The Renewable Energy Self-Generation Bill Credit Transfer (RES-BCT) tariffs were approved by the CPUC in accordance with Public Utilities Code 2830, which was statute created by AB 2466 (Laird, 2008). These RES-BCT tariffs allow local governments to generate electricity at one account and transfer any available excess bill credits (in dollars) to another account owned by the same local government.
Resolution E-4283, which approves tariffs for RES-BCT in accordance with AB 2466 (Laird, 2008), was issued April 26, 2010.
PU Code 2830 requires the utilities to establish a tariff schedule for the Local Government Renewable Self-Generation Program that allows local government entities to generate electricity at one account and transfer any available or excess bill credits to another account of the same local government.
PU Code 2830 authorizes all "local governments" in California to generate energy on one account (primary account) and provide a bill credit to a "Benefiting Account" so long as both facilities are owned or operated by the same local government. Bill credits are calculated by multiplying the Generating Account's time-of-use (TOU) energy component of the generation electricity rate by the amount of energy exported to the grid during the corresponding time period. These bill credits can then be applied to offset generation costs at the customer's other retail service accounts at different facilities. Customer may select one or more accounts (known as "Benefiting Accounts") to which the bill credits will be applied. Relevant definitions from PU Code 2830 are below:
- PU Code 2830(a)(1) defines "Benefiting account" as "an electricity account, or more than one account, located within the geographical boundaries of a local government or, for a campus, within the geographical boundary of the city, county, or city and county in which the campus is located, that is mutually agreed upon by the local government or campus and an electrical corporation."
- PU Code 2830(a)(6) defines "Local government" as "city, county, whether general law or chartered, city and county, special district, school district, political subdivision, or other local public agency, but shall not mean a joint powers authority, the state or any agency or department of the state, other than an individual campus of the University of California or the California State University."
The Local Government Renewable Energy Self-Generation Program has the following statutory program requirements:
- The local government must give 60 days advance notice to the utility prior to the generating facility becoming operational. Within 30 days of this notice the utility shall file an Advice Letter (AL) with the Commission proposing a rate tariff for the Benefiting Account. The Commission shall respond to this AL within 30 days of its filing.
- Eligible renewable generating systems are limited to a maximum capacity of 5 megawatt (MW).
- Statewide, there is a program limit of 250 MW; utilities are only required to offer service under this tariff until they reach their proportionate share of the program limit as follows:
- SCE: 123.8 MW (49.8%)
- PG&E: 104.6 MW (42.1%)
- SDG&E: 20 MW (8.1%)
- A participating local government Generating Account that exports energy receives a bill credit, which is set at the generation component of the time of use rate applicable to the account where the generation is located. These credits may be applied to Benefiting.
- Any remaining bill credits at the Benefiting Account are carried over to the following month, but at the end of a 12 month period any unused credits are set to zero.
To learn more about RES-BCT tariffs at your utility, please clicke on the appropriate service area: