Committee Overseeing This Proceeding:

JOHN L. GEESMAN
Commissioner and Presiding Member
Renewables Committee

JAMES D. BOYD
Commissioner and Associate Member
Renewables Committee

The CRS regulations adopted by the Energy Commission on October 22nd became effective officially on January 30, 2004. Applications requesting an exemption from the CRS are now being accepted by PG&E, SCE, and SDG&E. Links to the each utility's CRS Exemption Request Application are available on the CRS Megawatt Cap web page and are also be available on each utility's respective website. In a related matter, the Energy Commission has established a new CRS Megawatt Cap web page which will serve as the central point of reference for the status of the Megawatt Cap. Please note that the imposition of CRS tariff charges and potential exemptions from the CRS tariff are pending approval of utility CRS tariff requests filed in compliance with CPUC Decision 03-04-030. Exemption determination will be performed independent of the outcome of the pending tariff review. Please check here periodically for further developments.

On April 3, 2003, the CPUC issued Decision 03-04-030, outlining a mechanism for granting a range of distributed generation customers from paying power surcharges known as or "exit fees" or "cost responsibility surcharges" (CRS). A customer with departing load generally refers to utility customers that leave the utility system in part or entirely to self-generate electricity. The CPUC has asked the Energy Commission to assume responsibility for determining exemption eligibility. As outlined in the CPUC decision, the basic ground rules are as follows:

• Systems smaller than 1 megawatt that are net metered and/or eligible for CPUC or Energy Commission incentives for being clean and super clean are fully exempt from any surcharge; including solar, wind, and fuel cells.
• Ultra-clean and low-emission systems 1 MW or greater that meet Senate Bill 1038 requirements to comply with CARB 2007 air emission standards will pay 100% of the bond charge, but no future DWR charges or utility undercollection surcharges.
• All other customers will pay all components of the surcharge except the DWR ongoing power charges. When the combined total of installed generation reaches 3000 MW (1500 designated for renewables), any additional customer generation installed will pay all surcharges.

In response to the CPUC decision, the Energy Commission opened Rulemaking 03-CRS-01 on May 28. The purpose of this rulemaking is to adopt new data collection regulations related to determination of eligibility for Cost Responsibility Surcharge (CRS) exemptions. The rulemaking will specifically address the collection of data related to departing load, and whether such departing load meets the CPUC requirements set forth in the CPUC Decision to qualify for a CRS exemption. This rulemaking will establish the procedures that the Energy Commission will follow in determining eligibility for qualifying for exemptions from paying the CRS, and for the tracking and reporting of qualified installed customer generation, as specified in the CPUC Decision.

The Energy Commission has broad authority and responsibilities to collect data for the purposes stated in Public Resources Code sections 25216(b), 25216.5(c) and (d), and 25320. This broad authority allows the Energy Commission to assist the CPUC in the determination of whether departing load customers meet the qualifications for CRS exemptions set forth in the CPUC Decision. Section 25320 directs the Energy Commission to manage an extensive data collection system to serve, among legislative objectives, the "information and policy development needs" of other agencies, market participants, and the public. (See Public Resources Code § 25300(d)).

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