BILL ANALYSIS
AB 380
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 380 (Nunez)
As Amended September 6, 2005
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |74-0 |(May 19, 2005) |SENATE: |38-1 |(September 7, |
| | | | | |2005) |
-----------------------------------------------------------------
Original Committee Reference: U. & C.
SUMMARY : Requires the California Public Utilities Commission
(PUC) in consultation with the California Independent System
Operator (CAISO) to establish resource adequacy requirements and
requires PUC to implement and enforce the resource adequacy
requirements on all electricity providers, or load-serving
entities (LSEs).
The Senate amendments :
1)State that the resource adequacy requirements must meet the
minimum planning reserve and reliability criteria approved by
the Board of Trustees of the Western Systems Coordinating
Council or the Western Electricity Coordinating Council.
2)Require PUC to determine the most efficient and equitable
means to meet the resource adequacy objectives, ensure
investment is made in new generating capacity while retaining
economic existing generating capacity, and ensuring that the
costs are allocated equitably.
3)Exempt specific customer-owned generation that is relatively
independent from the state's transmission grid.
AS PASSED BY THE ASSEMBLY , this bill required PUC to establish
and enforce requirements that ensure that all electricity
providers have adequate generating capacity to meet peak demand
and operating reserves.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, this bill would require PUC
to ensure that all LSEs are subject to the same resource
AB 380
Page 2
adequacy requirements as are California's electrical
corporations. LSEs include all retail electricity providers,
including direct-access providers and municipal utilities. IOUs
are currently required to procure 115 to 117% of projected
demand to ensure they have adequate resources to meet demand of
their customer base. If the direct-access providers do not
adequately provide for the demands of its customers, the
customers of IOU end up paying more for electricity because the
direct-access customers will continue to draw electricity from
the grid, depleting IOU's reserves or requiring the IOU to
purchase last-minute expensive power on the spot market.
Analysis Prepared by : Gina Mandy / U. & C. / (916) 319-2083
FN: 0013249