BILL NUMBER: AB 2207	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 18, 2010

   An act to add Section 779.3 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2207, as amended, Fong. Utilities: termination of services.
   Existing law prohibits an electrical, gas, heat, or water
corporation from terminating residential service for nonpayment of a
delinquent account unless the corporation first gives prescribed
notice of the delinquency and impending termination. Existing law
also prohibits termination in specified situations.
   This bill would state the intent of the Legislature to
enact legislation to create a statewide standard for the termination
of household utility service, including electricity and gas, in order
to protect vulnerable populations, as well as to prevent death and
serious injury resulting from utility service termination 
 require a gas or electrical corporation to implement specified
practices, including prescribed bill payment plans for customers who
are   subject to termination of service for nonpayment of a
delinquent bill, and a prohibition on requiring that a customer pay
reestablishment of credit deposits for either late payments or
nonpayment of bills, or following a termination of service  .

   Under existing law, a violation of the Public Utilities Act is a
crime. Because this bill would be within the act, by imposing
requirements on gas and electrical corporations, the violation of
which would be a crime, the bill would impose a state-mandated local
program by creating a new crime.  
   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:  no
  yes  . State-mandated local program:  no
  yes  .


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

  SECTION 1.  Section 779.3 is added to the Public Utilities Code, to
read: 
   779.3.  It is the intent of the Legislature to enact legislation
to create a statewide standard for the termination of residential
utility service, including electricity and gas, in order to protect
vulnerable populations such as the elderly, children, and the
disabled, as well as to prevent death and serious injury resulting
from utility service termination. 
    779.3.    (a) A gas or electrical corporation shall
implement the following practices:  
   (1) Notwithstanding subdivision (c) of Section 779, if a customer
is subject to termination of service for nonpayment of a delinquent
bill, the gas or electrical corporation shall allow a customer to
enter into a bill payment plan in accordance with this paragraph. The
gas or electrical corporation shall require a customer service
representative to inform the customer that he or she has a right to
arrange a bill payment plan extending the period for payment of the
bill a minimum of three months. The gas or electrical corporation
shall authorize a customer service representative to extend a bill
payment plan period up to 12 months, depending on the particulars of
the customer's situation and ability to pay. A gas or electrical
corporation may authorize bill payment plan schedules that exceed 12
months. A customer service representative may arrange a bill payment
plan with a payment period shorter than three months, at the option
of the customer, if the customer is informed of his or her right to
the three-month option. A customer shall be responsible for any
charges that accrue to the service account after entering into a bill
payment plan pursuant to this paragraph.  
   (2) If a customer has established credit as a customer of the
corporation, a gas or electrical corporation shall not require that
customer to pay reestablishment of credit deposits for either late
payments or nonpayment of bills, or following a termination of
service.  
   (b) A gas or electrical corporation may file with the commission a
Tier 1 advice letter to open a memorandum account to track any
significant additional costs associated with complying with practices
pursuant subdivision (a), including the operations and maintenance
charges associated with implementing the practices and any
uncollectables that are in excess of those projected in the last
general rate case for the gas or electrical corporation. The
commission shall consider the process for determining the categories
and amounts of costs in the memorandum account that should be
considered reasonable for recovery, and the appropriate methods for
recovery. 
   SEC. 2.    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.