Amended in Assembly September 6, 2013

Amended in Assembly September 3, 2013

Amended in Assembly August 6, 2013

Amended in Assembly June 26, 2013

Amended in Assembly June 13, 2013

Amended in Senate April 22, 2013

Senate BillNo. 656


Introduced by Senator Wright

February 22, 2013


An act to amend Sections 392.1, 394.3, and 394.5 of, and to add Chapter 4.7 (commencing with Section 980) to Part 1 of Division 1 of, the Public Utilities Code, relating tobegin delete electricityend deletebegin insert energyend insert.

LEGISLATIVE COUNSEL’S DIGEST

SB 656, as amended, Wright. Electrical restructuring:begin insert natural gas restructuring:end insert information practices.

(1) Under existing law, the Public Utilities Commission has broad regulatory authority over public utilities, including electrical corporationsbegin insert and gas corporationsend insert, 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 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, except for the compilation and updating of the names and contact numbers of providers, make inoperative the above provisions, except for those times in which providers are authorized to offer service to residential customers and enrollment increases at a specified level, and would make conforming changes in related provisions. The bill would repeal the requirement related to the informational guides.

(2) begin insertExisting law relative to the restructuring of the natural gas industry requires the commission to require each gas corporation to provide bundled basic gas service, as defined, to all core customers in its service territory unless the customer chooses or contracts to have natural gas purchased and supplied by another entity. end insertThe Public Utilities Act establishes various consumer protection provisionsbegin insert relative to electrical restructuringend insert, 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.

This bill would extendbegin delete thoseend deletebegin insert certainend insert consumer protection provisionsbegin insert that are applicable to electrical restructuring to aspects of natural gas restructuringend insert, including the requirement to register with, and provide specified information to the commission, to a core transport agent, as defined, offering gas service to customers within the service territory of a gas corporation. Because a violation ofbegin delete the aboveend deletebegin insert theseend insert provisionsbegin delete isend deletebegin insert would beend insert a crime, this bill would impose a state-mandated local program.

(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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P3    1

SECTION 1.  

Section 392.1 of the Public Utilities Code is
2amended to read:

3

392.1.  

(a) The commission shall compile and regularly update
4the names and contact numbers of registered providers.

5(b) (1) The commission shall also compile and regularly update
6information to assist consumers in making service choices and the
7number of customer complaints against specific providers in
8relation to the number of customers served by those providers and
9the disposition of those complaints. To facilitate this function,
10registered entities shall file with the commission information
11describing the terms and conditions of any standard service plan
12made available to residential and small commercial customers.
13The commission shall adopt a standard format for this filing. The
14commission shall maintain and make generally available a list of
15entities offering electrical services operating in California. This
16list shall include all registered providers and those providers not
17required to be registered who request the commission to be
18included in the list. The commission shall, upon request, make this
19information available at no charge. Notwithstanding any other
20provision of law, public agencies that are registered entities shall
21be required to disclose their terms and conditions of service
22contracts only to the same extent that other registered entities
23would be required to disclose the same or similar service contracts.

24(2) The commission shall issue public alerts about companies
25attempting to provide electric service in the state in an unauthorized
26or fraudulent manner as defined in subdivision (b) of Section
27394.25.

P4    1(3) (A) This subdivision is inoperative except for time periods
2in which providers are authorized to offer service to residential
3customers and the combined enrollments in competitive retail
4electric service in the service territories of the Pacific Gas and
5Electric Company, Southern California Edison Company, and San
6Diego Gas and Electric Company increase at a rate of more than
75 percent per month.

8(B) The commission shall notify, in writing, the Secretary of
9State at the beginning and end of any time period described in
10subparagraph (A).

11

SEC. 2.  

Section 394.3 of the Public Utilities Code is amended
12to read:

13

394.3.  

To carry out essential elements of a sustainable and
14effective consumer protection program in connection with electric
15service providers offering electrical service to residential and small
16commercial customers as intended by the Legislature in this article,
17the following shall apply:

18(a) The commission shall collect a registration fee of one
19hundred dollars ($100) from electric service providers required to
20register under this article, and deposit the fee proceeds in the Public
21Utilities Reimbursement Account established under Section 402.

22(b) The commission shall annually determine the costs of
23administering the registration program and other facets of consumer
24protection directly related to the direct access transactions of
25electric service providers. The commission shall collect only those
26costs not already being collected elsewhere. A registrant who fails
27to submit to the commission a required fee or a piece of information
28upon which fees are calculated within 30 days of billing shall be
29subject to a 15-percent penalty.

30

SEC. 3.  

Section 394.5 of the Public Utilities Code is amended
31to read:

32

394.5.  

(a) Except for an electrical corporation as defined in
33Section 218, or a local publicly owned electric utility offering
34electrical service to residential and small commercial customers
35within its service territory, each electric service provider offering
36electrical service to residential and small commercial customers
37shall, prior to the commencement of service, provide the potential
38customer with a written notice of the service describing the price,
39terms, and conditions of the service. A notice shall include all of
40the following:

P5    1(1) A clear description of the price, terms, and conditions of
2service, including:

3(A) The price of electricity expressed in a format that makes it
4possible for residential and small commercial customers to compare
5and select among similar products and services on a standard basis.
6The commission shall adopt rules to implement this subdivision.
7The commission shall require disclosure of the total price of
8electricity on a cents-per-kilowatthour basis, including the costs
9of all electric services and charges regulated by the commission.
10The commission shall also require estimates of the total monthly
11bill for the electric service at varying consumption levels, including
12the costs of all electric services and charges regulated by the
13commission. In determining these rules, the commission may
14consider alternatives to the cents-per-kilowatthour disclosure if
15other information would provide the customer with sufficient
16 information to compare among alternatives on a standard basis.

17(B) Separate disclosure of all recurring and nonrecurring charges
18associated with the sale of electricity.

19(C) If services other than electricity are offered, an itemization
20of the services and the charge or charges associated with each.

21(2) An explanation of the applicability and amount of the
22competition transition charge, as determined pursuant to Sections
23367 to 376, inclusive.

24(3) A description of the potential customer’s right to rescind
25the contract without fee or penalty as described in Section 395.

26(4) An explanation of the customer’s financial obligations, as
27well as the procedures regarding past due payments, discontinuance
28of service, billing disputes, and service complaints.

29(5) The electric service provider’s registration number, if
30applicable.

31(6) The right to change service providers upon written notice,
32including disclosure of any fees or penalties assessed by the
33supplier for early termination of a contract.

34(7) A description of the availability of low-income assistance
35programs for qualified customers and how customers can apply
36for these programs.

37(b) The commission may assist electric service providers in
38developing the notice. The commission may suggest inclusion of
39 additional information it deems necessary for the consumer
40protection purposes of this section. On at least a semiannual basis,
P6    1electric service providers shall provide the commission with a copy
2of the form of notice included in standard service plans made
3available to residential and small commercial customers.

4(c) An electric service provider offering electric services who
5declines to provide those services to a consumer shall, upon request
6of the consumer, disclose to that consumer the reason for the denial
7in writing within 30 days. At the time service is denied, the electric
8service provider shall disclose to the consumer the right to make
9this request. A consumer shall have at least 30 days from the date
10service is denied to make the request.

11

SEC. 4.  

Chapter 4.7 (commencing with Section 980) is added
12to Part 1 of Division 1 of the Public Utilities Code, to read:

13 

14Chapter  4.7. Core Transport Agent
15

 

16

980.  

As used in this chapter, the following terms mean the
17following:

18(a) “Core gas customer” has the same meaning as that specified
19in the tariff of thebegin delete utilityend deletebegin insert gas corporationend insert whose territory the
20customer in question lies within.begin insert A core small commercial customer
21account that is associated with and part of the same business
22operation as a noncore large commercial customer account is not
23a “core gas customer” for purposes of this chapter.end insert

24(b) “Core transport agent” means an entity that offersbegin delete gasend deletebegin insert core
25gas procurementend insert
service to customers within the service territory
26of a gas corporation, but does not include a gas corporation, and
27does not include a public agency that offers gas service to core
28and noncore gas customers within its jurisdiction, or within the
29service territory of a local publicly owned gas utility. “Core
30transport agent” includes the unregulated affiliates and subsidiaries
31of a gas corporation.

32(c) “Gas corporation” has the same meaning as that set forth in
33Section 222.

34

981.  

(a) A core transport agent shall register with the
35commission within 90 days after the commission has adopted
36standards for financial viability, and technical and operational
37capacity. As a precondition to registration, the core transport agent
38shall provide, under oath, declaration, or affidavit, all of the
39following to the commission:

P7    1(1) Legal name and any other names under which the core
2transport agent is doing business in California.

3(2) Current telephone number.

4(3) Current address.

5(4) Agent for service of process.

6(5) State and date of incorporation, if any.

7(6) Number for a customer contact representative, or other
8personnel for receiving customer inquiries.

9(7) Brief description of the nature of the service being provided.

10(8) Disclosure of any civil, criminal, or regulatory sanctions or
11penalties imposed within the 10 years immediately prior to
12registration, against the company or any owner, partner, officer,
13or director of the company pursuant to any state or federal
14consumer protection law or regulation, and of any felony
15convictions of any kind against the company or any owner, partner,
16officer, or director of the company. In addition, a core transport
17agent shall furnish the commission with fingerprints for those
18owners, partners, officers, and managers of the core transport agent
19specified by any commission decision applicable to all core
20transport agents. The commission shall submit completed
21fingerprint cards to the Department of Justice. Those fingerprints
22shall be available for use by the Department of Justice and the
23Department of Justice may transmit the fingerprints to the Federal
24Bureau of Investigation for a national criminal history record check.
25The commission may use information obtained from a national
26criminal history record check conducted pursuant to this section
27to determine a core transport agent’s eligibility for registration.

28(9) Proof of financial viability. The commission shall develop
29uniform standards for determining financial viability and shall
30publish those standards for public comment no later than June 30,
312014. In determining the financial viability of the core transport
32agent, the commission shall take into account the number of
33customers the potential registrant expects to serve, the number of
34therms of gas it expects to provide, and any other appropriate
35criteria to ensure that core gas customers have adequate recourse
36in the event of fraud or nonperformance.

37(10) Proof of technical and operational ability. The commission
38shall develop uniform standards for determining technical and
39operational capacity and shall publish those standards for public
40comment no later than June 30, 2014.

P8    1(11) A statement stating the following:


3“Neither the applicant, any of its affiliates, officers, directors,
4partners, agents, or owners (directly or indirectly) with more than
510 percent interest in the applicant, or anyone acting in a
6management capacity for applicant has: (A) held one of those
7positions with a company that filed for bankruptcy, (B) been
8personally found liable, or held one of those positions with a
9company that has been found liable, for fraud, dishonesty, failure
10to disclose, or misrepresentations to consumers or others, (C) been
11convicted of a felony, (D) been (to his or her knowledge) the
12subject of a criminal referral by a judge or public agency, (E) had
13a license of operating authority denied, suspended, revoked, or
14limited in any jurisdiction, (F) personally entered into a settlement,
15or held one of those positions with a company that has entered into
16settlement, of criminal or civil claims involving violations of
17Chapter 4 (commencing with Section 17000) of Part 2 of, or Part
183 (commencing with Section 17500) of Division 7 of, the Business
19and Professions Code or of any other statute, regulation, or
20decisional law relating to fraud, dishonesty, failure to disclosure,
21or misrepresentations to consumers or others, (G) been found to
22have violated any statute, law, or rule pertaining to public utilities
23or other regulated industries, or (H) entered into any settlements
24or agreements, made any voluntary payments, or agreed to any
25other type of monetary forfeitures in resolution of any action by
26any regulatory body, agency, or attorney general.”


28(b) Before reentering the market, a core transport agent whose
29registration has been revoked shall file a formal application with
30the commission that satisfies the requirements set forth in Section
31982 and demonstrates the fitness and ability of the core transport
32agent to comply with all applicable rules of the commission.

33(c) Registration with the commission is an exercise of the
34licensing function of the commission, and does not constitute
35regulation of the rates or terms and conditions of service offered
36by core transport agents. This part does not authorize the
37commission to regulate the rates or terms and conditions of service
38offered by core transport agents.

39

982.  

(a) The registration shall be deemed approved and a
40registration number issued no later than 45 days after the required
P9    1information has been submitted, unless the commission’s executive
2director finds, upon review of the information submitted by the
3core transport agent or available to the commission, that there is
4evidence to support a finding that the core transport agent has
5committed an act constituting grounds for denial of registration as
6specifically set forth in the operative provisions of this chapter,
7including, but not limited to, subdivision (c).

8(b) Upon a finding by the commission’s executive director that
9there is evidence to support a finding that the core transport agent
10has committed an act constituting grounds for denial of registration
11as set forth in this section, the commission shall notify the core
12transport agent in writing, cause the documents submitted by the
13core transport agent to be filed as a formal application for
14registration, and notice an expedited hearing on the registration of
15the core transport agent to be held within 30 days of the notification
16to the core transport agent of the executive director’s finding of
17evidence to support denial of registration. The commission shall,
18within 45 days after holding the hearing, issue a decision on the
19registration request which shall be based on the findings of fact
20and conclusions of law based on the evidence presented at the
21hearing. The decision shall include the findings of fact and the
22conclusions of law relied upon.

23(c) (1) The commission may deny an application for registration
24in accordance with subdivision (b) on the grounds that the core
25transport agent or any officer or director of the core transport agent
26has one or more of the following:

27(A) Been convicted of a crime as described in paragraph (8) of
28subdivision (a) of Section 981.

29(B) Failure to make a sufficient showing with respect to
30paragraphs (1) to (10), inclusive, of subdivision (a) of Section 981.

31(C) Knowingly made a false statement of fact in the application
32for registration.

33(2) The commission may deny registration pursuant to this
34subdivision only if the crime or act is substantially related to the
35qualifications, functions, or duties required to provide gas service
36to end use customers of gas or the false statement is material to
37the registration application. For purposes of this subdivision,
38conviction of a crime shall be established in the same manner as
39that set forth in paragraph (1) of subdivision (a) of Section 480 of
40the Business and Professions Code.

P10   1(d) The commission shall require core transport agents registered
2under this section to update their registration information set forth
3in paragraphs (1) to (10), inclusive, of subdivision (a) of Section
4981 within 60 days of any material change in the information
5provided. Material changes to any other information required
6pursuant to this article shall be updated annually.

7

983.  

(a) The commission shall accept, compile, and attempt
8to informally resolve consumer complaints regarding core transport
9agents. If the commission reasonably suspects a pattern of customer
10abuses, the commission may, on its own motion, initiate
11investigations into the activities of a core transport agent offering
12gas service. Consumer complaints regarding service by a public
13agency offering gas service within the political boundary of the
14public agency or service territory of a local publicly owned gas
15utility shall continue to be resolved by the public agency. Within
16the service territory of a local publicly owned utility, consumer
17complaints arising from the violation of core transport service rules
18adopted by the governing body of the local publicly owned utility
19shall be resolved through the local publicly owned utility’s
20consumer complaint procedures.

21(b) Notwithstanding other provisions, core gas customers shall
22have the option to proceed with a complaint against a core transport
23agent either through an action filed in the judicial court system or
24through a complaint filed with the commission. A customer who
25elects either the judicial or commission remedies may not raise
26the same claim in both forums. The commission shall have the
27authority to accept, compile, and resolve core gas consumer
28complaints, including the authority to award reparations. The
29commission’s authority in these complaint proceedings is limited
30to adjudication of complaints regarding core gas service provided
31by a core transport agent and shall not be expanded to include an
32award of any damages through regulation of the rates or charges
33of the core transport agent. However, a person or core transport
34agent that takes a conflict to the commission shall not be precluded
35from pursuing an appeal of the decision through the courts as
36provided for by law.

37(c) In connection with customer complaints or commission
38investigations into customer abuses, core transport agents shall
39provide the commission access to their accounts, books, papers,
40and documents related to California transactions as described in
P11   1Sections 313 and 314, if the information is relevant to the complaint
2or investigation.

3(d) A core transport agent shall not discontinue service to a
4customer for a disputed amount if that customer has filed a
5complaint that is pending with the commission, and that customer
6has paid the disputed amount into an escrow account.

7

983.5.  

(a) (1) The commission may enforce Sections 2102,
82103, 2104, 2105, 2107, 2108, and 2114 against a core transport
9agent as if the core transport agent is a public utility for purposes
10of those sections.

11(2)  Notwithstanding paragraph (1), this section does not grant
12the commission jurisdiction to regulate core transport agents other
13than as specifically set forth in this chapter. Core transport agents
14shall continue to be subject to Sections 2111 and 2112.

15(3) Upon a finding by the commission’s executive director that
16there is evidence to support a finding that the core transport agent
17has committed an act constituting grounds for suspension or
18 revocation of registration as set forth in subdivision (b), the
19commission shall notify the core transport agent in writing and
20notice an expedited hearing on the suspension or revocation of the
21core transport agent’s registration to be held within 30 days of the
22notification to the core transport agent of the executive director’s
23finding of evidence to support suspension or revocation of
24registration. The commission shall, within 45 days after holding
25the hearing, issue a decision on the suspension or revocation of
26registration, which shall be based on findings of fact and
27conclusions of law based on the evidence presented at the hearing.
28The decision shall include the findings of fact and the conclusions
29of law relied upon.

30(b) A core transport agent may have its registration suspended
31or revoked, immediately or prospectively, in whole or in part, for
32any of the following acts:

33(1) Making material misrepresentations in the course of
34soliciting customers, entering into service agreements with those
35customers, or administering those service agreements.

36(2) Dishonesty, fraud, or deceit with the intent to substantially
37benefit the core transport agent or its employees, agents, or
38representatives, or to disadvantage retail gas customers.

P12   1(3) If the commission finds that there is evidence that the core
2transport agent is not financially or operationally capable of
3providing the offered gas service.

4(4) The misrepresentation of a material fact by an applicant in
5obtaining a registration pursuant to Section 981.

6(c) Pursuant to its authority to revoke or suspend registration,
7the commission may suspend a registration for a specified period
8or revoke the registration, or in lieu of suspension or revocation,
9impose a moratorium on adding or soliciting additional customers.
10Any suspension or revocation of a registration shall require the
11core transport agent to cease serving customers within the
12boundaries of investor-owned gas corporations, and the affected
13customers shall be served by the gas corporation until the time
14when they may select service from another core transport agent.
15A customer shall not be liable for the payment of any early
16termination fees or other penalties to any core transport agent under
17the service agreement if the serving core transport agent’s
18registration is suspended or revoked.

19(d) If a customer of a core transport agent is involuntarily
20returned to service provided by a gas corporation, any reentry fee
21imposed on that customer that the commission deems is necessary
22to avoid imposing costs on other customers of the gas corporation
23shall be the obligation of the core transport agent, except in the
24case of a customer returned due to default in payment or other
25contractual obligations or because the customer’s contract has
26expired. As a condition of its registration, a core transport agent
27shall post a bond or demonstrate insurance sufficient to cover those
28reentry fees, including reentry fees for customers returned in the
29event of the core transport agent becoming insolvent.

30

983.7.  

If a customer files a claim with a gas corporation for
31damages to property resulting from the curtailment of gas service
32due to the failure of the gas corporation to reasonably provide
33service or restore service within a reasonable time after a fire,
34flood, earthquake, other natural disaster, or act of God, the gas
35corporation shall inform the customer that the claim may be
36pursued in small claims court or other judicial courts, depending
37on the amount of the claim.

38

984.  

In order to carry out essential elements of a sustainable
39and effective consumer protection program in connection with
40core transport agents offering gas service to core gas customers
P13   1as intended by the Legislature in this chapter, the following shall
2apply:

3(a) A registration fee of one hundred dollars ($100) shall be
4collected from a core transport agent required to register under
5this chapter and the fee proceeds shall be deposited in the Public
6Utilities Reimbursement Account established under Section 402.
7The commission may adjust the fee as necessary to recover the
8cost of administering the program.

9(b) The commission shall annually determine the costs of
10administering the registration program and other facets of consumer
11protection directly related to the core transport service transactions
12of core transport agents, including the cost for the duties imposed
13pursuant to subdivision (c) of Section 984.5. The commission shall
14only collect those costs not already being collected elsewhere.
15Registrants who fail to submit to the commission required fees or
16information upon which fees are calculated within 30 days of
17billing shall be subject to a 15-percent penalty.

18

984.5.  

(a) The commission shall compile and regularly update
19the following information: names and contact numbers of a
20registered core transport agent, information to assist consumers in
21making service choices, and the number of customer complaints
22against specific providers in relation to the number of customers
23served by those providers and the disposition of those complaints.
24To facilitate this function, registered entities shall file with the
25commission information describing the terms and conditions of
26any standard service plan made available to core gas customers.
27The commission shall adopt a standard format for this filing. The
28commission shall maintain and make generally available a list of
29entities offering core transport services operating in California.
30This list shall include all registered core transport agents and those
31agents not required to be registered that request the commission
32to be included on the list. The commission shall, upon request,
33make this information available at no charge. Notwithstanding any
34other law, public agencies that are registered entities shall be
35required to disclose their terms and conditions of service contracts
36only to the same extent that other registered entities would be
37required to disclose the same or similar service contracts.

38(b) The commission shall issue public alerts about companies
39attempting to provide core transport service in the state in an
P14   1unauthorized or fraudulent manner as defined in subdivision (b)
2of Section 983.5.

3(c) The commission shallbegin delete collect and analyze information
4provided pursuant to subdivision (a) for purposes of preparingend delete

5begin insert compile and post on its Internet Web siteend insert easily understandable
6informational guides or other tools to help core gas customers
7understandbegin delete how to evaluate competingend delete core transport service
8options. In implementing these provisions, the commission shall
9pay special attention to ensuring that customers, especially those
10with limited-English-speaking ability or other disadvantages when
11dealing with marketers, receive correct, reliable, and easily
12understood information to help them make informed choices. The
13commission shall not make specificbegin delete recommendations orend delete
14begin insert recommendations,end insert rank the relative attractiveness of specific
15service offerings of registered providers of core transportbegin delete services.end delete
16begin insert services, or provide customerend insertbegin insert-specific assistance in the evaluation
17of core transport agents.end insert

18(d) The Division of Ratepayer Advocates shall analyze
19customers’ complaints submitted to the gas corporation and to the
20commission and the disposition of those complaints to determine
21if the changes in the consumer protection rules are necessary to
22better protect the participants in the core transportation program,
23and make recommendation to the commission regarding those rule
24changes.

25

985.  

Rules that implement the following minimum standards
26shall be adopted by the commission for core transport agents
27offering gas services to core gas customers and the governing body
28of a public agency offering gas services to core gas customers
29within its jurisdiction:

30(a) Confidentiality. Customer information shall be confidential
31unless the customer consents in writing. This shall encompass
32confidentiality ofbegin delete customer specificend deletebegin insert customer-specificend insert billing,
33 credit, or usage information. This requirement shall not extend to
34disclosure of generic information regarding the usage, load shape,
35or other general characteristics of a group or rate classification,
36unless the release of that information would revealbegin delete customer
37specificend delete
begin insert customer-specific end insert information because of the size of the
38group, rate classification, or nature of the information.

39(b) Physical disconnects and reconnects. Only a gas corporation,
40or a publicly owned gas utility, that provides physical delivery
P15   1service to the affected customer shall have the authority to
2physically disconnect or reconnect a customer from the
3transmission or distribution grid. Physical disconnection by gas
4corporations subject to the commission’s jurisdiction shall occur
5only in accordance with protocols established by the commission.
6Physical disconnection by publicly owned gas utilities shall occur
7only in accordance with protocols established by the governing
8board of the local publicly owned gas utility.

9(c) Change in providers. Upon adequate notice supplied by a
10core transport agent to the gas corporation or local publicly owned
11gas utility providing physical delivery service, customers who are
12eligible for core transport service may change their energy supplier.
13Energy suppliers may charge for this change, provided that any
14fee or penalty charged by the supplier associated with early
15termination of service, shall be disclosed in that contract or
16applicable tariff.

17(d) Written notices. Notices describing the terms and conditions
18of service as described in Section 986, service agreements, notices
19of late payment, notices of discontinuance of service, and
20disconnection notices addressed to core gas customers shall be
21easily understandable and shall be provided in the language in
22which the core transport agent offered the services.

23(e) Billing. All bills shall have a standard bill format, as
24determined by the commission or the governing body, and shall
25contain sufficient detail for the customer to recalculate the bill for
26accuracy. Any late fees shall be separately stated. A core transport
27agent shall provide on all customer bills a telephone number by
28which customers may contact the core transport agent to report
29and resolve billing inquiries and complaints. A core transport agent
30contacted by a customer regarding a billing dispute shall advise
31the customer at the time of the initial contact that the customer
32may file a complaint with the commission if the customer’s dispute
33is not satisfactorily resolved by the core transport agent.

34(f) Meter integrity. A gas customer shall have a reasonable
35opportunity to have his or her meter tested to ensure the reasonable
36accuracy of the meter. The commission or governing body shall
37determine who is responsible for the cost of that testing.

38(g) Customer deposits. Core transport agents may require
39customer deposits before commencing service, but in no event
P16   1shall the deposit be more than the estimated bill for the customer
2for a three-month period.

3(h) Additional protections. The commission or the governing
4body may adopt additional core gas consumer protection standards
5that are in the public interest.

6

986.  

(a) Except for a gas corporation, or a local publicly owned
7gas utility offering gas service to core gas customers within its
8service territory, a core transport agent offering gas service to core
9gas customers shall, prior to the commencement of service, provide
10the potential customer with a written notice of the service
11describing the price, terms, and conditions of the service. The
12notices shall include all of the following:

13(1) A clear description of the price, terms, and conditions of
14service, including all of the following:

15(A) The price of gas expressed in a format that makes it possible
16for core gas customers to compare and select among similar
17products and services on a standard basis. The commission shall
18adopt rules to implement this subdivision. The commission shall
19require disclosure of the total price of gas on a cents-per-therm
20basis, including the costs of all gas services and charges regulated
21by the commission. The commission shall also require estimates
22of the total monthly bill for the gas service at varying consumption
23levels, including the costs of all gas services and charges regulated
24by the commission. In determining these rules, the commission
25may consider alternatives to the cents-per-therm disclosure if other
26information would provide the customer with sufficient information
27to compare among alternatives on a standard basis.

28(B) Separate disclosure of all recurring and nonrecurring charges
29associated with the sale of gas.

30(C) If services other than gas are offered, an itemization of the
31services and the charge or charges associated with each.

32(2) A description of the potential customer’s right to rescind
33the contract without fee or penalty as described in Section 989.1.

34(3) An explanation of the customer’s financial obligations, as
35well as the procedures regarding past due payments, discontinuance
36of service, billing disputes, and service complaints.

37(4) The core transport agent’s registration number, if applicable.

38(5) The right to change service providers upon written notice,
39including disclosure of any fees or penalties assessed by the
40supplier for early termination of a contract.

P17   1(6) A description of the availability of low-income assistance
2programs for qualified customers and how customers can apply
3for these programs.

4(b) The commission may assist core transport agents in
5developing the notice. The commission may suggest inclusion of
6additional information it deems necessary for the consumer
7protection purposes of this section. On at least a semiannual basis,
8a core transport agent shall provide the commission with a copy
9of the form of notice included in its standard service plans made
10available to core gas customers as described in subdivision (a) of
11Section 984.5.

12(c) Any core transport agent offering gas services who declines
13to provide those services to a consumer shall, upon request of the
14consumer, disclose to that consumer the reason for the denial in
15writing within 30 days. At the time service is denied, the core
16transport agent shall disclose to the consumer his or her right to
17make this request. Consumers shall have at least 30 days from the
18date service is denied to make the request.

19

987.  

(a) The commission shall maintain a list of core gas
20customers who do not wish to be solicited by telephone, by a gas
21corporation, marketer, broker, or aggregator for gas service, to
22subscribe to or change their core transport agent. The commission
23shall not assess a charge for inclusion of a customer on the list.
24The list shall be updated periodically, but no less than quarterly.

25(b) The list shall include sufficient information for gas
26corporations, marketers, brokers, or aggregators of gas service to
27identify customers who do not wish to be solicited, including a
28customer’s address and telephone number. The list shall be made
29accessible electronically from the commission to any party
30regulated as a gas corporation or registered at the commission as
31an electric marketer, broker, or aggregator of gas service.

32(c) A gas corporation, marketer, broker, or aggregator of gas
33service shall not solicit, by telephone, any customer on the list
34prepared pursuant to subdivision (a). Any gas corporation,
35marketer, broker, or aggregator of gas service, or the representative
36of a gas corporation, marketer, broker, or aggregator of gas service,
37who solicits any customer on the list prepared pursuant to
38subdivision (a) more than once shall be liable to the customer for
39twenty-five dollars ($25) for each contact in violation of this
40subdivision.

P18   1

988.  

Notwithstanding any other provision of this chapter,
2requirements placed on a core transport agent shall not apply to
3gas services provided by a local publicly owned gas utility to
4customers within the jurisdiction or service territory of that local
5publicly owned gas utility.

6

989.  

Unclaimed refunds ordered by the commission, and any
7accrued interest, may be used by the commission to fund additional
8consumer protection efforts.

9

989.1.  

(a) In addition to any other right to revoke an offer,
10core gas customers of gas service, have the right to cancel a
11contract for gas service until midnight of the third business day
12after the day on which the buyer signs an agreement or offer to
13purchase.

14(b) Cancellation occurs when the buyer gives written notice of
15cancellation to the seller at the address specified in the agreement
16or offer.

17(c) Notice of cancellation, if given by mail, is effective when
18deposited in the mail properly addressed with postage prepaid.

19(d) Notice of cancellation given by the buyer need not take the
20particular form as provided with the contract or offer to purchase
21and, however expressed, is effective if it indicates the intention of
22the buyer not to be bound by the contract.

23

989.5.  

(a) A consumer damaged by a violation of this chapter
24by a core transport agent is entitled to recover all of the following:

25(1) Actual damages.

26(2) The consumer’s reasonable attorney’s fees and court costs.

27(3) Exemplary damages, in the amount the court deems proper,
28for intentional or willful violations.

29(4) Equitable relief as the court deems proper.

30(b) The rights, remedies, and penalties established by this
31chapter are in addition to the rights, remedies, or penalties
32established under any other law.

33(c) This chapter does not abrogate any authority of the Attorney
34General to enforce existing law.

35

SEC. 5.  

No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution because
37the only costs that may be incurred by a local agency or school
38district will be incurred because this act creates a new crime or
39infraction, eliminates a crime or infraction, or changes the penalty
40for a crime or infraction, within the meaning of Section 17556 of
P19   1the Government Code, or changes the definition of a crime within
2the meaning of Section 6 of Article XIII B of the California
3Constitution.



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