AB 114

Under current law, an electric utility or retail electric cooperative (electric

provider) is subject to certain requirements for ensuring that, in a given year, a

specified percentage of the electricity that the electric provider sells to retail

customers or members is derived from renewable resources. These requirements are

commonly collectively referred to as the renewable portfolio standard (RPS).

"Renewable resource" is defined to include certain resources, including a resource

deriving electricity from hydroelectric power that has a capacity of less than 60

megawatts. An electric provider may count toward compliance with the RPS

electricity purchased by the electric provider that is generated from such a

hydroelectric resource. Subject to certain requirements, an electric provider can also

count electricity generated from such a hydroelectric resource that the electric

provider owns or operates.

Effective December 31, 2015, this bill allows, under certain circumstances, an

electric provider to count toward compliance with the RPS electricity derived by a

hydroelectric facility with a capacity of 60 megawatts or more, which the bill defines

as a "large hydroelectric facility." The bill allows an electric provider to count

electricity derived from a large hydroelectric facility only if the facility was initially

placed in service on or after December 31, 2010. In addition, for a large hydroelectric

facility located in Manitoba, Canada, the electricity may be counted toward

compliance only if the following are satisfied: 1) the Province of Manitoba informs

the Public Service Commission in writing that final licenses have replaced interim

licenses for two specified hydroelectric projects located in the province; and 2) those

final licenses are in effect under Canadian law. The bill does not change the

requirements under current law relating to electricity derived from a hydroelectric

facility with a capacity of less than 60 megawatts, except that the bill defines such

a facility as a "small hydroelectric facility."