Amended in Assembly June 26, 2013

Amended in Assembly June 13, 2013

Amended in Senate April 22, 2013

Senate Bill No. 656

Introduced by Senator Wright

February 22, 2013

An act to amend Sections begin delete 394.3 end delete begin insert 392.1, 394.3, end insert and 394.5 of, begin insert and to add Chapter 4.7 (commencing with Section 980) to Part 1 of Division 1 of, end insert begin delete and to repeal Section 392.1 of, end delete the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

SB 656, as amended, Wright. Electrical restructuring: information practices.

begin delete

Under

end delete

begin insert (1) end insert begin insert   end insert begin insert Under end insert existing law, the Public Utilities Commission has broad regulatory authority over public utilities, including electrical corporations, as defined. Existing law restructuring the electrical industry requires the commission to authorize and facilitate direct transactions between electricity suppliers and end-use customers subject to the implementation of a nonbypassable charge, as specified. Electrical restructuring requires electric service providers, which are entities that offer electrical service to customers within the service territory of an electrical corporation but which are not electrical corporations, to register with the commission and to disclose specified information, among other things and authorizes the commission to enforce specific statutes with respect to electric service providers, but does not grant the commission jurisdiction to regulate electric service providers other than as specified.

Existing law restructuring the electrical industry requires the commission to compile and regularly update information regarding registered electric service providers, including the names and contact numbers of providers, information to assist consumers in making service choices, the number of customer complaints against specific providers in relation to the number of customers served by those providers, and the disposition of those complaints. In this regard, existing law requires the commission to direct the Office, now Division, of Ratepayer Advocates to collect and analyze this information for purposes of preparing easily understandable informational guides or other tools to help residential and small commercial customers understand how to evaluate competing electric service options.

This bill would begin delete repeal end delete begin insert , except for the compilation and updating of the names and contact numbers of providers, make inoperative end insert the above provisions begin delete relating to informational guides for consumers end delete begin insert , except for those times in which providers are authorized to offer service to residential customers and enrollment increases at a specified level, end insert and would make conforming changes in related provisions. begin insert The bill would repeal the requirement related to the informational guides. end insert

begin insert

(2) The Public Utilities Act establishes various consumer protection provisions, including the requirement that each entity, other than an electrical corporation, offering electrical service to residential and small commercial customers within the service territory of an electrical corporation register with the commission and provide specified information to the commission. A violation of the act is a crime.

end insert begin insert

This bill would extend those consumer protection provisions, including the requirement to register with, and provide specified information to the commission, to a core transport agent, as defined, offering gas service to residential and small commercial customers within the service territory of a gas corporation. Because a violation of the above provisions is a crime, this bill would impose a state-mandated local program.

end insert begin insert

(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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin delete

SECTION 1.  

Section 392.1 of the Public Utilities Code is
repealed.

end delete

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 392.1 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

392.1.  

(a) The commission shall compile and regularly update
the begin delete following information: end delete names and contact numbers of registered
begin delete providers, information end delete begin insert providers. end insert

begin insert (b) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert The commission shall also compile and regularly update
information end insert to assist consumers in making service begin delete choices, end delete begin insert choices end insert
and the number of customer complaints against specific providers
in relation to the number of customers served by those providers
and the disposition of those complaints. To facilitate this function,
registered entities shall file with the commission information
describing the terms and conditions of any standard service plan
made available to residential and small commercial customers.
The commission shall adopt a standard format for this filing. The
commission shall maintain and make generally available a list of
entities offering electrical services operating in California. This
list shall include all registered providers and those providers not
required to be registered who request the commission to be
included in the list. The commission shall, upon request, make this
information available at no charge. Notwithstanding any other
provision of law, public agencies begin delete which end delete begin insert that end insert are registered entities
shall be required to disclose their terms and conditions of service
contracts only to the same extent that other registered entities
would be required to disclose the same or similar service contracts.

begin delete

(b)

end delete

begin insert (2) end insert  The commission shall issue public alerts about companies
attempting to provide electric service in the state in an unauthorized
or fraudulent manner as defined in subdivision (b) of Section
394.25.

begin delete

(c) The commission shall direct the Office of Ratepayer
Advocates to collect and analyze information provided pursuant
to subdivision (a) for purposes of preparing easily understandable
informational guides or other tools to help residential and small
commercial customers understand how to evaluate competing
electric service options. In implementing these provisions, the
commission shall direct the Office of Ratepayer Advocates to pay
special attention to ensuring that customers, especially those with
limited-English-speaking ability or other disadvantages when
dealing with marketers, receive correct, reliable, and easily
understood information to help them make informed choices. The
Office of Ratepayer Advocates shall not make specific
recommendations or rank the relative attractiveness of specific
service offerings of registered providers of electric services.

end delete begin insert

(3) (A) This subdivision is inoperative except for time periods
in which providers are authorized to offer service to residential
customers and the combined enrollments in competitive retail
electric service in the service territories of the Pacific Gas and
Electric Company, Southern California Edison Company, and San
Diego Gas and Electric Company increase at a rate of more than
5 percent per month.

end insert begin insert

(B) The commission shall notify, in writing, the Secretary of
State at the beginning and end of any time period described in
subparagraph (A).

end insert

SEC. 2.  

Section 394.3 of the Public Utilities Code is amended
to read:

394.3.  

To carry out essential elements of a sustainable and
effective consumer protection program in connection with electric
service providers offering electrical service to residential and small
commercial customers as intended by the Legislature in this article,
the following shall apply:

(a) The commission shall collect a registration fee of one
hundred dollars ($100) from electric service providers required to
register under this article, and deposit the fee proceeds in the Public
Utilities Reimbursement Account established under Section 402.

(b) The commission shall annually determine the costs of
administering the registration program and other facets of consumer
protection directly related to the direct access transactions of
electric service providers. The commission shall collect only those
costs not already being collected elsewhere. A registrant who fails
to submit to the commission a required fee or a piece of information
upon which fees are calculated within 30 days of billing shall be
subject to a 15-percent penalty.

SEC. 3.  

Section 394.5 of the Public Utilities Code is amended
to read:

394.5.  

(a) Except for an electrical corporation as defined in
Section 218, or a local publicly owned electric utility offering
electrical service to residential and small commercial customers
within its service territory, each electric service provider offering
electrical service to residential and small commercial customers
shall, prior to the commencement of service, provide the potential
customer with a written notice of the service describing the price,
terms, and conditions of the service. A notice shall include all of
the following:

(1) A clear description of the price, terms, and conditions of
service, including:

(A) The price of electricity expressed in a format that makes it
possible for residential and small commercial customers to compare
and select among similar products and services on a standard basis.
The commission shall adopt rules to implement this subdivision.
The commission shall require disclosure of the total price of
electricity on a cents-per-kilowatthour basis, including the costs
of all electric services and charges regulated by the commission.
The commission shall also require estimates of the total monthly
bill for the electric service at varying consumption levels, including
the costs of all electric services and charges regulated by the
commission. In determining these rules, the commission may
consider alternatives to the cents-per-kilowatthour disclosure if
other information would provide the customer with sufficient
information to compare among alternatives on a standard basis.

(B) Separate disclosure of all recurring and nonrecurring charges
associated with the sale of electricity.

(C) If services other than electricity are offered, an itemization
of the services and the charge or charges associated with each.

(2) An explanation of the applicability and amount of the
competition transition charge, as determined pursuant to Sections
367 to 376, inclusive.

(3) A description of the potential customer’s right to rescind
the contract without fee or penalty as described in Section 395.

(4) An explanation of the customer’s financial obligations, as
well as the procedures regarding past due payments, discontinuance
of service, billing disputes, and service complaints.

(5) The electric service provider’s registration number, if
applicable.

(6) The right to change service providers upon written notice,
including disclosure of any fees or penalties assessed by the
supplier for early termination of a contract.

(7) A description of the availability of low-income assistance
programs for qualified customers and how customers can apply
for these programs.

(b) The commission may assist electric service providers in
developing the notice. The commission may suggest inclusion of
additional information it deems necessary for the consumer
protection purposes of this section. On at least a semiannual basis,
electric service providers shall provide the commission with a copy
of the form of notice included in standard service plans made
available to residential and small commercial customers.

(c) An electric service provider offering electric services who
declines to provide those services to a consumer shall, upon request
of the consumer, disclose to that consumer the reason for the denial
in writing within 30 days. At the time service is denied, the electric
service provider shall disclose to the consumer the right to make
this request. A consumer shall have at least 30 days from the date
service is denied to make the request.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Chapter 4.7 (commencing with Section 980) is added
to Part 1 of Division 1 of the end insert begin insert Public Utilities Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 4.7. end insert Core Transport Agent

 

begin insert 980. end insert   

As used in this chapter, the following terms mean the
following:

(a) “Core transport agent” means an entity that offers gas
service to customers within the service territory of a gas
corporation, but does not include a gas corporation, and does not
include a public agency that offers gas service to residential and
small commercial customers within its jurisdiction, or within the
service territory of a local publicly owned gas utility. “Core
transport agent” includes the unregulated affiliates and
subsidiaries of a gas corporation.

(b) “Gas corporation” has the same meaning as that set forth
in Section 222.

(c) “Small commercial customer” means a customer that has
a maximum peak demand of less than __ therms.

begin insert 981. end insert   

(a) A core transport agent shall register with the
commission. As a precondition to registration, the core transport
agent shall provide, under oath, declaration, or affidavit, all of
the following information to the commission:

(1) Legal name and any other names under which the core
transport agent is doing business in California.

(2) Current telephone number.

(3) Current address.

(4) Agent for service of process.

(5) State and date of incorporation, if any.

(6) Number for a customer contact representative, or other
personnel for receiving customer inquiries.

(7) Brief description of the nature of the service being provided.

(8) Disclosure of any civil, criminal, or regulatory sanctions or
penalties imposed within the 10 years immediately prior to
registration, against the company or any owner, partner, officer,
or director of the company pursuant to any state or federal
consumer protection law or regulation, and of any felony
convictions of any kind against the company or any owner, partner,
officer, or director of the company. In addition, a core transport
agent shall furnish the commission with fingerprints for those
owners, partners, officers, and managers of the core transport
agent specified by any commission decision applicable to all core
transport agents. The commission shall submit completed
fingerprint cards to the Department of Justice. Those fingerprints
shall be available for use by the Department of Justice and the
Department of Justice may transmit the fingerprints to the Federal
Bureau of Investigation for a national criminal history record
check. The commission may use information obtained from a
national criminal history record check conducted pursuant to this
section to determine a core transport agent’s eligibility for
registration.

(9) Proof of financial viability. The commission shall develop
uniform standards for determining financial viability and shall
publish those standards for public comment no later than June 30,
2014. In determining the financial viability of the core transport
agent, the commission shall take into account the number of
customers the potential registrant expects to serve, the number of
therms of gas it expects to provide, and any other appropriate
criteria to ensure that residential and small commercial customers
have adequate recourse in the event of fraud or nonperformance.

(10) Proof of technical and operational ability. The commission
shall develop uniform standards for determining technical and
operational capacity and shall publish those standards for public
comment no later than June 30, 2014.

(b) A registration filing approved by the commission prior to
January 1, 2014, that does not comply in all respects with the
requirements of subdivision (a) shall nevertheless continue in force
and effect as long as before July 1, 2014, the core transport agent
undertakes to supplement its registration filing to the satisfaction
of the commission. A registration that is not supplemented by the
required information within the time set forth in this subdivision
shall be suspended by the commission and shall not be reinstated
until the commission has found the registration to be in full
compliance with subdivision (a).

(c) Before reentering the market, a core transport agent whose
registration has been revoked shall file a formal application with
the commission that satisfies the requirements set forth in Section
982 and demonstrates the fitness and ability of the core transport
agent to comply with all applicable rules of the commission.

(d) Registration with the commission is an exercise of the
licensing function of the commission, and does not constitute
regulation of the rates or terms and conditions of service offered
by core transport agents. This part does not authorize the
commission to regulate the rates or terms and conditions of service
offered by core transport agents.

begin insert 982. end insert   

(a) The registration shall be deemed approved and a
registration number issued no later than 45 days after the required
information has been submitted, unless the commission’s executive
director finds, upon review of the information submitted by the
core transport agent or available to the commission, that there is
evidence to support a finding that the core transport agent has
committed an act constituting grounds for denial of registration
as specifically set forth in the operative provisions of this chapter,
including, but not limited to, subdivision (c).

(b) Upon a finding by the commission’s executive director that
there is evidence to support a finding that the core transport agent
has committed an act constituting grounds for denial of registration
as set forth in this section, the commission shall notify the core
transport agent in writing, cause the documents submitted by the
core transport agent to be filed as a formal application for
registration, and notice an expedited hearing on the registration
of the core transport agent to be held within 30 days of the
notification to the core transport agent of the executive director’s
finding of evidence to support denial of registration. The
commission shall, within 45 days after holding the hearing, issue
a decision on the registration request which shall be based on the
findings of fact and conclusions of law based on the evidence
presented at the hearing. The decision shall include the findings
of fact and the conclusions of law relied upon.

(c) (1) The commission may deny an application for registration
in accordance with subdivision (b) on the grounds that the core
transport agent or any officer or director of the core transport
agent has one or more of the following:

(A) Been convicted of a crime as described in paragraph (8) of
subdivision (a) of Section 981.

(B) Failure to make a sufficient showing with respect to
paragraphs (1) to (10), inclusive, of subdivision (a) of Section 981.

(C) Knowingly made a false statement of fact in the application
for registration.

(2) The commission may deny registration pursuant to this
subdivision only if the crime or act is substantially related to the
qualifications, functions, or duties required to provide gas service
to end use customers of gas or the false statement is material to
the registration application. For purposes of this subdivision,
conviction of a crime shall be established in the same manner as
that set forth in paragraph (1) of subdivision (a) of Section 480 of
the Business and Professions Code.

(d) The commission shall require core transport agents
registered under this section to update their registration
information set forth in paragraphs (1) to (10), inclusive, of
subdivision (a) of Section 981 within 60 days of any material
change in the information provided. Material changes to any other
information required pursuant to this article shall be updated
annually.

begin insert 983. end insert   

(a) The commission shall accept, compile, and attempt
to informally resolve consumer complaints regarding core
transport agents. If the commission reasonably suspects a pattern
of customer abuses, the commission may, on its own motion, initiate
investigations into the activities of a core transport agent offering
gas service. Consumer complaints regarding service by a public
agency offering gas service within the political boundary of the
public agency or service territory of a local publicly owned gas
utility shall continue to be resolved by the public agency. Within
the service territory of a local publicly owned utility, consumer
complaints arising from the violation of core transport service
rules adopted by the governing body of the local publicly owned
utility shall be resolved through the local publicly owned utility’s
consumer complaint procedures.

(b) Notwithstanding other provisions, residential and small
commercial customers shall have the option to proceed with a
complaint against a core transport agent either through an action
filed in the judicial court system or through a complaint filed with
the commission. A customer who elects either the judicial or
commission remedies may not raise the same claim in both forums.
The commission shall have the authority to accept, compile, and
resolve residential, and small commercial consumer complaints,
including the authority to award reparations. The commission’s
authority in these complaint proceedings is limited to adjudication
of complaints regarding residential and small commercial gas
service provided by a core transport agent and shall not be
expanded to include either an award of any other damages or
regulation of the rates or charges of the core transport agent.
However, a person or core transport agent that takes a conflict to
the commission shall not be precluded from pursuing an appeal
of the decision through the courts as provided for by law.

(c) In connection with customer complaints or commission
investigations into customer abuses, core transport agents shall
provide the commission access to their accounts, books, papers,
and documents related to California transactions as described in
Sections 313 and 314, if the information is relevant to the complaint
or investigation.

(d) A core transport agent shall not discontinue service to a
customer for a disputed amount if that customer has filed a
complaint that is pending with the commission, and that customer
has paid the disputed amount into an escrow account.

begin insert 983.5. end insert   

(a) (1) The commission may enforce Sections 2102,
2103, 2104, 2105, 2107, 2108, and 2114 against a core transport
agent as if the core transport agent is a public utility for purposes
of those sections.

(2)  Notwithstanding paragraph (1), this section does not grant
the commission jurisdiction to regulate core transport agents other
than as specifically set forth in this chapter. Core transport agents
shall continue to be subject to Sections 2111 and 2112.

(3) Upon a finding by the commission’s executive director that
there is evidence to support a finding that the core transport agent
has committed an act constituting grounds for suspension or
revocation of registration as set forth in subdivision (b), the
commission shall notify the core transport agent in writing and
notice an expedited hearing on the suspension or revocation of
the core transport agent’s registration to be held within 30 days
of the notification to the core transport agent of the executive
director’s finding of evidence to support suspension or revocation
of registration. The commission shall, within 45 days after holding
the hearing, issue a decision on the suspension or revocation of
registration, which shall be based on findings of fact and
conclusions of law based on the evidence presented at the hearing.
The decision shall include the findings of fact and the conclusions
of law relied upon.

(b) A core transport agent may have its registration suspended
or revoked, immediately or prospectively, in whole or in part, for
any of the following acts:

(1) Making material misrepresentations in the course of
soliciting customers, entering into service agreements with those
customers, or administering those service agreements.

(2) Dishonesty, fraud, or deceit with the intent to substantially
benefit the core transport agent or its employees, agents, or
representatives, or to disadvantage retail gas customers.

(3) If the commission finds that there is evidence that the core
transport agent is not financially or operationally capable of
providing the offered gas service.

(4) The misrepresentation of a material fact by an applicant in
obtaining a registration pursuant to Section 981.

(c) Pursuant to its authority to revoke or suspend registration,
the commission may suspend a registration for a specified period
or revoke the registration, or in lieu of suspension or revocation,
impose a moratorium on adding or soliciting additional customers.
Any suspension or revocation of a registration shall require the
core transport agent to cease serving customers within the
boundaries of investor-owned gas corporations, and the affected
customers shall be served by the gas corporation until the time
when they may select service from another core transport agent.
A customer shall not be liable for the payment of any early
termination fees or other penalties to any core transport agent
under the service agreement if the serving core transport agent’s
registration is suspended or revoked.

(d) If a customer of a core transport agent is involuntarily
returned to service provided by a gas corporation, any reentry fee
imposed on that customer that the commission deems is necessary
to avoid imposing costs on other customers of the gas corporation
shall be the obligation of the core transport agent, except in the
case of a customer returned due to default in payment or other
contractual obligations or because the customer’s contract has
expired. As a condition of its registration, a core transport agent
shall post a bond or demonstrate insurance sufficient to cover
those reentry fees. In the event that a core transport agent becomes
insolvent and is unable to discharge its obligation to pay reentry
fees, the fees shall be allocated to the returning customers.

begin insert 983.7. end insert   

If a customer files a claim with a gas corporation for
damages to property resulting from the curtailment of gas service
due to the failure of the gas 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 gas
corporation shall inform the customer that the claim may be
pursued in small claims court or other judicial courts, depending
on the amount of the claim.

begin insert 984. end insert   

In order to carry out essential elements of a sustainable
and effective consumer protection program in connection with
core transport agents offering gas service to residential and small
commercial customers as intended by the Legislature in this
chapter, the following shall apply:

(a) A registration fee of one hundred dollars ($100) shall be
collected from a core transport agent required to register under
this chapter and the fee proceeds shall be deposited in the Public
Utilities Reimbursement Account established under Section 402.

(b) The commission shall annually determine the costs of
administering the registration program and other facets of
consumer protection directly related to the core transport service
transactions of core transport agents, including the cost for the
duties imposed pursuant to subdivision (c) of Section 984.5. The
commission shall only collect those costs not already being
collected elsewhere. Registrants who fail to submit to the
commission required fees or information upon which fees are
calculated within 30 days of billing shall be subject to a 15-percent
penalty.

begin insert 984.5. end insert   

(a) The commission shall compile and regularly update
the following information: names and contact numbers of a
registered core transport agent, information to assist consumers
in making service choices, and the number of customer complaints
against specific providers in relation to the number of customers
served by those providers and the disposition of those complaints.
To facilitate this function, registered entities shall file with the
commission information describing the terms and conditions of
any standard service plan made available to residential and small
commercial customers. The commission shall adopt a standard
format for this filing. The commission shall maintain and make
generally available a list of entities offering core transport services
operating in California. This list shall include all registered core
transport agents and those agents not required to be registered
that request the commission to be included on the list. The
commission shall, upon request, make this information available
at no charge. Notwithstanding any other law, public agencies that
are registered entities shall be required to disclose their terms and
conditions of service contracts only to the same extent that other
registered entities would be required to disclose the same or similar
service contracts.

(b) The commission shall issue public alerts about companies
attempting to provide core transport service in the state in an
unauthorized or fraudulent manner as defined in subdivision (b)
of Section 983.5.

(c) The commission shall direct the Office of Ratepayer
Advocates to collect and analyze information provided pursuant
to subdivision (a) for purposes of preparing easily understandable
informational guides or other tools to help residential and small
commercial customers understand how to evaluate competing core
transport service options. In implementing these provisions, the
commission shall direct the Office of Ratepayer Advocates to pay
special attention to ensuring that customers, especially those with
limited-English-speaking ability or other disadvantages when
dealing with marketers, receive correct, reliable, and easily
understood information to help them make informed choices. The
Office of Ratepayer Advocates shall not make specific
recommendations or rank the relative attractiveness of specific
service offerings of registered providers of core transport services.

begin insert 985. end insert   

Rules that implement the following minimum standards
shall be adopted by the commission for core transport agents
offering gas services to residential and small commercial customers
and the governing body of a public agency offering gas 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 a gas
corporation, or a publicly owned gas 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 gas
corporations subject to the commission’s jurisdiction shall occur
only in accordance with protocols established by the commission.
Physical disconnection by publicly owned gas utilities shall occur
only in accordance with protocols established by the governing
board of the local publicly owned gas utility.

(c) Change in providers. Upon adequate notice supplied by a
core transport agent to the gas corporation or local publicly owned
gas utility providing physical delivery service, customers who are
eligible for core transport service 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 986, 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 core transport agent
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. A core transport
agent shall provide on all customer bills a telephone number by
which customers may contact the core transport agent to report
and resolve billing inquiries and complaints. A core transport
agent 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 the
customer’s dispute is not satisfactorily resolved by the core
transport agent.

(f) Meter integrity. A gas customer shall have a reasonable
opportunity to have his or her 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. Core transport agents 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.

begin insert 986. end insert   

(a) Except for a gas corporation, or a local publicly
owned gas utility offering gas service to residential and small
commercial customers within its service territory, a core transport
agent offering gas service to residential and small commercial
customers shall, prior to the commencement of service, provide
the potential customer with a written notice of the service
describing the price, terms, and conditions of the service. The
notices shall include all of the following:

(1) A clear description of the price, terms, and conditions of
service, including all of the following:

(A) The price of gas expressed in a format that makes it possible
for residential and small commercial customers to compare and
select among similar products and services on a standard basis.
The commission shall adopt rules to implement this subdivision.
The commission shall require disclosure of the total price of gas
on a cents-per-therm basis, including the costs of all gas services
and charges regulated by the commission. The commission shall
also require estimates of the total monthly bill for the gas service
at varying consumption levels, including the costs of all gas
services and charges regulated by the commission. In determining
these rules, the commission may consider alternatives to the
cents-per-therm disclosure if other information would provide the
customer with sufficient information to compare among alternatives
on a standard basis.

(B) Separate disclosure of all recurring and nonrecurring
charges associated with the sale of gas.

(C) If services other than gas are offered, an itemization of the
services and the charge or charges associated with each.

(2) A description of the potential customer’s right to rescind
the contract without fee or penalty as described in Section 989.1.

(3) An explanation of the customer’s financial obligations, as
well as the procedures regarding past due payments,
discontinuance of service, billing disputes, and service complaints.

(4) The core transport agent’s registration number, if applicable.

(5) The right to change service providers upon written notice,
including disclosure of any fees or penalties assessed by the
supplier for early termination of a contract.

(6) A description of the availability of low-income assistance
programs for qualified customers and how customers can apply
for these programs.

(b) The commission may assist core transport agents in
developing the notice. The commission may suggest inclusion of
additional information it deems necessary for the consumer
protection purposes of this section. On at least a semiannual basis,
a core transport agent shall provide the commission with a copy
of the form of notice included in its standard service plans made
available to residential and small commercial customers as
described in subdivision (a) of Section 984.5.

(c) Any core transport agent offering gas services who declines
to provide those services to a consumer shall, upon request of the
consumer, disclose to that consumer the reason for the denial in
writing within 30 days. At the time service is denied, the core
transport agent shall disclose to the consumer his or her right to
make this request. Consumers shall have at least 30 days from the
date service is denied to make the request.

begin insert 987. end insert   

(a) The commission shall maintain a list of residential
and small commercial customers who do not wish to be solicited
by telephone, by a gas corporation, marketer, broker, or
aggregator for gas service, to subscribe to or change their core
transport agent. 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 gas
corporations, marketers, brokers, or aggregators of gas 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 a gas corporation or registered at the commission as
an electric marketer, broker, or aggregator of gas service.

(c) A gas corporation, marketer, broker, or aggregator of gas
service shall not solicit, by telephone, any customer on the list
prepared pursuant to subdivision (a). Any gas corporation,
marketer, broker, or aggregator of gas service, or the
representative of a gas corporation, marketer, broker, or
aggregator of gas 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.

begin insert 988. end insert   

Notwithstanding any other provision of this chapter,
requirements placed on a core transport agent shall not apply to
gas services provided by a local publicly owned gas utility to
customers within the jurisdiction or service territory of that local
publicly owned gas utility.

begin insert 989. end insert   

Unclaimed refunds ordered by the commission, and any
accrued interest, may be used by the commission to fund additional
consumer protection efforts.

begin insert 989.1. end insert   

(a) In addition to any other right to revoke an offer,
residential and small commercial customers of gas service, have
the right to cancel a contract for gas service until midnight of the
third business day after the day on which the buyer signs an
agreement or offer to purchase.

(b) Cancellation occurs when the buyer gives written notice of
cancellation to the seller at the address specified in the agreement
or offer.

(c) Notice of cancellation, if given by mail, is effective when
deposited in the mail properly addressed with postage prepaid.

(d) Notice of cancellation given by the buyer need not take the
particular form as provided with the contract or offer to purchase
and, however expressed, is effective if it indicates the intention of
the buyer not to be bound by the contract.

begin insert 989.5. end insert   

(a) A consumer damaged by a violation of this chapter
by a core transport agent is entitled to recover all of the following:

(1) Actual damages.

(2) The consumer’s reasonable attorney’s fees and court costs.

(3) Exemplary damages, in the amount the court deems proper,
for intentional or willful violations.

(4) Equitable relief as the court deems proper.

(b) The rights, remedies, and penalties established by this
chapter are in addition to the rights, remedies, or penalties
established under any other law.

(c) This chapter does not abrogate any authority of the Attorney
General to enforce existing law.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

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.

end insert