AB 2399: Electrical services: provider of last resort.

Existing law provides that an electrical corporation is the provider of last resort in its service territory except under specified circumstances, and defines the term provider of last resort as the load-serving entity required to provide electrical service to a retail customer whose service is transferred to that entity because the customers load-serving entity failed to provide, or denied, service to the customer or otherwise failed to meet its obligations. Under existing law, one circumstance under which the electrical corporation is excused from duties as the provider of last resort is if the Public Utilities Commission designates a load serving entity, as defined, other than the electrical corporation to serve as the provider of last resort for all or a portion of that service territory pursuant to a joint application of the electrical corporation and that load-serving entity. Existing law establishes requirements for the application and for a load-serving entity other than the electrical corporation to serve as the provider of last resort.

This bill would authorize an electrical corporation serving less than 30% of the total electrical load in its distribution service territory to request approval from the commission to voluntarily terminate its electrical service offering by submitting a joint application with a load-serving entity or entities proposing to serve the electrical corporations existing customers to transfer those customers to that load-serving entity or entities. The bill would require the joint application to demonstrate that the load-serving entity or entities to which the customers would be transferred have the ability and a viable plan to comply with certain electricity procurement requirements.

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 a commission action implementing those provisions would be a crime, the 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 a specified reason.