AB 899

This bill requires the Public Service Commission (PSC) to require each retail

electric utility to file tariffs for the utility to purchase electricity generated by solar

facilities with a capacity of one megawatt (MW) or less that are located on the

premises of the utility's customers. Under PSC practices, "tariff" refers to a filing

that a public utility makes with the PSC that sets forth rates, terms, and conditions

of service. The bill refers to a tariff that is required to be filed under the bill as a

"value of solar tariff." The bill requires the PSC to approve a value of solar tariff that

satisfies the requirements below.

First, the tariff must establish kilowatt hour rates for the purchases that are

calculated under methodologies established by the PSC. The methodologies must

allow an electric utility to recover the cost of providing service to retail customers

while taking into account the value of the electricity purchased, including the value

resulting from its generation and delivery. Environmental value must also be taken

into account, as well as the value to the electric utility of lower generation and

transmission costs and fewer distribution and transmission losses. The PSC must

allow public comment on any proposed methodology for at least 90 days before

establishing the methodology. Second, the kilowatt hour rates for customers that are

established under the tariff may not be less than the electric utility's retail rates for

customers in the same class. Third, a tariff must require that customers sell

electricity generated by solar facilities to the same electric utility that provides

service to the customers. Finally, the tariffs must satisfy certain requirements for

crediting customer bills for net inputs to the utility's system that result from

purchases.

The bill also requires the PSC to subject the filing and approval of value of solar

tariffs to the same procedural requirements that the PSC applies to tariffs that offer

net metering. Under PSC orders, net metering refers to requirements for an electric

utility to credit customers for certain electricity generated at customer premises.

Also, if a retail customer's solar facility with a capacity of one MW or less is eligible

for net metering offered by an electric utility, the bill gives the customer the option

of accepting net metering or requiring the electric utility to purchase electricity

generated by the solar facility under a value of solar tariff. The bill requires the PSC

to ensure that value of solar and net metering tariffs allow retail customers to

exercise that option on a periodic basis.