Transportation electrification: electricity rate design.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations Existing law, enacted as part of the Clean Energy and Pollution Reduction Act of 2015, requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission and State Air Resources Board, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. That law requires that the programs proposed by electrical corporations seek to minimize overall costs and maximize overall benefits. The PUC is required to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, through a reasonable cost recovery mechanism, if they are consistent with the above-described purposes, do not unfairly compete with nonutility enterprises, include performance accountability measures, and are in the interests of ratepayers. This bill would require the PUC, on or before July 1, 2019, to direct an electrical corporation with more than 100,000 service connections in California to file a rate design application that supports and accelerates the deployment of zero-emission transit buses to reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. This requirement would not apply to an electrical corporation with an approved or proposed rate tariff that meets the goals of the bill as of July 1, 2019. The bill would authorize an electrical corporation with 100,000 or fewer service connections in California to file a rate design application for those purposes. The bill would require a rate design proposed by an electrical corporation to seek to minimize overall costs and maximize overall benefits. The bill would require the commission to approve, or modify and approve, a rate design application filed by an electrical corporation if it is consistent with these requirements and is revenue neutral to the relevant customer class. 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 are within the act and require action by the commission for implementation, 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.