BILL NUMBER: AB 1235	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 9, 2001
	AMENDED IN ASSEMBLY  APRIL 17, 2001

INTRODUCED BY   Assembly Member Pescetti

                        FEBRUARY 23, 2001

   An act to add Section 329 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1235, as amended, Pescetti.  Natural gas:  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  procurement
 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.   provide that the
commission shall not be prohibited from placing additional
restrictions on the ability of noncore service customers to switch to
core procurement service.   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.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  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  
   (1) "Core procurement  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.   , and meets the definition
for core service specified under the filed tariffs of the gas
corporation.  
   (3)  
   (2)  "Noncore service" means that a customer meets the usage
requirements specified under the filed tariffs of the gas corporation
 and has elected to not be provided with core procurement 
.  Noncore customers are restricted from purchasing gas from the gas
corporation.
   (b) A customer that receives noncore service may not switch to
core  procurement  service unless the customer agrees, in
writing, to remain on core service tariffs for a minimum period
 of   to be determined by the commission, but
which shall not be less than  five years.  In addition, 
a noncore service customer shall provide at least 6 months notice
  the commission shall require a noncore service
customer to provide sufficient 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.   procurement service so that the gas
corporation has a reasonable period of time to plan for the
procurement of incremental gas supplies.  The notice period shall be
not less than 6 months.
   (c) This section shall not be construed as prohibiting the
commission from placing additional restrictions on the ability of
noncore service customers to switch to core procurement service.

  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.