AB 1479, as introduced, Patterson. Electricity: residential rates.
Existing law authorizes the Public Utilities Commission, beginning January 1, 2015, to authorize fixed electricity charges that do not exceed a specified amount per residential customer account per month. Existing law, beginning January 1, 2016, authorizes the adjustment of the maximum allowable fixed charge by no more than the annual percentage increase in the Consumer Price Index for the prior calendar year.
This bill would make technical, nonsubstantive changes to that provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 739.9 of the Public Utilities Code is
2amended to read:
(a) “Fixed charge” means any fixed customer charge,
4basic service fee, demand differentiated basic service fee, demand
5charge, or other charge not based upon the volume of electricity
6consumed.
P2 1(b) Increases to electrical rates and charges in rate design
2proceedings, including any reduction in the California Alternate
3Rates for Energy (CARE) discount, shall be reasonable and subject
4to a reasonable phase-in schedule relative to the rates and charges
5in effect prior to January 1, 2014.
6(c) Except as provided in subdivision (c) of Section 745, the
7commission shall require each electrical corporation to offer default
8rates to residential customers with at least two usage tiers. The
9first tier shall
include electricity usage of no less than the baseline
10quantity established pursuant to paragraph (1) of subdivision (d)
11of Section 739.
12(d) Consistent with the requirements of Section 739, the
13commission may modify the seasonal definitions and applicable
14percentage of average consumption for one or more climatic zones.
15(e) The commission may adopt new, or expand existing, fixed
16charges for the purpose of collecting a reasonable portion of the
17fixed costs of providing electric service to residential customers.
18The commission shall ensure that any approved charges do all of
19the following:
20(1) Reasonably reflect an appropriate portion of the different
21costs of serving small and large customers.
22(2) Not unreasonably impair incentives for conservation and
23
energy efficiency.
24(3) Not overburden low-income customers.
25(f) For the purposes of this section and Section 739.1, the
26commission may, beginning January 1, 2015, authorize fixed
27charges that do not exceed ten dollars ($10)begin delete perend deletebegin insert for eachend insert residential
28customer account per month for customers not enrolled in the
29CARE program and five dollars ($5)begin delete perend deletebegin insert for eachend insert residential
30customer account per month for customers enrolled in the CARE
31program. Beginning January 1, 2016, the maximum allowable
32fixed charge may be
adjusted by no more than the annual
33percentage increase in the Consumer Price Index for the prior
34calendar year. This subdivision applies to any default rate schedule,
35at least one optional tiered rate schedule, and at least one optional
36time variant rate schedule.
37(g) This section does not require the commission to approve
38any new or expanded fixed charge.
P3 1(h) The commission may consider whether minimum bills are
2appropriate as a substitute for any fixed charges.
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