SBX 9 (Elimination of Standby Charges)

----- Forwarded by Jeff Dasovich/NA/Enron on 03/16/2001 11:12 AM -----

Steven Greenberg <sgreenberg@realenergy.com<
03/16/2001 11:05 AM

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cc:
Subject: SBX 9 (Elimination of Standby Charges)

The Distributed Energy Resources industry won a major battle yesterday. The
California Senate Energy and Utilities Committee passed on a 7-0 bipartisan
vote, Sen. Morrow's (and while her name wasn't on this bill, it was as much
Sen. Alpert's) bill on eliminating any tariff that discriminates against
DER. SBX 9 was derived from the omnibus DER bill SBX 35 which is still alive
and contains many important provisions fro removing additional barriers.
Yesterday's vote represents a major win because even if the bill ultimately
does not get enacted, a very important statement has been made by the
committee. I'm sure the CPUC will take notice in their proceedings.

The DER community owes much thanks to Sen.'s Morrow and Alpert, and the
Utilities Committee Members and their staffs:
Sen. Bowen (Chair)
Sen. Alarcon
Sen. Battin
Sen. Dunn
Sen. Murray
Sen. Poochigian
Sen. Sher
Sen. Speier
Sen. Vasconcellos
Sen. Vincent

Also much thanks to everyone who worked incredibly hard and diligently on
this effort. From the business, consumer advocacy, environmental,
government, manufacturing, and real estate communities.

Here are the highlights of yesterday's actions:

1. For IOU's- No discriminatory tariffs for new DER installed between May 1,
2000 and June 1, 2003 if DER is in combined heat and power mode. If you have
a peaking unit with gen only, then you have until July 1 2001, to get it
installed.
2. DER installed within the window gets the exemption until June 1, 2011.
3. The maximum capacity of the DER is 5 MW in aggregate per site.
4. The DER must have emissions levels of 9 PPM or better until the ARB
established new guidelines and standards, expected late this year or early
next year.
5. Customers with DER are still required to pay interconnection, public
purpose charges, and obligations incurred under the Dept. of Water Resources
energy purchases program.
6. The CPUC shall require the electrical corporations to include non-utility
owned DER in its planning process.
7. The CPUC is required to establish a firewall so that in the event that the
implementation of DER results in net costs to the system, those costs stay
within the customer class.
8. The CPUC shall require the utilities to establish new rates for DER that
are non-discriminatory and take into account the benefits as well as the
costs.
9. Muni's are required to review their tariffs for barriers to entry and hold
public meetings to solicit comment for recommended changes.
Now we have momentum, but there is still a tremendous amount of work to do on
the Assembly side and with Governor's office. We need the continued
(increased) support of all of you as we move this forward.
Steven A. Greenberg
RealEnergy, Inc.

300 Capitol Mall, Suite 120
Sacramento, CA 95814
916-325-2500

mailto:sgreenberg@realenergy.com
www.realenergy.com