BILL NUMBER: AB 2695	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Patterson

                        FEBRUARY 21, 2014

    An act to amend Section 739.9 of the Public Utilities
Code, relating to electricity.   An act to add Sections
715.5 and 9621 to the Public Utilities Code, relating to electricity.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 2695, as amended, Patterson.  Electricity: residential
rates.   Electricity: billing disclosures.  
   (1) The Public Utilities Act vests the Public Utilities Commission
(PUC) with the regulatory authority over public utilities, including
electrical corporations.  
   This bill would require the PUC to require an electrical
corporation to include in its billing statements for its residential
customers and to post on its Internet Web site an easy-to-understand
chart breaking down all the costs reflected in the retail price of
electricity charged by the electrical corporation.  
   Because a violation of the Public Utilities Act or any order,
decision, rule, direction, demand, or requirement of the PUC is a
crime, this bill would impose a state-mandated local program. 

   (2) Existing law vests the State Energy Resources Conservation and
Development Commission (Energy Commission) with certain regulatory
authority over local publicly owned electric utilities regarding
energy efficiency and purchase of renewable energy resources. 

   This bill would require the Energy Commission to develop
guidelines for local publicly owned electric utilities on the
development of an easy-to-understand chart breaking down all the
costs reflected in the retail price of electricity charged by the
utilities that would be included in the billing statements for their
residential customers and posted on their Internet Web sites. 

   (3) 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.  
   Existing law authorizes the Public Utilities Commission, beginning
January 1, 2015, to authorize fixed electricity charges that do not
exceed a specified amount per residential customer account per month.
Existing law, beginning January 1, 2016, authorizes the adjustment
of the maximum allowable fixed charge by no more than the annual
percentage increase in the Consumer Price Index for the prior
calendar year.  
   This bill would make technical, nonsubstantive changes to that
provision. 
   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 715.5 is added to the 
 Public Utilities Code   , to read:  
   715.5.  The commission shall order an electrical corporation to
include in its billing statements for its residential customers and
to post on its Internet Web site an easy-to-understand chart breaking
down all the costs, including costs associated with mandated
programs, reflected in the retail price of electricity charged by
that electrical corporation. The chart may take the form cited in
page 44 of the Little Hoover Commission's report, "Rewiring
California: Integrating Agendas for Energy Reform," issued December
2012. 
   SEC. 2.    Section 9621 is added to the  
Public Utilities Code   , to read: 
   9621.  The Energy Commission shall develop guidelines for local
publicly owned electric utilities on the development of an
easy-to-understand chart that would be included in the billing
statements for their residential customers and posted on their
Internet Web sites, breaking down all the costs, including costs
associated with mandated programs, reflected in the retail price of
electricity charged by that electrical corporation. The chart may
take the form cited in page 44 of the Little Hoover Commission's
report, "Rewiring California: Integrating Agendas for Energy Reform,"
issued December 2012. 
   SEC. 3.    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.  
  SECTION 1.    Section 739.9 of the Public
Utilities Code is amended to read:
   739.9.  (a) "Fixed charge" means any fixed customer charge, basic
service fee, demand differentiated basic service fee, demand charge,
or other charge not based upon the volume of electricity consumed.
   (b) Increases to electrical rates and charges in rate design
proceedings, including any reduction in the California Alternate
Rates for Energy (CARE) discount, shall be reasonable and subject to
a reasonable phase-in schedule relative to the rates and charges in
effect prior to January 1, 2014.
   (c) Except as provided in subdivision (c) of Section 745, the
commission shall require each electrical corporation to offer default
rates to residential customers with at least two usage tiers. The
first tier shall include electricity usage of no less than the
baseline quantity established pursuant to paragraph (1) of
subdivision (d) of Section 739.
   (d) Consistent with the requirements of Section 739, the
commission may modify the seasonal definitions and applicable
percentage of average consumption for one or more climatic zones.
   (e) The commission may adopt new, or expand existing, fixed
charges for the purpose of collecting a reasonable portion of the
fixed costs of providing electric service to residential customers.
The commission shall ensure that any approved charges do all of the
following:
   (1) Reasonably reflect an appropriate portion of the different
costs of serving small and large customers.
   (2) Not unreasonably impair incentives for conservation and energy
efficiency.
   (3) Not overburden low-income customers.
   (f) For the purposes of this section and Section 739.1, the
commission may, beginning January 1, 2015, authorize fixed charges
that do not exceed ten dollars ($10) for each residential customer
account per month for customers not enrolled in the CARE program and
five dollars ($5) for each residential customer account per month for
customers enrolled in the CARE program. Beginning January 1, 2016,
the maximum allowable fixed charge may be adjusted by no more than
the annual percentage increase in the Consumer Price Index for the
prior calendar year. This subdivision applies to any default rate
schedule, at least one optional tiered rate schedule, and at least
one optional time variant rate schedule.
   (g) This section does not require the commission to approve any
new or expanded fixed charge.
   (h) The commission may consider whether minimum bills are
appropriate as a substitute for any fixed charges.