BILL NUMBER: SB 1476	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 2, 2010
	AMENDED IN ASSEMBLY  JUNE 23, 2010
	AMENDED IN ASSEMBLY  JUNE 10, 2010
	AMENDED IN SENATE  APRIL 20, 2010
	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Padilla

                        FEBRUARY 19, 2010

   An act to add Chapter 5 (commencing with Section 8380) to Division
4.1 of, and to repeal Section 393 of, the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1476, as amended, Padilla. Public utilities: customer privacy:
advanced metering infrastructure.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations, as defined.
   Existing law requires the commission to conduct a pilot study of
certain customers of each electrical corporation to determine the
relative value to ratepayers of information, rate design, and
metering innovations using specified approaches, but prohibits this
data from being used for any commercial purpose, unless authorized by
the customer.
   This bill would repeal the provisions relating to the pilot study.

   This bill would prohibit an electrical corporation or gas
corporation from sharing, disclosing, or otherwise making accessible
to any 3rd party a customer's electrical or gas consumption data, as
defined, except as specified, and would require those utilities to
use reasonable security procedures and practices to protect a
customer's  unencrypted  electrical and gas consumption data
from unauthorized access, destruction, use, modification, or
disclosure. The bill would prohibit an electrical corporation or gas
corporation from selling a customer's electrical or gas consumption
data or any other personally identifiable information for any
purpose. The bill would prohibit an electrical corporation or gas
corporation from conditioning a customer's access to electrical or
gas consumption data on the payment of an incentive or discount. The
bill would provide that if the electrical corporation or gas
corporation contracts with a 3rd party for a service that allows a
customer to monitor his or her electricity or gas usage, and the 3rd
party uses the data for a secondary commercial purpose, the utility
is required to ensure that the 3rd party prominently discloses that
secondary use of the data to the customer and requires the utility to
provide the customer with an option to monitor his or her
electricity and gas usage that is not conditioned upon the use of the
data by a 3rd party for a secondary commercial purpose. The bill
would adopt  near   nearly  identical
requirements applicable to a local publicly owned electric utility
with respect to electrical consumption data, as defined.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 393 of the Public Utilities Code is repealed.
  SEC. 2.  Chapter 5 (commencing with Section 8380) is added to
Division 4.1 of the Public Utilities Code, to read:
      CHAPTER 5.  PRIVACY PROTECTIONS FOR ENERGY CONSUMPTION DATA


   8380.  (a) For purposes of this section, "electrical or gas
consumption data" means data about a customer's electrical or natural
gas usage that is made available as part of an advanced metering
infrastructure.
   (b) (1) An electrical corporation or gas corporation shall not
share, disclose, or otherwise make accessible to any third party a
customer's electrical or gas consumption data, except as provided in
subdivision (e) or upon the consent of the customer.
   (2) An electrical corporation or gas corporation shall not sell a
customer's electrical or gas consumption data or any other personally
identifiable information for any purpose.
   (c) An electrical corporation, gas corporation, and any contractor
of the utility shall not condition a customer's access to electrical
or gas consumption data on the payment of an incentive or discount.
If an electrical corporation or gas corporation contracts with a
third party for a service that allows a customer to monitor his or
her electricity or gas usage, and that third party uses the data for
a secondary commercial purpose, the electrical corporation or gas
corporation shall ensure that the third party prominently discloses
that secondary use to the customer. The electrical corporation or gas
corporation shall also provide the customer with an option to
monitor his or her electricity or gas usage, which is not conditioned
on the use of the data by a third party for a secondary commercial
purpose.
   (d) An electrical corporation or gas corporation shall use
reasonable security procedures and practices to protect a customer's
 unencrypted  electrical or gas consumption data from
unauthorized access, destruction, use, modification, or disclosure.
   (e)  (1) Nothing in this section shall preclude an electrical
corporation or gas corporation from using customer aggregate
electrical or gas consumption data for analysis, reporting, or
program management if all information has been removed regarding the
individual identity of a customer.
   (2) Nothing in this section shall preclude an electrical
corporation or gas corporation from disclosing a customer's
electrical or gas consumption data to a third party for system, grid,
or operational needs, or the implementation of demand response 
,   energy management,  or energy efficiency programs,
provided that the utility has required by contract that the third
party implement and maintain reasonable security procedures and
practices appropriate to the nature of the information, to protect
the personal information from unauthorized access, destruction, use,
modification, or disclosure.
   (3) Nothing in this section shall preclude an electrical
corporation or gas corporation from disclosing electrical or gas
consumption data as required under state or federal law or by an
order of the commission.
   (f) If a customer chooses to disclose his or her electrical or gas
consumption data to a third party that is unaffiliated with, and has
no other business relationship with, the electrical or gas
corporation, the electrical or gas corporation shall not be
responsible for the security of that data, or its use or misuse.
   8381.  (a) For purposes of this section, "electrical consumption
data" means data about a customer's electrical usage that is made
available as part of an advanced metering infrastructure.
   (b) (1) A local publicly owned electric utility shall not share,
disclose, or otherwise make accessible to any third party a customer'
s electrical consumption data, except as provided in subdivision (e)
or upon the consent of the customer.
   (2) A local publicly owned electric utility shall not sell a
customer's electrical consumption data or any other personally
identifiable information for any purpose.
   (c) A local publicly owned electric utility and any contractor of
the utility shall not condition a customer's access to electrical
consumption data on the payment of an incentive or discount. If a
local publicly owned electric utility contracts with a third party
for a service that allows a customer to monitor his or her
electricity usage, and that third party uses the data for a secondary
commercial purpose, the local publicly owned electric utility shall
ensure that the third party prominently discloses that secondary use
to the customer. The local publicly owned electric utility shall also
provide the customer with an option to monitor his or her
electricity usage, which is not conditioned on the use of the data by
a third party for a secondary commercial purpose.
   (d) A local publicly owned electric utility shall use reasonable
security procedures and practices to protect a customer's 
unencrypted  electrical consumption data from unauthorized
access, destruction, use, modification, or disclosure.
   (e) (1) Nothing in this section shall preclude a local publicly
owned electric utility from using customer aggregate electrical
consumption data for analysis, reporting, or program management if
all information has been removed regarding the individual identity of
a customer.
   (2) Nothing in this section shall preclude a local publicly owned
electric utility from disclosing a customer's electrical consumption
data to a third party for system, grid, or operational needs, or the
implementation of demand response  , energy management,  or
energy efficiency programs, provided that the utility has required by
contract that the third party implement and maintain reasonable
security procedures and practices appropriate to the nature of the
information, to protect the personal information from unauthorized
access, destruction, use, modification, or disclosure.
   (3) Nothing in this section shall preclude a local publicly owned
electric utility from disclosing electrical consumption data as
required under state or federal law.
   (f) If a customer chooses to disclose his or her electrical
consumption data to a third party that is unaffiliated with, and has
no other business relationship with, the local publicly owned
electric utility, the utility shall not be responsible for the
security of that data, or its use or misuse.