This bill requires the Department of Energy to allow the procurement of energy from power supply agreements using varying lengths and terms and laddering of agreements. It amends current law to specify that default service shall be designed to provide a safety net and assure universal access, reasonable price stability, and system integrity. The bill also requires the commission to oversee the timing and terms of energy service contracts and approve the procurement of energy from power supply agreements using varying lengths and terms. The commission must review contracts on a quarterly basis and permit a mix of short, medium, and long-term purchase power contracts. Any costs incurred from compliance with renewable portfolio standards for default service or purchased power agreements shall be recovered through the default service charge. The bill takes effect 60 days after its passage.

The fiscal impact of this bill is indeterminable. The Public Utilities Commission (PUC) states that implementing the provisions of this bill would require a full-time Utility Analyst IV position at an estimated cost of $109,800 in FY 2025, $110,650 in FY 2026, and $110,650 in FY 2027. The effect of the bill on utility rates and county and local government expenditures is also indeterminable. The Department of Energy and PUC were contacted for further information, but a revised fiscal note will be provided if additional information is received.

Statutes affected:
Introduced: 374-F:3