CA AB1954

Declares that applications by electrical corporations for certificates to construct new transmission facilities are necessary for electric service if the Public Utilities Commission finds the facilities facilitate achievement of the renewables portfolio standard.

Authorizes the Public Utilities Commission to allow electrical corporations to recover in retail rates any transmission cost increases not approved for recovery by the Federal Energy Regulatory Commission, provided costs were prudently incurred.

Allows electrical corporations to seek preliminary approval through advice letters for cost recovery of transmission projects and pre-permitting expenses expected to facilitate the renewables portfolio standard, with ultimate recovery contingent on commission findings.

Revises definitions in the Renewables Portfolio Standard Program to add terms including "balancing authority," "California balancing authority," and "procurement entity," and modifies eligibility criteria for small hydroelectric and conduit hydroelectric facilities.

Declares that amendments to Section 399.2.5 clarify existing law consistent with Public Utilities Commission Decision 07-03-012 regarding transmission facility necessity determinations.