BILL NUMBER: AB 1684	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 21, 2003

   An act to add Section 750 to the Public Utilities Code, relating
to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1684, as introduced, Leno.  Distributed energy.
   Existing law authorized the Department of Water Resources, until
January 2, 2003, to enter into contracts for the purchase of
electricity, to sell electricity to retail end use customers and,
with certain exceptions, to local publicly owned electric utilities,
at not more than the department's acquisition costs.  Existing law
provides for the repaying of the department's acquisition costs.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Existing law provides that the commission must require every
electrical corporation under the operational control of the
Independent System Operator as of January 1, 2001, to modify its
tariffs so that customers that install distributed energy resources,
as defined, are served under rates, rules, and requirements identical
to those of a customer within the same rate schedule that does not
use distributed energy resources, and to withdraw any provisions in
otherwise applicable tariffs that activate other tariffs, rates, or
rules if a customer uses distributed energy resources.  These
provisions do not relieve a customer of any obligation determined by
the commission to result from participation in the purchases of
electricity by the department.
   This bill would exclude solar installations from any cost
responsibility surcharges that the commission may impose upon
customer generation departing load.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  The Legislature finds and declares each of the
following:
   (a) The Public Utilities Commission in Rulemaking 02-01-011 (Order
Instituting Rulemaking Regarding the Implementation of the
Suspension of Direct Access Pursuant to Assembly Bill 1x and Decision
01-09-060) is considering the adoption of a cost responsibility
surcharge mechanism for customer generation departing load.
   (b) The imposition of cost responsibility surcharges would impose
a strong disincentive to investments in solar technology that would
reduce the risk of future electricity shortages.
   (c) The Legislature intends to exclude solar installations from
any cost responsibility surcharges that the commission may impose
upon customer generation departing load.
  SEC. 2.  Section 750 is added to the Public Utilities Code, to
read:
   750.  Notwithstanding any other law, the commission shall not
impose any cost responsibility surcharge for customer solar
generation departing load.