Electricity: rates: optional dynamic rate tariffs.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill would allow California’s large electrical corporations to offer optional ‘dynamic rate tariffs’ to their customers. These tariffs would adjust prices based on real-time grid conditions and wholesale market prices, aiming to reduce costs and encourage greater demand flexibility. The bill sets deadlines for implementing these tariffs for different customer segments (commercial, industrial, and residential) and requires the commission to ensure fair cost allocation and provide customers with access to their energy usage data.
Key provisions
- Requires large electrical corporations to offer at least one dynamic rate tariff to each customer segment by specified deadlines (2028 for commercial/industrial, 2030 for residential/small commercial).
- Dynamic rates must include time-varying transmission, distribution, and generation components reflecting grid constraints and wholesale market conditions.
- The commission must ensure cost causation and prevent cost shifts between bundled and unbundled ratepayers.
- Customers with smart meters must have access to their interval usage data.
- Allows for voluntary demand flexibility through dynamic pricing and mandates participation in supply-side demand response programs.
- New commercial customers opting for dynamic rates must be eligible for generation service from an electric service provider.
- The commission must consider rules for vulnerable customers to ensure adequate protection.
- Incorporates load shift and load reduction effects into revenue requirement cost recovery proceedings.
Bill text
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