BILL NUMBER: AB 895 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 10, 2015
PASSED THE ASSEMBLY SEPTEMBER 11, 2015
AMENDED IN SENATE SEPTEMBER 4, 2015
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 Sections 453.5
and 1759 of the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 895, Rendon. Utility rate refunds: energy crisis litigation:
Public Utilities Commission: judicial review.
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 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, 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.
The California Constitution provides that the Legislature has
plenary power to establish the manner and scope of review of
commission action in a court of record. Existing law provides that
only the Supreme Court and the court of appeal have jurisdiction to
review, reverse, correct, or annul any order or decision of the
commission or to suspend or delay the execution or operation thereof,
or to enjoin, restrain, or interfere with the commission in the
performance of its official duties.
This bill would authorize an action to enforce the requirements of
the Bagley-Keene Open Meeting Act or the California Public Records
Act to be brought against the commission in the superior court.
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. 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:
(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.
(b) For deposit in the fund.
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
shall be appropriated for the following purposes:
(a) To reduce rates for customers in the affected service areas of
electrical utilities and gas utilities.
(b) To reduce the debt service on bonds issued pursuant to
Division 27 (commencing with Section 80000) of the Water Code.
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, after reimbursing the commission's
litigation and investigation expenses, to the maximum extent
possible, shall be deposited into the Ratepayer Relief Fund
established pursuant to 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. Section 1759 of the Public Utilities Code is amended to
read:
1759. (a) No court of this state, except the Supreme Court and
the court of appeal, to the extent specified in this article, shall
have jurisdiction to review, reverse, correct, or annul an order or
decision of the commission or to suspend or delay the execution or
operation thereof, or to enjoin, restrain, or interfere with the
commission in the performance of its official duties, as provided by
law and the rules of court.
(b) The writ of mandamus shall lie from the Supreme Court and from
the court of appeal to the commission in all proper cases as
prescribed in Section 1085 of the Code of Civil Procedure.
(c) This section does not apply to the following actions, which
may be brought in superior court:
(1) An action brought against the commission to enforce the
requirements of the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code).
(2) An action arising from the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) or to review a determination made under
subdivision (c) of Section 6253 of the Government Code.
SEC. 6. (a) With regard to Section 5 of this act, the Legislature
finds and declares all of the following:
(1) On June 3, 2014, California's Fourth District Court of Appeal,
in Disenhouse v. Peevey (2014) 226 Cal.App.4th 1096, held that an
interested person desiring to enforce the Bagley-Keene Open Meeting
Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1
of Division 3 of Title 2 of the Government Code) against the Public
Utilities Commission must do so by filing a petition for writ of
mandamus in the Supreme Court or the court of appeal and may not do
so by filing an action for injunctive relief in the superior court.
(2) Also in 2014, the Public Utilities Commission argued in the
Superior Court of San Francisco that Section 1759 of the Public
Utilities Code prevents the superior court from ordering the
commission to provide the City of San Bruno, pursuant to the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code), with emails
documenting improper communications between commissioners and utility
executives.
(3) The Public Utilities Commission continues to maintain the
position that the superior court does not have jurisdiction to hear
actions arising out of the California Public Records Act, and has
cited the Disenhouse case defending this position.
(4) The intent of the Bagley-Keene Open Meeting Act is that
actions of state agencies be taken openly and that their deliberation
be conducted openly.
(5) The intent of the California Public Records Act is to protect
the fundamental right of every person in this state to access
information concerning the conduct of the people's business.
(6) The people's right to remain informed so that they may retain
control over the instruments of government that they have created is
not less of a right for some agencies than for other agencies, nor
shall the people's ability to enforce the Bagley-Keene Open Meeting
Act and the California Public Records Act be more hampered for some
agencies than for other agencies.
(7) The duties, responsibilities, and actions of the Public
Utilities Commission affect the well-being of current and future
generations, and the public interest and principles of fundamental
fairness and due process of law require that the commission conduct
its affairs in an open, objective, and impartial manner, free of
undue influence and the abuse of power and authority.
(b) It is the intent of the Legislature that the Public Utilities
Commission should be subject to the judicial review provisions of the
Bagley-Keene Open Meeting Act and the California Public Records Act.
SEC. 7. Sections 1, 2, 3, and 4 of this act do 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.