BILL NUMBER: SB 674	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 6, 2011
	AMENDED IN SENATE  MAY 5, 2011

INTRODUCED BY   Senator Padilla

                        FEBRUARY 18, 2011

   An act to amend Sections 739.5, 8380, and 8381 of, and to repeal
Section 709.7 of, the Public Utilities Code, relating to public
utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 674, as amended, Padilla. Telecommunications: master-metering:
data security.
   (1) The California High Speed Internet Access Act of 1999, among
other things, requires the Public Utilities Commission 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.
   (2) Under existing law, the commission has regulatory authority
over public utilities, including electrical corporations. An
electrical corporation is defined as including every corporation or
person owning, controlling, operating, or managing any electric plant
for compensation within this state, except where electricity is
generated on or distributed by the producer through private property
solely for its own use or the use of its tenants and not for sale or
transmission to others. Existing law requires that, when gas or
electric service is provided by a master-meter customer to users who
are tenants of a mobilehome park, apartment building, or similar
residential complex, the master-meter customer charge each user a
rate not to exceed the rate that would be applicable if the user were
receiving gas or electricity, or both, directly from the gas or
electrical corporation. Existing law creates further requirements for
master-meter customers and for the corporations that provide service
to them, including a requirement that a master-meter customer of a
gas or electrical corporation who receives any rebate from the
corporation to distribute to, or credit to the account of, each
current user served by the master-meter customer a specified portion
of the rebate.
   This bill would exclude from the definition of "rebate" the award
of a monetary incentive under the California Solar Initiative for a
solar energy system that provides electrical generation  for
the common area of   to  a mobilehome park.
   (3) Existing law prohibits 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. Existing law provides 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 contract between the electrical or
gas corporation and the 3rd party shall provide that the 3rd party
prominently discloses that secondary commercial purpose to the
customer. Existing law provides that nothing precludes an electrical
corporation or gas corporation from disclosing a customer's
electrical or gas consumption data to a 3rd party for system, grid,
or operational needs, or the implementation of demand response,
energy management, or energy efficiency programs, if the utility
contract with the 3rd party, among other provisions relating to data
security, prohibits the use of the data for a secondary commercial
purpose not related to the primary purpose of the contract without
the customer's consent. Existing law imposes a parallel prohibition,
and parallel disclosure and consent requirements, on a local publicly
owned electric utility.
   This bill would require those contracts to require prescribed
customer consent prior to the use of the data.
   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 709.7 of the Public Utilities Code is repealed.

  SEC. 2.  Section 739.5 of the Public Utilities Code is amended to
read:
   739.5.  (a) The commission shall require that, whenever gas or
electric service, or both, is provided by a master-meter customer to
users who are tenants of a mobilehome park, apartment building, or
similar residential complex, the master-meter customer shall charge
each user of the service at the same rate that would be applicable if
the user were receiving gas or electricity, or both, directly from
the gas or electrical corporation. The commission shall require the
corporation furnishing service to the master-meter customer to
establish uniform rates for master-meter service at a level that will
provide a sufficient differential to cover the reasonable average
costs to master-meter customers of providing submeter service, except
that these costs shall not exceed the average cost that the
corporation would have incurred in providing comparable services
directly to the users of the service.
   (b) Every master-meter customer of a gas or electrical corporation
subject to subdivision (a) who, on or after January 1, 1978,
receives any rebate from the corporation shall distribute to, or
credit to the account of, each current user served by the
master-meter customer that portion of the rebate which the amount of
gas or electricity, or both, consumed by the user during the last
billing period bears to the total amount furnished by the corporation
to the master-meter customer during that period.
   (c) An electrical or gas corporation furnishing service to a
master-meter customer shall furnish to each user of the service
within a submetered system every public safety customer service which
it provides beyond the meter to its other residential customers. The
corporation shall furnish a list of those services to the
master-meter customer who shall post the list in a conspicuous place
accessible to all users. Every corporation shall provide these public
safety customer services to each user of electrical or gas service
under a submetered system without additional charge unless the
corporation has included the average cost of these services in the
rate differential provided to the master-meter customer on January 1,
1984, in which case the commission shall deduct the average cost of
providing these public safety customer services when approving rate
differentials for master-meter customers.
   (d) Every master-meter customer is responsible for maintenance and
repair of its submeter facilities beyond the master-meter, and
nothing in this section requires an electrical or gas corporation to
make repairs to or perform maintenance on the submeter system.
   (e) Every master-meter customer shall provide an itemized billing
of charges for electricity or gas, or both, to each individual user
generally in accordance with the form and content of bills of the
corporation to its residential customers, including, but not limited
to, the opening and closing readings for the meter, and the
identification of all rates and quantities attributable to each block
in the applicable rate structure. The master-meter customer shall
also post, in a conspicuous place, the applicable prevailing
residential gas or electrical rate schedule, as published by the
corporation.
   (f) The commission shall require that every electrical and gas
corporation shall notify each master-meter customer of its
responsibilities to its users under this section.
   (g) The commission shall accept and respond to complaints
concerning the requirements of this section through the consumer
affairs branch, in addition to any other staff that the commission
deems necessary to assist the complainant. In responding to the
complaint, the commission shall consider the role that the office of
the county sealer in the complainant's county of residence may have
in helping to resolve the complaint and, where appropriate,
coordinate with that office.
   (h) Notwithstanding any other provision of law or decision of the
commission, the commission shall not deny eligibility for the
California Alternative Rates for Energy (CARE) program, created
pursuant to Section 739.1, for a residential user of gas or electric
service who is a submetered resident or tenant served by a
master-meter customer on the basis that some residential units in the
master-meter customer's mobilehome park, apartment building, or
similar residential complex do not receive gas or electric service
through a submetered system.
   (i) For purposes of this section, "rebate" does not include the
award of a monetary incentive under the California Solar Initiative
adopted by the Public Utilities Commission in Decision 05-12-044 and
Decision 06-01-024, as modified by Article 1 (commencing with Section
2851) of Chapter 9 of Part 2, for a solar energy system that
provides electrical generation  for the common area of
 to  a mobilehome park.
  SEC. 3.  Section 8380 of the Public Utilities Code is amended to
read:
   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, and includes the name, account number, or residence
of the customer.
   (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.
   (3) The electrical corporation or gas corporation or its
contractors shall not provide an incentive or discount to the
customer for accessing the customer's electrical or gas consumption
data without the prior consent of the customer.
   (4) An electrical or gas corporation that utilizes an advanced
metering infrastructure that allows a customer to access the customer'
s electrical and gas consumption data shall ensure that the customer
has an option to access that data without being required to agree to
the sharing of his or her personally identifiable information,
including electrical or gas consumption data, with a third party.
   (c) 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 contract between the electrical
corporation or gas corporation and the third party shall provide that
the third party prominently discloses that secondary commercial
purpose to the customer and secures the customer's consent to the use
of his or her data for that secondary commercial purpose prior to
the use of the data.
   (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) This section shall not 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) This section shall not 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, for contracts entered
into after January 1, 2011, 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, and prohibits
the use of the data for a secondary commercial purpose not related to
the primary purpose of the contract without the customer's prior
consent to that use.
   (3) This section shall not preclude an electrical corporation or
gas corporation from disclosing electrical or gas consumption data as
required or permitted 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.
  SEC. 4.  Section 8381 of the Public Utilities Code is amended to
read:
   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, and
includes the name, account number, or residence of the customer.
   (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.
   (3) The local publicly owned electric utility or its contractors
shall not provide an incentive or discount to the customer for
accessing the customer's electrical consumption data without the
prior consent of the customer.
   (4) A local publicly owned electric utility that utilizes an
advanced metering infrastructure that allows a customer to access the
customer's electrical consumption data shall ensure that the
customer has an option to access that data without being required to
agree to the sharing of his or her personally identifiable
information, including electrical consumption data, with a third
party.
   (c) 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 contract between the local publicly
owned electric utility and the third party shall provide that the
third party prominently discloses that secondary commercial purpose
to the customer and secures the customer's consent to the use of his
or her data for that secondary commercial purpose prior to the use of
the data.
   (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, and to prohibit the use of the data
for a secondary commercial purpose not related to the primary
purpose of the contract without the customer's consent.
   (e) (1) This section shall not 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) This section shall not 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, for contracts entered into after
January 1, 2011, 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, and prohibits the use of the data for a
secondary commercial purpose not related to the primary purpose of
the contract without the customer's prior consent to that use.
   (3) This section shall not 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.