Distribution grid: distributed generation.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires the PUC to administer, until January 1, 2016, a self-generation incentive program for distributed generation resources to facilitate the integration of those resources into the electrical grid, improve efficiency and reliability of the distribution and transmission system, and reduce emissions of greenhouse gases, peak demand, and ratepayer costs. This bill would require the PUC to convene a proceeding on or before July 1, 2013, to develop rules, as prescribed, for the reimbursement of distribution grid upgrade costs to developers of wholesale distribution generation facilities constructed subsequent to the completion of interconnection studies. The bill would require those costs to be included in each electrical corporation's rate base.