercial customer-generator ceases providing
that electrical service to that customer during any 12-month period,
and the customer-generator enters into a new net metering contract or
tariff with a new electric service provider, the 12-month period,
with respect to that new electric service provider, shall commence on
the date on which the new electric service provider first supplies
electric service to the customer-generator.
(i) Notwithstanding any other provisions of this section, the
following provisions shall apply to an eligible customer-generator
with a capacity of more than 10 kilowatts, but not exceeding one
megawatt, that receives electrical service from a local publicly
owned electric utility, as defined in Section 9604, that has elected
to utilize a co-energy metering program unless the electric service
provider chooses to provide service for eligible customer-generators
with a capacity of more than 10 kilowatts in accordance with
subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
"time-of-use" measurements of electricity flow, and the customer
shall take service on a time-of-use rate schedule. If the existing
meter of the eligible customer-generator is not a time-of-use meter
or is not capable of measuring total flow of energy in both
directions, the eligible customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
both time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a government agency or the electric service provider to
reduce its costs for purchasing and installing a time-of-use meter.
(2) The consumption of electricity from the electric service
provider shall result in a cost to the eligible customer-generator to
be priced in accordance with the standard rate charged to the
eligible customer-generator in accordance with the rate structure to
which the customer would be assigned if the customer did not use an
eligible solar or wind electrical generating facility. The
generation of electricity provided to the electric service provider
shall result in a credit to the eligible customer-generator and shall
be priced in accordance with the generation component, established
under the applicable structure to which the customer would be
assigned if the customer did not use an eligible solar or wind
electrical generating facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the electric
service provider the balance of electricity costs and credits during
that billing period. In any billing period in which the eligible
customer-generator has been a net producer of electricity calculated
on the basis of value determined pursuant to paragraph (2), the
electric service provider shall owe to the eligible
customer-generator the balance of electricity costs and credits
during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that an electric service
provider may choose to carry the credit over as a kilowatt hour
credit consistent with the provisions of any applicable tariff,
including any differences attributable to the time of generation of
the electricity. At the end of each 12-month period, the electric
service provider may reduce any net credit due to the eligible
customer-generator to zero.
(j) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability. A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electric corporation, as defined in Section 218,
that may not be recovered from customer-generators acting pursuant to
this section, those obligations shall remain within the customer
class from which any shortfall occurred and may not be shifted to any
other customer class. Net-metering and co-metering customers shall
not be exempt from the public benefits charge. In its report to the
Legislature, the commission shall examine different methods to ensure
that the public benefits charge remains a nonbypassable charge.
(l) A net metering customer shall reimburse the Department of
Water Resources for all charges that would otherwise be imposed on
the customer by the commission to recover bond-related costs pursuant
to an agreement between the commission and the Department of Water
Resources pursuant to Section 80110 of the Water Code, as well as the
costs of the department equal to the share of the department's
estimated net unavoidable power purchase contract costs attributable
to the customer. The commission shall incorporate the determination
into an existing proceeding before the commission, and shall ensure
that the charges are nonbypassable. Until the commission has made a
determination regarding the nonbypassable charges, net metering shall
continue under the same rules, procedures, terms, and conditions as
were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (l),
a customer-generator shall not be required to replace its existing
meter except as set forth in paragraph (3) of subdivision (b), nor
shall the electric service provider require additional measurement of
usage beyond that which is necessary for customers in the same rate
class as the eligible customer-generator.
(n) On or before January 1, 2005, the commission shall submit a
report to the Governor and the Legislature that assesses the economic
and environmental costs and benefits of net metering to
customer-generators, ratepayers, and utilities, including any
beneficial and adverse effects on public benefit programs and special
purpose surcharges. The report shall be prepared by an independent
party under contract with the commission.
(o) It is the intent of the Legislature that the Treasurer
incorporate net energy metering and co-energy metering projects
undertaken pursuant to this section as sustainable building methods
or distributive energy technologies for purposes of evaluating
low-income housing projects.
SEC. 3. Section 2827 of the Public Utilities Code, as added by
Section 12 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is repealed.
SEC. 4. Section 2827.7 of the Public Utilities Code is amended to
read:
2827.7. Generation eligible for net energy metering that has all
local and state permits required to commence construction on or
before December 31, 2002, and has completed construction on or before
September 30, 2003, shall be entitled, regardless of any change in
customer or ownership of the energy system, for the life of the
installation, to the net energy metering terms in effect on the date
the local and state permits were acquired.
SEC. 5. Section 2827.8 is added to the Public Utilities Code, to
read:
2827.8. Notwithstanding any other provisions of this article, the
following provisions apply to an eligible customer-generator
utilizing wind energy co-metering with a capacity of more than 50
kilowatts, but not exceeding one megawatt, unless approved by the
electric service provider.
(a) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
"time-of-use" measurements of electricity flow, and the customer
shall take service on a time-of-use rate schedule. If the existing
meter of the eligible customer-generator is not a time-of-use meter
or is not capable of measuring total flow of energy in both
directions, the eligible customer-generator is responsible for all
expenses involved in purchasing and installing a meter that is both
time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a government agency or the electric service provider to
reduce its costs for purchasing and installing a time-of-use meter.
(b) The consumption of electricity from the electric service
provider for wind energy co-metering by an eligible
customer-generator shall be priced in accordance with the standard
rate charged to the eligible customer-generator in accordance with
the rate structure to which the customer would be assigned if the
customer did not use an eligible wind electrical generating facility.
The generation of electricity provided to the electric service
provider shall result
in a credit to the eligible customer-generator and shall be priced in
accordance with the generation component, excluding surcharges to
cover the purchase of power by the Department of Water Resources,
established under the applicable structure to which the customer
would be assigned if the customer did not use an eligible wind
electrical generating facility.
SEC. 6. Section 1 of this act, adding Section 25401.6 to the
Public Utilities Code, shall only become operative if SB 1038 of the
2001-02 Regular Session of the Legislature is enacted and becomes
effective on or before January 1, 2003, and SB 1038 amends Section
383.5 of the Public Utilities Code.