BILL ANALYSIS
AB 918
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CONCURRENCE IN SENATE AMENDMENTS
AB 918 (Keeley)
As Amended August 25, 2000
Majority vote
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|ASSEMBLY: | |( May 25, 1999 |SENATE: |37-0 |( August 29, |
| | |) | | |2000 ) |
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(vote not relevant)
Original Committee Reference: HEALTH
SUMMARY : Establishes a formula for the calculation of net
monthly consumption for eligible net energy metering customers,
and makes related changes.
The Senate amendments delete the Assembly version of the bill,
and instead:
1)Change the calculation of net monthly consumption by requiring
that for each month a customer's energy consumption exceeds
the amount of energy produced, that net consumption shall be
valued as if that were the customer's actual consumption. In
those months where the customer's energy production exceeds
their amount of consumption, that net energy production shall
be valued at the same price the electrical corporation would
charge. This calculation is made each month and the total
shall be tallied and paid after 12 months.
2)Provide that if a net energy metering customer changes
electrical corporations, a new 12 month period will begin with
the start of service with the new electrical corporation.
3)Provide that if a net energy metering customer buys
electricity from an entity other than the electrical
corporation, the electrical corporation may recover the
incremental costs (any amount above the cost for providing
these services to a non-metered customer) related to the net
energy metering from the customer's supplier of electricity.
EXISTING LAW requires every electrical corporation to offer net
energy metering. When a net energy metering customer consumes
more energy that he or she produces, the customer shall pay the
electrical corporation based on the average retail price per
AB 918
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kilowatt-hour.
AS PASSED BY THE ASSEMBLY , this bill required that the health
care service plan capitation payments to providers be computed
appropriately by a qualified actuary; requires health plans to
annually update an actuarial report required by regulations.
FISCAL EFFECT : No fiscal impact on the state. Minor,
absorbable costs for the Public Utilities Commission Utilities
Reimbursement Account.
COMMENTS : SB 656 (Alquist), Chapter 369, Statutes of 1995,
enacted by the Legislature, established a buy-back program
whereby electric utilities are required to purchase back any
electricity generated by a customer-owned solar electric system.
This program is referred to as "net metering" because the
electricity purchases of the customer are netted against the
electricity generated by the customer's solar electric system.
Net energy metering is a method of subtracting the excess energy
produced from the energy received from the utility. This is
accomplished by the customer having a meter that measures the
flow of electricity both to and from the residence or facility.
When the customer buys electricity, the meter spins forward.
When the customer generates electricity, the meter spins
backward. Only customers who have wind or solar electric
generating systems. AB 1755 (Keeley), Chapter 855, Statutes of
1998, enacted by the Legislature, clarified the definition of,
and expanded the eligibility for, net energy metering.
Currently fewer than 500 customers are net metered statewide.
This bill changes the formula for the calculation of net monthly
consumption for net metering customers, and clarifies that the
net metering rate will be based on the customer's average cost
over a 12-month period instead of a class average. For
customers with a "time of use" rate, their account will be based
on their average cost within each time period instead of the
class average. Additionally, this bill clarifies that if a
customer chooses an alternate electric provider the incumbent
utility (who continues to bill the customer for other bundled
costs such as distribution service) is not required to provide
net metering for that customer.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
AB 918
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FN: 0007005