SB 692: Transmission: transmission and wheeling access charges.

Session Year: 2017-2018
House: Senate

Version:

Existing law vests the Public Utilities Commission (PUC) with jurisdiction over the delivery of electrical services. Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to make certain filings with the Federal Energy Regulatory Commission (FERC) and to seek authority from FERC as needed to give the ISO the ability to secure generating and transmission resources necessary to guarantee achievement of planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council.

This bill would require the ISO to undertake a stakeholder initiative to consider modification of the billing determinants to which the operator applies the transmission and wheeling access charges, as specified. The bill would require the ISO, by June 30, 2018, to submit to FERC proposed modifications of the billing determinants for approval. The bill would require the ISO to fully implement any modification approved by FERC within one year of the date of approval.

This bill would establish a state policy that load serving entities, including local publicly owned electric utilities, should receive direct financial benefit or indirect benefit for their ratepayers for the value of distributed generation resources in avoiding transmission costs. The bill would authorize the PUC, jointly with ISO and in consultation with relevant stakeholders, to convene a stakeholder process to develop modifications of tariffs governing transmission access charges, wheeling access charges, or retail rate structures as necessary to implement that policy and to ensure the tariffs conform to specified conditions. If the stakeholder process is undertaken, the bill would require the completion of the process by July 1, 2020. The bill would require public agencies or corporations with jurisdiction over the modifications to approve those modifications by October 31, 2020. For elements of the modifications that require approval by FERC, the bill would require the submission of those elements to FERC by January 1, 2021, and would require the commission and load serving entities, including local publicly owned electric utilities, with jurisdiction over those elements of the modifications to implement them within one year of the date of approval by FERC. Because the bill would impose additional duties on local publicly owned electric utilities, this bill would impose a state-mandated local program. If no modifications are approved by October 31, 2020, the bill would require each electrical corporation that recovers transmission charges from the customers of more than one load serving entity to modify its rules and tariffs to accomplish certain objectives regarding transmission charges. The bill would require the submission of those modifications to FERC by January 1, 2021.

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

Because the above provisions amend the Public Utilities Act, and the commission would be required to issue an order, decision, rule, direction, demand, or requirement to implement those provisions, a violation of any of which would be a crime, this bill would impose a state-mandated local program.

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 specified reasons.

Discussed in Hearing