Electrical modernization zones.

Assembly Member Carrillo's electrical infrastructure modernization proposal establishes six priority zones across California to address areas facing critical electrical service delays and infrastructure constraints. The legislation directs the Governor's Office of Business and Economic Development and the Independent System Operator to designate these zones based on economic development needs, infrastructure gaps, projected load growth, and ratepayer cost considerations. Two zones are specifically designated: the high desert area and the unincorporated community of Altadena in Los Angeles County.

Within these modernization zones, the Public Utilities Commission and Energy Commission must recognize them as load growth priority areas. Electrical corporations serving customers in these zones may collaborate with local jurisdictions to update load projections and manage microgrids with local approval. For non-grid-connected microgrids, utilities can collect fixed customer charges. Alternatively, customers may contract directly with third-party microgrid providers for up to 10 years, with one renewal option. The legislation also allows utilities to expedite cost recovery for infrastructure investments in these zones.

The bill's findings note that many jurisdictions currently face energy constraints and service delays despite previous legislative efforts like the 2023 Powering Up Californians Act. Local jurisdictions report potential revenue losses due to electrical service delays. The measure builds upon existing requirements for utilities to upgrade distribution systems and facilitate microgrid commercialization, while maintaining current provisions that classify violations of Public Utilities Commission directives as criminal offenses.