Electricity: virtual power plant procurement.

Existing law requires the Public Utilities Commission (PUC) , in consultation with the Independent System Operator, to establish resource adequacy requirements for all electrical corporations, electric service providers, and community choice aggregators. Existing law requires electrical corporations, electric service providers, and community choice aggregators to maintain physical generating capacity and electrical demand response adequate to meet their load requirements, as specified. This bill would require the PUC, in coordination with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions in relation to virtual power plants, as defined. The bill would require the PUC, on or before March 1, 2026, to begin a proceeding to determine targets for each electrical corporation to procure generation from cost-effective virtual power plants, and would require the PUC, on or before October 1, 2026, to finalize its proceeding and issue a decision adopting virtual power plant procurement targets to be achieved by each electrical corporation on or before December 31, 2028, and on or before December 31, 2033. The bill would, upon the PUC adopting virtual power plant procurement targets, require each electrical corporation, beginning January 30, 2028, and each year thereafter, to file a report with the PUC on its progress toward complying with the virtual power plant procurement targets. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because the above-described provisions would be part of the act and a violation of a PUC action implementing this bill's requirements would be a crime, 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.