Amended in Assembly April 26, 2016

Amended in Assembly April 11, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2381

Introduced by Assembly Member Roger Hernández

February 18, 2016

An act to add Section 740.13 to the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

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 electrical corporations, on or before July 1, begin delete 2017, end delete begin insert 2018, end insert 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 begin insert continuous end insert 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.

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:

SECTION 1.  

This act shall be known, and may be cited, as the
Consumers and Utilities Partnership Act of 2016.

SEC. 2.  

The Legislature finds and declares all of the following:

(a) Power outages lasting more than 24 hours have the potential
to significantly disrupt people’s lives.

(b) Problems that people may face during an extended outage
include loss of food, lost work productivity, and an inability to use
important medical devices.

(c) It is critical to ensure that individuals who suffer from an
extended outage, especially those who are unable to document
their losses, have the opportunity to receive financial remuneration
to compensate them for disruptions.

SEC. 3.  

Section 740.13 is added to the Public Utilities Code,
to read:

740.13.  

(a) An electrical corporation, on or before July 1, begin delete 2017, end delete
begin insert 2018, end insert shall establish a utility service guarantee program. The
program begin delete shall do all of the following: end delete

begin delete (1) end delete begin delete   end delete begin delete Automatically end delete begin insert shall automatically end insert provide each customer
that experiences an outage for a continuous 24-hour period a
thirty-dollar ($30) bill credit for each begin insert continuous end insert 24-hour period
that the customer was without power.

begin delete

(2) The commission shall, beginning January 1, 2018, adjust
the amount of the bill credit by the annual percentage increase in
the Consumer Price Index for the prior calendar year.

end delete

(b) Any expense incurred pursuant to this section shall not be
recoverable either directly or indirectly in rates and shall be borne
exclusively by the shareholders of the electrical corporation.

(c) An electrical corporation shall engage in public outreach
and educate the public about the program to increase public
awareness.

(d) An electrical corporation, on or before July 2, begin delete 2018, end delete begin insert 2019, end insert
and annually thereafter, shall report to the Legislature on the
number of customers provided a bill credit and the total amount
credited to customers through begin delete this end delete begin insert the electrical corporation’s end insert
program.

(e) An electrical corporation that, on or before January 1, 2017,
has a program that provides a bill credit to each customer that
experiences an outage shall update that program to comply with
the requirements of this section instead of creating a new program.

(f) This section does not apply to an outage under any of the
following circumstances:

(1) The outage is planned and for maintenance.

(2) The outage is caused by a moderate, severe, or catastrophic
storm condition.

(3) The facilities, lines, equipment, or other property necessary
to restore power are begin delete unaccessible end delete begin insert inaccessible end insert or are deemed unsafe
to access.

(4) The outage occurs during a declared emergency event or
cause related to force majeure.

(5) The affected service location is vacant.

(g) The bill credit provided by this section is not an exclusive
remedy and does not affect any other relief or remedy provided
by law.

SEC. 4.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.