This division does not reduce or modify an electrical corporation’s obligation to serve.
Chapter 1General Provisions
Section § 80800
This law states that even with the changes in this division, an electrical company's duty to provide service remains unchanged.
electrical corporation obligation to serve duty to provide service service requirement unchanged service duty utility company responsibilities power supply obligations service commitments utility company's obligation continuous service duty
Section § 80801
This law states that the commission has the authority to issue any orders it considers necessary to implement the rules and regulations of this division.
The commission shall issue orders it determines are necessary to carry out this division.
commission authority issue orders necessary actions implementation rules and regulations enforcement division compliance mandates oversight water management regulations execution legal directives commission decisions
Section § 80802
This California law outlines the state's goals to advance the use of renewable and zero-carbon energy. The law acknowledges the gains made in reducing greenhouse gases and the challenges posed by climate change. It proposes the creation of a central procurement function to help achieve further reductions, while maintaining a reliable electricity system and offering customers more choices.
If the state determines there is a need for additional energy resources, this central function will procure them, and local utilities can opt to have the state procure these resources on their behalf. The law also ensures cost recovery methods do not unfairly burden customers and restricts the sale of energy resources at higher costs than their acquisition costs. Additionally, it emphasizes investing in new resources that complement existing plans rather than compete with them.
(a)CA Water Code § 80802(a) The Legislature finds and declares all of the following:
(1)CA Water Code § 80802(a)(1) California has significantly reduced the emissions of greenhouse gases from its electricity sector by fostering the development of renewable and zero-carbon energy resources through the establishment of ambitious goals and policies. These efforts have fundamentally transformed the state’s portfolio of energy resources and the day-to-day operations of the state’s electrical system.
(2)CA Water Code § 80802(a)(2) The state has enabled the expansion of electrical retail choice for customers served in electrical corporation service territory, bringing new market entrants and innovation to California’s evolving retail electricity market.
(3)CA Water Code § 80802(a)(3) The state’s electrical system also faces the risk of increased disruption due to more frequent and intense extreme weather events fueled by a rapidly changing climate.
(4)CA Water Code § 80802(a)(4) For California to achieve its long-term greenhouse gas emission reduction goals, while maintaining a reliable electrical system and providing customers with greater choice in electricity retail providers, the state must establish a new, limited central procurement function within the department that enables the development of a more diverse portfolio of renewable and zero-carbon energy resources.
(b)CA Water Code § 80802(b) In enacting this division, it is the intent of the Legislature to do all of the following:
(1)CA Water Code § 80802(b)(1) Create a central procurement function within the department that would only be exercised
if, pursuant to paragraph (4) of subdivision (a) of Section 454.52 of the Public Utilities Code, the commission determines that there is a need for the procurement of additional eligible energy resources and requests the department to procure those resources and, in response to that request, the department elects to exercise that central procurement function to procure those resources pursuant to this division.
(2)CA Water Code § 80802(b)(2) If the department exercises that central procurement function, as described in paragraph (1), provide an opportunity for local publicly owned electric utilities to elect for the department to procure eligible energy resources on their behalf pursuant to Section 80822.
(3)CA Water Code § 80802(b)(3) Prohibit the department from recovering funds pursuant to a nonbypassable charge on the ratepayers of a load-serving entity for purposes other than providing for the department’s acquisition costs for
eligible energy resources, including transmission, scheduling, financing, program administration, and other related costs, pursuant to Section 80821.
(4)CA Water Code § 80802(b)(4) Prohibit the department from selling any eligible energy resources it acquires pursuant to this division at more than the department’s acquisition costs, including transmission, scheduling, financing, program administration, and other related costs, when selling those resources under a long-term contract.
(5)CA Water Code § 80802(b)(5) Pursuant to Section 80821, prohibit the department from pursuing procurement activities, including, if authorized, the issuance of bonds, except upon a finding from the commission that the recovery of costs through charges on customers, the issuance of bonds, and the material terms of such bonds, including interest rates, rating, amortization, and maturity, do not unreasonably increase costs to customers on a net present
value basis.
(6)CA Water Code § 80802(b)(6) Require the department to prioritize investments that do not compete with the procurement of eligible energy resources already planned for development and disclosed by load-serving entities or local publicly owned electric utilities.
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Section § 80803
This law states that the establishment and management of a central purchasing system by the relevant department is crucial for the public's good. It's designed to uphold public peace, health, and safety, and is considered a vital government function.
The development and operation of a central procurement function program by the department, as provided in this division, is in all respects for the welfare and benefit of the people of the state, to protect the public peace, health, and safety, and constitutes an essential government purpose.
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Section § 80804
This rule is meant to be interpreted in a way that best achieves its intended goals and purposes. In other words, when reading the law, you should focus on what it's trying to accomplish and interpret it in a way that makes those objectives possible.
This division shall be liberally construed in a manner so as to effectuate its purposes and objectives.
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Section § 80805
This section clarifies that the powers and duties of a certain department regarding water resources are independent from those related to the State Water Resources Development System. These responsibilities are not influenced by certain provisions, including the California Water Resources Development Bond Act.
Moreover, this law ensures that these responsibilities do not fall under the authority of a specific commission, nor do they expand the commission's jurisdiction over water resources development system facilities. Essentially, the department's projects and contracts related to electrical generation, unless funded through a specific fund, are not subject to the commission's authority.
(a)CA Water Code § 80805(a) The powers and responsibilities of the department established pursuant to this division are separate from, and not governed by, the provisions relating to the State Water Resources Development System, including, but not limited to, those powers and responsibilities granted pursuant to Part 3 (commencing with Section 11100) of Division 6 and the California Water Resources Development Bond Act (Chapter 8 (commencing with Section 12930) of Part 6 of Division 6).
(b)CA Water Code § 80805(b) This division does not subject the department to the jurisdictional authority of the commission or expand the jurisdiction of the commission, including that state water resources development system facilities subject to the California Water Resources Development Bond Act (Chapter
8 (commencing with Section 12930) of Part 6 of Division 6) and the department’s other electrical generation projects or power contracts outside of those funded through the fund, remain outside the jurisdiction of the commission.
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Section § 80806
This law allows the department to create and set rules that help manage and implement the tasks and responsibilities outlined in this division.
The department may adopt regulations for purposes of administering this division.
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