BILL NUMBER: SBX2 41 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 20, 2001
AMENDED IN SENATE MAY 25, 2001
INTRODUCED BY Senator Speier
MAY 17, 2001
An act to amend Section 739 of , and to add Section 739.2 to,
the Public Utilities Code, relating to public utilities, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 41, as amended, Speier. Public Utilities Commission: gas and
electricity: baseline quantities.
(1) The Public Utilities Act requires the commission to designate
a baseline quantity, as defined, of gas and electricity which is
necessary to supply a significant portion of the reasonable energy
needs of the average residential customer. The act requires the
commission, in establishing the baseline quantities, to take into
account climatic and seasonal variations in consumption and the
availability of gas service. The act requires the commission to
review and revise baseline quantities, as prescribed.
The bill would require the commission to establish a standard
adjustment and require each electrical and gas corporation to
also take into account adjust the baseline
quantities for a residential customer whose household includes
the presence of a dependent children under the age of 18
years in the household of a residential customer ,
regardless of the number of children pursuant to
self-certification by the residential customer, and
increase baseline quantities accordingly .
The bill would require each electrical and gas corporation to make
the adjustments for a residential customer that so certifies, and to
receive, process, and review the certification, and make the
adjustments in the baseline quantities, in a timely manner.
A violation of the Public Utilities Act is a crime. This bill by
requiring new duties under that act would change the definition of a
crime and thus, 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 a specified reason.
(2) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 739 of the Public Utilities Code is
SECTION 1. Section 739 of the Public Utilities Code is amended to
read:
739. (a) The commission shall designate a baseline quantity of
gas and electricity which is necessary to supply a significant
portion of the reasonable energy needs of the average residential
customer. In estimating those quantities, the commission shall take
into account differentials in energy needs between customers whose
residential energy needs are currently supplied by electricity alone
or by both electricity and gas. The commission shall develop a
separate baseline quantity for all-electric residential customers.
For these purposes, "all-electric residential customers" are
residential customers having electrical service only or whose space
heating is provided by electricity, or both. The commission shall
also take into account differentials in energy use by climatic zone
and season.
(b) (1) The commission shall establish a standard limited
allowance which shall be in addition to the baseline quantity of gas
and electricity for residential customers dependent on life-support
equipment, including, but not limited to, emphysema and pulmonary
patients. A residential customer dependent on life-support equipment
shall be given a higher energy allocation than the average
residential customer.
(2) "Life-support equipment" means that equipment which utilizes
mechanical or artificial means to sustain, restore, or supplant a
vital function, or mechanical equipment which is relied upon for
mobility both within and outside of buildings. "Life-support
equipment," as used in this subdivision, includes all of the
following: all types of respirators, iron lungs, hemodialysis
machines, suction machines, electric nerve stimulators, pressure pads
and pumps, aerosol tents, electrostatic and ultrasonic nebulizers,
compressors, IPPB machines, and motorized wheelchairs.
(3) The limited additional allowance shall also be made available
to paraplegic and quadriplegic persons in consideration of the
increased heating and cooling needs of those persons.
(4) The limited additional allowance shall also be made available
to multiple sclerosis patients in consideration of the increased
heating and cooling needs of those persons.
(5) The limited additional allowance shall also be made available
to scleroderma patients in consideration of the increased heating
needs of those persons.
(6) The limited allowance shall also be made available to persons
who are being treated for a life-threatening illness or have a
compromised immune system, provided that a licensed physician and
surgeon or a person licensed pursuant to the Osteopathic Initiative
Act certifies in writing to the utility that the additional heating
or cooling allowance, or both, made available pursuant to this
subdivision is medically necessary to sustain the life of the person
or prevent deterioration of the person's medical condition.
(c) (1) The commission shall require that every electrical and gas
corporation file a schedule of rates and charges providing baseline
rates. The baseline rates shall apply to the first or lowest block
of an increasing block rate structure which shall be the baseline
quantity. In establishing these rates, the commission shall avoid
excessive rate increases for residential customers, and shall
establish an appropriate gradual differential between the rates for
the respective blocks of usage.
(2) In establishing residential electric and gas rates, including
baseline rates, the commission shall assure
ensure that the rates are sufficient to enable the electrical
corporation or gas corporation to recover a just and reasonable
amount of revenue from residential customers as a class, while
observing the principle that electricity and gas services are
necessities, for which a low affordable rate is desirable and while
observing the principle that conservation is desirable in order to
maintain an affordable bill.
(3) At least until December 31, 2003, the commission shall require
that all charges for residential electric customers are volumetric,
and shall prohibit any electrical corporation from imposing any
charges on residential consumption that are independent of
consumption, unless those charges are in place prior to the effective
date of the act that added this paragraph.
(d) In addition to other allowances and adjustments required
by this section, the commission shall establish a standard adjustment
and require each electrical and gas corporation to adjust the
baseline quantities for a residential customer whose household
includes the presence of a dependent child under the age of 18 years,
regardless of the number of children.
(e) As used in this section the following terms have
the following meanings :
(1) "Baseline quantity" means a quantity of electricity or gas for
residential customers to be established by the commission based on
from 50 to 60 percent of average residential consumption of these
commodities, except that, for residential gas customers and for
all-electric residential customers, the baseline quantity shall be
established at from 60 to 70 percent of average residential
consumption during the winter heating season. In establishing the
baseline quantities, the commission shall take into account climatic
and seasonal variations in consumption and the availability of gas
service. The commission shall review and revise baseline quantities
as average consumption patterns change in order to maintain these
ratios.
(2) "Residential customer" means those customers receiving
electrical or gas service pursuant to a domestic rate schedule and
excludes industrial, commercial, and every other category of
customer.
(e)
(f) Wholesale electrical or gas purchases, and the rates
charged therefor, are exempt from this section.
(f)
(g) Nothing contained in this section shall be construed to
prohibit experimentation with alternative gas or electrical rate
schedules for the purpose of achieving energy conservation.
SEC. 2. Section 739.2 is added to the Public Utilities Code, to
read:
739.2. Each electrical and gas corporation shall make the
adjustment required by the commission pursuant to subdivision (d) of
Section 739 for a residential customer that self-certifies the
presence of a child under the age of 18 years in the household. The
electrical or gas corporation shall receive, process, and review a
certification, and make any required adjustment in the baseline
quantity, in a timely manner.
SEC. 3. 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:
739. (a) The commission shall designate a baseline quantity of
gas and electricity which is necessary to supply a significant
portion of the reasonable energy needs of the average residential
customer. In estimating those quantities, the commission shall take
into account differentials in energy needs between customers whose
residential energy needs are currently supplied by electricity alone
or by both electricity and gas. The commission shall develop a
separate baseline quantity for all-electric residential customers.
For these purposes, "all-electric residential customers" are
residential customers having electrical service only or whose space
heating is provided by electricity, or both. The commission shall
also take into account differentials in energy use by climatic zone
and season.
(b) (1) The commission shall establish a standard limited
allowance which shall be in addition to the baseline quantity of gas
and electricity for residential customers dependent on life-support
equipment, including, but not limited to, emphysema and pulmonary
patients. A residential customer dependent on life-support equipment
shall be given a higher energy allocation than the average
residential customer.
(2) "Life-support equipment" means that equipment which utilizes
mechanical or artificial means to sustain, restore, or supplant a
vital function, or mechanical equipment which is relied upon for
mobility both within and outside of buildings. "Life-support
equipment," as used in this subdivision, includes all of the
following: all types of respirators, iron lungs, hemodialysis
machines, suction machines, electric nerve stimulators, pressure pads
and pumps, aerosol tents, electrostatic and ultrasonic nebulizers,
compressors, IPPB machines, and motorized wheelchairs.
(3) The limited additional allowance shall also be made available
to paraplegic and quadriplegic persons in consideration of the
increased heating and cooling needs of those persons.
(4) The limited additional allowance shall also be made available
to multiple sclerosis patients in consideration of the increased
heating and cooling needs of those persons.
(5) The limited additional allowance shall also be made available
to scleroderma patients in consideration of the increased heating
needs of those persons.
(6) The limited allowance shall also be made available to persons
who are being treated for a life-threatening illness or have a
compromised immune system, provided that a licensed physician and
surgeon or a person licensed pursuant to the Osteopathic Initiative
Act certifies in writing to the utility that the additional heating
or cooling allowance, or both, made available pursuant to this
subdivision is medically necessary to sustain the life of the person
or prevent deterioration of the person's medical condition.
(c) (1) The commission shall require that every electrical and gas
corporation file a schedule of rates and charges providing baseline
rates. The baseline rates shall apply to the first or lowest block
of an increasing block rate structure which shall be the baseline
quantity. In establishing these rates, the commission shall avoid
excessive rate increases for residential customers, and shall
establish an appropriate gradual differential between the rates for
the respective blocks of usage.
(2) In establishing residential electric and gas rates, including
baseline rates, the commission shall ensure that the rates are
sufficient to enable the electrical corporation or gas corporation to
recover a just and reasonable amount of revenue from residential
customers as a class, while observing the principle that electricity
and gas services are necessities, for which a low affordable rate is
desirable.
(d) As used in this section the following terms have the following
meanings:
(1) "Baseline quantity" means a quantity of electricity or gas for
residential customers to be established by the commission based on
from 50 to 60 percent of average residential consumption of these
commodities, except that, for residential gas customers and for
all-electric residential customers, the baseline quantity shall be
established at from 60 to 70 percent of average residential
consumption during the winter heating season. In establishing the
baseline quantities, the commission shall take into account climatic
and seasonal variations in consumption and the availability of gas
service. The commission shall review and revise baseline quantities
as average consumption patterns change in order to maintain these
ratios. The commission shall also take into account the presence of
dependent children under the age of 18 years in the household of a
residential customer, pursuant to self-certification by the
residential customer, and shall increase baseline quantities
accordingly.
(2) "Residential customer" means those customers receiving
electrical or gas service pursuant to a domestic rate schedule and
excludes industrial, commercial, and every other category of
customer.
(e) Wholesale electrical or gas purchases, and the rates charged
therefor, are exempt from this section.
(f) Nothing contained in this section shall be construed to
prohibit experimentation with alternative gas or electrical rate
schedules for the purpose of achieving energy conservation.
SEC. 2.
SEC. 3. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to require the Public Utilities Commission, when
determining gas and electricity baseline quantities, to also take
into account the number of inhabitants located at the site of a
residential customer, and increase baseline quantities accordingly,
thereby preserving the public peace, health, and safety, it is
necessary for this act to take effect immediately.