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Bill Summary Details

Renewable Energy (Oppose – Mandate)

SB 446 (Brandes) allows the owner of a business or contracted third party to install, maintain and operate a renewable energy source device on or about the structure in which the business operates or on any property the business leases. The bill provides the business owner or third party may sell the electricity that is generated from the device to another business immediately adjacent to or within the same parcel as the business, and such sales shall not be considered or regulated as retail sales of electricity. The bill provides that if the energy-producing business or its customers require additional related services from a utility, such as backup generation capacity or transmission services, the utility may recover the full cost of providing those services. The bill authorizes a utility to enter a contract with a business to install, maintain or operate any type of renewable energy source device on or about the structure from which the business operates and to sell the electricity to an adjacent business, and provides that such electricity sales shall not be considered or regulated as retail sales of electricity. The bill specifies that if the Public Service Commission determines that the level of reduction in electricity purchases by customers using renewable energy source devices is significant enough to adversely impact the rates that other customers pay in the rate territory, the commission may approve a utility’s requests to recover its costs of providing the electricity needed by all customers, including customers using a renewable energy source device. The bill provides for methodology of such cost recovery, a process for customers to challenge the cost recovery and authorized rulemaking by the commission. The bill may have a negative fiscal impact on municipal revenues, including potential impacts to municipal electric franchise revenues and municipal public service utility taxes. (O’Hara)