BILL ANALYSIS AB 58 Page 1 ASSEMBLY THIRD READING AB 58 (Keeley) As Amended January 16, 2002 Majority vote UTILITIES AND COMMERCE 17-0 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, | | | | |Calderon, | | | | |Bill Campbell, John | | | | |Campbell, Canciamilla, | | | | |Cardenas, Diaz, Jackson, | | | | |Kelley, La Suer, Maddox, | | | | |Nation, Papan, Reyes, | | | | |Simitian, Steinberg | | | ----------------------------------------------------------------- SUMMARY : Requires electric service 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)Requires an electric service provider that is unable to process the request within the specified time frame to notify the customer-generator and the California Public Utilities Commission of the reason therefor, and the date on which the request will be completed. 3)Directs electric service providers to make all necessary forms and contracts for net energy metering available for download from the Internet. 4)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: AB 58 Page 2 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; and, 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 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), Chapter 369, Statutes of 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. In 1998, AB 1755 (Keeley), Chapter 855, Statutes of 1998, clarified the definition of net energy metering and expanded the eligibility for net energy metering. More recently, AB 918 (Keeley), Chapter 1043, Statutes of 2000, and AB 29X1 (Kehoe), Chapter 8, Statutes of 2001, expanded the net metering program. Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083 AB 58 Page 3 FN: 0004063