BILL ANALYSIS
AB 1733
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ASSEMBLY THIRD READING
AB 1733 (Utilities and Commerce)
As Introduced March 5, 2003
Majority vote
UTILITIES AND COMMERCE 13-0
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|Ayes:|Reyes, Richman, Calderon, | | |
| |Campbell, Canciamilla, | | |
| |Diaz, Jerome Horton, La | | |
| |Malfa, La Suer, Levine, | | |
| |Maddox, Nunez, | | |
| |Ridley-Thomas | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Makes a clarifying change to existing law governing
utility electricity procurement plans. Specifically, this bill
requires a proposed electricity procurement plan of an electric
utility to demonstrate that it furthers the utility's obligation
under the state's renewables portfolio standard.
EXISTING LAW :
1)Establishes a process at the California Public Utilities
Commission (PUC) by which an investor-owned utility (IOU) may
obtain a determination that its proposed electricity
procurement expenses will be deemed reasonable, and therefore
recoverable from ratepayers, before the procurement expenses
are incurred, rather than after the fact, which was the former
practice.
2)Requires each IOU to file a procurement plan for review by PUC
that outlines its future procurement plans.
3)Requires IOUs, in their procurement plans, in order to fulfill
unmet resource needs, to procure renewable energy resources
with the goal of ensuring that at least an additional 1% per
year of the electricity sold by an IOU is renewable energy
until a 20 % renewable resources portfolio is achieved,
provided sufficient public goods charge funds are available to
cover the above-market costs of new renewable energy.
FISCAL EFFECT : Unknown
AB 1733
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COMMENTS : Renewables portfolio standard: SB 1078 (Sher),
Chapter 516, Statutes of 2002, requires utilities to increase
procurement of electricity from renewable energy sources by at
least 1% per year so that at least 20% of their retail sales are
procured from renewables by the year 2017.
AB 57 (Wright), Chapter 835, Statutes of 2002, separately
provides that IOUs shall increase their procurement of renewable
energy resources using the same 20% portfolio standard goal.
This bill makes it clear the two separately mentioned renewables
portfolio standards are one in the same by correcting a
statutory cross-reference.
Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083
FN: 0000497