CA AB 2408

Description

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations, while local publicly owned utilities are under the direction of their governing boards. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires that all electrical bills have a standard bill format, as determined by the commission or the governing board, and contain sufficient detail for customers to recalculate their bills for accuracy. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. This bill would require the commission to require each electrical corporation and gas corporation to disclose all public purpose program charges to ratepayers, including an itemized list of each public purpose program funded through the ratepayers' bills, as provided. The bill would require the commission to require each electrical corporation and gas corporation to provide an annual public purpose program statement to ratepayers and require the commission to maintain an internet website displaying certain information about all public purpose programs, as provided. This bill would require the commission to establish a mechanism to allow ratepayers to opt out of funding public purpose programs that are not expressly required by statute for specified purposes or explicitly designated as nonbypassable by statute, and to ensure that those opt-out elections are voluntary and that ratepayers are authorized to annually modify their opt-out elections, as specified. Because a violation of a commission action implementing the bill's requirements would be a crime, this bill would impose a state-mandated local program. This bill would require the commission, if the average price of electricity or natural gas in the state exceeds 10% of the national average price in the preceding quarter, to suspend the collection of all fees charged to ratepayers on electricity or natural gas bills for a period of 6 months. The bill would also require the State Air Resources Board, if the average price of electricity or natural gas in the state exceeds 10% of the national average price in the preceding quarter, to suspend the requirements of the market-based compliance mechanism known as the California Cap-and-Invest Program for a covered entity that is an electrical corporation or gas corporation, and the collection of any moneys under the California Cap-and-Invest Program from those entities, for a period of 6 months. This bill would require a local publicly owned electric utility or local publicly owned gas utility to adjust its tariff rules to limit the period for adjusting a customer bill, when the utility has undercharged a customer, to 3 months for its residential customers and small business customers and to 3 years for its large business customers, as specified. By imposing new duties on local publicly owned utilities, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons.

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