AB 2381, as amended, Roger Hernández. Electricity: power outages: bill credits.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical 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.
This bill would require electricalbegin delete corporations to provide customers that experience outages for a continuous 24-hour period with a $25 bill credit for each 24-hour period that they were without power.end deletebegin insert corporations, on or before July 1, 2017, to establish utility service guarantee programs. The bill would require the programs to automatically provide each customer that
experiences an outage for a continuous 24-hour period a $30 bill credit for each 24-hour period that the customer was without power, which would be borne exclusively by the shareholders of the electrical corporations. The bill would also require electrical corporations to engage in public outreach and educate the public about the program to increase public awareness.end insert
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
begin insertThis act shall be known, and may be cited, as the
2Consumers and Utilities Partnership Act of 2016.end insert
begin insertThe Legislature finds and declares all of the following:end insert
begin insert
4
(a) Power outages lasting more than 24 hours have the potential
5to significantly disrupt people’s lives.
6
(b) Problems that people may face during an extended outage
7include loss of food, lost work productivity, and
an inability to use
8important medical devices.
9
(c) It is critical to ensure that individuals who suffer from an
10extended outage, especially those who are unable to document
11their losses, have the opportunity to receive financial remuneration
12to compensate them for disruptions.
begin insertSection 740.13 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
14to read:end insert
(a) An electrical corporation, on or before July 1,
162017, shall establish a utility service guarantee program. The
17program shall do all of the following:
18
(1) Automatically provide each customer that experiences an
19outage for a continuous 24-hour period a thirty-dollar ($30) bill
20credit for each 24-hour period that the customer was without
21power.
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(2) The commission shall, beginning January 1, 2018, adjust
2the amount of the bill credit by the annual percentage increase in
3the Consumer Price Index for the prior calendar year.
4
(b) Any expense incurred pursuant to this section shall not be
5recoverable either directly
or indirectly in rates and shall be borne
6exclusively by the shareholders of the electrical corporation.
7
(c) An electrical corporation shall engage in public outreach
8and educate the public about the program to increase public
9awareness.
10
(d) An electrical corporation, on or before July 2, 2018, and
11annually thereafter, shall report to the Legislature on the number
12of customers provided a bill credit and the total amount credited
13to customers through this program.
14
(e) An electrical corporation that, on or before January 1, 2017,
15has a program that provides a bill credit to each customer that
16experiences an outage shall update that program to comply with
17the requirements of this section instead of creating a new program.
18
(f) This section does not apply to
an outage under any of the
19following circumstances:
20
(1) The outage is planned and for maintenance.
21
(2) The outage is caused by a moderate, severe, or catastrophic
22storm condition.
23
(3) The facilities, lines, equipment, or other property necessary
24to restore power are unaccessible or are deemed unsafe to access.
25
(4) The outage occurs during a declared emergency event or
26cause related to force majeure.
27
(5) The affected service location is vacant.
28
(g) The bill credit provided by this section is not an exclusive
29remedy and does not affect any other relief or remedy provided
30by law.
Section 740.13 is added to the Public Utilities
32Code, to read:
(a) An electrical corporation shall provide each
34customer that experiences an outage for a continuous 24-hour
35period a twenty-five-dollar ($25) bill credit for each 24-hour period
36that the customer is without power.
37(b) Any expense incurred pursuant to this section shall not be
38recoverable either directly or indirectly in rates and shall be borne
39exclusively by the shareholders of the electrical corporation.
P4 1(c) The bill credit provided by this section is not an exclusive
2remedy and does not affect any other relief or remedy provided
3by law.
No reimbursement is required by this act pursuant to
6Section 6 of Article XIII B of the California Constitution because
7the only costs that may be incurred by a local agency or school
8district will be incurred because this act creates a new crime or
9infraction, eliminates a crime or infraction, or changes the penalty
10for a crime or infraction, within the meaning of Section 17556 of
11the Government Code, or changes the definition of a crime within
12the meaning of Section 6 of Article XIII B of the California
13Constitution.
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