California Legislature—2015–16 Regular Session

Assembly BillNo. 2795


Introduced by Assembly Member Lopez

February 19, 2016


An act to amend Section 707 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 2795, as introduced, Lopez. Electricity: community choice aggregators.

Existing law requires the Public Utilities Commission to consider and adopt a code of conduct, associated rules, and enforcement procedures to govern the conduct of electrical corporations relative to the consideration, formation, and implementation of a community choice aggregation program. Existing law requires the commission to ensure that the code of conduct, associated rules, and enforcement procedures are implemented by no later than January 1, 2013.

This bill would make a nonsubstantive change 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:

P1    1

SECTION 1.  

Section 707 of the Public Utilities Code is
2amended to read:

3

707.  

(a) Not later than March 1, 2012, the commission shall
4institute a rulemaking proceeding for the purpose of considering
5and adopting a code of conduct, associated rules, and enforcement
6procedures, to govern the conduct of the electrical corporations
P2    1relative to the consideration, formation, and implementation of
2community choice aggregation programs authorized in Section
3366.2. The code of conduct, associated rules, and enforcement
4procedures, shall do all of the following:

5(1) Ensure that an electrical corporation does not market against
6a community choice aggregation program, except through an
7independent marketing division that is funded exclusively by the
8electrical corporation’s shareholders and that is functionally and
9physically separate from the electrical corporation’s
10ratepayer-funded divisions.

11(2) Limit the electrical corporation’s independent marketing
12division’s use of support services from the electrical corporation’s
13ratepayer-funded divisions, and ensure that the electrical
14corporation’s independent marketing division is allocated costs of
15any permissible support services from the electrical corporation’s
16ratepayer-funded divisions on a fully allocated embedded cost
17basis, providing detailed public reports of such use.

18(3) Ensure that the electrical corporation’s independent
19marketing division does not have access to competitively sensitive
20information.

21(4) (A) Incorporate rules that the commission finds to be
22necessary or convenient in order to facilitate the development of
23community choice aggregation programs, to foster fair competition,
24and to protect against cross-subsidization paid by ratepayers.

25(B) It is the intent of the Legislature that the rules include, in
26whole or in part, the rules approved by the commission in Decision
2797-12-088 and Decision 08-06-016.

28(C) This paragraph does not limit the authority of the
29commission to adopt rules that it determines are necessary or
30convenient in addition to those adopted in Decision 97-12-088 and
31Decision 08-06-016 or to modify any rule adopted in those
32decisions.

33(5) Provide for any other matter that the commission determines
34to be necessary or advisable to protect a ratepayer’s right to be
35free from forced speech or to implement that portion of the federal
36Public Utility Regulatory Policies Act of 1978 that establishes the
37federal standard that no electric utility may recover from any person
38other than the shareholders or other owners of the utility, any direct
39or indirect expenditure by the electric utility for promotional or
40political advertising (16 U.S.C. Sec. 2623(b)(5)).

P3    1(b) begin deleteThe end deletebegin insertNo later than January 1, 2013, the end insertcommission shall
2ensure that the code of conduct, associated rules, and enforcement
3procedures arebegin delete implemented by no later than January 1, 2013.end delete
4begin insert implemented.end insert

5(c) This section does not limit the authority of the commission
6to require that any marketing against a community choice
7aggregation plan shall be conducted by an affiliate of the electrical
8corporation, or to require that marketing against a community
9choice aggregator not be conducted by a marketing division of the
10electrical corporation, subject to affiliate transaction rules to be
11developed by the commission.



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