AB 1180, as introduced, Cristina Garcia. Rates and charges for electric, gas, and water service: credit or debit card payment.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical, gas, and water corporations. 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. Existing law authorizes an electrical, gas, or water corporation to offer credit card and debit card bill payment options, if approved by the commission, and, upon approval, authorizes an electrical, gas, or water corporation to recover reasonable transaction costs incurred by the electrical, gas, or water corporation from those customers that choose to pay by those payment options.
This bill would delete the requirement that an electrical, gas, or water corporation obtain the approval of the commission in order to offer credit card and debit card bill payment options.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 755 of the Public Utilities Code is
2amended to read:
(a) It is the intent of the Legislature that:
4(1) An electrical, gas, or water corporation that offers customers
5credit card or debit card payment options, may recover the
6reasonable expenses incurred by the electrical, gas, or water
7corporation for providing the customers the option of paying their
8bills by credit card or debit card.
9(2) Only the customers that choose to use these payment options
10incur the additional charge and that no portion of the expense is
11shifted to customers that do not choose to pay a bill by credit card
12or debit card, unless and until the commission determines that the
13savings to ratepayers exceeds the net cost of accepting those
cards.
14(3) The acceptance of credit cards or debit cards neither
15increases nor decreases the profitability of the electrical, gas, or
16water corporation.
17(b) An electrical, gas, or water corporation may offer credit card
18and debit card bill paymentbegin delete options, if approved by the commission.end delete
19begin insert options.end insert The electrical, gas, or water corporation may recover
20reasonable transaction costs incurred by the electrical, gas, or water
21corporation only from those customers that choose to pay by those
22payment options.
23(c) The commission shall determine through existing regulatory
24mechanisms the reasonableness of transaction costs charged to
25
customers that choose to pay an electrical, gas, or water corporation
26by a credit card or debit card bill payment option pursuant to this
27section. The commission shall determine how any associated costs
28or potential savings as a result of those customers paying by the
29credit card or debit card payment option shall be passed on to
30electrical, gas, or water corporation customers. In determining how
31these savings or costs are passed on to customers, the commission
32shall do the following:
33(1) The transaction costs that are passed on to customers
34pursuant to subdivision (b) shall be offset by any savings in
35transaction costs the electrical, gas, or water corporation derives
36as a result of those customers paying by credit card and debit card.
37(2) If the commission determines that the use of credit cards
38and debit cards results in no net cost to the electrical, gas, or water
P3 1corporation,
there shall be no individual customer transaction fee
2as provided for in subdivision (b).
3(3) If the commission determines that the savings to the
4electrical, gas, or water corporation exceeds the costs to the
5electrical, gas, or water corporation, the net savings shall be passed
6on to electrical, gas, or water corporation customers.
O
99