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| California Gov.
Arnold Schwarzenegger signed several notable energy bills, including A.B.
380, which requires the California Public Utilities Commission in concert
with the California Independent System Operator to establish resource
adequacy requirements for all load-serving entities (LSEs). California must be "more efficient in our current energy usage to better protect our environment. These bills will help California ensure reliable, cleaner and more cost-effective energy - and a cleaner environment," Schwarzenegger said. Authored by Assembly Speaker Fabian Nunez, A.B. 380 codifies certain actions state regulators are taking to ensure resource adequacy. Among other things, the bill requires LSEs to secure adequate capacity to meet the state's peak demand and power reserve requirements. The supplies must be able to move to locations where they are needed. A.B. 1576, another Nunez bill, aims to encourage generation of cleaner, more efficient energy while supporting the continued operation of existing power plants. The bill ensures that IOUs will recover costs to repower aging power plants if the project is needed for local area reliability and provides its output on a "cost of service" basis. The California Energy Commission estimates that more than 20 power plants representing several thousand megawatts are scheduled for retirement in the next several years. A.B. 515, by Assemblyman Keith Richman, authorizes the Dept. of Water Resources to lease space to photovoltaic developers. The bill will allow developers to erect solar panels along the 400-mile canal running through the Central Valley. The bill envisions that solar panels would generate up to 3,000 MW, while the shade they provide would reduce evaporation from the canal. The Dept. of Water Resources will receive reimbursement for any costs related to evaluation and approval of photovoltaic proposals. S.B. 1037, by Sen. Christine Kehoe, requires municipal utilities to give top priority to energy efficiency and demand reduction programs before conventional generation. Policymakers have called on IOUs to adhere to the same priorities. The CEC and PUC will need to identify efficiency savings and establish efficiency targets for munis. These entities will be required to report to their customers and the CEC their investments in energy efficiency and demand reduction on an annual basis. Copyright © 2005 - Platts Please visit: www.platts.com Their coverage of energy matters is extensive!!. |