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Senate Bill 1305
Power Source Disclosure Program

The purpose of Senate Bill 1305 was to ensure that retail suppliers of electricity disclose to consumers "accurate, reliable, and simple to understand information on the sources of energy that are used to provide electric services." (Public Utilities Code Section 398.1(b)) As such, the law requires retail suppliers of electricity to disclose fuel source information to consumers about the electricity being sold, using a format developed by the Commission.

SB 1305 also requires electricity generators that report meter data to a system operator to report generation, fuel type and fuel consumption data to system operators on a quarterly basis. Generators that do not report information to system operators but whose electricity is being claimed as a specific purchase report this data directly to the Energy Commission. System operators must then make the generation and fuel source information available to the Energy Commission for the dual purposes of verifying information disclosed to consumers and calculating net system power.

Power Content Label

Pursuant SB 1305, the Energy Commission adopted regulations specifying: 1) guidelines and formats for disclosure of generation-related information to system operators, 2) guidelines and formats for retail disclosure of fuel source information to consumers, and 3) guidelines for annual submissions to the Commission by retail suppliers. These regulations were adopted by the Commission June 24, 1998, approved by the Office of Administrative Law (OAL) September 21, 1998, and went into effect October 21, 1998. The regulations are published in Title 20 of the California Code of Regulations at Division 2, Chapter 3, Article 5, beginning with Section 1390.

The format adopted for retail electricity source disclosure to consumers is called the "power content label" and is pictured at right. Using this label, consumers can compare the power "content" -- or resource mix -- of a given electricity product against that of the California Power Mix (i.e. net system power). The power content label allows retail suppliers of electricity to distinguish their products from other electricity products in the market on the basis of power content.

By law, all retail suppliers must display a label in product-specific written promotional materials, and must send their customers quarterly label updates. Retail suppliers may identify a resource mix for their product that is identical or different from the California Power Mix. If a resource mix different than the California Power Mix is identified for a given product, the retail supplier must validate these claims at the end of the year through an independent audit. In this way, consumers can feel confident that retailers purchase what the consumer "pays for."



Flow Chart of SB1305 Requirements


A

 Generators that report meter data to a system operator (either directly or through a scheduling coordinator) are required to report historical recorded generation and fuel type information to system operators on a quarterly basis. On-site, over-the-fence and affiliate transactions are exempt from these requirements.

B

 Generators that do not report to system operators but whose electricity is being claimed as a specific purchase are required to annually report generation, fuel type, and fuel consumption information directly to the Energy Commission.

C

 System operators make generation and fuel type data from generators available to the Energy Commission. The Energy Commission can access out-of-state data to the extent the information has been submitted to system operators.

D

 Retail suppliers that make an offering to sell electricity that is consumed in California are required to disclose to consumers the projected fuel source mix of the electricity being sold compared with net system power (as calculated by the Energy Commission). Retailers that claim specific purchases must additionally disclose to consumers the actual product fuel resource mix after the end of the year.

E

 Retail suppliers that disclose specific purchases are required to annually submit information about the previous year's purchases, sales, and disclosures to the Energy Commission.

F

 The Energy Commission is required to calculate net system power annually. In addition, the Energy Commission is required to submit a report to the California Public Utilities Commission each year comparing generation data with information reported by retail suppliers.

G

 The Energy Commission, in conjunction with the Air Resources Board and affected air districts, is required to report to the Legislature by June 1, 1999, assessing the air emission effects of electric utility restructuring.



Electricity Source Disclosure Program Milestones


REQUIREMENT DATE REQUIRED
Generators provide to system operator:

  • Hourly generation meter data; and
  • Fuel type(s) and fuel consumption by type by month (as a percent of electricity generated) on a recorded historical basis.
No later than 2/14/99 and quarterly thereafter. (due to system operators within 45 days of the end of each calendar quarter)
Generators that do not report to a system operator but, whose energy is being claimed as a specific purchase by a retailer, must report generation and fuel type data directly to the Energy Commission.

 By 3/1/99 and annually thereafter
System operators provide kilowatt-hour and fuel type data from the previous quarter to the California Energy Commission.

 3/1/99 and quarterly thereafter, within 60 days of the end of the calendar quarter
Retailers must display a power content label in all product specific written promotional materials.

 As of 10/21/98
Retailers must send fuel source information (via the power content label) to end-use customers of the offered electricity at least once a quarter.

 By the end of 1st complete billing cycle each quarter, starting with the quarter beginning 1/1/99
Retailers issue an annual power content label to end-use customers.

 4/15/99 and annually thereafter
Retailers provide the following information to the Energy Commission for each electricity offering made during the previous year:

  • Kilowatt-hours purchased by generator and fuel type, consistent with meter data and including losses;
  • Kilowatt-hours sold at retail; and
  • Disclosures made to end-use customers.
3/1/99 and annually thereafter
The Energy Commission specifies guidelines and formats for reporting:

  • Generation information to the system operator;
  • System operator information to the California Energy Commission; and
  • Retail disclosure of fuel mix, including net system power.
Completed
The Energy Commission issues an annual report containing the calculation for California's net system power.

 4/15/99 and annually thereafter
The Energy Commission and California Air Resources Board and affected air districts must issue a report to the Legislature assessing the air emission effects of electricity restructuring.

 6/1/99
The Energy Commission must issue a report to the California Public Utilities Commission comparing generation data with retailer data.

 On or before 10/15/99 and annually thereafter


The full text of Senate Bill 1305 is available on our Web site at:

www.energy.ca.gov/restructuring/SB1305.html

For more information about this program contact:

California Energy Commission
Jason J. Orta, Program Manager
1516 Ninth Street, MS-45
Sacramento, CA 95814
Phone: 916-653-5851
FAX: 916-653-2543
E-mail: jorta@energy.state.ca.us


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Page Updated: February 11, 2003