BILL NUMBER: SB 1790	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 17, 2002

INTRODUCED BY   Senator Bowen

                        FEBRUARY 22, 2002

   An act to add Section 2774.6 to the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1790, as amended, Bowen.  Electrical corporations:
air-conditioning: load control.
   (1) Existing law provides for regulation of electrical
corporations by the Public Utilities Commission.  
   This bill would require the commission to order each electrical
corporation to establish a mandatory air-conditioning load control
program for all residential customers of the corporation that have a
central air-conditioning system.  The bill would require the
unspecified phased-in installation of automatic load control devices
on existing residential central air-conditioning systems, and would
require all new residential central air-conditioning systems
installed in the service area of an electrical corporation on or
after January 1, 2004, to include an automatic load control device.
   This bill would provide that the commission will adjust rates to
compensate the electrical corporation for the costs reasonably
incurred by an electrical corporation for implementing its
residential central air-conditioning load control program. 

   This bill would require the Public Utilities Commission, in
consultation with the State Energy Resources Conservation and
Development Commission, to develop a program for residential and
commercial customer air-conditioning load control.  The bill would
provide that the goal of the program is to contribute to the adequacy
of electricity supply and to help customers reduce their electric
bills in a cost-effective manner. 
   Because a violation of a rule or order of the commission is a
crime under existing provisions of law, the bill would impose a
state-mandated local program by creating a new crime.
   (2)  The bill would make legislative findings and
declarations.
  (3)  The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state.  Statutory provisions establish procedures for
making that reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Air-conditioning load  contributes  
constitutes  28 percent of California's peak electricity demand
 , the largest single component of electricity demand  .

   (b) The air-conditioning cycling programs run by the state's
electrical corporations currently achieve the single greatest
instantaneous peak demand reduction on the electricity system.
   (c) Implementing load control of all residential  
   (b) Implementing load control for residential and commercial 
air-conditioning systems by the state's electrical corporations can
achieve a significant reduction of California's peak electricity
demand  in a cost-effective manner  .  
   (d) It is the intent of the Legislature to mandate load control by
the state's electrical corporations of central air-conditioning
systems of residential customers.  
   (c) It is the intent of the Legislature that the state establish
cost-effective load control programs for residential and commercial
air-conditioning systems. 
  SEC. 2.  Section 2774.6 is added to the Public Utilities Code, to
read:  
   2774.6.  (a) As used in this section, the following terms shall
 
   2774.6.  The commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall develop a
program for residential and commercial customer air-conditioning load
control.  The goal of the program shall be to contribute to the
adequacy of electricity supply and to help customers reduce their
electric bills in a cost-effective manner.   have the
following meanings:
   (1) "Air-conditioning load control" means the process whereby an
electrical corporation uses an automatic control device to modulate a
customer's air-conditioning system.
   (2) "Central air-conditioning system" means a system for heating
or cooling that uses a fan to distribute heated or cooled air within
a confined space.  A typical residential central air-conditioning
system includes a heating or cooling unit, supply or return ductwork,
and controls, with these components provided in either a packaged or
split system configuration.
   (3) "Load control period" means the period during which
air-conditioning load control is implemented, and shall include both
of the following:
   (A) When the Independent System Operator directs an electrical
corporation to curtail specific amounts of load sufficient to
maintain operating reserves above the 5 percent level through the
next forecast hour.
   (B) When an electrical corporation is testing the air-conditioning
load control automatic control device.
   (b) The commission shall order each electrical corporation to
establish a mandatory air-conditioning load control program
applicable to all residential customers that have a central
air-conditioning system.
   (c) The commission shall direct each electrical corporation to
furnish, install, operate, and maintain an automatic control device
at the premises of each residential customer that, as of January 1,
2004, has a central air-conditioning system, and to maintain the
necessary infrastructure in order to effect air-conditioning load
control.
   (d) Each air-conditioning load control program shall be designed
to achieve both of the following:
   (1) Installation of automatic load control devices to retrofit
____ percent of residential customers with a central air-conditioning
system on or before January 1, 2004.
   (2) Installation of automatic load control devices to retrofit an
additional ____ percent of residential customers with a central
air-conditioning system in each year thereafter through 2006.
   (e) Every central air-conditioning system installed in the service
territory of an electrical corporation on or after January 1, 2004,
shall include an automatic load control device compatible with the
electrical corporation's air-conditioning load control
infrastructure.
   (f) An electrical corporation shall test each automatic control
device once each year during peak demand hours.
   (g) The commission shall adjust rates to compensate electrical
corporations for the costs reasonably incurred by the electrical
corporation for implementing its residential central air-conditioning
load control program. 
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.