The Distributed Energy  Resources industry won a major battle yesterday.? The 
California Senate  Energy and Utilities Committee passed on a 7-0 bipartisan 
vote, Sen. Morrow's   (and while her name wasn't on this bill,?it was as much 
Sen. Alpert's) bill  on eliminating any tariff that discriminates against 
DER.? SBX 9 was  derived from the omnibus DER bill SBX 35 which is still 
alive and contains many  important provisions fro removing additional 
barriers.? Yesterday's vote  represents a major win because even if the bill 
ultimately does not get enacted,  a very important statement has been made by 
the committee.? I'm sure the  CPUC will take notice in their proceedings.
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The DER community owes much  thanks to Sen.'s Morrow and Alpert, and the 
Utilities Committee Members and  their staffs:
Sen. Bowen  (Chair)
Sen.  Alarcon
Sen.  Battin
Sen.  Dunn
Sen.  Murray
Sen.  Poochigian
Sen.  Sher
Sen.  Speier
Sen.  Vasconcellos
Sen.  Vincent
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Also much thanks to  everyone who worked incredibly hard and diligently on 
this effort.? From  the business, consumer advocacy, environmental, 
government, manufacturing, and  real estate communities.
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Here are the highlights of  yesterday's actions:
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For IOU's- No  discriminatory tariffs for new DER installed between May 1, 
2000 and June 1,  2003 if DER is in combined heat and power mode.? If you 
have a peaking  unit with gen only, then you have until??July 1 2001, to get 
it  installed.? 
DER installed within the  window gets the exemption until June 1, 2011.
The maximum capacity of  the DER is 5 MW in aggregate per site.
The DER must have  emissions levels of 9 PPM or better until the ARB 
established new guidelines  and standards, expected late this year or early 
next year.
Customers with DER are  still required to pay interconnection, public purpose 
charges, and obligations  incurred under the Dept. of Water Resources energy 
purchases  program.
The CPUC shall require the  electrical corporations to include non-utility 
owned DER in its planning  process.
The CPUC is required to establish a  firewall so that in the event that the 
implementation of DER results in net  costs to the system, those costs stay 
within the customer  class.
The CPUC shall require the  utilities to establish new rates for DER that are 
non-discriminatory and take  into account the benefits as well as the costs.
Muni's are required to  review their tariffs for barriers to entry and hold 
public meetings to solicit  comment for recommended changes.

Now we have momentum, but  there is still a tremendous amount of work to do 
on the Assembly side and with  Governor's office.? We need the continued 
(increased) support of all of you  as we move this forward.

Steven A. Greenberg
RealEnergy, Inc.

300 Capitol Mall, Suite  120
Sacramento, CA 95814
916-325-2500

mailto:sgreenberg@realenergy.com
www.realenergy.com  
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