BILL NUMBER: AB 1157	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2004
	AMENDED IN SENATE  JUNE 15, 2004
	AMENDED IN SENATE  JUNE 30, 2003
	AMENDED IN ASSEMBLY  APRIL 22, 2003

INTRODUCED BY   Assembly Member Canciamilla

                        FEBRUARY 21, 2003

   An act to amend Section 455.2 of  , and to add Section
455.4 to,  the Public Utilities Code, relating to 
public utilities   water corporations  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1157, as amended, Canciamilla.  Public utilities:  water and
gas rates.
   Existing law requires the Public Utilities Commission to establish
rates for  gas corporations and  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 require that the commission issue a final decision
in  an   every pending general rate case 
application by a water corporation with greater than 10,000 service
connections, without regard to when the application is filed or was
previously filed.  
   This bill would require the commission to issue a final decision
in a general rate case application by a gas corporation with less
than 250,000 service connections, so that the rate becomes effective
on the first day of the first test year in the application.  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 this requirement.  The bill would
require the commission to establish a schedule to require every gas
corporation with less than 250,000 service connections to file an
application pursuant to the rate case plan for a general rate
increase 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 gas corporation. 
   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.  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.  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 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.  
  SEC. 2.  Section 455.4 is added to the Public Utilities Code, to
read:
   455.4.  (a) The commission shall issue its final decision on a
general rate case application of a gas corporation with less than
250,000 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.  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 gas corporation, the
presiding officer or commission may require a different effective
date for the final rates.
   (c) The commission shall establish a schedule to require every gas
corporation subject to the rate case plan for gas 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 gas
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 gas corporation.
   (e) This section applies to every pending general rate case
application of a gas corporation with less than 250,000 service
connections, without regard to when the application is filed or was
previously filed.
  SEC. 3.  By adding Section 2, it is the intent of the Legislature
to extend the time requirements for the commission to issue a final
decision on a general rate case application of a water corporation
with greater than 10,000 service connections, enacted in Chapter 1147
of the Statutes of 2002, to a general rate case application of a gas
corporation with less than 250,000 service connections.