BILL ANALYSIS                                                                                                                                                                                                    






          
                SENATE HOUSING & COMMUNITY DEVELOPMENT COMMITTEE
                      Senator Denise Moreno Ducheny, Chair


          Bill No:                              SB 1163Hearing: March  
          22, 2004
          Author:                               DunnFiscal: Yes
          Version:                              February 2,  
          2004Consultant: Mark Stivers

                             MASTER-METER UTILITIES

           Background and Existing Law  :

          There are about 4,850 mobilehome parks and manufactured  
          housing communities in California with over 375,000 spaces  
          housing more than 600,000 people.  Each mobilehome space  
          consists of a utility pedestal for electric and gas as well  
          as sewer and water hookups.  In most parks utility service  
          is provided by the park owner to individual mobilehome  
          spaces through a "master-meter" system, with a public  
          utility providing gas, electricity and sometimes water to  
          the park master-meter but not to individual park spaces.    
          The park operates and controls the utility system within  
          the park, distributing electricity and gas to individual  
          spaces in the park that is submetered.  The park operator  
          maintains the park utility system, reads the submeters  
          where applicable, and bills the residents.  Many parks hire  
          billing companies or agents to perform these functions.

          Under the Public Utilities Code, mobilehome park owners and  
          apartment owners who operate master-meters must provide  
          each submetered resident with an itemized bill generally in  
          accordance with the form and content of bills provided  
          directly by the utility to its customers.  In addition, the  
          master-meter customer must bill submetered residents at the  
          same rate that the residents would pay if they purchased  
          directly from the utility.  If the master-meter customer  
          receives rebates from the utility, they must also be passed  
          on to each resident proportional to use.  While the Public  
          Utilities Commission (PUC) generally enforces provisions of  
          this code, there seems to be disagreement as to whether or  
          not the Commission has the authority or has been willing to  
          accept and investigate complaints alleging violations of  
          master meter responsibilities. 




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          The Mobilehome Residency Law (MRL) in the Civil Code also  
          contains some provisions relating to master-meter operators  
          in mobilehome parks.  A park owner who operates a  
          master-meter must provide the opening and closing meter  
          readings and separately stated the utility charges.  In  
          addition, the management must post in a conspicuous place  
          the prevailing residential utilities rate schedule as  
          published by the serving utility.  The MRL is enforced  
          through private legal action in the courts.


           Proposed Law  :

          Senate Bill 1163 requires the California Public Utilities  
          Commission to accept and respond to complaints from tenants  
          of a mobilehome park or apartment building regarding  
          violations of state master-meter requirements.

          With respect to the Mobilehome Residency Law, the bill adds  
          language from the Public Utilities Code that requires  
          master-meter utility billing statements to comply generally  
          with the form and content of the bills that the utility  
          provides to its residential customers directly.  The bill  
          also requires mobilehome park owners who use third-party  
          agents to bill master-meter residents to disclose on each  
          bill the name, address, and phone number of the billing  
          agent.

           Comments  :

          1.   Purpose of the bill  .  Over the years the Senate Select  
          Committee on Mobile and Manufactured Homes has received a  
          number of complaints from mobilehome park residents about  
          master-meter relationships with park owners, and in 2001  
          the committee held a hearing exclusively on this issue.   
          The complaints allege inaccuracies in metering, incorrect  
          billing charges, inability to contact the billing company,  
          failure to pass through rebates, and the imposition of  
          meter-reading fees.  At the heart of the issue is the  
          difficulty residents have experienced in enforcing existing  
          laws.  The author's office has had difficulty getting the  
          PUC to accept and investigate and respond to master-meter  
          complaints from submeter residents, and civil lawsuits by  
          residents against park owners are often not cost-effective  
          or practical.  In order to ensure enforcement of the law,  




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          this bill requires the PUC to accept and respond to  
          complaints about master-meter operators alleging violations  
          of the Public Utilities Code.

          2.   Clarifying potential confusion  .   There seems to be  
          confusion over the authority and willingness of the PUC to  
          accept complaints from submeter residents about  
          master-meter violations.  The commission staff says that  
          the PUC has accepted complaints for submeter residents for  
          ten years through the informal and formal complaint process  
          administered by their Consumer Affairs Branch.  According  
          to the author, however, PUC representatives contacted about  
          specific cases have responded that the commission does not  
          have the authority to oversee master-meter complaints, and  
          complaints that have been filed have been rejected based on  
          lack of jurisdiction rather than the merits of the  
          complaint.  This bill seeks to resolve any potential  
          confusion by explicitly stating that the PUC is required to  
          accept and respond to complaints from tenants of a  
          mobilehome park or apartment building regarding violations  
          of state master-meter requirements.

          3.   Getting to the right folks  .  The bill requires the PUC  
          to respond to master-meter complaints through its office of  
          the public advisor.  According to PUC staff, the existing  
          complaint process is handled by the commission's Consumer  
          Affairs Branch.  The committee may wish to consider an  
          amendment to direct complaints to the Consumer Affairs  
          Branch of the PUC.
          
           Support and Opposition  :  (3/17/04)

           Support  :  Golden State Mobilehome Owners League, Inc.

           Opposition  :  None received