Electricity: smart grid systems.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Under existing law, the governing board of a local publicly owned electric utility, as defined, generally has authority over the activities of the utility. This bill would require the commission, by July 1, 2010, and in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) , the Independent System Operator (ISO) , and other key stakeholders, to determine the requirements for a smart grid deployment plan consistent with the policies set forth in the bill and federal law. The bill would require that the smart grid improve overall efficiency, reliability, and cost-effectiveness of electrical system operations, planning, and maintenance. The bill would require each electrical corporation, by July 1, 2011, to develop and submit a smart grid deployment plan to the commission for approval. The bill would authorize a smart grid deployment plan that is adopted to provide for deployment of smart grid products, technologies, and services by entities other than electrical corporations. The bill would authorize smart grid technologies to be deployed in an incremental manner to maximize the benefit to ratepayers and to achieve the benefits of smart grid technology, would authorize the commission to modify or adjust the bill's requirements for an electrical corporation with fewer than 100,000 service connections as individual circumstances merit, and would require the commission, in consultation with the Energy Commission, the ISO, and electrical corporations, at each step of deployment, to evaluate the impact of deployment on major initiatives and policies. The bill would require the commission to report, by January 1, 2011, and by January 1 of each year thereafter, to the Governor and the Legislature on the commission's recommendations for a smart grid, the plans and deployment of smart grid technologies by the state's electrical corporations, and the costs and benefits to ratepayers. The bill would require a local publicly owned electric utility, as defined, to develop by July 1, 2011, a smart grid deployment plan consistent with the policies set forth in federal law. By placing requirements upon local publicly owned electric utilities, 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.