AB 731

This bill creates an exemption from the definition of public utility. If a person

qualifies for an exemption, the Public Service Commission may not regulate the

person as a public utility.

The bill creates an exemption for a person that owns, operates, manages, or

controls, or leases to another person, equipment that generates electricity from a

renewable resource if the equipment is located on premises owned or occupied by

another person. The exemption applies to electricity generated from the following

renewable resources: 1) certain renewable fuel cells; 2) tidal or wave action; 3) solar

thermal electric or photovoltaic energy; 4) wind power; 5) geothermal technology; 6)

biomass; 7) certain synthetic gas or fuel pellets; 8) fuel produced by pyrolysis of

organic or waste material; 9) heat that is a byproduct of a manufacturing process; 10)

hydroelectric power; or 11) other resources that the PSC designates as renewable

resources. The exemption applies only if the person provides electricity generated

by the equipment either 1) to another person pursuant to a lease or power purchase

agreement or 2) to a public utility or a cooperative association that is not regulated

as a public utility. In addition, to qualify for the exemption, the person may not

engage in any other activity that would qualify the person as a public utility that is

subject to regulation by the PSC.

The bill prohibits an electric public utility from refusing to connect its electric

distribution facilities to the electric-generating equipment of a person subject to the

exemption described above if the connection satisfies rules promulgated by the PSC

establishing standards for connecting certain electric generating facilities with a

capacity of no more than 15 megawatts to electric distribution facilities.