A measure sponsored by Assemblyman Brian Dahle requiring utility regulators to calculate the full cost of reliably integrating renewable energy into the state’s power grid has won the governor’s signature.
Assembly Bill 2363 directs the California Public Utilities Commission to calculate the integration cost of different sources of ‘green’ power to ensure ratepayers get the best deal for their renewable electricity dollar.
“California has the nation’s most aggressive plans to promote renewable energy,” Dahle said. “As we push ahead, we need to protect ratepayers and be fair to businesses that have invested in renewable generation.”
Wind and solar electricity, in particular, require expensive backup power or storage to ensure consistent availability of electricity despite changes in the weather, yet the CPUC has not included those costs when figuring the cost of renewable energy sources as it reviews utilities’ power purchases.
A better accounting will level the playing field within the renewable sector and ensure small hydroelectric, geothermal, and biomass energy producers have a fair shot at selling power into the market. Large tax credits and other incentives for wind and solar have undermined the financial viability of some of the North State’s most valuable contributions to the state’s renewable-energy future.
“In order to ensure the security and stability of California’s energy market, our renewable portfolio standards need to be balanced and diversified,” said Julee Malinowski Ball, Executive Director of the California Biomass Energy Alliance. “Assemblyman Dahle’s AB 2363 is a significant move in that direction by requiring the Public Utilities Commission to accurately consider the full costs and benefits of renewable resources being offered.”
“On behalf of Calpine and the over 300 men and women who work full-time at The Geysers, the world’s single largest geothermal resource developed for electric generation, we want to thank Assemblymember Brian Dahle for his tenacious support of a renewable energy policy that creates a more level playing field among all new and existing renewable resources in the utility contracting process,” said Jim Kluesener, Calpine’s Vice President of Geothermal Operations. “The Geysers has been in operation for nearly 55 years and we look forward to continuing to work with Assemblymember Dahle, members of the State Legislature, Governor Brown and the California Public Utilities Commission to implement this important piece of legislation and other policies necessary to ensure The Geysers continue to provide affordable and reliable low-carbon energy for years to come.”
The measure will also protect ratepayers. AB 2363 will help ensure utilities buy power that meets customers’ needs at the true best price, instead of hiding the long-term costs of new renewable power sources.
In signing AB 2363, Gov. Jerry Brown issued a statement stressing the need to maintain affordability and reliability, and noting the importance of geothermal and biomass power in meeting the state’s environmental goals.
“I thank the Governor for signing this bill,” Dahle said, “and it’s encouraging that we share a similar, bipartisan vision for these important North State industries.”
Assemblyman Brian Dahle, R-Bieber, represents the 1st Assembly District, which includes Shasta, Lassen, Nevada, Siskiyou, Modoc, Plumas and Sierra counties, and portions of Butte and Placer counties.
