Amended in Assembly April 9, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1180

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 amended, 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. begin insert Existing law includes statements of legislative intent relative to electrical, gas, and water corporations offering customers the option to pay by credit card or debit card. end insert

This bill would delete the begin delete 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. end delete begin insert express authorization for an electrical, gas, or water corporation to offer credit card and debit card bill payment options, if approved by the commission, and, upon approval, recover reasonable transaction costs incurred by the electrical, gas, or water corporation from those customers that choose to pay by those payment options. The bill would revise the statements of legislative intent to state the intent of the Legislature that customers of electrical, gas, or water corporations be allowed to pay their utility bills with forms of payment that are generally accepted in the retail marketplace and that the commission end insert begin insert maintains its existing regulatory authority over the reasonableness of expenses incurred by an electrical, gas, or water corporation for providing customers the option of paying their bills by credit card and debit card through existing regulatory mechanisms. end insert

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.  

begin delete (a) end delete begin delete   end delete It is the intent of the Legislature that:

begin insert

(a) Customers of electrical, gas, or water corporations be
allowed to pay their utility bills with forms of payment that are
generally accepted in the retail marketplace.

end insert begin delete

(1)

end delete

begin insert (b) end insert  An electrical, gas, or water corporation that offers customers
credit card begin delete or end delete begin insert and end insert debit card payment options, begin delete may end delete 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 begin delete or end delete begin insert and end insert debit card.

begin delete

(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)

end delete

begin insert (c) end insert  The acceptance of credit cards begin delete or end delete begin insert and end insert debit cards neither
increases nor decreases the begin delete profitability end delete begin insert rate of return end insert of the
electrical, gas, or water corporation.

begin delete

(b) An electrical, gas, or water corporation may offer credit card
and debit card bill payment 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.

end delete begin insert

(d) The commission maintains its existing regulatory authority
over the reasonableness of expenses incurred by an electrical, gas,
or water corporation for providing customers the option of paying
their bills by credit card and debit card through existing regulatory
mechanisms.

end insert