BILL ANALYSIS
SB 1163
Page 1
Date of Hearing: June 30, 2004
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
SB 1163 (Dunn) - As Amended: June 10, 2004
Policy Committee: HousingVote: 5-0
Utilities 12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the Public Utilities Commission (PUC) to accept and
investigate, as necessary, complaints made by submetered
mobilehome park or apartment complex customers alleging
violations of statutory master-meter responsibilities.
2)Requires, when the management of a mobilehome park provides
master-meter and submeter service of utilities to a homeowner
through a third party billing agent, that the management shall
disclose on each bill the name, address, and telephone number
of the billing agent or company.
FISCAL EFFECT
The PUC estimates ongoing special fund costs of about $80,000
for two positions in its Consumer Protection and Safety Division
to respond to complaints from submetered customers. [Public
Utilities Reimbursement Account]
COMMENTS
1)Background . In most mobilehome 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 spaces. The park operator
maintains the park utility system, reads the submeters where
SB 1163
Page 2
applicable, and bills the residents. Many parks hire third
party billing companies to perform these functions.
Master-meter parks receive a "differential" (discount) on
residential rates from the utility in recognition of their
costs of operating and maintaining the submeter system, but
charge residents the same rate the public utility would charge
if it served the residents directly. The differential is
negotiated between the parks and the utility and approved by
PUC.
The Senate Select Committee on Mobile and Manufactured
Housing, of which the author is chair, has received a number
of complaints over the last few years from residents of
mobilehome parks regarding their master-meter service and the
utility billing practices of the management. The committee
held a hearing in 2001 during which residents offered numerous
complaints, including questions as to the accuracy of parks'
utility billings and meter readings, the inability to speak to
third party billing companies regarding a resident's
statement, and the PUC's lack of response to individual
complaints from residents.
2)Purpose . There is some disagreement as to PUC's authority to
address resident complaints regarding their master-meter
utility service. This bill requires PUC to accept and directly
respond to such complaints. The PUC currently responds to such
complaints by contacting and working with the park owners
regarding the problems, but the PUC does not appear to be
opening formal complaints. The bill is intended to eliminate
any ambiguity by making it clear PUC is responsible for
handling complaints by submetered customers.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081