Public utilities: electricity: retail transmission rates: industrial transition usage.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill aims to encourage industrial electrification in California by requiring electrical corporations to seek commission approval for their retail transmission rates. It directs corporations with large commercial or industrial customers to apply an adjustment factor to electricity rates, limiting nonbypassable charges to a maximum of 25% to incentivize shifting energy usage to off-peak times. The bill also pushes the Independent System Operator to reconsider its transmission access charge structure to align with cost causation principles and reduce emissions.
Key provisions
- Requires electrical corporations to obtain commission approval for retail transmission rates.
- Authorizes the commission to apply adjustment factors to electricity rates for large industrial customers.
- Limits nonbypassable charges to a maximum surcharge ratio of 25% for eligible industrial transition usage.
- Directs the Independent System Operator to reconsider its transmission access charge structure.
- Requires the commission to develop recommendations for changes to transmission access charges.
- Defines ‘eligible industrial transition customer’ and ‘eligible industrial transition usage’.
- Establishes a policy for cost allocation to ratepayers based on cost causation principles.
- Sets a deadline for the commission to request the Independent System Operator to reconsider transmission access charges.
Who is affected
Bill text
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