Public utilities: electricity: transmission charge: industrial transition usage.

Plain English Breakdown

The bill summary does not provide specific details on how costs will be shared among users of the power grid.

Electricity Rules for Industrial Customers

The bill allows the Public Utilities Commission to adjust electricity rates for large industrial customers who use new electric equipment for heating processes and requires the commission to develop rules that ensure costs are fairly shared among users of the power grid.

What This Bill Does

• Allows the Public Utilities Commission (PUC) to direct electrical corporations with over 100,000 service connections in California to adjust rates when billing large industrial customers who use new electric equipment for heating processes.
• Requires the PUC to develop rules that ensure costs are fairly shared among users of the power grid based on how much each user uses or affects the system.

Who It Names or Affects

• Large industrial customers who use new electric equipment for heating processes.
• Electrical companies with over 100,000 service connections in California.
• The Independent System Operator (ISO) and the Public Utilities Commission (PUC).

Terms To Know

Public Utilities Commission

A government agency that regulates public utilities like electricity companies to make sure they follow rules.

Independent System Operator

An organization that manages the power grid and makes sure it works efficiently and reliably.

Limits and Unknowns

• The bill does not specify how much adjustment can be made to electricity rates for large industrial customers.
• It is unclear exactly what changes will be recommended by the Public Utilities Commission regarding high-voltage transmission access charges.

Official Summary Text

SB 943, as amended, Becker.
Public utilities: electricity: transmission charge: industrial transition usage.
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.
This bill would authorize the commission to direct an electrical corporation with more than 100,000 service connections in California, when billing
an
a large commercial or
industrial customer for separately metered new load to provide industrial process heat, to apply an adjustment factor to the per kilowatthour rate so as to limit the
nonbypassable charge ratio, as specified, in furtherance of facilitating electrification of industrial energy use.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above provision would be part of the act and a violation of a commission action implementing that provision would be a crime, this bill would impose a state-mandated local program.
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 establish as a policy of the
state that allocation of costs to ratepayers for transmission and distribution resources should follow cost causation principles. The bill would require the commission, on or before January 1, 2028, to
request the Independent System Operator to reconsider issues raised in its transmission access charge structure enhancements proceeding as potential reforms to its high-voltage transmission access charges. The bill would require the commission to
develop recommendations for changes to high voltage transmission access charges that would improve consistency with the commission’s causation principles,
and
to
communicate
submit
the recommendations to the Independent System
Operator, and to request the Independent System Operator to reopen its transmission access charge structure enhancements proceeding to consider reforms to its
Operator within a proceeding considering changes to the
high-voltage transmission access
charges.
charge structure.
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