AB 734

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 referred to as the renewable portfolio standard (RPS). "Renewable

resource" is defined to include hydroelectric power. For purposes of determining

compliance with an RPS for a particular year, current law imposes requirements on

the counting of electricity generated from hydroelectric facilities that depend, in

part, on the capacity of the facility.

If an electric provider purchases electricity from a hydroelectric facility with a

capacity of less than 60 megawatts and provides the electricity to retail customers,

current law allows the electric provider to count all of the electricity in determining

compliance with an RPS. However, if an electric provider provides electricity to retail

customers from a hydroelectric facility with such a capacity that is owned or operated

by the electric provider, the electric provider my count all of the electricity only if the

facility was initially placed in service on or after January 1, 2004. If the facility was

initially placed in service prior to that date, an electric provider may count the

average output from the facility for the years 2001, 2002, and 2003, subject to certain

adjustments specified under current law.

Beginning on December 31, 2015, current law also allows an electric provider

to count electricity from a hydroelectric facility with a capacity of 60 megawatts or

more, regardless of whether the electric provider owns or operates such a facility.

However, electricity from such a facility may counted only if the facility was initially

placed in service on or after December 31, 2010. Also, if the facility is located in

Manitoba, Canada, the electricity may be counted only if: 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.

This bill prohibits an electric provider from counting, for purposes of

determining compliance with an RPS, electricity from a hydroelectric facility that is

not located within the United States. The bill does not otherwise change the

requirements under current law described above, except to eliminate the

requirements pertaining to a facility located in Manitoba, Canada.