SB 237: Electricity: direct transactions.

The Public Utilities Act requires the Public Utilities Commission to authorize and facilitate direct transactions between electricity suppliers and retail end-use customers, but suspends direct transactions except as expressly authorized. Existing law expressly requires the commission to authorize direct transactions for nonresidential end-use customers, subject to an annual maximum allowable total kilowatthour limit established, as specified, for each electrical corporation, to be achieved following a now completed 3-to 5-year phase-in period.

This bill would require the commission, on or before June 1, 2019, to issue an order specifying, among other things, an increase in the annual maximum allowable total kilowatthour limit by 4,000 gigawatthours and apportion that increase among the service territories of the electrical corporations.

This bill would require the commission to provide to the Legislature recommendations on the adoption and implementation of a 2nd direct transactions reopening schedule. The bill would require the commission, in developing the recommendations, to make certain findings.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by expanding the operation of a crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.