BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
SB 1790 - Bowen Hearing Date:
April 23, 2002 S
As Amended: April 17, 2002 FISCAL B
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DESCRIPTION
Current law requires public utilities to provide adequate and
efficient service.
Current regulations establish a number of programs to help
customers reduce their electric usage.
This bill requires the California Public Utilities Commission
(CPUC) to develop, in consultation with the California Energy
Commission (CEC), a program for residential and commercial
customer air conditioning load control.
BACKGROUND
California avoided blackouts last summer through a combination
of new generation projects, state-sponsored energy efficiency
programs, and an incredible response by people to the state's
call to conserve as much energy as possible. The actions
reduced energy demand by 5,570 megawatts (MW), the equivalent of
building 11 large powerplants, according to a February report by
the CEC. These actions contributed to a 10% reduction in peak
demand and a 6.7% reduction in overall electricity consumption
in the state compared to the year earlier.
The largest single component of electric demand is air
conditioning, comprising 14,000 MW or 28% of California's
summertime peak demand. The CPUC has observed that this is "a
potentially vast, untapped source of interruptible electricity."
Some air conditioning load control programs are currently in
place. Southern California Edison (SCE) has an existing air
conditioning cycling program for residential and small
commercial customers. This program, like other interruptible
programs, was created to improve system reliability, not to help
reduce overall energy costs. San Diego Gas & Electric Company
(SDG&E) is conducting a pilot program which utilizes Internet
technology to adjust residential air conditioning thermostats
and it hopes to have this program fully operational by this
summer. The California Power Authority is considering a program
to allow third parties to aggregate air conditioning load and
pay those aggregators to reduce that load. This program is
geared toward reducing overall energy costs.
COMMENTS
1.Investing In Conservation . While the electric supply and
demand look to be balanced for the this summer, the
uncertainty of the financial health of the major electric
generators makes the prospects for longer-term electric supply
adequacy more problematic. This increases the need for
conservation and demand management programs, which inevitably
leads to an additional focus on air conditioning loads, since
air conditioning accounts for a disproportional amount of the
demand for electricity.
This bill requires the CPUC, in consultation with the CEC, to
develop a program for residential and commercial customer air
conditioning load control. The goal of the program is to
contribute to supply adequacy and to give customers a
cost-effective means to reduce their electric bills. The
current air conditioning programs are useful but too limited
in that the are either pilot programs or they're focused
solely on reliability. Furthermore, these programs don't
apply to all utilities.
2.CEC Working Already . Recognizing the potential contribution
of conservation and demand reduction programs to electric
system reliability and cost reductions, the CEC convened a
workshop this March to begin trying to coordinate demand
response programs run by different California entities. A
follow-up meeting will be held this month to draft policy
recommendations and action plans.
POSITIONS
Sponsor:
Author
Support:
Sierra Club
Oppose:
None on file
Randy Chinn
SB 1790 Analysis
Hearing Date: April 23, 2002