Senate Bill (SB) 612 Update
The purpose of SB 612 is to ensure all California ratepayers have fair and equal access to benefits associated with investor-owned utility (IOU) legacy energy resources and that the resources are actively managed to maximize their value. SB 612 stems from a consensus proposal that was developed in the California Public Utilities Commission’s Working Group 3 phase of the Power Charge Indifference Adjustment (PCIA) proceeding.
So called “legacy” resources account for billions of dollars in above market costs in IOU energy portfolios, and the IOUs rely on California ratepayers to pay the costs. CCA customers continue to pay for legacy resource through the PCIA fee. These resources are expensive; however, there are valuable products associated with the electricity produced by legacy resources, such as resource adequacy, renewable energy attributes, and GHG-free energy attributes. Under the current structure, these attributes are retained by the IOUs are used to meet their clean energy and reliability requirements. While CCA customers pay their share of legacy resources through the PCIA, they do not have access to all of the beneficial products for which they are paying. SB 612 resolves the inequities by ensuring all customers have access to the benefits of the resources, and that the costs to all ratepayers are minimized.
Despite support by over 100 California communities, environmental justice organizations, environmental groups, and clean energy providers, Assembly Committee Chair Chris Holden removed SB 612 from the agenda of the Assembly Committee on Utilities and Energy. In July, SB 612 was designated a two-year bill and will resume in the legislative process next year to give the author and sponsors more time to work on any outstanding issues so that it can be heard in Assembly Utilities and Energy Committee.
CalCCA continues to work with the author, Senator Anthony Portantino, and the Assembly Committee Chair Chris Holden. CalChoice, through its role as CalCCA director, will evaluate and determine next steps based on the outcomes of the discussions with the author and Committee chair. Stay tuned for updates in early 2022.