BILL ANALYSIS
AB 58
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ASSEMBLY THIRD READING
AB 58 (Keeley)
As Amended January 16, 2002
Majority vote
UTILITIES AND COMMERCE 17-0
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|Ayes:|Wright, Pescetti, | | |
| |Calderon, | | |
| |Bill Campbell, John | | |
| |Campbell, Canciamilla, | | |
| |Cardenas, Diaz, Jackson, | | |
| |Kelley, La Suer, Maddox, | | |
| |Nation, Papan, Reyes, | | |
| |Simitian, Steinberg | | |
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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
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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
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FN: 0004063