BILL NUMBER: AB 895 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 1, 2015
INTRODUCED BY Assembly Member Rendon
FEBRUARY 26, 2015
An act to amend Sections 16428.3 and 16428.5 of, and to add
Section 16428.25 to, the Government Code, and to amend Section
453.5 of the Public Utilities Code, relating to utility rates.
LEGISLATIVE COUNSEL'S DIGEST
AB 895, as amended, Rendon. Utility rate refunds: energy crisis
litigation.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law authorizes the
commission to fix the rates and charges for every public utility, and
requires that those rates and charges be just and reasonable. When
the commission orders rate refunds to be distributed, existing law
requires the commission to require the public utility to pay refunds
to all current utility customers, and, when practicable, to prior
customers, on an equitable pro rata basis without regard as to
whether or not the customer is classifiable as a residential or
commercial tenant, landlord, homeowner, business, industrial,
educational, governmental, nonprofit, agricultural, or any other type
of entity.
Existing law establishes the Ratepayer Relief Fund in the State
Treasury to benefit electricity and natural gas ratepayers and to
fund investigation and litigation costs of the state in pursuing
allegations of overcharges and unfair business practices against
generators, suppliers, or marketers of electricity or natural gas
arising from the energy crisis of 2000-02. Existing law requires that
any energy settlement agreement, as defined, entered into by the
Attorney General, after reimbursing the Attorney General's litigation
and investigation expenses, direct settlement funds to the following
purposes in priority order: (1) to reduce ratepayer costs of those
utility ratepayers harmed by the actions of the settling parties; and
(2) for deposit in the Ratepayer Relief Fund. Existing law
authorizes the moneys deposited in the Ratepayer Relief Fund to be
appropriated for certain purposes for the benefit of ratepayers.
This bill would require the Attorney General or the Public
Utilities Commission to enter into an energy settlement
agreement solely on a monetary basis and would prohibit the agreement
from including nonmonetary compensation in lieu of monetary
compensation. The bill would prohibit the Public
Utilities Commission commission from
distributing or expending the proceeds of claims in any litigation or
settlement to obtain ratepayer recovery for the effects of the
2000-02 energy crisis and would require that the proceeds
proceeds, after reimbursing the commission's
litigation and investigation expenses, be deposited into the
Ratepayer Relief Fund. The bill would require the moneys in the
fund to be appropriated for those purposes for the benefit of
ratepayers.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16428.25 is added to the
Government Code , immediately following Section
16428.2 , to read:
16428.25. (a) The Attorney General or the Public Utilities
Commission shall enter into an energy settlement agreement solely on
a monetary basis. The energy settlement agreement shall not include
any nonmonetary compensation in lieu of monetary compensation.
(b) The section does not apply to a settlement agreement entered
into before January 1, 2016.
SEC. 2. Section 16428.3 of the
Government Code is amended to read:
16428.3. (a) Any energy
settlement agreement entered into by the Attorney General, after
reimbursing the Attorney General's litigation and investigation
expenses, to the maximum extent possible, shall direct settlement
funds to the following purposes in priority order:
(1)
(a) To reduce ratepayer costs of those utility
ratepayers harmed by the actions of the settling parties. To the
extent the ratepayers of the investor-owned utilities were harmed,
the settlement funds shall be directed to reduce their costs, to the
maximum extent possible, through reduction of rates or the reduction
of ratepayer debt obligations incurred as a result of the energy
crisis.
(2)
(b) For deposit in the fund.
(b) Nothing in this article shall preclude nonmonetary
compensation to the state through an energy settlement agreement,
provided that the allocation of benefits from any nonmonetary
compensation is consistent with paragraph (1) of subdivision (a).
SEC. 3. Section 16428.5 of the
Government Code is amended to read:
16428.5. Moneys in the fund shall be expended upon appropriation
by the Legislature, for the benefit of ratepayers. Moneys in the fund
may shall be appropriated for the
following purposes:
(a) To finance energy litigation and investigation expenses of
state entities.
(b)
(a) To reduce rates for customers in the affected
service areas of electrical utilities and gas utilities.
(c)
(b) To reduce the debt service on bonds issued pursuant
to Division 27 (commencing with Section 80000) of the Water Code.
SECTION 1. SEC. 4. Section 453.5 of
the Public Utilities Code is amended to read:
453.5. (a) (1) If the commission orders rate refunds to be
distributed, the commission shall require public utilities to pay
refunds to all current utility customers, and, when practicable, to
prior customers, on an equitable pro rata basis without regard as to
whether or not the customer is classifiable as a residential or
commercial tenant, landlord, homeowner, business, industrial,
educational, governmental, nonprofit, agricultural, or any other type
of entity.
(2) For the purposes of this section, "equitable pro rata basis"
means in proportion to the amount originally paid for the utility
service involved, or in proportion to the amount of the utility
service actually received.
(3) This section shall not prevent the commission from authorizing
refunds to residential and other small customers to be based on
current usage.
(b) (1) The commission shall not distribute or expend the proceeds
of claims in any litigation or settlement to obtain ratepayer
recovery for the effects of the 2000-02 energy crisis.
(2) Proceeds of any claims recovered by the commission
arising out of the energy crisis of 2000-02
2000-02, after reimbursing the commission's litigation and
investigation expenses, to th e maximum extent possible,
shall be deposited into the Ratepayer Relief Fund established
pursuant to Article 9.5 (commencing with Section 16428.1) of
Chapter 2 of Part 2 of Division 4 of Title 2 Section
16428.15 of the Government Code and expended, upon appropriation, for
purposes set forth in Section 16428.5 of the Government Code.
SEC. 5. This act does not apply to any claims
brought by an electrical corporation, as defined in Section 218 of
the Public Utilities Code, that arise from the energy crisis of
2000-02.