BILL ANALYSIS
AB 811
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Date of Hearing: April 12, 1999
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick Wright, Chair
AB 811 (Keeley) - As Amended: April 7, 1999
SUBJECT : Electrical restructuring
SUMMARY : Requires the California Public Utilities Commission
(CPUC) to establish a Power Exchange (PX) credit based on actual
energy usage, as specified. Specifically, this bill :
1)Requires CPUC to:
a) Implement a methodology whereby the Power Exchange (PX)
energy credit for a customer with a meter capable of
recording hourly data is calculated based on the actual
hourly data for that customer; and
b) Specify that the energy credit shall consist of the PX
energy costs and the actual hourly recorded usage of the
customer for each hour in the billing period.
EXISTING LAW :
1)Requires that all rules made by a public utility affecting or
pertaining to its charges or services to the public shall be
just and reasonable;
2)Requires CPUC to recover uneconomic costs associated with
electric restructuring, including transition costs, as
defined, to be allocated as prescribed; and
3)Requires that individual customers not experience rate
increases as a result of the allocation of transition costs.
FISCAL EFFECT : Unknown
COMMENTS :
1.The PX credit is calculated based on the average load profiles
of each customer rate class. The statistical load profiles
are determined based on average historical data updated on a
regular basis. The load profile is an estimate of how much
energy is purchased at any given hour by each customer class.
AB 811
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2.This bill would require CPUC to establish a PX credit for
customers with real-time meters based on actual hourly data
recorded by the customer's meter. This would create a PX
credit based on actual usage rather than customer class
averages. Real-time, or time-of-use meters, measures energy
usage as it is being used, enabling an exact reading of
how much energy was used at any given time. More traditional
meters, used by the vast majority of customers, indicate total
energy consumption but do not indicate when the energy was
consumed.
3.According to the California Manufacturers Association (CMA),
the existing PX credit adopted by the Commission "creates
winner and losers by using a rate class average" which
penalizes businesses "that have no option but to operate
during peak times of the day."
4.According to Southern California Edison (SCE), this bill
"appropriately provides for the proper methodology for
calculating the PX energy credit for customers with hourly
meters."
5.Existing law requires that rates charged to customers must "be
just and reasonable." CPUC has broad authority to set rates
for customers of public utilities. This bill would establish
a rate-making methodology for customers using real-time energy
meters. While the Legislature should be at the forefront of
setting public policy, is it prudent to statutorily prescribe
rate-making methodologies?
REGISTERED SUPPORT / OPPOSITION :
Support
California Retailers Association (sponsor)
California Manufacturers Association
Southern California Edison (SCE)
Opposition
None on file
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
AB 811
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