BILL NUMBER: AB 1157	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2003

INTRODUCED BY   Assembly Member Canciamilla

                        FEBRUARY 21, 2003

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1157, as amended, Canciamilla.  Public utilities:  water rates.

   Existing law requires the Public Utilities Commission to establish
rates for water corporations and requires 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.
   This bill would  state the intent of the Legislature that
the requirement   require  that the commission
issue a final decision in an application by a water corporation with
greater than 10,000 service connections,  is 
without regard to when the application is filed or was previously
filed.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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

  
  SECTION 1.  In adding Section 455.2 to the Public Utilities
 
  SECTION 1.  Section 455.2 of the Public Utilities Code is amended
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.  
   (e) This section applies to every pending general rate case
application of a water corporation with greater than 10,000 service
connections, without regard to when the application is filed or was
previously filed.  This subdivision does not constitute a change in,
but is declaratory of, the intent of the Legislature in adding this
section by enacting Chapter 1147 of the Statutes of 2002. 
 Code, the Legislature intended that it apply to every
general rate case application of a water corporation with greater
than 10,000 service connections, without regard to when the
application is filed or was previously filed.  This section does not
constitute a change in, but is declaratory of, existing law.