CA SB692

Establishes state policy that load serving entities, including local publicly owned electric utilities, should receive direct or indirect financial benefits for distributed generation resources that avoid transmission costs.

Authorizes the Public Utilities Commission, jointly with the Independent System Operator and in consultation with stakeholders, to convene a process to develop modifications to transmission access charges, wheeling access charges, or retail rate structures by July 1, 2020, with approval required by October 31, 2020.

Requires modifications approved by the PUC and ISO to be submitted to the Federal Energy Regulatory Commission by January 1, 2021, with full implementation within one year of FERC approval.

If no modifications are approved by October 31, 2020, requires electrical corporations recovering transmission charges from multiple load serving entities to modify tariffs to separately assess transmission fees by load serving entity and credit customers based on the proportion of distributed generation serving their local load.

Defines "distributed generation," "avoided transmission cost," "local load," and related terms to implement the transmission cost recovery framework.