Electricity: large energy use facilities.

Plain English Breakdown

The bill summary text does not provide specific details on how many large energy use facilities will be affected or the cost of implementation.

Electricity Rules for Big Energy Users

The bill requires the Public Utilities Commission to create special electricity rates and contracts for large energy use facilities, separate from other commercial or industrial users.

What This Bill Does

• Requires the Public Utilities Commission to establish a new classification of retail electricity consumers that are large energy use facilities by January 1, 2028.
• Specifies requirements for rate schedules adopted by the commission for large energy use facilities.
• Allows electrical corporations and large energy use facilities to not follow these rules until January 1, 2028, if the Public Utilities Commission has not approved them yet.
• Requires load-serving entities to enter into contracts with large energy use facilities that cover costs starting from January 1, 2027.

Who It Names or Affects

• Large energy use facilities
• Public Utilities Commission
• Electrical corporations and load-serving entities

Terms To Know

large energy use facility

A business or organization that uses a lot of electricity.

load-serving entity

An organization that provides electricity to customers, like an electrical corporation.

Limits and Unknowns

• The bill does not specify what happens if the Public Utilities Commission fails to create these rules by January 1, 2028.
• It is unclear how many large energy use facilities will be affected by this new rule.
• There are no details on how much it will cost to implement or enforce these changes.

Official Summary Text

AB 2383, as amended, Zbur.
Electricity: large energy use facilities.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law authorizes the commission to investigate a single rate, classification, rule, contract, practice, or the entire schedule of rates, classifications, rules, contracts, and practices, of any public utility, and to establish new rates, classifications, rules, contracts, practices, or schedules.
This bill would require the commission, on or before January 1, 2028, in a new or existing proceeding, to provide for a classification of retail electricity consumers that are large energy use
facilities, as defined,
facilities
that is separate and distinct from classifications of service for other commercial or industrial retail electricity consumers and has its own rate
schedule.
schedule, as specified.
The bill would require any rate schedule adopted by the commission for large energy use facilities to meet specified requirements, and would require the commission, in deciding whether to approve an electrical corporation’s proposed rate schedule, to ensure the rates meet certain requirements, as provided. The bill would specify
that, until January 1, 2028,
that
an electrical corporation and a large energy
use facility are not required to use the above-described classification of service if the commission has not approved the electrical corporation’s rate schedule for that classification of service.
This bill would require the commission to require
an electrical corporation
a load-serving entity
that is providing electricity service to a large energy use facility to enter into a contract with the large energy use facility that covers the
provision of transmission,
generation, or distribution of electricity service,
cost of service and the cost of energizing the facility,
as applicable, and would require any contract entered into between an electrical corporation and a large energy use facility pursuant to these provisions to meet certain requirements. The bill would specify that these provisions apply to a large energy use facility that receives electricity service from
an electrical corporation
a load-serving entity
on or after January 1, 2027.
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 above provisions would be a part of the act, and because a violation of a commission action implementing the above provisions 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