AB 596

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 renewable energy. Such requirements are commonly

referred to as renewable portfolio standards (RPSs). Current law provides that each

megawatt hour of renewable energy that an electric provider sells to customers or

members creates one credit, which the electric provider may use to comply with an

RPS or sell to another electric provider for compliance with an RPS. Current law also

requires the Public Service Commission (PSC) to promulgate rules allowing an

electric provider, or a customer or member of an electric provider, to create other

credits based on the electric provider's, customer's, or member's use of specified

sources, but only if the use displaces the use of nonrenewable energy and satisfies

other requirements. Like the credits created from sales of renewable energy, the

credits under the rules may be used to comply with an RPS. This bill provides that

the rules must allow the credits to be created regardless of when the source used to

create the credit was placed in service.

Current law also requires a public utility to obtain a certificate from the PSC

before the public utility may provide service in a municipality already served by

another public utility. This bill creates an exception for natural gas public utilities.

The bill requires the PSC to promulgate rules allowing an additional natural gas

public utility to provide service in a municipality served by another natural gas

utility without obtaining a certificate from the PSC, but only if certain requirements

are satisfied. First, both utilities must enter into a territorial agreement regarding

the areas to be served by each utility in the municipality. Second, the area to be

served by the additional natural gas public utility must be adjacent to a municipality

that the additional natural gas public utility is already authorized to serve. Third,

for the exception to apply, the additional natural gas public utility must provide

service only to a limited number of customers in the municipality already served by

the other utility.

Finally, with certain exceptions, current law requires a public utility to obtain

the approval of the PSC before abandoning or discontinuing service lines and

extensions. One exception allows a public utility to remove a customer's electric or

steam service lateral if the removal is requested by the customer. This bill revises

that exception to allow a public utility also to remove a customer's natural gas service

lateral upon the request of a customer.