Pumped hydropower system: pilot project.

Existing law requires the Public Utilities Commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity, including electrical corporations, to procure viable and cost-effective energy storage systems, to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets by October 1, 2013, and to reevaluate the determinations not less than once every 3 years. This bill would require the commission to direct one or more electrical corporations to procure of a single large-scale, long-duration energy storage pilot project meeting certain requirements, as specified. The bill would require an electrical corporation subject to this procurement requirement to submit to the commission for approval a proposed cost-of-service or similar rate to cover the costs of the procurement based on the proportionate benefit derived by each ratepayer class from the pilot project. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of an order or decision of the commission implementing the requirements of the bill would be a crime, this bill would impose a state-mandated local program by creating a new crime. 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.