BILL NUMBER: AB 2838 CHAPTERED
BILL TEXT
CHAPTER 1147
FILED WITH SECRETARY OF STATE SEPTEMBER 30,2002
PASSED THE SENATE AUGUST 31, 2002
PASSED THE ASSEMBLY AUGUST 31, 2002
AMENDED IN SENATE AUGUST 31, 2002
AMENDED IN SENATE AUGUST 26, 2002
AMENDED IN SENATE AUGUST 20, 2002
AMENDED IN SENATE AUGUST 5, 2002
AMENDED IN SENATE JUNE 19, 2002
AMENDED IN ASSEMBLY APRIL 1, 2002
INTRODUCED BY Assembly Member Canciamilla
FEBRUARY 25, 2002
An act to amend Section 409 of, and to add Section 455.2 to, the
Public Utilities Code, relating to public utilities, and making an
appropriation therefor.
(Approved by Governor September 30, 2002. Filed with
Secretary of State September 30, 2002.)
I am signing Assembly Bill 2838, but reducing the appropriation
from the Public Utilities Commission Utilities Reimbursement Account
from $445,000 to $222,500.
This bill requires the Public Utilities Commission (PUC) to act on
water utilities' rate applications within specified timelines and
allows water utilities to enact interim rates at the rate of
inflation when their rate cases are delayed, subject to refunds by
the PUC. The bill also requires water utilities to file a rate
application with the PUC every three years.
GRAY DAVIS, Governor
LEGISLATIVE COUNSEL'S DIGEST
AB 2838, Canciamilla. Public Utilities Commission: fees: water
rates.
(1) Existing law authorizes the Public Utilities Commission to
collect penalties, or bring an action for the collection of fees and
penalties, from public utilities that fail to submit certain reports
and fees required by the commission. Existing law requires that the
penalties collected be deposited in the Public Utilities Commission
Utilities Reimbursement Account in the General Fund.
This bill would instead require that these penalties be deposited
in the General Fund.
(2) Existing law requires the Public Utilities Commission to
establish rates for water corporations.
This bill would require the commission to issue a final decision,
within a specified timeframe, on a water corporation's application,
involving a water corporation with greater than 10,000 service
connections, for a general rate increase pursuant to the commission's
rate case plan for general rate increase applications. The bill
would authorize the applicant to file a tariff implementing interim
rates that may be increased by an amount equal to the rate of
inflation as compared to existing rates if the commission decision is
not effective in accordance with the specified timeframe. The bill
would require the commission to establish a schedule to require every
water corporation that is subject to the rate case plan for water
corporations to file an application pursuant to the plan every 3
years. The bill would provide that its provisions may be waived at
any time by mutual consent of the executive director of the
commission and the water corporation.
The bill would appropriate $445,000 from moneys derived from
regulatory fees deposited in the Public Utilities Commission
Utilities Reimbursement Account in the General Fund for costs
incurred by the commission in the administration of these provisions.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The rate case plan for water corporations adopted by the
Public Utilities Commission in Decision No. 90-08-045 has not been
updated or revised to reflect statutes adopted since its promulgation
in 1990.
(b) It is in the public's interest to provide a certain but
flexible schedule for investigating and addressing rate changes
proposed by water corporations.
(c) Not later than December 31, 2003, the commission should review
and revise, as appropriate, the rate case plan for water
corporations adopted by Decision No. 90-08-045 to ensure its
consistency with relevant statutes and commission practice in
addressing rate applications by water corporations.
(d) Whenever a water corporation files an application for a rate
change pursuant to the rate case plan for water corporations, the
commission should render a decision consistent with the schedule
established in the plan.
(e) The provisions of this act should not be construed as
precedent for any other utility.
SEC. 2. Section 409 of the Public Utilities Code is amended to
read:
409. (a) Notwithstanding any other provision of law, all fees and
charges collected pursuant to this code by the commission from each
public utility subject to Section 431, with the exception of any
penalty collected pursuant to Section 405 or 406, shall be deposited
in the Public Utilities Commission Utilities Reimbursement Account,
in addition to the fee authorized by Section 431.
(b) A penalty collected pursuant to Section 405 or 406 shall be
deposited in the General Fund.
SEC. 3. Section 455.2 is added to the Public Utilities Code, to
read:
455.2. (a) The commission shall issue its final decision on a
general rate case application of a water corporation with greater
than 10,000 service connections in a manner that ensures that the
commission's decision becomes effective on the first day of the first
test year in the general rate increase application.
(b) If the commission's decision is not effective in accordance
with subdivision (a), the applicant may file a tariff implementing
interim rates that may be increased by an amount equal to the rate of
inflation as compared to existing rates. The interim rates shall be
effective on the first day of the first test year in the general
rate case application. These interim rates shall be subject to
refund and shall be adjusted upward or downward back to the interim
rate effective date, consistent with the final rates adopted by the
commission. The commission may authorize a lesser increase in
interim rates if the commission finds the rates to be in the public
interest. If the presiding officer in the case determines that the
commission's decision cannot become effective on the first day of the
first test year due to actions by the water corporation, the
presiding officer or commission may require a different effective
date for the interim rates or final rates.
(c) The commission shall establish a schedule to require every
water corporation subject to the rate case plan for water
corporations to file an application pursuant to the plan every three
years. The plan shall include a provision to allow the filing
requirement to be waived upon mutual agreement of the commission and
the water corporation.
(d) The requirements of subdivisions (a) and (b) may be waived at
any time by mutual consent of the executive director of the
commission and the water corporation.
SEC. 4. The sum of four hundred forty-five thousand dollars
($445,000) is hereby appropriated from the Public Utilities
Commission Utilities Reimbursement Account in the General Fund for
costs incurred by the Public Utilities Commission in the 2002-03
fiscal year in the administration of Section 455.2 of the Public
Utilities Code. That sum shall be allocated from those moneys in the
Public Utilities Commission Utilities Reimbursement Account derived
from the imposition of regulatory fees pursuant to Section 431 of the
Public Utilities Code, and may not include moneys in the Public
Utilities Commission Utilities Reimbursement Account derived from the
imposition of penalties pursuant to Sections 405 and 406 of the
Public Utilities Code.