BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN SB 1163 - Dunn Hearing Date: April 13, 2004 S As Amended: March 26, 2004 FISCAL B 1 1 6 3 DESCRIPTION Current law requires master-meter customers to separately state the opening and closing readings for sub-metered mobilehome park customers when rendering a bill, and to post the prevailing residential utilities rate schedule of the serving utility. This bill requires that when the master-meter customer renders such a bill, it shall be generally in the form and with the content of the bills the utility serving the master-meter customer renders to its residential customers. This bill requires mobilehome parks to disclose the name, address and telephone number of the billing agent or company on each resident's billing if a third-party billing agent or company prepares utility bills for the park. Current law establishes requirements about the rates charged by a master-meter customer to its sub-metered tenants, specifies the general form and content of the bills rendered by the master-meter customer, and makes it a duty of master-meter customers to maintain and repair the facilities between the master-meter and the sub-metered tenant. This bill requires the California Public Utilities Commission (CPUC), through its consumer affairs branch, to accept and respond to complaints concerning these requirements. BACKGROUND Typically, a master-meter customer is a multi-unit dwelling, such as a mobilehome park or an apartment complex, where the park or complex is the customer of the utility and pays the utility bill. The park or complex is responsible for the electric, gas, or water system within the park or complex, and separately meters and bills the tenants for their individual utility usage. 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. In 2001, the committee held a hearing on this issue and heard complaints regarding metering inaccuracies, billing mistakes, an inability to contact the billing company, failure to pass through utility rebates, and the imposition of meter-reading fees. COMMENTS 1.Do Your Job . The first part of this measure requires the CPUC to accept and respond to complaints concerning master-meter customers. While this appears unnecessary because the CPUC is the enforcement authority for the Public Utilities Code, the author notes the CPUC has been unwilling or unable to perform this function. This part of the bill eliminates any ambiguity by making it clear the CPUC is responsible for handling complaints filed by sub-metered customers. However, what isn't clear is whether the CPUC has the authority to accept and respond to complaints if the master-meter customer is being served by a utility not regulated by the CPUC (e.g. a municipal utility). The author and committee may wish to consider adding an amendment to ensure sub-metered customers of master-meter customers served by a non-CPUC regulated entity can file service complaints with the CPUC. 2.Making The Bill Look Like A Bill . The second part of the bill creates two new requirements for how sub-metered customers are billed by the owner of the master-meter. The first requirement is that if a third-party billing agent is used, the master-meter customer has to include the contact information for that third-party billing agent on the bill sent to the sub-metered customer. The second requirement is for mobilehome park sub-metered utility bills to be rendered generally in accordance with the form and content of the bills the utility serving the master-metered customer provides to its residential customers. In other words, a mobilehome park in PG&E's service area would have to provide its tenants with an electric bill that looks like PG&E's electric bill. This requirement would be added to the Mobilehome Residency Law (MRL), a comprehensive set of rules governing the mobilehome park/tenant relationship. At the discretion of the court, a violation of any provision of the MRL - including the new provision this bill proposes to add to the MRL - is subject to an award of up to $2,000, in addition to damages for each willful violation. Requirements regarding the accuracy of the bill are not in the MRL, they're in the Public Utilities Code. Therefore, the courts are not involved and the $2,000 in potential damages is inapplicable in cases where there is a billing or meter-reading error. Complaints about a bill's accuracy or timeliness would have to be raised at the CPUC, as is the case today. PRIOR VOTES Senate Housing and Community Development Committee (6-2) POSITIONS Sponsor: Author Support: California Mobilehome Resource and Action Association Golden State Mobilehome Owners League, Inc. Oppose: California Mobilehome Parkowners Alliance Western Manufactured Housing Communities Association Randy Chinn SB 1163 Analysis Hearing Date: April 13, 2004