BILL ANALYSIS
AB 58
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 58 (Keeley)
As Amended August 6, 2002
Majority vote
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|ASSEMBLY: |69-0 |(January 22, |SENATE: |34-2 |(August 14, |
| | |2002) | | |2002) |
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Original Committee Reference: U & C.
SUMMARY : Changes existing rules applicable to net electricity
metering.
The Senate amendments :
1)Eliminate a sunset on authorization for net metering in
existing law, thereby allowing net metering for systems up to
one (1) megawatt (MW) to continue indefinitely.
2)Raise the cap on the total amount of net-metered capacity from
one-tenth of one percent of the peak electrical demand for
each utility to one percent of the peak electric demand for
each energy service provider.
3)Require eligible net metered customers with a capacity of
greater than 10 kilowatts (kW) but less than (1) MW to use
time-of-use meters to measure electricity consumed and
generated, and to value the electricity appropriate to the
time of use.
4)Credit the electricity produced by the net-metered customer at
the value for electric generation at that time of use.
5)Provide that net-metered customers must pay the non-generation
related charges of the utility based on the net kilowatt-hours
consumed.
6)Require the California Public Utilities Commission (PUC) to
assess the economic and environmental costs and benefits of
net metering and report to the Legislature by January 1, 2007.
EXISTING LAW :
AB 58
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1)Requires all energy service providers, which include
investor-owned electric utilities, municipal utilities, and
the like, to credit all electricity generated by a
customer-owned solar or wind system against the customer's
usage of electricity sold by the utility, which is known as
"net metering."
2)Allows net metering customers to employ solar or wind electric
generation systems as large as (1) MW. Effective January 1,
2003, the size limitation is reduced to 10 kW.
3)Limits, effective January 1, 2003, the overall amount of net
metered capacity to one-tenth of one percent of the peak
electrical demand for each utility.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required 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)Directed electric service providers that are unable to process
the request within the specified time frame to notify
customers-generators and PUC of the reason therefor, and the
date on which the request will be completed.
3)Required electric service providers to make all necessary
forms and contracts for net energy metering available for
download from the Internet.
4)Specified 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.
FISCAL EFFECT : Unknown
COMMENTS : 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
AB 58
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metering" because the net electricity generated by a customer is
credited against electricity consumed.
At the outset, net metering was allowed for systems up to 10 kW
capacity, making it suitable for residential applications.
Typically, a residential net-metered system is from (2) to (4)
kW.
The total amount of capacity that could be net metered was
capped at 0.1 percent of the utility load. In 2001, the
Legislature passed AB X1 29 (Kehoe), Chapter 8, Statutes of the
First Extraordinary Session of 2001, which expanded the net
metering program to large commercial and industrial customers by
raising the maximum size of the net-metered system to (1) MW,
and by lifting the cap on total net metered capacity. These
provisions sunset January 2003, but are continued indefinitely
by this bill.
There are an estimated 2,200 net-metered customers today, with
applications pending for an additional 700 customers. Total
net-metered capacity is about (6) MW, with an additional (3) MW
pending. Including the pending projects, total net-metered
capacity in California is about 0.02% of utility peak load.
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083
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