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       |     |                          |
           ----------------------------------------------------------------- 

           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  








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