CA SB 332

Quick answers

Description

(1) Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the state's energy policies. This bill would require the Energy Commission to select a research institute, as defined, to conduct a comparative analysis of the benefits and challenges of transitioning the electrical corporations to a public entity, nonprofit public benefit corporation, or mutual benefit corporation in order to identify a recommended model, as provided. The bill would require the research institute to complete the analysis on or before January 1, 2029, and, upon completion, to submit the analysis to the Legislature and the Energy Commission. The bill would require the Energy Commission to make a draft of the analysis available to the public for comment before submitting the final draft to the Legislature, and would limit the cost of conducting the analysis to $5,000,000. This bill would require the research institute to conduct the first phase of the comparative analysis and to submit an interim report, on or before December 31, 2026, to the Energy Commission on threshold legal issues, as provided. The bill would require the Energy Commission to convene a group of state attorneys from the legal departments of state agencies that regulate electrical corporations to advise the research institute on the first phase of the comparative analysis, as specified. This bill would, upon completion of the analysis by the research institute, require the Energy Commission to present the analysis at a publicly noticed business meeting on or before September 30, 2029. (2) Existing law vests the Public Utilities Commission (PUC) 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 prohibits an electrical corporation, gas corporation, or water corporation from terminating a customer's residential service for nonpayment of a delinquent account in certain circumstances, including, among other circumstances, unless the corporation first gives notice to the customer of the delinquency and impending termination, during the pendency of an investigation by the corporation of the customer's dispute or complaint, or when the customer has been granted an extension of the period for payment of a bill. This bill would require each electrical corporation and gas corporation, on or before March 1, 2026, and each local publically owned electric utility, on or before March 1, 2027, and annually thereafter, to post specified information concerning terminations of service due to nonpayment on their respective internet websites, as provided. (3) Existing law requires the Director of the Office of Energy Infrastructure Safety to issue a safety certification that is valid for 12 months after the date of issuance to an electrical corporation if the electrical corporation provides documentation that it is meeting certain requirements and that it has an approved executive incentive compensation structure that is structured to promote safety as a priority and to ensure public safety and utility financial stability with performance metrics, as specified. This bill would additionally require that the electrical corporation's executive incentive compensation structure is structured to ensure ratepayer affordability, as provided. The bill would also require, for purposes of the safety certification, that documentation related to compensation include specified dollar amounts. Existing law requires the PUC to develop policies, rules, or regulations with a goal of reducing the statewide level of gas and electrical service disconnections for nonpayment by residential customers, as specified. Existing law requires the PUC to include in an annual report to the Legislature information on residential and household gas and electrical service disconnections, disaggregated by certain customer categories. This bill would require the PUC to provide any public nonconfidential data collected pursuant to the above-described provisions to the Office of Energy Infrastructure Safety for the purpose of reviewing ratepayer affordability when assessing executive compensation under the above-described provisions. (4) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because certain provisions of this bill would be part of the act and a violation of a PUC action implementing the bill's requirements would be a crime, the bill would impose a state-mandated local program. In addition, to the extent the bill would impose new requirements 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.