BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
MARTHA M. ESCUTIA, CHAIRWOMAN
AB 200 - Leslie Hearing Date:
June 21, 2005 A
As Introduced: January 31, 2005 Non-FISCAL B
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DESCRIPTION
Existing law , the "Renewables Portfolio Standard" (RPS),
requires each investor-owned utility (IOU) to increase its
existing level of renewable energy resources by one percent of
sales per year until renewable energy resources account for 20
percent of its portfolio, with a deadline of 2017 for achieving
20 percent. With certain exceptions, renewable energy resources
must be located within California to count toward RPS
compliance.
This bill permits an IOU serving fewer than 60,000 customers in
California that also serves customers in another state (i.e.
PacifiCorp and Sierra Pacific Power) to count its out-of-state
renewable resources toward its RPS compliance.
BACKGROUND
The RPS requires IOUs and certain other retail energy providers,
collectively referred to as "retail sellers," to buy renewable
electricity to the extent Public Goods Charge funds are
available to pay for any costs exceeding a market price set by
the California Public Utilities Commission (CPUC).
Each IOU is required to increase its renewable procurement each
year by at least one percent of total sales, so that 20 percent
of its sales are renewable energy resources by December 31,
2017. With some exceptions, renewable energy resources must be
located in California to be counted toward an IOU's RPS
requirements.
There are two IOUs based in other states, but who have small
service areas in California and are subject to CPUC regulation
and the RPS law for their California operations. Sierra Pacific
Power is an electric utility which serves most of northern
Nevada and a small part of California around Lake Tahoe.
PacificCorp is an Oregon-based electric utility which serves Del
Norte and Siskiyou Counties in Northern California.
According to the author, PacifiCorp and Sierra Pacific need
flexibility in meeting RPS requirements because they procure a
pool of resources for all of their customers and do not procure
specific resources for their California customers. This bill
allows PacifiCorp and Sierra Pacific to count renewable
resources in all of their service territory towards the RPS
provided the resources meet other applicable criteria and aren't
counted for another state's RPS.
COMMENTS
Same provisions approved by this committee twice before.
Provisions identical to this bill have been approved by this
committee as a part of larger RPS bills - last session in SB
1478 (Sher) and this session in SB 107 (Simitian). SB 1478 was
vetoed for reasons unrelated to these provisions. SB 107 is
pending in the Assembly Utilities and Commerce Committee.
ASSEMBLY VOTES
Assembly Floor (78-0)
Assembly Utility and Commerce Committee
(9-0)
POSITIONS
Sponsor:
PacifiCorp
Sierra Pacific Power Company
Support:
None on file
Oppose:
None on file
Lawrence Lingbloom
AB 200 Analysis
Hearing Date: June 21, 2005