BILL NUMBER: AB 1180	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cristina Garcia

                        FEBRUARY 27, 2015

   An act to amend Section 755 of the Public Utilities Code, relating
to utility service.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 755 of the Public Utilities Code is amended to
read:
   755.  (a) It is the intent of the Legislature that:
   (1) An electrical, gas, or water corporation that offers customers
credit card or debit card payment options, may recover the
reasonable expenses incurred by the electrical, gas, or water
corporation for providing the customers the option of paying their
bills by credit card or debit card.
   (2) Only the customers that choose to use these payment options
incur the additional charge and that no portion of the expense is
shifted to customers that do not choose to pay a bill by credit card
or debit card, unless and until the commission determines that the
savings to ratepayers exceeds the net cost of accepting those cards.
   (3) The acceptance of credit cards or debit cards neither
increases nor decreases the profitability of the electrical, gas, or
water corporation.
   (b) An electrical, gas, or water corporation may offer credit card
and debit card bill payment  options, if approved by the
commission.   options.  The electrical, gas, or
water corporation may recover reasonable transaction costs incurred
by the electrical, gas, or water corporation only from those
customers that choose to pay by those payment options.
   (c) The commission shall determine through existing regulatory
mechanisms the reasonableness of transaction costs charged to
customers that choose to pay an electrical, gas, or water corporation
by a credit card or debit card bill payment option pursuant to this
section. The commission shall determine how any associated costs or
potential savings as a result of those customers paying by the credit
card or debit card payment option shall be passed on to electrical,
gas, or water corporation customers. In determining how these savings
or costs are passed on to customers, the commission shall do the
following:
   (1) The transaction costs that are passed on to customers pursuant
to subdivision (b) shall be offset by any savings in transaction
costs the electrical, gas, or water corporation derives as a result
of those customers paying by credit card and debit card.
   (2) If the commission determines that the use of credit cards and
debit cards results in no net cost to the electrical, gas, or water
corporation, there shall be no individual customer transaction fee as
provided for in subdivision (b).
   (3) If the commission determines that the savings to the
electrical, gas, or water corporation exceeds the costs to the
electrical, gas, or water corporation, the net savings shall be
passed on to electrical, gas, or water corporation customers.