An act to amend Section 451 of the Public Utilities Code, relating to rates. add and repeal Section 25619.1 of the Public Resources Code, relating to electricity.
Summary
AB 1302 would direct the State Energy Resources Conservation and Development Commission (the Energy Commission) to study and design a new framework for customer-generated electricity and the related “departing load” charges that can apply when customers generate power on-site. The bill covers customers of investor-owned utilities, community choice aggregators, local publicly owned utilities, and electrical cooperatives, and it requires the commission to consider fairness, transparency, renewable energy integration, clean energy goals, the value of customer-sited generation, and stakeholder input in developing the new system.
The bill also requires the Energy Commission to report to the Legislature by December 31, 2027, with a proposed process and any recommended legislative changes. The study-and-design authority would sunset on December 31, 2031. In addition, AB 1302 makes a nonsubstantive change to Public Utilities Code Section 451, which governs the requirement that utility rates and charges be just and reasonable.
Impact
AB 1302 would add a temporary new section to the Public Resources Code creating a state-level planning process for reforming departing load charges and customer self-generation rules. It would not itself set new rate formulas, but it would require the Energy Commission to develop a proposed system affecting how utilities and other electricity providers treat customers who generate their own power on-site, including residential and commercial solar and other distributed energy resources. The bill also touches Public Utilities Code Section 451 by restating the existing requirement that utility charges and rules be just and reasonable, without making a substantive policy change to that section.
Sentiment
The available record suggests the bill was introduced and referred to the Assembly Utilities and Energy Committee, but no committee transcript or vote record is provided. Based on the bill’s structure, the measure appears to be framed as a study-and-report bill rather than an immediate rate-setting proposal, which often draws less direct opposition than substantive tariff changes. Its stated goals of fairness, transparency, and support for clean energy indicate a generally pro-renewables and consumer-oriented intent.
Contention
The main policy tension in AB 1302 is between customer-generators and the utilities that may seek to recover costs associated with departing load, new generation, and transmission. The bill explicitly requires the commission to consider the benefits of customer-sited generation, including avoided utility costs, while also providing a stakeholder process that includes utilities and consumer advocates. That suggests likely debate over how to allocate costs fairly, whether departing load charges should be reduced or restructured, and how to balance utility revenue recovery with incentives for rooftop solar and other distributed energy resources.
An act to add and repeal Section 25308.1 of the Public Resources Code, and to amend Sections 454.51 and 454.57 of, and to add Section 454.57.5 to, the Public Utilities Code, relating to electricity.
An act to add amend Section 12405 to 12203 of the Public Contract Code, and to amend Sections 42920 and 42926 of the Public Resources Code, relating to solid waste.