This bill amends existing regulations regarding electric utility investments in distributed energy resources, specifically increasing the cumulative maximum limit for distributed electric generation owned or invested in by utilities from 6% to 10% of the utility's total distribution peak load in megawatts. The bill also removes the previous limitation on front-of-meter energy storage and demand response, as well as the requirement that non-renewable generation cannot be added once cumulative renewable generation reaches a certain threshold. Additionally, it introduces new language requiring that the expected economic benefits, both direct and indirect, of such investments to the utility's ratepayers must outweigh the associated costs.

The bill aims to facilitate limited reentry of electric distribution utilities into the generation market, contingent upon approval from the Public Utilities Commission, and emphasizes that such actions should serve the public interest and benefit ratepayers. The fiscal impact of the bill is indeterminable, as it may lead to increased utility costs that could be passed on to ratepayers, while also necessitating additional staffing and consulting resources for the Department of Energy and the Public Utilities Commission to manage the increased workload associated with utility petitions for new generation facilities.

Statutes affected:
Introduced: 374-F:1
As Amended by the Senate: 374-G:4
SB591 text: 374-F:1