BILL NUMBER: AB 2838	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Kelley

                        FEBRUARY 25, 2002

   An act to add Section 455.2 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2838, as introduced, Kelley.  Water rates.
   Existing law requires the Public Utilities Commission to establish
rates for water corporations.
   This bill would require the commission to follow a certain
procedure when a water corporation files with the commission,
pursuant to the commission's rate case plan for general rate increase
applications or pursuant to an advice letter submitted in accordance
with commission procedures, a schedule stating rates,
classifications, contracts, practices, or rules for the service of
water.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Water corporations are currently faced with and will continue
to be faced with the following:
   (1) The need to devote ever increasing resources, time, and
capital to secure and protect their public water supplies and public
water systems from sabotage, infection, contamination, damage, or
interference by terrorists, or threats of terrorists.
   (2) The need to design, construct, and operate water system
infrastructure, plants, and facilities, using the best available
technologies, to comply with increasingly stringent state and federal
safe drinking water laws and resolutions.
   (3) The need to develop new sources of supply, make existing
sources of supply safe, secure, and more reliable, and encourage and
implement water conservation measures, including water reclamation
and reuse.
   (4) The need to replace or upgrade water infrastructure, plants,
and facilities to meet the governing fire flow standards for public
fire protection purposes and to protect the public health and safety.

   (b) The California Public Utilities Commission needs to act timely
in making determinations and establishing rates for water service so
that the water corporations can meet their obligation to provide
their ratepayers with safe, secure, and reliable water service.
  SEC. 2.  Section 455.2 is added to the Public Utilities Code, to
read:
   455.2.  Whenever a water corporation files with the commission,
pursuant to the commission's rate case plan for general rate increase
applications or pursuant to an advice letter submitted in accordance
with commission procedures for this means of submission, a schedule
stating rates, classifications, contracts, practices, or rules for
the service of water, the commission shall observe the following
procedures:
   (a) Except as provided in subdivisions (b), (c), and (d) the
schedule, as filed, shall become effective, on an interim basis
subject to refund, 214 days following the date the application was
filed pursuant to the commission's rate case plan for general rate
increase applications or 40 days following the filing of the schedule
pursuant to an advice letter.
   (b) If, upon its own initiative, the commission, acting through
the staff organization with responsibility for reviewing general rate
case applications or advice letter filings, determines that the
schedule filed by a water corporation is not justified, it shall
notify the water corporation of the determination in writing 99 days
from the date of filing of an application and 30 days from the date
of filing of the schedule pursuant to an advice letter and shall
state in the notice all changes to the schedule that are required to
make it just and reasonable in the opinion of the staff organization.
  Upon the filing of a revised schedule by the water corporation
within 10 days of receipt of the notice from the commission, acting
through the staff organization, incorporating all changes specified
in the notice, the revised schedule shall become effective, on an
interim basis not subject to refund, upon the expiration of five days
from the date of the refiling.
   (c) If a water corporation does not file a revised schedule
incorporating all changes specified in the notice of changes as
provided in subdivision (b), the schedule as filed shall become
effective on an interim basis, upon the expiration of 30 days from
the date of filing of the notice, subject to refund of any amount of
the rate subsequently found by the commission to be in excess of a
just and reasonable rate.
   (d) If the commission, acting through the staff organization,
files a notice of changes as provided in subdivision (b), the
commission shall set the matter for a hearing on the application or
advice letter to be held within a reasonable time from the date of
the notice.  The revised schedule shall become final upon commission
action approving the revised schedule or otherwise as the commission
finds to be just and reasonable.