SB 1295: Electrical corporations: distributed energy storage systems.

Existing law requires the Public Utilities Commission to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2020. Existing law requires the commission to direct the states 3 largest electrical corporations to file applications for programs and investments to accelerate widespread deployment of distributed energy storage systems.

This bill would require an electrical corporation, for any proposed distribution or transmission infrastructure investment above a threshold established by the commission, as part of the distribution planning process, to evaluate whether distributed energy storage systems or other nonwire alternatives can meet the identified reliability or capacity need, as provided. The bill would require an electrical corporation, if it determines that a nonwire third-party alternative may be feasible, to conduct a competitive solicitation or other transparent process to evaluate third-party solutions. The bill would prohibit the commission from approving rate recovery for a proposed infrastructure investment unless the electrical corporation demonstrates either that nonwire alternatives are not feasible within the required timeframe or that nonwire alternatives are not cost effective, as provided. The bill would authorize an electrical corporation to procure, own, or enter into a long-term contract for distributed energy storage systems interconnected at the distribution level to meet identified reliability or capacity needs, and would require the commission to authorize an electrical corporation to recover the reasonable costs of, and earn a return on, those distributed energy storage systems, as provided.

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

Because the provisions of this bill would be part of the act, and a violation of a commission action implementing the bills requirements 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 a specified reason.