AB 1538 (Muratsuchi) Clean Energy Reliability Program

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Existing law vests the California Public Utilities Commission (CPUC) with regulatory authority over load-serving entities, which include electrical corporations, electric service providers, and community choice aggregators. Existing law requires the CPUC, in consultation with the Independent System Operator, to establish resource adequacy requirements for all load-serving entities. Existing law requires the commission, in establishing those resource adequacy requirements, to ensure the reliability of electrical service in California while advancing, to the extent possible, the state’s goals for clean energy, reducing air pollution, and reducing emissions of greenhouse gases.

This bill would establish the Clean Energy Reliability Program, to be administered by the CPUC to provide incentive payments to qualifying load-serving entities that exceed procurement targets for eligible resources established by the CPUC. The bill would require a load-serving entity to remit incentive payments to its customers as a bill credit or use the payment in a manner determined by the CPUC to reduce ratepayer costs arising from the additional procurement of eligible resources. The bill would require a load-serving entity to meet specified conditions to be eligible for an incentive payment.

Committee Location: Held in Assembly Appropriations May 18. FAILED.

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