Amended in Assembly July 1, 2014

Amended in Senate May 27, 2014

Amended in Senate April 8, 2014

Senate BillNo. 900


Introduced by Senator Hill

January 15, 2014


An act to amend Section 321.1 of, and to add Section 750 to, the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 900, as amended, Hill. Public utilities: rate case application: safety.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility and authorizes the commission to establish rules for all public utilities, subject to control by the Legislature. If the commission finds after a hearing that the rules, practices, equipment, appliances, facilities, or service of any public utility, or the methods of manufacture, distribution, transmission, storage, or supply employed by the public utility, are unjust, unreasonable, unsafe, improper, inadequate, or insufficient, the Public Utilities Act requires that the commission determine and, by order or rule, fix the rules, practices, equipment, appliances, facilities, service, or methods to be observed, furnished, constructed, enforced, or employed. Existing law states it is the intent of the Legislature that the commission assess the economic effects or other consequences of its decisions as a part of each ratemaking, rulemaking, or other proceeding.

This bill would require the commission to develop formal procedures, as specified, to consider safety in a rate case application by an electrical corporation or gas corporation. The bill would require the commission to take actionsbegin insert to assess the economic effects of its decisions andend insert to assess and mitigate the impacts of its decisions on customer, public, and employee safety.

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

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

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SECTION 1.  

Section 321.1 of the Public Utilities Code is
2amended to read:

3

321.1.  

(a) It is the intent of the Legislature that the commission
4assess thebegin delete economic effects or otherend delete consequences of its decisionsbegin insert,
5including economic effects, and assess and mitigate the impacts
6of its decision on customer, public, and employee safety,end insert
as part
7of each ratemaking, rulemaking, or other proceeding, and that this
8be accomplished using existing resources and within existing
9commission structures. The commission shall not establish a
10separate office or department for the purpose of evaluating
11begin delete economic developmentend deletebegin insert and mitigatingend insert consequences of
12commission activities.

13(b) The commission shall take all necessary and appropriate
14actionsbegin insert to assess the economic effects of its decisions andend insert to assess
15and mitigate the impacts of its decisions on customer, public, and
16employee safety.

17

SEC. 2.  

Section 750 is added to the Public Utilities Code, to
18read:

19

750.  

The commission shall develop formal procedures to
20consider safety in a rate case application by an electrical
21corporation or gas corporation. The procedures shall include a
22means by which safety information acquired by the commission
23through monitoring, data tracking and analysis, accident
24investigations, and audits of an applicant’s safety programs may
25inform the commission’s consideration of the application.



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