Creating Public Electrical Savings Act

SB 423, the "Public Electrical Savings Act," establishes rules for public entities (like schools, government buildings, and municipal facilities) entering power purchase agreements (PPAs) for on-site solar energy. It requires that any PPA must guarantee customers a lower cost per kilowatt-hour than the local utility’s rate, limits PPA contracts to five years (with renewal allowed), and caps total solar generation from PPAs at 3% of a utility’s statewide peak demand. The bill also sets individual capacity limits (50kW for homes, 1,000kW for businesses) and mandates utility meter inspections and cost reporting. These provisions aim to ensure public solar projects provide actual cost savings while preventing grid strain.