Amended in Assembly April 26, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2120

Introduced by Assembly Member Weber

February 17, 2016

An act to amend Section 1802 of the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 2120, as amended, Weber. Public Utilities Commission: proceedings: intervenor fees: customers.

Under existing law, the Public Utilities Commission has broad regulatory authority pursuant to the California Constitution and the Public Utilities Act over public utilities, as defined. Existing law provides compensation for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to public utility customers and representatives of customers for participation or intervention in formal proceedings of the commission involving electrical, gas, water, telegraph, and telephone public utilities, but does not provide that compensation for local government agencies.

This bill would make legislative findings and declarations relating to local educational agency involvement in commission proceedings. The bill would authorize compensation for participation or intervention in the proceedings described above for a county office of education, begin delete on behalf of any of the local educational agencies in whole or part within the county or on behalf of itself, or for a community college district. end delete begin insert or a consortium of public school districts or agencies participating or intervening on behalf of local K-12 educational agencies in a commission proceeding relating to gas or electricity rates. The bill would require that a representative of a consortium not have had a direct financial interest in the resolution of the commission proceeding within the 2 years preceding the filing of comments with the commission and not have a direct financial interest in the resolution until 2 years after that resolution. 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.  

The Legislature finds and declares all of the
following:

(a) Many local educational agencies, including school districts,
county offices of education, and community college begin delete districts end delete
begin insert districts, end insert have experienced rapid increases in energy costs due to
energy rate increases approved by the Public Utilities Commission.

(b) Local educational agencies are disproportionately affected
by rapid increases in energy costs and differ from other public
agencies because they are strictly limited in their ability to raise
local tax revenues to cover operational cost increases. Local
educational agencies seeking to participate in Public Utilities
Commission proceedings must hire attorneys and experts at their
own expense, using the state and local dollars that were designated
for educational programs.

(c) The cost of intervening in Public Utilities Commission
proceedings is often prohibitive for local educational agencies;
therefore, the perspectives of local educational agencies are often
lost during proceedings to discuss rate changes.

(d) The Public Utilities Commission’s Intervenor Compensation
Program is intended to ensure that individuals and groups that
represent residential or small commercial electric utility customers
have the financial resources to bring their concerns and interests
to the commission during formal proceedings.

(e) As a regional agency, a county office of education is the
appropriate intervenor in a proceeding affecting any local
educational agency in whole or part within the county.

SEC. 2.  

Section 1802 of the Public Utilities Code is amended
to read:

1802.  

As used in this article:

(a) “Compensation” means payment for all or part, as determined
by the commission, of reasonable advocate’s fees, reasonable
expert witness fees, and other reasonable costs of preparation for
and participation in a proceeding, and includes the fees and costs
of obtaining an award under this article and of obtaining judicial
review, if any.

(b) (1) “Customer” means any of the following:

(A) A participant representing consumers, customers, or
subscribers of any electrical, gas, telephone, telegraph, or water
corporation that is subject to the jurisdiction of the commission.

(B) A representative who has been authorized by a customer.

(C) A representative of a group or organization authorized
pursuant to its articles of incorporation or bylaws to represent the
interests of residential customers, or to represent small commercial
customers who receive bundled electric service from an electrical
corporation.

(D) (i) Notwithstanding paragraph (2), a county office of
education or a begin delete community college district. end delete begin insert consortium of public
school districts or agencies. end insert

(ii)  begin insert (I) end insert begin insert   end insert A begin delete county office of education may end delete begin insert consortium of public
school districts or agencies shall only end insert participate or intervene
pursuant to this article on behalf of begin delete any of the end delete begin insert a end insert local begin insert K- end insert begin insert 12 end insert
educational begin delete agencies in whole or part within the county or on behalf
of itself. end delete begin insert agency in a commission proceeding relating to gas or
electricity rates. end insert

begin insert

(II) A representative of a consortium of public school districts
or agencies participating or intervening pursuant to this article
in a commission proceeding shall not have had a direct financial
interest in the resolution of the commission proceeding within the
two years preceding the filing of comments with the commission,
and shall not have a direct financial interest in the resolution of
the proceeding sooner than two years after that resolution.

end insert

(2) “Customer” does not include any state, federal, or local
government agency, any publicly owned public utility, or any
entity that, in the commission’s opinion, was established or formed
by a local government entity for the purpose of participating in a
commission proceeding.

(c) “Expert witness fees” means recorded or billed costs incurred
by a customer for an expert witness.

(d) “Other reasonable costs” means reasonable out-of-pocket
expenses directly incurred by a customer that are directly related
to the contentions or recommendations made by the customer that
resulted in a substantial contribution.

(e) “Party” means any interested party, respondent public utility,
or commission staff in a hearing or proceeding.

(f) “Proceeding” means an application, complaint, or
investigation, rulemaking, alternative dispute resolution procedures
in lieu of formal proceedings as may be sponsored or endorsed by
the commission, or other formal proceeding before the commission.

(g) “Significant financial hardship” means either that the
customer cannot afford, without undue hardship, to pay the costs
of effective participation, including advocate’s fees, expert witness
fees, and other reasonable costs of participation, or that, in the case
of a group or organization, the economic interest of the individual
members of the group or organization is small in comparison to
the costs of effective participation in the proceeding.

(h) “Small commercial customer” means begin delete any end delete begin insert a end insert nonresidential
customer with a maximum peak demand of less than 50 kilowatts.
The commission may establish rules to modify or change the
definition of “small commercial customer,” including use of criteria
other than a peak demand threshold, if the commission determines
that the modification or change will promote participation in
proceedings at the commission by organizations representing small
businesses, without incorporating large commercial and industrial
customers.

(i) “Substantial contribution” means that, in the judgment of
the commission, the customer’s presentation has substantially
assisted the commission in the making of its order or decision
because the order or decision has adopted in whole or in part one
or more factual contentions, legal contentions, or specific policy
or procedural recommendations presented by the customer. begin delete Where end delete
begin insert If end insert the customer’s participation has resulted in a substantial
contribution, even if the decision adopts that customer’s contention
or recommendations only in part, the commission may award the
customer compensation for all reasonable advocate’s fees,
reasonable expert fees, and other reasonable costs incurred by the
customer in preparing or presenting that contention or
recommendation.