BILL NUMBER: SB 1467 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2010
PASSED THE ASSEMBLY AUGUST 23, 2010
AMENDED IN ASSEMBLY AUGUST 19, 2010
AMENDED IN ASSEMBLY JUNE 30, 2010
AMENDED IN ASSEMBLY JUNE 10, 2010
AMENDED IN SENATE APRIL 6, 2010
INTRODUCED BY Senator Padilla
FEBRUARY 19, 2010
An act to amend Section 25217.5 of the Public Resources Code, and
to amend Sections 394.27, 394.4, 394.7, 454.1, 1822, 2791, 2792,
2793, 2794, 2795, 2796, 2797, 2798, 2799, 2842.4, 2889.4, 2889.5,
2894, 7000, and 9607 of, to amend and renumber Sections 381.2 and
385.2 of, to add a heading as Chapter 5 (commencing with Section
8380) to Division 4.1 of, and to repeal Section 709.7 of, the Public
Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1467, Padilla. Public Utilities Commission: reporting.
(1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined.
This bill would correct certain existing references in the Public
Utilities Code by revising "electric corporation" to "electrical
corporation."
(2) Under existing law, the PUC may establish its own procedures,
subject to statutory limitations or directions and constitutional
requirements of due process. Existing law requires the commission to
develop, publish, and annually update an annual work plan access
guide that describes the scheduled ratemaking proceedings and other
decisions that may be considered by the PUC during the calendar year,
as prescribed. Existing law requires the president of the PUC to
annually appear before the appropriate policy committees of the
Senate and Assembly to report on the annual work plan access guide
and to report on the annual report of the PUC on the number of cases
where resolution exceeded the time periods prescribed in scoping
memos and the days that commissioners presided in hearings.
This bill would additionally require the Chair of the State Energy
Resources Conservation and Development Commission to appear annually
before these committees to report on the activities of that
commission.
(3) The California High Speed Internet Access Act of 1999 (the
act), among other things, requires the PUC to monitor and participate
in a specified proceeding of the Federal Communications Commission
addressing whether to require incumbent local exchange carriers, as
defined, to permit interconnection by competitive data local exchange
carriers, as defined, at any technically feasible point, to permit
those competitive local exchange carriers to provide high bandwidth
data services over telephone lines with voice services provided by
incumbent local exchange carriers.
This bill would repeal the California High Speed Internet Access
Act of 1999.
(4) Existing law regulating the provision of telecommunications
services requires a local exchange service provider to provide
prescribed consumer protections relating to pay-per-use telephone
service features and verification of changes in service providers.
This bill would revise those provisions to refer to local exchange
carriers instead of local exchange service providers.
(5) Under existing law, the disclosure of any information by an
interexchange telephone corporation, a local exchange telephone
corporation, or a provider of commercial mobile radio service, as
defined, in good faith compliance with the terms of a state or
federal court warrant or order or administrative subpoena issued at
the request of a law enforcement official or other federal, state, or
local governmental agency for law enforcement purposes, is a
complete defense against specified civil actions for the wrongful
disclosure of that information.
This bill would revise that reference to a local exchange
telephone corporation to, instead, refer to a local exchange carrier.
(6) This bill would make other technical and nonsubstantive
changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25217.5 of the Public Resources Code is amended
to read:
25217.5. The chair of the commission shall do both of the
following:
(a) Direct the adviser, the executive director, and other staff in
the performance of their duties in conformance with the policies and
guidelines established by the commission.
(b) Annually appear before the Senate Committee on Energy,
Utilities and Communications and the Assembly Committee on Utilities
and Commerce to report on the activities of the commission.
SEC. 2. Section 381.2 of the Public Utilities Code is amended and
renumbered to read:
8380. (a) By March 1, 2010, the commission, by opening a new
proceeding or amending an existing proceeding, shall investigate the
ability of electrical corporations and gas corporations to provide
various energy efficiency financing options to their customers for
the purposes of implementing the program developed pursuant to
Section 25943 of the Public Resources Code.
(b) In the report prepared pursuant to Section 384.2, the
commission shall include an assessment of each electrical corporation'
s and each gas corporation's implementation of the program developed
pursuant to Section 25943 of the Public Resources Code.
SEC. 3. Section 385.2 of the Public Utilities Code is amended and
renumbered to read:
8385. (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility,
as defined in Section 224.3, shall be responsible for implementing
an energy efficiency program that recognizes the intent of the
Legislature to encourage energy savings and greenhouse gas emission
reductions in existing residential and nonresidential buildings,
while taking into consideration the effect of the program on rates,
reliability, and financial resources.
(b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
(1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
(2) The net energy savings from energy efficiency improvements
installed pursuant to this section.
SEC. 4. Section 394.27 of the Public Utilities Code is amended to
read:
394.27. When a customer files a claim with an electrical
corporation for damages to property resulting from the curtailment of
electric service due to the failure of the electrical corporation to
reasonably provide service or restore service within a reasonable
time after a fire, flood, earthquake, other natural disaster, or act
of God, the electrical corporation shall inform the customer that
such claim may be pursued in small claims court or other judicial
courts, depending on the amount of the claim.
SEC. 5. Section 394.4 of the Public Utilities Code is amended to
read:
394.4. Rules that implement the following minimum standards shall
be adopted by the commission for electric service providers offering
electrical services to residential and small commercial customers
and the governing body of a public agency offering electrical
services to residential and small commercial customers within its
jurisdiction:
(a) Confidentiality: Customer information shall be confidential
unless the customer consents in writing. This shall encompass
confidentiality of customer specific billing, credit, or usage
information. This requirement shall not extend to disclosure of
generic information regarding the usage, load shape, or other general
characteristics of a group or rate classification, unless the
release of that information would reveal customer specific
information because of the size of the group, rate classification, or
nature of the information.
(b) Physical disconnects and reconnects: Only an electrical
corporation, or a publicly owned electric utility, that provides
physical delivery service to the affected customer shall have the
authority to physically disconnect or reconnect a customer from the
transmission or distribution grid. Physical disconnection by
electrical corporations subject to the commission's jurisdiction
shall occur only in accordance with protocols established by the
commission. Physical disconnection by publicly owned electric
utilities shall occur only in accordance with protocols established
by the governing board of the local publicly owned electric utility.
(c) Change in providers: Upon adequate notice supplied by an
electric service provider to the electrical corporation or local
publicly owned electric utility providing physical delivery service,
customers who are eligible for direct access may change their energy
supplier. Energy suppliers may charge for this change, provided that
any fee or penalty charged by the supplier associated with early
termination of service, shall be disclosed in that contract or
applicable tariff.
(d) Written notices: Notices describing the terms and conditions
of service as described in Section 394.5, service agreements, notices
of late payment, notices of discontinuance of service, and
disconnection notices addressed to residential and small commercial
customers shall be easily understandable, and shall be provided in
the language in which the electric service provider offered the
services.
(e) Billing: All bills shall have a standard bill format, as
determined by the commission or the governing body, and shall contain
sufficient detail for the customer to recalculate the bill for
accuracy. Any late fees shall be separately stated. Each electric
service provider shall provide on all customer bills a phone number
by which customers may contact the electric service provider to
report and resolve billing inquiries and complaints. An electric
service provider contacted by a customer regarding a billing dispute
shall advise the customer at the time of the initial contact that the
customer may file a complaint with the commission if its dispute is
not satisfactorily resolved by the electric service provider.
(f) Meter integrity: An electric customer shall have a reasonable
opportunity to have its meter tested to ensure the reasonable
accuracy of the meter. The commission or governing body shall
determine who is responsible for the cost of that testing.
(g) Customer deposits: Electric service providers may require
customer deposits before commencing service, but in no event shall
the deposit be more than the estimated bill for the customer for a
three-month period.
(h) Additional protections: The commission or the governing body
may adopt additional residential and small commercial consumer
protection standards that are in the public interest.
SEC. 6. Section 394.7 of the Public Utilities Code is amended to
read:
394.7. (a) The commission shall maintain a list of residential
and small commercial customers who do not wish to be solicited by
telephone, by an electrical corporation, marketer, broker, or
aggregator for electric service, to subscribe to or change their
electric service provider. The commission shall not assess a charge
for inclusion of a customer on the list. The list shall be updated
periodically, but no less than quarterly.
(b) The list shall include sufficient information for electrical
corporations, marketers, brokers, or aggregators of electric service
to identify customers who do not wish to be solicited, including a
customer's address and telephone number. The list shall be made
accessible electronically from the commission to any party regulated
as an electrical corporation or registered at the commission as an
electric marketer, broker, or aggregator of electric service.
(c) An electrical corporation, marketer, broker, or aggregator of
electric service shall not solicit, by telephone, any customer on the
list prepared pursuant to subdivision (a). Any electrical
corporation, marketer, broker, or aggregator of electric service, or
the representative of an electrical corporation, marketer, broker, or
aggregator of electric service, who solicits any customer on the
list prepared pursuant to subdivision (a) more than once shall be
liable to the customer for twenty-five dollars ($25) for each contact
in violation of this subdivision.
(d) This section shall not apply to the telephone verification
required pursuant to Section 366.5.
SEC. 7. Section 454.1 of the Public Utilities Code is amended to
read:
454.1. (a) Except as provided in subdivision (b), if a customer
with a maximum peak electrical demand in excess of 20 kilowatts
located or planning to locate within the service territory of an
electrical corporation receives a bona fide offer for electric
service from an irrigation district at rates less than the electrical
corporation's tariffed rates, the electrical corporation may
discount its noncommodity rates, but may not discount its
noncommodity rates below its distribution marginal cost of serving
that customer. For purposes of this subdivision, the costs of the
electric commodity shall be excluded from both the irrigation
district and electrical corporation's rates. The electrical
corporation may recover any difference between its tariffed and
discounted service from its remaining customers, allocated as
determined by the commission. However, the reallocation may not
increase rates to its remaining customers by any greater amount than
the rates would be increased if the customer had taken electric
distribution service from the irrigation district and the irrigation
district had paid the charge established in subdivision (e) of
Section 9607. Further, there shall be a firewall preventing the
reallocation of such differences resulting from discounting to
residential customers or to commercial customers with maximum peak
demands not in excess of 20 kilowatts. The commission shall review
the discounts provided under this section by each electrical
corporation and report to the Legislature not later than January 15,
2003. The review shall include an assessment of the effectiveness of
the discount levels and the rate impacts to customers of the
discounts. The commission shall include in its report a
recommendation of any changes that should be made to the discount
levels in light of other commission approved discount programs.
(b) Subdivision (a) does not apply to a cumulative 75 megawatts of
load served by the Merced Irrigation District, determined as
follows:
(1) The load is located within the boundaries of Merced Irrigation
District, as those boundaries existed on December 20, 1995, together
with the territory of Castle Air Force Base which was located
outside the district on that date.
(2) For purposes of this section, a megawatt of load shall be
calculated in accordance with the methodology established by the
California Energy Resource Conservation and Development Commission in
its Docket No. 96-IRR-1890.
(c) Subdivision (a) applies to the load of customers that move to
the areas described in paragraph (1) of subdivision (b) after
December 31, 2000, and such load shall be excluded from the
calculation of the 75 megawatts in subdivision (b).
(d) If an electrical corporation seeks to apply the discounts
permitted under subdivision (a) within the geographic area described
in subdivision (b) of Section 9610, the electrical corporation's
resulting rate for distribution service may not be less than 120
percent of the electrical corporation's marginal distribution cost of
serving that customer.
SEC. 8. Section 709.7 of the Public Utilities Code is repealed.
SEC. 9. Section 1822 of the Public Utilities Code is amended to
read:
1822. (a) Any computer model that is the basis for any testimony
or exhibit in a hearing or proceeding before the commission shall be
available to, and subject to verification by, the commission and
parties to the hearing or proceedings to the extent necessary for
cross-examination or rebuttal, subject to applicable rules of
evidence, except that verification is not required for any
electricity demand model or forecast prepared by the State Energy
Resources Conservation and Development Commission pursuant to Section
25309 or 25402.1 of the Public Resources Code and approved and
adopted after a hearing during which testimony was offered subject to
cross-examination. The commission shall afford each of these
electricity demand models or forecasts the evidentiary weight it
determines appropriate. Nothing in this subdivision requires the
State Energy Resources Conservation and Development Commission to
approve or adopt any electricity demand model or forecast.
(b) Any testimony presented in a hearing or proceeding before the
commission that is based in whole, or in part, on a computer model
shall include a listing of all the equations and assumptions built
into the model.
(c) Any database that is used for any testimony or exhibit in a
hearing or proceeding before the commission shall be reasonably
accessible to the commission staff and parties to the hearing or
proceeding to the extent necessary for cross-examination or rebuttal,
subject to applicable rules of evidence, as applied in commission
proceedings.
(d) The commission shall adopt rules and procedures to meet the
requirements specified in subdivisions (a), (b), and (c). These rules
shall include procedural safeguards that protect databases and
models not owned by the public utility.
(e) The commission shall establish appropriate procedures for
determining the appropriate level of compensation for a party's
access.
(f) Each party shall have access to the computer programs and
models of each other party to the extent provided by Section 1822.
The commission shall not require a utility to provide a remote
terminal or other direct physical link to the computer systems of a
utility to a third party.
(g) The commission shall verify, validate, and review the computer
models of any electrical corporation that are used for the purpose
of planning, operating, constructing, or maintaining the corporation'
s electricity transmission system, and that are the basis for
testimony and exhibits in hearings and proceedings before the
commission.
(h) The transmission computer models shall be available to, and
subject to verification by, each party to a commission proceeding in
accordance with subdivision (a) of Section 1822, and regulations
adopted pursuant to subdivision (d) of Section 1822.
SEC. 10. Section 2791 of the Public Utilities Code is amended to
read:
2791. (a) The owner of a master-metered mobilehome park or
manufactured housing community that provides gas or electric service
to residents may transfer ownership and operational responsibility to
the gas or electrical corporation providing service in the area in
which the park or community is located pursuant to this chapter, or
as the park or community owner and the serving gas or electrical
corporation mutually agree.
(b) Costs, including both costs related to transfer procedures and
costs related to construction, related to the transfer of ownership
process, whether or not resulting in a transfer of ownership to the
serving gas or electrical corporation, shall not be passed through to
the park or community residents. Costs related to the transfer of
ownership process, whether or not resulting in a transfer of
ownership to the serving gas or electrical corporation, shall not be
passed through to the gas or electrical corporation, except as
otherwise provided in this chapter.
(c) Residents of mobilehome parks and manufactured housing
communities constructed after January 1, 1997, shall be individually
metered and served by gas and electric distribution facilities owned,
operated, and maintained by the gas or electrical corporation
providing the service in the area where the new park or community is
located consistent with the commission's orders regarding unbundling,
aggregation, master-metering, and selection of suppliers by
residential customers. Each gas and electrical corporation shall
cooperate with the owner of any park or community constructed after
January 1, 1997, to ensure timely and expeditious installation of the
gas and electric distribution system and to eliminate any delay in
the design, construction, permitting, and operation of the gas and
electric system in the park or community.
SEC. 11. Section 2792 of the Public Utilities Code is amended to
read:
2792. (a) Upon receipt of a written notice of intent to transfer
from the mobilehome park or manufactured housing community owner, the
gas or electrical corporation shall, within 90 days, do all of the
following:
(1) Meet with the park or community owner to describe the
procedures involved in a transfer of ownership and operation
responsibility.
(2) Perform a preliminary review of the gas or electric system, or
both, in the park or community.
(3) Inspect documentation provided by the park or community owner
of the construction, operation, and condition of the gas or electric
system, or both.
(4) Advise the park or community owner concerning the general
condition of the plant and equipment, along with a preliminary
opinion concerning the extent of construction work or other activity
necessary to comply with Section 2794.
(5) Offer a preliminary nonbinding estimate of the cost of
transfer.
(6) Offer the park or community owner a preliminary nonbinding
cost estimate to perform an engineering evaluation and estimate the
construction work and equipment replacement to be performed by the
gas or electrical corporation at the owner's expense.
(b) The gas or electrical corporation shall develop the cost
estimate for the engineering evaluation in good faith using the same
methodology as is used for similar projects. The preliminary cost
estimate shall be effective for a minimum of 90 days. The gas or
electrical corporation shall give the owner timely notice of any
increase in the estimated cost of the engineering evaluation.
(c) During 1997, gas and electrical corporations shall make a good
faith effort to respond within 90 days to the notice provided in
subdivision (a).
(d) The gas or electrical corporation may charge a fee for the
initial inspection not to exceed one hundred fifty dollars ($150).
SEC. 12. Section 2793 of the Public Utilities Code is amended to
read:
2793. (a) Upon receipt from the park or community owner of a
deposit representing the gas or electrical corporation's estimated
cost of the engineering evaluation, the gas or electrical corporation
shall, within 90 days, do all of the following:
(1) Develop an engineering plan for bringing the gas or electric
system to the standard described in Section 2794, incorporating all
relevant documentation including plans, drawings, engineering
studies, and other existing documentation provided by the park or
community owner, and considering incorporation of all portions of the
gas or electric system found to be used, useful, and compatible.
(2) Develop an appraisal of the value to the gas or electrical
corporation of the physical plant and equipment found to be used,
useful, and compatible that comprise the gas or electric system, or
both, to be transferred, including an estimate of the remaining
useful life of the gas or electric system. The value to the gas or
electrical corporation shall take into consideration the expenditures
by the park or community owner to comply with the criteria
established in Section 2794.
(3) Present a proposal, in sufficient detail to serve as a bid
document for the transfer of ownership of the system to the gas or
electrical corporation.
(b) The proposal may be based on either of the following
approaches or as the park or community owner and the gas or
electrical corporation mutually agree:
(1) The park or community owner is responsible for all
construction and equipment replacement activity, if any, at the park
or community owner's expense less any credits or allowances, if any,
including credits or allowances based on incremental increases in the
gas or electrical corporation's revenues associated with the park or
community owner's investment in the gas or electric system. The
construction and equipment replacement and the credits and allowances
shall be based on the principles established in the gas or
electrical corporation's line and service extension rules, if
applicable.
(2) The gas or electrical corporation shall pay the park or
community owner for the appraised value to the gas or electrical
corporation of any gas or electric distribution facilities found to
be used, useful, and compatible. If any new facilities are necessary,
the park or community owner shall be responsible for the costs of
the excavation, installation of substructures, conduit and meter
panels, and surface repairs. Except as provided in paragraph (4) of
subdivision (c), the gas or electrical corporation shall be
responsible for the costs of any additional construction and
equipment replacement, including cabling and transformers.
(c) The proposal shall include the following:
(1) A description of construction and equipment replacement
activity, if any, to be accomplished at the park or community owner's
expense.
(2) Requirements for any additional provisions or rights for the
construction or maintenance of public utility facilities on park or
community premises, including easements and rights-of-way acceptable
to the gas or electrical corporation.
(3) Any specific requirements or costs, or both, with respect to
the presence of used and useful materials or equipment that are
nonstandard, including, but not limited to, inventory requirements,
specialized equipment requirements, or specialized personnel or
training.
(4) Any specific requirements or costs, or both, with respect to
the presence of exceptional construction conditions or operation and
maintenance conditions.
(d) If the actual cost of the engineering evaluation is greater
than the gas or electrical corporation estimate, the park or
community owner shall pay the gas or electrical corporation the
difference within 30 days of receipt of notice. If the actual cost of
the engineering evaluation is less than the deposit, the gas or
electrical corporation shall pay the park or community owner the
difference within 30 days. The content of the proposal shall become
the property of the park or community owner.
(e) Within 90 days of receipt of the proposal for transfer of
ownership, a park or community owner may do any of the following:
(1) Present objections to the gas or electrical corporation in
writing for resolution and may require mediation of the commission if
the parties are unable to resolve the objection.
(2) Decline to proceed, without prejudice to the right to present
a new notice at any future date.
(3) Accept the proposal and contract with the gas or electrical
corporation for completion of the construction work and equipment
replacement, if any, or the acquisition of the gas or electric
system, or both.
(4) Accept the proposal and contract with an approved third party
for completion of the construction work and equipment replacement, if
any, in accordance with the applicable gas or electrical corporation
applicant installation rules.
(f) Any new facilities provided by the gas or electrical
corporation to extend distribution or service facilities from the
existing gas or electrical corporation system within the park to
previously undeveloped locations shall be provided in accordance with
line extension rules and service extension rules contained in gas or
electrical corporation tariffs filed with the commission, including
any and all free extensions, allowances, and advances subject to
refund.
(g) Upon completion of construction work and equipment
replacement, if any, receipt of appropriate inspection approval from
the gas or electrical corporation and authorities having jurisdiction
for the inspections, and completion of all financial transactions
among the parties, the park or community owner shall transfer and the
gas or electrical corporation shall acquire ownership and
operational responsibility for the gas or electric system.
(h) Upon receipt of the proposal described in paragraph (3) of
subdivision (a), the park or community owner shall notify the park
residents concerning the pendency of a transfer process request and
the provisions of the transfer process law.
SEC. 13. Section 2794 of the Public Utilities Code is amended to
read:
2794. (a) A gas or electric system shall be considered acceptable
for transfer if it is in compliance with the following criteria:
(1) It is capable of providing the end users a safe and reliable
source of gas or electric service.
(2) It meets the commission's general orders, is compatible, and,
in the case of new construction, meets the gas or electrical
corporation's design and construction standards insofar as they are
related to safety and reliability. The parties may waive these
requirements by mutual agreement and, where necessary, with
commission approval. The deviations as are agreed upon may be
reflected in the purchase price.
(3) It is capable of serving the customary expected load in the
park or community determined in accordance with a site-specific
study, studies of comparable parks or communities, industry
standards, and the gas or electrical corporation's rules as approved
by the commission.
(b) As used in this section, "customary expected load" means the
anticipated level of service demanded by the dwelling units in the
park or community. The park or community owner shall not be
responsible for betterments or improvements to the gas or electrical
corporation's distribution system facilities or operations that do
not benefit the park or community.
(c) Satisfaction of the criteria shall not require any particular
system architecture or replacement of used and useful equipment,
plant, or facilities, except as needed to comply with subdivision
(a). Equipment, facilities, or plant that are part of the existing
gas or electric system shall be considered compatible unless their
presence in the system would cause substantial increase in the
frequency or duration of outages in the case of failure or emergency,
or they have no remaining useful life. Pursuant to subdivision (c)
of Section 2793, equipment, facilities, or plant that require special
training for the gas or electrical corporation's employees, or
require the gas or electrical corporation to maintain inventories of
nonstandard equipment may be considered compatible, but their
presence may be reflected in the appraised value or the cost imposed
on the park or community owner.
SEC. 14. Section 2795 of the Public
Utilities Code is amended to read:
2795. The park or community owner and the gas or electrical
corporation shall develop a cost for the transfer of the gas or
electric system that reflects the factors in Section 2793, indemnity
and liability issues, and any other factors as the parties may
mutually agree upon, and to which the gas or electrical corporation's
ratepayers are indifferent. The parties may agree on a schedule for
phasing in facilities to meet expected load increases and
betterments, and the costs associated with those activities.
SEC. 15. Section 2796 of the Public Utilities Code is amended to
read:
2796. (a) During the pendency of a transfer request, the owner of
the park or community shall be responsible for the continued
maintenance to preserve the integrity of the park or community gas or
electric system and safe and reliable operation of the park or
community system in accordance with applicable laws.
(b) During the pendency of a transfer request the owner of the
park or community shall be liable for injury and damage resulting
from operation of the submetered gas and electric system. After
transfer, the gas or electrical corporation shall assume
responsibility for operation of the gas or electric system and
provision of service to residents of the park or community and shall
assume liability for any future injury or damage resulting from
operation of the gas or electric system except with respect to
defects known to the park or community owner and not disclosed to the
gas or electrical corporation during the transfer of ownership
process.
SEC. 16. Section 2797 of the Public Utilities Code is amended to
read:
2797. The commission shall permit the gas or electrical
corporation to recover in its revenue requirement and rates all costs
to acquire, improve, upgrade, operate, and maintain transferred
mobilehome park or manufactured housing community gas or electric
systems.
SEC. 17. Section 2798 of the Public Utilities Code is amended to
read:
2798. The commission shall adopt a standard form of agreement for
transfer of gas and electric distribution facilities in mobilehome
parks and manufactured housing communities that shall be the basis
for expedited approval of the transfers. The contract shall be based
on this chapter, the regulations of the commission, and on gas or
electrical corporation rules and regulations, as approved by the
commission.
SEC. 18. Section 2799 of the Public Utilities Code is amended to
read:
2799. (a) The mobilehome park or manufactured housing community
owner may, by written notice, stop the transfer process at any time.
Within 60 days of delivery to the park or community owner of an
itemized bill, the owner shall reimburse the gas or electrical
corporation for all costs incurred through the date notice is
provided.
(b) At any time during the transfer of ownership process, either
party may apply to the commission for informal mediation and
resolution of any issue, finding, determination, or delay in the
conversion process.
(c) If the initiation of the transfer process does not result in a
transfer of the park or community owner's gas or electric system to
the gas or electrical corporation, all information, data, reports,
studies, and proposals shall be retained by the gas or electrical
corporation for a period of five years or offered to the park or
community owner. Prior to disposal of the records, the gas or
electrical corporation shall offer them to the park or community
owner, except that the gas or electrical corporation shall not be
required to provide proprietary information to the park or community
owner.
SEC. 19. Section 2842.4 of the Public Utilities Code is amended to
read:
2842.4. (a) The commission shall, for each electrical
corporation, establish a pay-as-you-save pilot program for eligible
customers.
(b) For the purposes of this section, an "eligible customer" means
a customer of an electrical corporation that meets the following
criteria:
(1) The customer uses a combined heat and power system with a
generating capacity of not more than 20 megawatts that is in
compliance with Section 2843.
(2) The customer is any of the following:
(A) A nonprofit organization described in Section 501(c) (3) of
the Internal Revenue Code (26 U.S.C. Sec. 501(c) (3)), that is exempt
from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501
(a)).
(B) A federal, state, or local government facility.
(c) The pilot program shall enable an eligible customer to finance
all of the upfront costs for the purchase and installation of a
combined heat and power system by repaying those costs over time
through on-bill financing at the difference between what an eligible
customer would have paid for electricity and the actual savings
derived for a period of up to 10 years.
(d) The commission shall ensure that the reasonable costs of the
electrical corporation associated with the pilot program are
recovered.
(e) All costs of the pay-as-you-save program or financing
mechanisms shall be borne solely by the combined heat and power
generators that use the program or financing mechanisms, and the
commission shall ensure that the costs of the program are not shifted
to the other customers or classes of customers of the electrical
corporation.
(f) Each electrical corporation shall make on-bill financing
available to eligible customers until the statewide cumulative rated
generating capacity from pilot program combined heat and power
systems in the service territories of the three largest electrical
corporations in the state reaches 100 megawatts. An electrical
corporation shall only be required to participate in the pilot
program until it meets its proportionate share of the 100-megawatt
limitation, based on the percentage of its peak demand to the total
statewide peak demand within the service territories of all
electrical corporations.
(g) An approval made by the Department of Finance for a state
agency to purchase, lease, or otherwise acquire a combined heat and
power facility that would be financed through the pay-as-you-save
pilot program, may not be made sooner than 30 days after written
notification thereof is provided to the Chairperson of the Senate
Committee on Budget and Fiscal Review, the Chairperson of the
Assembly Committee on Budget, and the Chairperson of the Joint
Legislative Budget Committee, or not sooner than whatever lesser time
the Chairperson of the Joint Legislative Budget Committee may
determine.
SEC. 20. Section 2889.4 of the Public Utilities Code is amended to
read:
2889.4. (a) A local exchange carrier that offers and charges for
pay per use features that do not require an access code to be dialed
to activate the service shall provide a new residential subscriber,
including an existing residential customer ordering an additional
line, during the verbal service order process, with information about
those features. The representatives of a carrier shall offer that
subscriber blocking options for those features.
(b) (1) A local exchange carrier that offers the features
described in subdivision (a) shall advise an existing residential
subscriber who inquires about the features, or who seeks a bill
adjustment for the inadvertent or unauthorized use of those per use
custom calling features, that the features can be blocked and shall
inquire as to whether the subscriber would like to block any or all
of the features.
(2) (A) A local exchange carrier that offers the features
described in subdivision (a) shall provide notice to all existing
residential subscribers not later than May 1, 2000, describing all
features provided on a per use basis, the charge for each activation,
any additional usage or other charges, and detailed information
about the ability to block these features.
(B) The notice shall contain a toll-free number for further
information and shall contain a noticeable postcard size bill insert
that may be returned in the subscriber's bill envelope if they wish
to block any or all of the per use features described in subdivision
(a).
(c) A local exchange service subscriber that has not blocked per
use features in accordance with this section is entitled to a
one-time bill adjustment that shall equal the sum of the charges for
every incident that occurred during the first billing cycle pursuant
to which the subscriber notifies the local exchange carrier that
inadvertent or unauthorized activation occurred with regard to those
per use services that do not require coded dialing to activate. The
one-time bill adjustment shall include an adjustment for any
additional usage charges occurring as a result of inadvertent or
unauthorized activation. The adjustment shall take the form of a
credit to the subscriber's account if the existing technology or
facilities of the local exchange carrier measure usage and permit a
usage credit to be determined and provided.
(d) Nothing in this section prohibits a local exchange carrier
from providing additional bill adjustments at its discretion in
connection with charges imposed for features described in subdivision
(a).
SEC. 21. Section 2889.5 of the Public Utilities Code is amended to
read:
2889.5. (a) A telephone corporation, or any person, firm, or
corporation representing a telephone corporation, shall not make any
change or authorize a different telephone corporation to make any
change in the provider of any telephone service for which competition
has been authorized of a telephone subscriber until all of the
following steps have been completed:
(1) The telephone corporation, its representatives or agents shall
thoroughly inform the subscriber of the nature and extent of the
service being offered.
(2) The telephone corporation, its representatives or agents shall
specifically establish whether the subscriber intends to make any
change in his or her telephone service provider, and explain any
charges associated with that change.
(3) For sales of residential service, the subscriber's decision to
change his or her telephone service provider shall be confirmed by
an independent third-party verification company, or as provided in
paragraph (5). For purposes of this provision, the confirmation by a
third-party verification company shall be made as follows:
(A) The third-party verification company shall meet each of the
following criteria:
(i) Be independent from the telephone corporation that seeks to
provide the subscriber's new service.
(ii) Not be directly or indirectly managed, controlled, or
directed, or owned wholly or in part, by the telephone corporation
that seeks to provide the new service or by any corporation, firm, or
person who directly or indirectly manages, controls, or directs, or
owns more than 5 percent of the telephone corporation.
(iii) Operate from facilities physically separate from those of
the telephone corporation that seeks to provide the subscriber's new
service.
(iv) Not derive commissions or compensation based upon the number
of sales confirmed.
(B) The telephone corporation seeking to verify the sale shall do
so by connecting the subscriber by telephone to the third-party
verification company or by arranging for the third-party verification
company to call the subscriber to confirm the sale.
(C) The third-party verification company shall obtain the
subscriber's oral confirmation regarding the change, and shall record
that confirmation by obtaining appropriate verification data. The
record shall be available to the subscriber upon request. Information
obtained from the subscriber through confirmation shall not be used
for marketing purposes. Any unauthorized release of this information
is grounds for a civil suit by the aggrieved subscriber against the
telephone corporation or its employees who are responsible for the
violation.
(D) Notwithstanding subparagraphs (A), (B), and (C), a service
provider shall not be required to comply with these verification
requirements when the customer directly calls the local service
provider to make changes in service providers. However, a service
provider shall not avoid the verification requirements by asking a
subscribing customer to contact a local exchange carrier directly to
make any change in the service provider. A local exchange carrier
shall be required to comply with these verification requirements for
its own competitive services. However, a local exchange carrier shall
not be required to perform any verification requirements for any
changes solicited by another telephone corporation.
(4) For a sale of residential service, the telephone corporation
seeking to verify the change in service, in addition to the
requirements of paragraph (3), shall notify the subscriber by United
States Postal Service that the subscriber's telephone service
provider has been changed. The service provider that initiated the
change shall send that notice within 14 days of the date of the
change. The notice shall provide the subscriber with clear, legible
notice of the change in service provider, and shall include a
customer service telephone number for the subscriber to call if the
subscriber did not authorize the change in service.
(5) Confirmation of a sale of residential service may be made
using an electronic means that complies with Section 64.1120 of Title
47 of the Code of Federal Regulations in effect as of June 17, 2008.
(6) For sales of all nonresidential services, the subscriber's
decision to change his or her service provider shall be confirmed
through any of the following means:
(A) Independent third-party verification, as set forth in
paragraph (3).
(B) The telephone corporation shall mail to the subscriber an
information package seeking confirmation of his or her change in the
telephone corporation. The information package shall describe the new
service and shall include a postage prepaid postcard or mailer that
the subscriber can use to deny, cancel, or confirm a service order,
as soon as possible, and wait 14 days after the information package
is mailed before making the change in the telephone corporation. The
telephone corporation shall make the change only if the subscriber
does not cancel the change in service order.
(C) Verify the subscriber's change in his or her telephone service
provider by obtaining the subscriber's signature on a document fully
explaining the nature and extent of the action. The document shall
be a separate document, the sole purpose of which is to explain the
nature and extent of the action.
(D) Obtain the subscriber's authorization through an electronic
means that takes the information, including the calling number, and
confirms the change to which the subscriber has given his or her
consent.
(7) Where the telephone corporation obtains a written order for
service, the document shall thoroughly inform the subscriber of the
nature and extent of the action. The subscriber shall be furnished
with a copy of the signed document. The subscriber by his or her
signature on the document shall indicate a full understanding of the
relationship being established with the telephone corporation. If a
written subscriber solicitation or other document contains a letter
of agency authorizing a change in service provider, in combination
with other information including, but not limited to, inducements to
subscribers to purchase service, the solicitation shall include a
separate document, the sole purpose of which is to explain the nature
and extent of the action. If any part of a mailing to a prospective
subscriber is in language other than English, any written
authorization contained in the mailing shall be sent to the same
prospective subscriber in the same language.
(8) The telephone corporation shall retain a record of the
verification of the sale for at least one year. These records shall
be made available to the subscriber, the Attorney General, or the
commission upon request.
(b) If a residential or business subscriber that has not signed an
authorization notifies the telephone corporation within 90 days that
he or she does not wish to change telephone corporations, the
subscriber shall be switched back to his or her former telephone
corporation at the expense of the telephone corporation that
initiated the change.
(c) For purposes of this section, competitive services are those
services where subscribers have the ability to presubscribe to a
telephone service provider.
(d) When a subscriber changes telephone service providers, the
change shall be conspicuously noticed on the subscriber's bill.
Notice in the following form is deemed to comply with this
subdivision:
"NOTICE: Your local (or long distance) telephone service provider
has been changed from (name of prior provider) to (name of current
provider).
Cost of change: $ ____."
(e) Any telephone corporation that violates the verification
procedures described in this section shall be liable to the telephone
corporation previously selected by the subscriber in an amount equal
to all charges paid by the subscriber after the violation.
(f) In addition to the liability described in subdivision (e), any
telephone corporation that violates the verification procedures
described in this section shall credit to a subscriber any charges
paid by the subscriber in excess of the amount that the subscriber
would have been obligated to pay had the subscriber's telephone
service not been changed. The commission shall adopt regulations to
govern credits to subscribers pursuant to this subdivision.
(g) The remedies provided by this section are in addition to any
other remedies available by law.
(h) As described in federal law, no telephone corporation, or any
person, firm, or corporation representing a telephone corporation,
shall make any change or authorize a different telephone corporation
to make any change in the provider of any telephone service for which
competition has been authorized of a telephone subscriber without
having on file, or having instituted reasonable steps designed to
obtain, signed, dated orders for service from the subscriber. All
orders shall be in the form prescribed in federal law for letters of
agency. As described in federal law, the telephone corporation is
responsible for charges associated with disputed changes in telephone
service for which it cannot produce a signed, dated order for
service from the subscriber. This subdivision applies to all
intrastate services for which competition has been authorized.
SEC. 22. Section 2894 of the Public Utilities Code is amended to
read:
2894. (a) Notwithstanding subdivision (e) of Section 2891, the
disclosure of any information by an interexchange telephone
corporation, a local exchange carrier, or a provider of commercial
mobile radio service, as defined in Section 216.8, in good faith
compliance with the terms of a state or federal court warrant or
order or administrative subpoena issued at the request of a law
enforcement official or other federal, state, or local governmental
agency for law enforcement purposes, is a complete defense against
any civil action brought under this chapter or any other law,
including, but not limited to, Chapter 1.5 (commencing with Section
630) of Title 15 of Part 1 of the Penal Code, for the wrongful
disclosure of that information.
(b) As used in this section the following terms have the following
meanings:
(1) "Interexchange telephone corporation" means a telephone
corporation that is a long-distance carrier.
(2) "Local exchange carrier" means a telephone corporation that
provides local exchange services.
SEC. 23. Section 7000 of the Public Utilities Code is amended to
read:
7000. (a) For purposes of this chapter, a utility shall mean all
of the following:
(1) An electrical corporation.
(2) A water corporation.
(3) A telephone corporation.
(4) A telecommunications carrier, as defined in Section 153 of
Title 47 of the United States Code.
(5) A gas corporation.
(6) A local publicly owned electric utility and a publicly owned
gas utility.
(7) A special district that owns or operates utilities.
(b) This chapter shall also apply to the following entities:
(1) A cable television corporation.
(2) A cable operator, as defined in Section 522 of Title 47 of the
United States Code.
SEC. 24. The heading of Chapter 5 (commencing with Section 8380)
is added to Division 4.1 of the Public Utilities Code, to read:
CHAPTER 5. COMPREHENSIVE ENERGY EFFICIENCY PROGRAM
IMPLEMENTATION
SEC. 25. Section 9607 of the Public Utilities Code is amended to
read:
9607. (a) The intent of this section is to avoid cost-shifting to
customers of an electrical corporation resulting from the transfer
of distribution services from an electrical corporation to an
irrigation district.
(b) Except as otherwise provided in this section and Section 9608,
and notwithstanding any other provision of law, an irrigation
district that offered electric service to retail customers as of
January 1, 1999, may not construct, lease, acquire, install, or
operate facilities for the distribution or transmission of
electricity to retail customers located in the service territory of
an electrical corporation providing electric distribution services,
unless the district has first applied for and received the approval
of the commission and implements its service consistent with the
commission's order. The commission shall find that service to be in
the public interest and shall approve the request of a district to
provide distribution or transmission of electricity to retail
customers located in the service territory of an electrical
corporation providing electric distribution service if, after notice
and hearing, the commission determines all of the following:
(1) The district will provide universal service to all retail
customers who request service within the area to be served, at
published tariff rates and on a just, reasonable, and
nondiscriminatory basis, comparable to that provided by the current
retail service provider.
(2) If the area the district is proposing to serve is either of
the following:
(A) Is within the district's boundaries but less than the entire
district, the area to be served includes a percentage of residential
customers and small customers, based on load, comparable to the
percentage of residential and small customers in the district, based
on load.
(B) Includes territory outside the district's boundaries, in which
case the territory outside the district's boundaries must include a
percentage of residential customers and small customers, based on
load, comparable to the percentage of residential and small customers
in the county or counties where service is to be provided, based on
load.
(3) Service by the district will be consistent with the intent of
the state to avoid economic waste caused by duplication of facilities
as set forth in Section 8101.
(4) Service by the district will include reasonable mitigation of
any adverse effects on the reliability of an existing service by the
electrical corporation.
(5) The district has established, funded, and is carrying out
public purpose and low-income programs comparable to those provided
by the current electric retail service provider.
(6) That district's tariffed electric rates, exclusive of
commodity costs, will be at least 15 percent below the tariffed
electric rates, exclusive of commodity costs and nonbypassable
charges under Sections 367, 368, 375, 376, and 379, of the electrical
corporation for comparable services.
(7) Service by the district is in the public interest.
(c) An irrigation district that obtains the approval of the
commission under this section to serve an area shall prepare an
annual report available to the public on the total load and number of
accounts of residential, low-income, agricultural, commercial, and
industrial customers served by the irrigation district in the
approved service area.
(d) The commission shall have jurisdiction to resolve and
adjudicate complaint cases brought against an irrigation district
that offered electric service to retail customers as of January 1,
1999, by an interested party where the complaint concerns retail
electric service outside the boundaries of the district and within
the service territory of an electrical corporation. Nothing in this
section grants the commission jurisdiction to adjudicate complaint
cases involving retail electric service by an irrigation district
inside its boundaries or inside an irrigation district's exclusive
service territory.
(e) Any project involving electric transmission or distribution
facilities to be constructed or installed by an irrigation district
to serve retail customers located in the service territory of an
electrical corporation providing electric distribution services shall
comply with the California Environmental Quality Act, (Division 13
(commencing with Section 21000)) of the Public Resources Code. The
county in which the construction or installation is to occur shall
act as the lead agency. If a project involves the construction or
installation of electric transmission or distribution facilities in
more than one county, the county where the majority of the
construction is anticipated to occur shall act as the lead agency.
(f) An irrigation district may not offer service to customers
outside of its district boundaries before offering service to all
customers within its district boundaries.
(g) This section does not apply to electric distribution service
provided by Modesto Irrigation District to those customers or within
those areas described in subdivisions (a), (b), and (c) of Section
9610.
(h) The provisions of this section shall not apply to (1) a
cumulative 90 megawatts of load served by the Merced Irrigation
District that is located within the boundaries of Merced Irrigation
District, as those boundaries existed on December 20, 1995, together
with the territory of Castle Air Force Base which was located outside
the District on that date, or (2) electric load served by the
District which was not previously served by an electrical corporation
that is located within the boundaries of Merced Irrigation District,
as those boundaries existed on December 20, 1995, together with the
territory of Castle Air Force Base which was located outside the
District on that date.
(i) For purposes of this section, a megawatt of load shall be
calculated in accordance with the methodology established by the
California Energy Resource Conservation and Development Commission in
its Docket No. 96-IRR-1890, but the 90 megawatts shall not include
electrical usage by customers that move to the areas described in
paragraph (1) after
December 31, 2000.
(j) Subdivision (a) of this section shall not apply to the
construction, modification, lease, acquisition, installation, or
operation of facilities for the distribution or transmission of
electricity to customers electrically connected to a district as of
December 31, 2000, or to other customers who subsequently locate at
the same premises.
(k) In recognition of contractual arrangements and settlements
existing as of June 1, 2000, this section does not apply to the
acquisition or operation of the electric distribution facilities that
are the subject of the Settlement Agreement dated May 1, 2000,
between Pacific Gas and Electric Company and the San Joaquin
Irrigation District.
(l) For purposes of this section, retail customers do not include
an irrigation district's own electric load being served of retail by
an electrical corporation.