Electricity: load-serving entities.

Plain English Breakdown

The bill summary and digest do not provide specific details on what happens if companies do not follow these new rules.

Electricity Rules for Power Companies

The bill sets rules for how power companies must plan and report on their electricity supply to ensure reliability, starting in 2030.

What This Bill Does

• Requires the Public Utilities Commission to use a specific method to assess how different types of resources contribute to reliable electricity supply starting in 2030.
• Asks the commission to consolidate reporting requirements for power companies by January 1, 2030.
• Requires the commission to explain why it used its emergency procurement authority if needed to keep the electrical grid running.

Who It Names or Affects

• Public Utilities Commission
• Power companies like electrical corporations and community choice aggregators

Terms To Know

Load-serving entities

Companies that provide electricity to customers, including electric service providers and community choice aggregators.

Capacity valuation method

A way to measure how much a power source can contribute to the reliability of the electrical grid.

Limits and Unknowns

• The bill does not specify what happens if companies do not follow these new rules.
• It is unclear exactly which reporting requirements will be consolidated for power companies.
• The bill only applies after January 1, 2030, so changes won't happen right away.

Official Summary Text

AB 2266, as amended, Schultz.
Electricity: load-serving entities.
Existing law requires the Public Utilities Commission to set resource adequacy and resource procurement obligations for load-serving entities, which include electrical corporations, electric service providers, and community choice aggregators. Existing law requires various compliance reporting for load-serving entities.
This bill would require the commission, on and after January 1, 2030, when setting certain resource adequacy and resource procurement obligations for load-serving entities, to use the same capacity valuation method, as defined, to assess the reliability contribution of each resource type, as specified. The bill would require the commission, on or before January 1, 2030, to initiate a process to consolidate certain compliance reporting for load-serving entities, as specified.
Existing
law establishes the Independent System Operator as a nonprofit, public benefit corporation and requires the Independent System Operator, among other duties, to ensure the efficient use and reliable operation of the electrical transmission grid consistent with the achievement of planning and operating reserve criteria, as provided.
This bill would require the commission, if the Independent System Operator exercises its backstop procurement authority to ensure sufficient resources to operate the electrical grid, to include in a specified annual report an explanation of why the need for the backstop procurement arose, as provided.
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 would be a part of the act and a violation of a commission action
implementing certain provisions of the bill 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.

Current Bill Text

Download Bill PDF