Electricity: resource adequacy distributed generation program.

(1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires the commission, in consultation with the Independent System Operator (ISO) , to establish resource adequacy requirements for all load-serving entities, as defined, in accordance with specified objectives. This definition of a "load-serving entity" excludes a local publicly owned electric utility. However, other provisions of existing law require that each local publicly owned electric utility serving end-use customers prudently plan for and procure resources that are adequate to meet its planning reserve margin and peak demand and operating reserves, sufficient to provide reliable electric service to its customers. This bill would authorize an eligible customer-generator, as defined, to participate in resource adequacy distributed generation, as specified. The bill would require each responsible load-serving entity, as defined, to develop a standard offer contract for the purchase of electricity generated by an eligible facility, as defined, of an eligible customer-generator participating in resource adequacy distributed generation, and would require that the standard offer contract provide for payment for every kilowatthour delivered to the electrical grid by the eligible facility at the generation rate of the responsible load-serving entity. The bill would require that the commission approve, or approve as modified, the standard offer contract of a responsible load-serving entity that is an electrical corporation, electric service provider, or community choice aggregator, and would similarly require that the governing board approve, or approve as modified, the standard offer contract of a responsible load-serving entity that is a local publicly owned electric utility. The bill would authorize an electrical corporation or local publicly owned electric utility to offer resource adequacy distributed generation pursuant to a tariff, and would authorize the tariff to be offered in lieu of, or in addition to, the standard offer contract. The bill would require every responsible load-serving entity, upon approval of its standard offer contract or tariff, to make the standard offer contract or tariff available to eligible customer-generators within its service territory, or for an electric service provider, to any eligible customer-generator with which it has entered into a direct transaction. The bill would impose additional requirements upon responsible load-serving entities, the commission, and the governing board of a local publicly owned electric utility for implementation of the resource adequacy distributed generation program. The bill would provide that the physical generating capacity of the eligible facility available to the responsible load-serving entity pursuant to the program shall count toward the resource adequacy requirements of those entities. (2) 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 require action by the commission to implement, a violation of these provisions would impose a state-mandated local program by creating a new crime. Because this bill would establish various requirements to be met by local publicly owned utilities, 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.