Section 379.5 Of Article 6. Requirements For The Public Utilities Commission From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 6.
379.5
. Notwithstanding any other provision of law, on or before
March 7, 2001, the commission, in consultation with the Independent
System Operator, shall take all of the following actions, and shall
include the reasonable costs involved in taking those actions in the
distribution revenue requirements of utilities regulated by the
commission, as appropriate:
(a) (1) Identify and undertake those actions necessary to reduce
or remove constraints on the state's existing electrical transmission
and distribution system, including, but not limited to,
reconductoring of transmission lines, the addition of capacitors to
increase voltage, the reinforcement of existing transmission
capacity, and the installation of new transformer banks. The
commission shall, in consultation with the Independent System
Operator, give first priority to those geographical regions where
congestion reduces or impedes electrical transmission and supply.
(2) Consistent with the existing statutory authority of the
commission, afford electrical corporations a reasonable opportunity
to fully recover costs it determines are reasonable and prudent to
plan, finance, construct, operate, and maintain any facilities under
its jurisdiction required by this section.
(b) In consultation with the State Energy Resources Conservation
and Development Commission, adopt energy conservation demand-side
management and other initiatives in order to reduce demand for
electricity and reduce load during peak demand periods. Those
initiatives shall include, but not be limited to, all of the
following:
(1) Expansion and acceleration of residential and commercial
weatherization programs.
(2) Expansion and acceleration of programs to inspect and improve
the operating efficiency of heating, ventilation, and
air-conditioning equipment in new and existing buildings, to ensure
that these systems achieve the maximum feasible cost-effective energy
efficiency.
(3) Expansion and acceleration of programs to improve energy
efficiency in new buildings, in order to achieve the maximum feasible
reductions in uneconomic energy and peak electricity consumption.
(4) Incentives to equip commercial buildings with the capacity to
automatically shut down or dim nonessential lighting and
incrementally raise thermostats during a peak electricity demand
period.
(5) Evaluation of installing local infrastructure to link
temperature setback thermostats to real-time price signals.
(6) Incentives for load control and distributed generation to be
paid for enhancing reliability.
(7) Differential incentives for renewable or super clean
distributed generation resources pursuant to Section 379.6.
(8) Reevaluation of all efficiency cost-effectiveness tests in
light of increases in wholesale electricity costs and of natural gas
costs to explicitly include the system value of reduced load on
reducing market clearing prices and volatility.
(c) In consultation with the Energy Resources Conservation and
Development Commission, adopt and implement a residential,
commercial, and industrial peak reduction program that encourages
electric customers to reduce electricity consumption during peak
power periods.