BILL ANALYSIS
AB 58
Page 1
Date of Hearing: January 14, 2002
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
AB 58 (Keeley) - As Amended: January 7, 2002
AS PROPOSED TO BE AMENDED IN COMMITTEE
SUBJECT : Net energy metering.
SUMMARY : Requires electricity providers to make net metering
applications available on the Internet, and to timely process
net metering applications from eligible customers.
Specifically, this bill :
1)Obligates electric service providers to process a net metering
application in the same time frame within which requests for
new electric service from similarly situated customers are
handled, but not to exceed one month in any event.
2)Directs electric service providers to make all necessary forms
and contracts for net energy metering available for download
from the Internet.
3)Specifies that customer generation of electricity, entitled
under current law to net metering terms in effect on the date
of installation, to be so entitled regardless of a change in
customer or ownership of the energy system.
EXISTING LAW:
1)Requires every electrical corporation to offer net energy
metering to customers.
2)Outlines how customer energy production and consumption is
valued under the net metering program:
a) When monthly energy consumption exceeds the amount of
energy produced, the net consumption shall be valued as if
that were the customer's actual consumption.
b) When energy production exceeds energy consumption, the
net energy produced shall be valued at the same price the
electrical corporation would charge.
AB 58
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c) The above calculation is made each month, but the total
is paid after 12 months.
3)Specifies that, if a net energy metering customer buys
electricity from someone other than the electrical service
provider, the provider may recover the incremental costs
related to the net energy metering from the customer's other
supplier of electricity.
FISCAL EFFECT : None
AMENDMENTS :
As proposed to be amended by the author, the principal operative
provisions of this bill (Page 4, lines 21 to 28, inclusive, and
Page 10, lines 8 to 15, inclusive) would read as follows:
"Every electric service provider shall ensure that requests for
establishment of net energy metering are process in a time
period not exceeding that for similarly situated customers
requesting new electric service, but not to exceed one month
from the date the electric service provider receives a completed
application from an eligible customer-generator. Every electric
service provider shall make all necessary forms and contracts
for net energy metering available for download from the
Internet. and shall expedite the establishment of net energy
metering upon request from an eligible customer-generator.
COMMENTS :
According to the author and supporters, many users of renewable
solar and wind energy technologies have had difficulty getting
the net metering applications processed by the utilities in a
timely manner.
In 1995, the Legislature passed SB 656 (Alquist) [Chap. 369,
Stats 1995], requiring electric utilities to buy back any
electricity generated by a customer-owned solar electric system.
This buy-back program is known as "net metering" because the
net electricity generated by a customer is credited against
electricity consumed.
AB 58
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In 1998, AB 1755 (Keeley) [Chap. 855, Stats. 1998], clarified
the definition of net energy metering and expanded the
eligibility for net energy metering. More recently, AB 918
(Keeley) [Chap. 1043, Stats. 2000] and AB 29X [Chap. 8, Stats.
2001] expanded the net metering program.
REGISTERED SUPPORT / OPPOSITION :
Support
California Solar Energy Industries Association
Office of Ratepayer Advocates
Opposition
None on file
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083