Section 399.2.5 Of Article 15. Reliable Electric Service Investments Act From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 15.
399.2.5
. (a) Notwithstanding Sections 1001 to 1013, inclusive, an
application of an electrical corporation for a certificate
authorizing the construction of new transmission facilities is
necessary to the provision of electric service if the commission
finds that the new facility is necessary to facilitate achievement of
the renewables portfolio standard established in Article 16
(commencing with Section 399.11).
(b) With respect to a transmission facility described in
subdivision (a), the commission shall take all feasible actions to
ensure that the transmission rates established by the Federal Energy
Regulatory Commission are fully reflected in any retail rates
established by the commission. These actions shall include all of the
following:
(1) Making findings, where supported by an evidentiary record,
that those transmission facilities provide benefit to the
transmission network and are necessary to facilitate the achievement
of the renewables portfolio standard established in Article 16
(commencing with Section 399.11).
(2) Directing the utility to which the generator will be
interconnected, where the direction is not preempted by federal law,
to seek the recovery through general transmission rates of the costs
associated with the transmission facilities.
(3) Asserting the positions described in paragraphs (1) and (2) to
the Federal Energy Regulatory Commission in appropriate proceedings.
(4) Allowing recovery in retail rates of any increase in
transmission costs incurred by an electrical corporation resulting
from the construction of the transmission facilities that are not
approved for recovery in transmission rates by the Federal Energy
Regulatory Commission after the commission determines that the costs
were prudently incurred.
(c) (1) The commission, prior to making a finding pursuant to
subdivision (a), may approve an advice letter from an electrical
corporation seeking, for a specific transmission project, a finding
of eligibility for cost recovery pursuant to paragraph (4) of
subdivision (b), if the electrical corporation certifies in the
advice letter, in a form prescribed by the commission, that it
expects that the facility will be necessary to facilitate achievement
of the renewables portfolio standard established pursuant to Article
16 (commencing with Section 399.11). The electrical corporation's
ultimate recovery of construction costs shall be contingent upon the
commission finding, pursuant to subdivision (a), that the facility is
necessary to facilitate achievement of the renewables portfolio
standard and that the costs were prudently incurred.
(2) Prior to making a finding pursuant to subdivision (a), the
commission may approve an advice letter from an electrical
corporation requesting retail rate cost recovery for costs incurred
prior to permitting or certification for potential transmission
facilities if the electrical corporation certifies in the advice
letter, in a form prescribed by the commission, that it expects that
the facility will be necessary to facilitate achievement of the
renewables portfolio standard established pursuant to Article 16
(commencing with Section 399.11). The electrical corporation's
ultimate recovery of costs incurred prior to permitting or
certification shall be contingent upon the commission finding that
the electrical corporation administered the approved costs reasonably
and prudently.
(3) Any commission determination pursuant to this subdivision is
not binding upon the commission when determining the need for the
transmission facilities pursuant to Chapter 5 (commencing with
Section 1001) or Article 16 (commencing with Section 399.11).
(d) Any cost recovery pursuant to subdivision (b) or (c) shall be
limited to costs that are not approved for recovery in transmission
rates by the Federal Energy Regulatory Commission.