BILL NUMBER: AB 1235 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 17, 2001
INTRODUCED BY Assembly Member Pescetti
FEBRUARY 23, 2001
An act to amend Section 891 of add Section
329 to the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1235, as amended, Pescetti. Natural gas surcharge:
interstate pipelines : gas corporations: service
.
(1) The Public Utilities Act requires the Public Utilities
Commission to require each gas corporation to provide bundled basic
gas service to all core customers in its service territory unless the
customer chooses or contracts to have natural gas purchased and
supplied by another entity.
This bill would amend the act to prohibit a customer that receives
noncore service, as defined, from switching to core service, as
defined, unless the customer meets certain requirements. The bill
would prohibit a customer that receives noncore service from
switching to core service during the months of November through
March, inclusive. The bill would prohibit a customer that receives
noncore or core gas transportation service from switching to core
bundled service, as defined, unless the customer agrees, in writing,
to remain on core bundled service for a minimum period of one year.
Because a violation of the act is a crime, this bill, by prescribing
new requirements for gas corporations, would impose a state-mandated
local program by changing the definition of a crime.
(2) 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 a specified reason.
The Public Utilities Act requires the Public Utilities Commission
to establish a surcharge on all natural gas consumed in this state to
fund certain low-income assistance programs, cost-effective energy
efficiency and conservation activities, and public interest research
and development, as prescribed. The act requires that, except as
specified, all persons consuming natural gas in this state that has
been transported by an interstate pipeline be liable for that
surcharge. The term "interstate pipeline" is defined to mean any
entity that owns or operates a natural gas pipeline delivering
natural gas to consumers in the state and is subject to rate
regulation by the Federal Energy Regulatory Commission (FERC).
This bill would modify the definition of the term "interstate
pipeline" to mean any entity that owns or operates a natural gas
pipeline delivering natural gas to consumers in the state and is
subject to regulation by FERC.
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program:
no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 891 of the Public Utilities Code is
SECTION 1. Section 329 is added to the Public Utilities Code, to
read:
329. (a) As used in this section, the following terms have the
following meanings:
(1) "Core bundled service" includes core gas transportation and
utility gas procurement. Core gas transportation service does not
include utility gas procurement.
(2) "Core service" means that a customer is provided basic gas
service as specified in Section 328. This class of customer includes
all residential and small commercial customers with average monthly
gas use of less than 20,800 therms, and nonelectric generation
commercial customers with average monthly gas use equal to or greater
than 20,800 therms who require the highest level of service
reliability and have not elected noncore service. A core service
customer has the option of purchasing gas from the gas corporation
under its basic gas service obligations, or from a nonutility
supplier.
(3) "Noncore service" means that a customer meets the usage
requirements specified under the filed tariffs of the gas
corporation. Noncore customers are restricted from purchasing gas
from the gas corporation.
(b) A customer that receives noncore service may not switch to
core service unless the customer agrees, in writing, to remain on
core service tariffs for a minimum period of five years. In
addition, a noncore service customer shall provide at least 6 months
notice to the gas corporation of its intent to switch to core
service. A customer that receives noncore service may not switch
from noncore service to core service during the months of November
through March, inclusive.
(c) A customer that receives noncore or core gas transportation
service may not switch to core bundled service, including, but not
limited to, core gas procurement, unless the customer agrees, in
writing, to remain on core bundled service for a minimum period of
one year.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
amended to read:
891. (a) "Gas utility" means any public utility gas corporation
or interstate pipeline as defined in this section.
(b) "Public utility gas corporation" means a public utility gas
corporation as defined in Section 216.
(c) "Interstate pipeline" means any entity that owns or operates a
natural gas pipeline delivering natural gas to consumers in the
state and is subject to regulation by the Federal Energy Regulatory
Commission.
(d) Each gas utility shall notify the State Board of Equalization
of its status under this section. Each person who consumes natural
gas delivered by an interstate pipeline shall annually register with
the State Board of Equalization. The State Board of Equalization may
require any documentation that it determines to be necessary to
implement this article.