BILL NUMBER: SB 659	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 1, 2004
	AMENDED IN ASSEMBLY  JUNE 9, 2003
	AMENDED IN SENATE  APRIL 21, 2003

INTRODUCED BY   Senator Soto

                        FEBRUARY 21, 2003

    An act to amend, repeal, and add Section 739 of the
Public Utilities   An act to amend Section 1731 of, and
to repeal Section 1768 of, the Public Utilities  Code, relating
to public utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 659, as amended, Soto.   Electrical corporations: rates
  Public Utilities Commission:  rehearings and judicial
review  . 
   Under existing law, after any order or decision has been made by
the Public Utilities Commission, any party to the action or
proceeding, or any stockholder or bondholder or other party
pecuniarily interested in the public utility affected, may apply for
a rehearing in respect to any matters determined in the action or
proceeding and specified in the application for rehearing.  Existing
law specifically prohibits a cause of action arising out of any order
or decision of the commission construing, applying, or implementing
the provisions of Chapter 4 of the Statutes of 2001-02 First
Extraordinary Session, relating to an electricity crisis, from
accruing in any court to any corporation or person unless the
corporation or person has filed an application to the commission for
a rehearing within 10 days after the date of issuance of its order or
decision, and requires the commission to issue its decision and
order on rehearing within 20 days after the filing of that
application.
   Existing law also sets forth a specific procedure to expedite
judicial review of an order or decision of the commission
interpreting, implementing, or applying the provisions of Chapter 4
of the Statutes of 2001-02 First Extraordinary Session.
   This bill would repeal the expedited rehearing and review
provisions applicable specifically to Chapter 4 of the Statutes of
2001-02 First Extraordinary Session.  
   (1) Existing law requires the Public Utilities Commission, at
least until December 31, 2003, to require that all electrical
corporation charges for residential electric customers are
volumetric, and to prohibit any electrical corporation from imposing
any charges on residential consumption that are independent of
consumption unless the charges are in place prior to April 12, 2001.

   This bill would, until January 1, 2009, directly impose a
requirement that all charges for residential electric customers be
volumetric, and would prohibit an electrical corporation from
imposing any charges on residential electric customers that are
independent of consumption, excepting a reasonable minimum monthly
bill, as determined by the commission.  Because existing law makes a
violation of a rule or order of the commission a crime, this bill
would change the definition of a crime, thereby imposing a
state-mandated local program.
  (2) 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. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:   yes   no  .


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

  
  SECTION 1.  Section 739 of the Public Utilities Code is 

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Chapter 4 of the Statutes of 2001-02 First Extraordinary
Session authorized the Department of Water Resources to purchase
electric power for sale to customers of certain financially
distressed electrical corporations, and to issue bonds to fund a
portion of the costs of those purchases.
   (b) Chapter 9 of the Statutes of 2001-02 First Extraordinary
Session, enacted various amendments to the provisions described in
subdivision (a), and also added expedited rehearing and judicial
review provisions to the Public Utilities Code to facilitate the
issuance of those bonds at the earliest possible date.
   (c) The sale of the bonds was successfully completed in late 2002.

   (d) Now that the bonds have been sold, the expedited rehearing and
judicial review provisions are no longer necessary and should be
repealed, so that rehearing and judicial review of orders and
decisions of the commission that construe, apply, or implement
Chapter 4 of the Statutes of 2001-02 First Extraordinary Session,
that are not related to the bond issuance can be conducted under the
statutory procedures that govern most other orders and decisions of
the commission.
  SEC. 2.  Section 1731 of the Public Utilities Code is amended to
read: 
   1731.  (a) The commission shall set an effective date when issuing
an order or decision.  The commission may set the effective date of
an order or decision prior to the date of issuance of the order or
decision.
   (b) After any order or decision has been made by the commission,
any party to the action or proceeding, or any stockholder or
bondholder or other party pecuniarily interested in the public
utility affected, may apply for a rehearing in respect to any matters
determined in the action or proceeding and specified in the
application for rehearing.  The commission may grant and hold a
rehearing on those matters, if in its judgment sufficient reason is
made to appear.  No cause of action arising out of any order or
decision of the commission shall accrue in any court to any
corporation or person unless the corporation or person has filed an
application to the commission for a rehearing within 30 days after
the date of issuance or within 10 days after the date of issuance in
the case of an order issued pursuant to either Article 5 (commencing
with Section 816) or Article 6 (commencing with Section 851) of
Chapter 4 relating to security transactions and the transfer or
encumbrance of utility property.  For purposes of this article, "date
of issuance" means the date when the commission mails the order or
decision to the parties to the action or proceeding.  
   (c) No cause of action arising out of any order or decision of the
commission construing, applying, or implementing the provisions of
Chapter 4 of the Statutes of 2001-02 First Extraordinary Session
shall accrue in any court to any corporation or person unless the
corporation or person has filed an application to the commission for
a rehearing within 10 days after the date of issuance of the order or
decision.  The commission shall issue its decision and order on
rehearing within 20 days after the filing of that application.
  
  SEC. 3.  Section 1768 of the Public Utilities Code is repealed.
 
   1768.  The following procedures shall apply to judicial review of
an order or decision of the commission interpreting, implementing, or
applying the provisions of Chapter 4 of the Statutes of 2001-02
First Extraordinary Session:
   (a) Within 30 days after the commission issues its order or
decision denying the application for a rehearing, or, if the
application is granted, then within 30 days after the commission
issues its decision on rehearing, any aggrieved party may petition
for a writ of review in the California Supreme Court for the purpose
of determining the lawfulness of the original order or decision or of
the order or decision on rehearing.  If the writ issues, it shall be
made returnable at a time and place specified by court order and
shall direct the commission to certify its record in the case to the
court within the time specified.  No order of the commission
interpreting, implementing, or applying the provisions of Chapter 4
of the Statutes of 2001-02 First Extraordinary Session shall be
subject to review in the courts of appeal.
   (b) The petition for review shall be served upon the executive
director of the commission either personally or by service at the
office of the commission.
   (c) For purposes of this section, the issuance of a decision or
the granting of an application shall be construed to have occurred on
the date when the commission mails the decision or grant to the
parties to the action or proceeding.
   (d) All actions and proceedings under this section and all actions
or proceedings to which the commission or the people of the State of
California are parties in which any question arises under this
section, or under or concerning any order or decision of the
commission under this section, shall be preferred over, and shall be
heard and determined in preference to, all other civil business
except election causes, irrespective of position on the calendar.
   (e) The provisions of this article apply to actions under this
section to the extent that those provisions are not in conflict with
this section.    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 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) With the exception of a reasonable minimum monthly bill, as
determined by the commission, all charges for residential electric
customers shall be volumetric, and an electrical corporation may not
impose any charges on residential electric customers that are
independent of consumption, unless those charges were in place before
April 12, 2001.
   (d) As used in this section:
   (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) Wholesale electrical or gas purchases, and the rates charged
therefor, are exempt from this section.
   (f) Nothing contained in this section may be construed to prohibit
experimentation with alternative gas or electrical rate schedules
for the purpose of achieving energy conservation.
  (g) This section shall remain in effect only until January 1, 2009,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends that date.

  SEC. 2.   Section 739 is added to the Public Utilities Code, 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 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.
   (d) As used in this section:
   (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) Wholesale electrical or gas purchases, and the rates charged
therefor, are exempt from this section.
   (f) Nothing contained in this section may be construed to prohibit
experimentation with alternative gas or electrical rate schedules
for the purpose of achieving energy conservation.
   (g) This section shall become operative on January 1, 2009.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.