CHAPTER 2.3. Electrical Restructuring [330. - 400.3.]

Chapter 2.3 added by Stats. 1996, Ch. 854, Sec. 10.

§§ 330–400.3 · 157 sections

1. ARTICLE 1. General Provisions and Definitions §§ 330–332.2 · 5 sections

   • § 330 In order to provide guidance in carrying out this chapter, the Legislature finds and declares all of the following: (a) It is the intent of the Legislature…
   • § 331 The definitions set forth in this section shall govern the construction of this chapter. (a) “Aggregator” means any marketer, broker, public agency, city,…
   • § 331.1 For purposes of this chapter, “community choice aggregator” means any of the following entities, if that entity is not within the jurisdiction of a local…
   • § 332.1 (a) (1) It is the intent of the Legislature to enact Item 1 (revised) on the commission’s August 21, 2000 agenda, entitled “Opinion Modifying Decision (D.)…
   • § 332.2 Rates set by the commission that are subject to subdivision (f) of Section 332.1 may not result in any retroactive recovery of undercollections by the San…
2. ARTICLE 2. Oversight Board §§ 334–343 · 14 sections

   • § 334 The Legislature finds and declares that in order to ensure the success of electric industry restructuring, in the transition to a new market structure it is…
   • § 335 In order to ensure that the interests of the people of California are served, a five-member Electricity Oversight Board is hereby created as provided in…
   • § 336 (a) The five-member Oversight Board shall be comprised as follows: (1) Three members, who are California residents and electricity ratepayers, appointed by the…
   • § 337 (a) The Independent System Operator governing board shall comprise a five-member independent governing board of directors appointed by the Governor and subject…
   • § 338 The Oversight Board shall have the exclusive right to approve procedures and the qualifications for Power Exchange governing board members specified in…
   • § 339 (a) The Oversight Board is the appeal board for majority decisions of the Independent System Operator governing board relating to matters that are identified…
   • § 340 The Oversight Board shall take the steps that are necessary to ensure the earliest possible incorporation of the Independent System Operator and the Power…
   • § 341 The Oversight Board may do all of the following: (a) Meet at the times and places it may deem proper. (b) Accept appropriations, grants, or contributions from…
   • § 341.1 Regulations adopted within 120 days of the effective date of this section may be adopted as emergency regulations in accordance with Chapter 3.5 (commencing…
   • § 341.2 The Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) applies to…
   • § 341.3 Voting members of the Oversight Board shall be required to file financial disclosure statements with the Fair Political Practices Commission. The appointing…
   • § 341.4 The Oversight Board shall appoint, and fix the salary of, an executive director who shall have charge of administering the affairs of the Oversight Board,…
   • § 341.5 (a) The Independent System Operator and Power Exchange bylaws shall contain provisions that identify those matters specified in subdivision (b) of Section 339…
   • § 343 (a) The Attorney General shall represent the Department of Finance and shall succeed to, and may exercise, all rights, claims, powers, and entitlements of the…
3. ARTICLE 3. Independent System Operator §§ 345–352.7 · 13 sections

   • § 345 (a) The Independent System Operator shall ensure the efficient use and reliable operation of the transmission grid consistent with the achievement of planning…
   • § 345.1 The chair of the board of governors and the chief executive officer of the Independent System Operator shall appear annually before the appropriate policy…
   • § 345.2 (a) The Independent System Operator shall develop, publish, and annually update a report that includes all of the following information: (1) Any changes to its…
   • § 345.5 (a) The Independent System Operator, as a nonprofit, public benefit corporation, shall conduct its operations consistent with applicable state and federal laws…
   • § 345.6 (a) Notwithstanding the requirements related to energy markets in subdivision (b) of Section 345.5, the Independent System Operator and the electrical…
   • § 346 The Independent System Operator shall immediately participate in all relevant Federal Energy Regulatory Commission proceedings. The Independent System Operator…
   • § 347 The Independent System Operator governing board may form appropriate technical advisory committees composed of market and nonmarket participants to advise the…
   • § 348 The Independent System Operator shall adopt inspection, maintenance, repair, and replacement standards for the transmission facilities under its control no…
   • § 349 (a) The Independent System Operator shall perform a review following a major outage that affects at least 10 percent of the customers of the entity providing…
   • § 349.5 (a) Beginning January 15, 2002, and at least once monthly thereafter, the Independent System Operator shall notify each air pollution control district and air…
   • § 350 (a) Notwithstanding Section 10231.5 of the Government Code, upon approval by the Independent System Operator of each transmission plan produced through the…
   • § 352.5 (a) The Independent System Operator shall make publicly available a list of all power plants located in the state that are not operational due to a planned or…
   • § 352.7 (a) It shall be unlawful for a person to intentionally disclose proprietary information obtained in the negotiation, execution, or performance of a consulting…
4. ARTICLE 3.5. Distributed Energy Resources §§ 353.1–353.15 · 9 sections

   • § 353.1 As used in this article, “distributed energy resources” means electric generation technology that meets all of the following criteria: (a) Commences initial…
   • § 353.2 (a) As used in this article, “ultraclean and low-emission distributed generation” means any electric generation technology that meets both of the following…
   • § 353.3 (a) The commission shall require each electrical corporation under the operational control of the Independent System Operator as of January 1, 2001, to modify…
   • § 353.5 Each electrical corporation, as part of its distribution planning process, shall consider nonutility owned distributed energy resources as a possible…
   • § 353.7 Notwithstanding Section 353.3, nothing in this article may result in any exemption from reasonable interconnection charges, lead to any reduction in…
   • § 353.9 In establishing the rates required under this article, the commission shall create a firewall that segregates distribution cost recovery so that any net costs,…
   • § 353.11 A local publicly owned electric utility or a local publicly owned utility otherwise providing electrical service, shall review at the earliest practicable date…
   • § 353.13 (a) The commission shall require each electrical corporation to establish new tariffs on or before January 1, 2003, for customers using distributed energy…
   • § 353.15 (a) In order to evaluate the efficiency, emissions, and reliability of distributed energy resources with a capacity greater than 10 kilowatts, customers that…
5. ARTICLE 6. Requirements for the Public Utilities Commission §§ 360–380.5 · 42 sections

   • § 360 The commission shall ensure that existing, and if necessary, additional filings at the Federal Energy Regulatory Commission request confirmation of the…
   • § 360.5 The commission shall determine that portion of each existing electrical corporation’s retail rate effective on January 5, 2001, that is equal to the difference…
   • § 361 The commission shall ensure that any funds secured by the restructuring trusts established for the purposes of developing the Independent System Operator and…
   • § 362 (a) In proceedings pursuant to Section 455.5, 851, or 854, the commission shall ensure that facilities needed to maintain the reliability of the electric…
   • § 363 (a) In order to ensure the continued safe and reliable operation of public utility electric generating facilities, the commission shall require in any…
   • § 364 (a) The commission shall adopt inspection, maintenance, repair, and replacement standards, and shall, in a new proceeding, or new phase of an existing…
   • § 365 The actions of the commission pursuant to this chapter shall be consistent with the findings and declarations contained in Section 330. In addition, the…
   • § 365.1 (a) Except as expressly authorized by this section, and subject to the limitations in subdivisions (b) and (c), the right of retail end-use customers pursuant…
   • § 365.2 The commission shall ensure that bundled retail customers of an electrical corporation do not experience any cost increases as a result of retail customers of…
   • § 365.3 (a) The commission shall post, in a consolidated location on its internet website, each load-serving entity’s residential electric rate tariffs and programs to…
   • § 365.5 Nothing in this chapter shall prevent the commission from exercising its authority to investigate a process for certification and regulation of the rates,…
   • § 366 (a) The commission shall take actions as needed to facilitate direct transactions between electricity suppliers and end-use customers. Customers shall be…
   • § 366.1 (a) As used in this section, the following terms have the following meanings: (1) “Department” means the Department of Water Resources with respect to its…
   • § 366.2 (a) (1) Customers shall be entitled to aggregate their electrical loads as members of their local community with community choice aggregators. (2) Customers…
   • § 366.3 Bundled retail customers of an electrical corporation shall not experience any cost increase as a result of the implementation of a community choice aggregator…
   • § 366.5 (a) No change in the aggregator or supplier of electric power for any small commercial customer may be made until one of the following means of confirming the…
   • § 367 The commission shall identify and determine those costs and categories of costs for generation-related assets and obligations, consisting of generation…
   • § 367.7 (a) It is the intent of the Legislature in enacting this section to ensure that individual customers do not experience rate increases as a result of the…
   • § 368 Each electrical corporation shall propose a cost recovery plan to the commission for the recovery of the uneconomic costs of an electrical corporation’s…
   • § 368.5 (a) Notwithstanding any other provision of law, upon the termination of the 10-percent rate reduction for residential and small commercial customers set forth…
   • § 369 The commission shall establish an effective mechanism that ensures recovery of transition costs referred to in Sections 367, 368, 375, and 376, and subject to…
   • § 369.5 (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and…
   • § 370 The commission shall require, as a prerequisite for any consumer in California to engage in direct transactions permitted in Section 365, that beginning with…
   • § 371 (a) Except as provided in Sections 372 and 374, the uneconomic costs provided in Sections 367, 368, 375, and 376 shall be applied to each customer based on the…
   • § 372 (a) It is the policy of the state to encourage and support the development of cogeneration as an efficient, environmentally beneficial, competitive energy…
   • § 373 (a) Electrical corporations may apply to the commission for an order determining that the costs identified in Sections 367, 368, 375, and 376 not be collected…
   • § 374 (a) In recognition of statutory authority and past investments existing as of December 20, 1995, and subject to the firewall specified in subdivision (e) of…
   • § 374.5 Any electrical corporation serving agricultural customers that have multiple electric meters shall conduct research based on a statistically valid sample of…
   • § 375 (a) In order to mitigate potential negative impacts on utility personnel directly affected by electric industry restructuring, as described in Decision…
   • § 376 To the extent that the costs of programs to accommodate implementation of direct access, the Power Exchange, and the Independent System Operator, that have…
   • § 377 The commission shall continue to regulate the facilities for the generation of electricity owned by any public utility prior to January 1, 1997, that are…
   • § 377.1 Section 377 does not apply to the four run-of-river hydroelectric project works located on the Truckee River, as referenced in Section 210(b)(17) of Public Law…
   • § 377.2 Notwithstanding Section 377, a facility for the generation of electricity, or an interest in a facility for the generation of electricity, that is located…
   • § 378 The commission shall authorize new optional rate schedules and tariffs, including new service offerings, that accurately reflect the loads, locations,…
   • § 379 Nuclear decommissioning costs shall not be part of the costs described in Sections 367, 368, 375, and 376, but shall be recovered as a nonbypassable charge…
   • § 379.5 Notwithstanding any other provision of law, on or before March 7, 2001, the commission, in consultation with the Independent System Operator, shall take all of…
   • § 379.6 (a) (1) It is the intent of the Legislature that the self-generation incentive program increase deployment of distributed generation and energy storage systems…
   • § 379.8 (a) As used in this section, “advanced electrical distributed generation technology” means any electrical distributed generation technology that generates…
   • § 379.9 (a) In administering the self-generation incentive program pursuant to Section 379.6, the commission shall allocate at least 10 percent of the annual…
   • § 379.10 (a) In administering the self-generation incentive program pursuant to Section 379.6, the commission shall use funds appropriated by the Legislature for the…
   • § 380 (a) The commission, in consultation with the Independent System Operator, shall establish resource adequacy requirements for all load-serving entities. (b) In…
   • § 380.5 (a) In establishing a demand response program, the commission shall do all of the following: (1) Establish rules consistent with state and federal law for how…
6. ARTICLE 7. Research, Environmental, and Low-Income Funds §§ 381–384.5 · 9 sections

   • § 381 (a) To ensure that the funding for the programs described in subdivision (b) and Section 382 are not commingled with other revenues, the commission shall…
   • § 381.1 (a) No later than July 15, 2003, the commission shall establish policies and procedures by which any party, including, but not limited to, a local entity that…
   • § 381.2 (a) (1) The commission shall investigate the ability of electrical corporations and gas corporations to provide various energy efficiency financing options to…
   • § 381.4 The commission shall require an electrical or gas corporation to revise a ratepayer-funded energy efficiency program identified pursuant to Section 913.9 as…
   • § 381.5 It is the intent of the Legislature to protect and strengthen the current network of community service providers by doing the following: (a) Directing that any…
   • § 382 (a) Programs provided to low-income electricity customers, including, but not limited to, targeted energy-efficiency services and the California Alternate…
   • § 382.1 (a) There is hereby established a Low-Income Oversight Board that shall advise the commission on low-income electric, gas, and water customer issues and shall…
   • § 384 (a) Funds transferred to the Energy Commission pursuant to this article for purposes of public interest research, development, and demonstration shall be…
   • § 384.5 (a) On or before March 1, 2014, the commission shall order electrical corporations to submit, on or before July 1, 2015, a tariff to be used, at the discretion…
7. ARTICLE 8. Publicly Owned Utilities §§ 385–386 · 2 sections

   • § 385 (a) Each local publicly owned electric utility shall establish a nonbypassable, usage based charge on local distribution service of not less than the lowest…
   • § 386 (a) Each local publicly owned electric utility shall ensure the following: (1) Low-income families within the utility’s service territory have access to…
8. ARTICLE 8.5 Provider of Last Resort § 387 · 1 section

   • § 387 (a) For purposes of this article, the following terms have the following meanings: (1) “Carbon-free electrical resource” means a source of electrical…
9. ARTICLE 9. State Agencies § 388 · 1 section

   • § 388 (a) Notwithstanding any other provision of law, a state agency may enter into an energy savings contract with a qualified energy service company for the…
10. ARTICLE 10. Nonutility Power Generators §§ 390–390.1 · 2 sections

    • § 390 (a) Subject to applicable contractual terms, energy prices paid to nonutility power generators by a public utility electrical corporation based upon the…
    • § 390.1 Any nonutility power generator using renewable fuels that has entered into a contract with an electrical corporation prior to December 31, 2001, specifying…
11. ARTICLE 11. Information Practices §§ 391–392.1 · 3 sections

    • § 391 The Legislature finds and declares all of the following: (a) Electricity is essential to the health, safety, and economic well-being of all California…
    • § 392 (a) (1) Electrical corporations shall disclose each component of the electrical bill as follows: (A) The total charges associated with transmission and…
    • § 392.1 (a) The commission shall compile and regularly update the names and contact numbers of registered providers. (b) (1) The commission shall also compile and…
12. ARTICLE 12. Consumer Protection §§ 394–396.5 · 15 sections

    • § 394 (a) As used in this section, “electric service provider” means an entity that offers electrical service to customers within the service territory of an…
    • § 394.1 (a) The registration shall be deemed approved and a registration number issued no later than 45 days after the required information has been submitted, unless…
    • § 394.2 (a) The commission shall accept, compile, and attempt to informally resolve consumer complaints regarding electric service providers. Where the commission…
    • § 394.25 (a) The commission may enforce the provisions of Sections 2102, 2103, 2104, 2105, 2107, 2108, and 2114 against electric service providers as if those electric…
    • § 394.27 When a customer files a claim with an electrical corporation for damages to property resulting from the curtailment of electric service due to the failure of…
    • § 394.3 To carry out essential elements of a sustainable and effective consumer protection program in connection with electric service providers offering electrical…
    • § 394.4 Rules that implement the following minimum standards shall be adopted by the commission for electric service providers offering electrical services to…
    • § 394.5 (a) Except for an electrical corporation as defined in Section 218, or a local publicly owned electric utility offering electrical service to residential and…
    • § 394.6 For purposes of this article, service territory of a local publicly owned electric utility means within the boundaries of its service territory as it existed…
    • § 394.7 (a) The commission shall maintain a list of residential and small commercial customers who do not wish to be solicited by telephone, by an electric…
    • § 394.8 Notwithstanding any other provision of this article, requirements placed on an electric service provider shall not apply to electrical services provided by a…
    • § 394.9 Unclaimed refunds ordered by the commission, and any accrued interest, may be used by the commission to fund additional consumer protection efforts.
    • § 395 (a) In addition to any other right to revoke an offer, residential and small commercial customers of electrical service, as defined in subdivision (h) of…
    • § 396 (a) A consumer damaged by a violation of this article by an electric service provider is entitled to recover all of the following: (1) Actual damages. (2) The…
    • § 396.5 The governing body of a community choice aggregator shall adopt a policy that expressly prohibits the dissemination by the community choice aggregator of any…
13. ARTICLE 13. Allocation of Electrical System Costs § 397 · 1 section

    • § 397 (a) (1) The commission shall, in an existing or a new proceeding, develop methodologies for allocating electrical system integration resource procurement needs…
14. ARTICLE 14. Disclosure of Sources of Electrical Generation §§ 398.1–398.6 · 6 sections

    • § 398.1 (a) The Legislature finds and declares that there is a need for reliable, accurate, timely, and consistent information regarding fuel sources for electric…
    • § 398.2 The definitions set forth in this section shall govern the construction of this article. (a) “Greenhouse gas emissions intensity” means the sum of all annual…
    • § 398.3 (a) Beginning January 1, 1998, or as soon as practicable thereafter, each generator that provides meter data to a system operator shall report to the system…
    • § 398.4 (a) Every retail supplier that makes an offering to sell electricity that is consumed in California shall disclose its electricity sources and the associated…
    • § 398.5 (a) Retail suppliers shall annually report to the Energy Commission, for each electricity offering for the previous calendar year, each of the following: (1)…
    • § 398.6 (a) For purposes of this section, the following definitions apply: (1) “Avoided greenhouse gas emissions” means greenhouse gas emissions associated with hourly…
15. ARTICLE 15. Reliable Electric Service Investments Act §§ 399–399.9 · 7 sections

    • § 399 (a) This article shall be known, and may be cited, as the Reliable Electric Service Investments Act. (b) The Legislature finds and declares that safe, reliable…
    • § 399.2 (a) (1) It is the policy of this state, and the intent of the Legislature, to reaffirm that each electrical corporation shall continue to operate its electric…
    • § 399.2.5 (a) Notwithstanding Sections 1001 to 1013, inclusive, an application of an electrical corporation for a certificate authorizing the construction of new…
    • § 399.3 Nothing in Section 399.2 shall be construed to preclude any of California’s local publicly owned electric utilities from exercising authority to operate their…
    • § 399.4 (a) (1) In order to ensure that prudent investments in energy efficiency continue to be made that produce cost-effective energy savings, reduce customer…
    • § 399.8 (a) In order to ensure that the citizens of this state continue to receive safe, reliable, affordable, and environmentally sustainable electric service, it is…
    • § 399.9 (a) No part of this article shall be construed to alter or affect the low-income funding provisions set forth in Section 382. Programs provided to low-income…
16. ARTICLE 16. California Renewables Portfolio Standard Program §§ 399.11–399.33 · 24 sections

    • § 399.11 The Legislature finds and declares all of the following: (a) In order to attain a target of generating 20 percent of total retail sales of electricity in…
    • § 399.12 For purposes of this article, the following terms have the following meanings: (a) “Conduit hydroelectric facility” means a facility for the generation of…
    • § 399.12.5 (a) Notwithstanding subdivision (e) of Section 399.12, a small hydroelectric generation facility that satisfies the criteria for an eligible renewable energy…
    • § 399.12.6 (a) (1) Any procurement of biomethane delivered through a common carrier pipeline under a contract executed by a retail seller or local publicly owned electric…
    • § 399.13 (a) (1) The commission shall direct each electrical corporation to annually prepare a renewable energy procurement plan that includes the elements specified in…
    • § 399.14 (a) (1) An electrical corporation, pursuant to Chapter 5 (commencing with Section 1001), and in order to meet its unmet renewables portfolio standard…
    • § 399.15 (a) In order to fulfill unmet long-term resource needs, the commission shall establish a renewables portfolio standard requiring all retail sellers to procure…
    • § 399.16 (a) Various electricity products from eligible renewable energy resources located within the WECC transmission network service area shall be eligible to comply…
    • § 399.16.5 The commission and the Energy Commission shall coordinate to revise any relevant rules, regulations, or guidance to ensure that the transition to a regional…
    • § 399.17 (a) (1) Subject to this section, the requirements of this article apply to an electrical corporation that as of January 1, 2010, had 60,000 or fewer customer…
    • § 399.18 (a) This section applies to an electrical corporation that as of January 1, 2010, met either of the following conditions: (1) Served 30,000 or fewer customer…
    • § 399.19 (a) The commission shall modify, and extend until December 31, 2026, or until all available program funds are expended, whichever occurs first, the monetary…
    • § 399.20 (a) (1) It is the policy of this state and the intent of the Legislature to encourage electrical generation from eligible renewable energy resources. (2)…
    • § 399.20.3 (a) For purposes of this section, the following definitions apply: (1) “Bioenergy” has the same meaning as set forth in paragraph (6) of subdivision (f) of…
    • § 399.20.5 (a) Notwithstanding paragraph (1) of subdivision (b) and paragraph (2) of subdivision (j) of Section 399.20, a conduit hydroelectric facility with an effective…
    • § 399.21 (a) The commission, by rule, shall authorize the use of renewable energy credits to satisfy the renewables portfolio standard procurement requirements…
    • § 399.22 (a) For purposes of this section, “state agency” means any state agency, board, department, or commission, including the entities specified in subdivision (a)…
    • § 399.24 (a) To meet the energy and transportation needs of the state, the commission shall adopt policies and programs that promote the in-state production and…
    • § 399.25 The Energy Commission shall do all of the following: (a) Certify eligible renewable energy resources that it determines meet the criteria described in…
    • § 399.26 (a) In order for the state to meet the requirements of the California Renewables Portfolio Standard Program, substantially increased amounts of electricity…
    • § 399.30 (a) (1) To fulfill unmet long-term generation resource needs, each local publicly owned electric utility shall adopt and implement a renewable energy resources…
    • § 399.31 A retail seller may procure renewable energy credits associated with deliveries of electricity by an eligible renewable energy resource to a local publicly…
    • § 399.32 (a) It is the policy of the state and the intent of the Legislature to encourage electrical generation from eligible renewable energy resources. (b) As used in…
    • § 399.33 (a) This section shall only apply to a gas-fired powerplant that is located inside the state, is owned by and serves the electrical demands of a single local…
17. ARTICLE 17. Clean Energy and Pollution Reduction §§ 400–400.3 · 3 sections

    • § 400 The commission and the Energy Commission shall do all of the following in furtherance of meeting the state’s clean energy and pollution reduction objectives:…
    • § 400.2 For the purposes of this article, “green electrolytic hydrogen” means hydrogen gas produced through electrolysis and does not include hydrogen gas manufactured…
    • § 400.3 The commission, State Air Resources Board, and Energy Commission shall consider green electrolytic hydrogen an eligible form of energy storage and shall…