BILL NUMBER: AB 1108 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Fuentes
FEBRUARY 27, 2009
An act to amend Section 739.5 of, to add the heading of Chapter 1
(commencing with Section 9500) to, and to add Chapter 2 (commencing
with Section 9505) to, Division 4.8 of, and to repeal Section 12821.5
of, the Public Utilities Code, relating to utility service.
LEGISLATIVE COUNSEL'S DIGEST
AB 1108, as introduced, Fuentes. Electric and gas utility service:
master-meter customers.
(1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations and gas corporations. Existing law requires that, when
gas or electric service is provided by a master-meter customer to
users who are tenants of a mobilehome park, apartment building, or
similar residential complex, the master-meter customer charge each
user at the same rate that would be applicable if the user were
receiving gas or electricity directly from the gas or electrical
corporation. Existing law additionally requires the electrical or gas
corporation to establish uniform rates to master-meter customers at
a level that will provide a sufficient differential to cover the
reasonable average costs to master-meter customers of providing
submeter service, except that these costs shall not exceed the
average cost that the corporation would have incurred in providing
comparable services directly to the users of the service
(master-meter discount). Existing law provides that every
master-meter customer is responsible for the maintenance and repair
of its submeter facilities beyond the master-meter.
This bill would authorize the commission, if it finds that a
master-meter customer has failed to maintain or repair its submeter
facilities beyond the master-meter, to order the master-meter
customer to maintain or repair those facilities and would authorize
the commission, in addition to the commission's authority to make or
enforce orders pursuant to the Public Utilities Act, to order that
moneys received as a result of the master-meter discount be held in
trust to be expended for maintenance and repair of the submeter
facilities. The bill would require a master-meter customer to
separately bill for gas or electric service, or both, and rent. This
bill would prohibit a master-meter customer from charging a user of
electricity or gas any late charge for nonpayment or delayed payment
of rent. The bill would require that any late charge imposed by a
master-meter customer for nonpayment or delayed payment by a user for
gas or electric service be in an amount that does not exceed that
which the electrical or gas corporation would charge for nonpayment
or delayed payment for electric or gas service.
(2) The existing Municipal Utility District Act authorizes the
formation of a municipal utility district and authorizes a district
to acquire, construct, own, operate, control, or use works for
supplying the inhabitants of the district and public agencies with
light, water, power, heat, transportation, telephone service, or
other means of communication, or means for the collection, treatment,
or disposition of garbage, sewage, or refuse matter. Existing law
requires that, when light, heat, or power is provided by a
master-meter customer to users who are tenants of a mobilehome park,
apartment building, or similar residential complex, the master-meter
customer charge each user at the same rate that would be applicable
if the user were receiving service directly from a municipal utility
district. Existing law additionally requires that the master-meter
customer provide an itemized billing of charges for light, heat, and
power to each individual user generally in accordance with the form
and content of bills of the district to its residential customers.
Existing law provides that every master-meter customer receiving
light, heat, or power from a municipal utility district is
responsible for maintenance and repair of its submeter facilities
beyond the master-meter.
This bill would repeal this provision. The bill would provide that
when gas or electric service is provided by a master-meter customer
to users who are tenants of a mobilehome park, apartment building, or
similar residential complex, the master-meter customer charge each
user at the same rate that would be applicable if the user were
receiving gas or electricity directly from a local publicly owned
electric or gas utility. The bill would require a master-meter
customer to provide an itemized billing of charges for electricity or
gas to each user in accordance with the form and content of bills of
the local publicly owned electric or gas utility to its residential
customers. The bill would require a master-meter customer to
separately bill for gas or electric service, or both, and rent. The
bill would prohibit a master-meter customer from charging a user of
electricity or gas any late charge for nonpayment or delayed payment
of rent. The bill would require that any late charge imposed by a
master-meter customer for nonpayment or delayed payment by a user for
gas or electric service be in an amount that does not exceed that
which the local publicly owned electric or gas utility would charge
for nonpayment or delayed payment for electric or gas service. The
bill would provide that every master-meter customer receiving
electric or gas service from a local publicly owned electric or gas
utility is responsible for maintenance and repair of its submeter
facilities beyond the master-meter. The bill would authorize the
Public Unities Commission, if it finds that a master-meter customer
has failed to maintain or repair its submeter facilities beyond the
master-meter, to order the master-meter customer to maintain or
repair those facilities and would authorize the commission, in
addition to the commission's authority to make or enforce orders
pursuant to the Public Utilities Act, to order that moneys received
as a result of a master-meter discount provided by a local publicly
owned electric or gas utility be held in trust to be expended for
maintenance and repair of the submeter facilities. The bill would
require a local publicly owned electric or gas utility to notify each
master-meter customer of these obligations. By placing additional
requirements upon local publicly owned electric and gas utilities,
the bill would impose a state-mandated local program.
(3) 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. Section 739.5 of the Public Utilities Code is amended
to read:
739.5. (a) (1) The commission shall require
that, whenever gas or electric service, or both, is provided by a
master-meter customer to users who are tenants of a mobilehome park,
apartment building, or similar residential complex, the master-meter
customer shall charge each user of the service at the same rate that
would be applicable if the user were receiving gas or electricity, or
both, directly from the gas or electrical corporation. The
(2) The commission shall require
the electrical or gas corporation furnishing service to
the master-meter customer to establish uniform rates for master-meter
service at a level that will provide a sufficient differential to
cover the reasonable average costs to master-meter customers of
providing submeter service, except that these costs shall not exceed
the average cost that the corporation would have incurred in
providing comparable services directly to the users of the service.
(b) Every master-meter customer of a gas or electrical corporation
subject to subdivision (a) who, on or after January 1, 1978,
receives any rebate from the corporation shall distribute to, or
credit to the account of, each current user served by the
master-meter customer that portion of the rebate which the amount of
gas or electricity, or both, consumed by the user during the last
billing period bears to the total amount furnished by the corporation
to the master-meter customer during that period.
(c) An electrical or gas corporation furnishing service to a
master-meter customer shall furnish to each user of the service
within a submetered system every public safety customer service which
it provides beyond the meter to its other residential customers. The
corporation shall furnish a list of those services to the
master-meter customer who shall post the list in a conspicuous place
accessible to all users. Every corporation shall provide these public
safety customer services to each user of electrical or gas service
under a submetered system without additional charge unless the
corporation has included the average cost of these services in the
rate differential provided to the master-meter customer on January 1,
1984, in which case the commission shall deduct the average cost of
providing these public safety customer services when approving rate
differentials for master-meter customers.
(d) (1) Every master-meter customer is
responsible for maintenance and repair of its submeter facilities
beyond the master-meter, and nothing in this section requires an
electrical or gas corporation to make repairs to or perform
maintenance on the submeter system.
(2) If the commission finds that a master-meter customer has
failed to maintain or repair its submeter facilities beyond the
master-meter, the commission may order the master-meter customer to
maintain or repair those facilities.
(3) In addition to any authority granted the commission to make or
enforce orders pursuant to Chapter 11 (commencing with Section
2100), if the commission finds that a master-meter customer has
failed to maintain or repair its submeter facilities beyond the
master-meter, the commission may order that the rate differential
established pursuant to subdivision (a) be held in trust to be
expended for maintenance and repair of the submeter facilities.
(e) (1) Every master-meter customer shall
provide an itemized billing of charges for electricity or gas, or
both, to each individual user generally in
accordance with the form and content of bills of the corporation to
its residential customers, including, but not limited to, the opening
and closing readings for the meter, and the identification of all
rates and quantities attributable to each block in the applicable
rate structure. The master-meter customer shall also post, in a
conspicuous place, the applicable prevailing residential gas or
electrical rate schedule, as published by the corporation.
(2) Notwithstanding any other provision of law, a master-meter
customer shall separately bill each user for gas or electric service,
or both, and rent. A master-meter customer shall not charge a user
of electricity or gas any late charge for gas or electric service as
a result of nonpayment or delayed payment of rent. For nonpayment of
delayed payment of gas or electric service by a user, the
master-meter customer may impose a late charge up to an amount that
does not exceed that which the electrical or gas corporation would
charge for nonpayment or delayed payment for electric or gas service.
(f) The commission shall require that every electrical and gas
corporation shall notify each master-meter customer of its
responsibilities to its users under this section.
(g) The commission shall accept and respond to complaints
concerning the requirements of this section through the consumer
affairs branch, in addition to any other staff that the commission
deems necessary to assist the complainant. In responding to the
complaint, the commission shall consider the role that the office of
the county sealer in the complainant's county of residence may have
in helping to resolve the complaint and, where appropriate,
coordinate with that office.
(h) Notwithstanding any other provision of law or decision of the
commission, the commission shall not deny eligibility for the
California Alternative Rates for Energy (CARE) program, created
pursuant to Section 739.1, for a residential user of gas or electric
service who is a submetered resident or tenant served by a
master-meter customer on the basis that some residential units in the
master-meter customer's mobilehome park, apartment building, or
similar residential complex do not receive gas or electric service
through a submetered system.
SEC. 2. The heading of Chapter 1 (commencing with Section 9500) is
added to Division 4.8 of the Public Utilities Code, to read:
CHAPTER 1. WEATHERIZATION SERVICES
SEC. 3. Chapter 2 (commencing with Section 9505) is added to
Division 4.8 of the Public Utilities Code, to read:
CHAPTER 2. MASTER-METER CUSTOMERS
9505. (a) (1) Whenever gas or electric service, or both, is
provided by a master-meter customer to users who are tenants of a
mobilehome park, apartment building, or similar residential complex,
the master-meter customer shall charge each user of the service at
the same rate that would be applicable if the user were receiving gas
or electricity, or both, directly from a local publicly owned
electric or gas utility.
(2) Notwithstanding any other provision of law, a master-meter
customer shall separately bill each user for gas or electricity
service, or both, and rent. A master-meter customer shall not charge
a user of electricity or gas any late charge for gas or electric
service as a result of nonpayment or delayed payment of rent. For
nonpayment or delayed payment of gas or electric service by a user,
the master-meter customer may impose a late charge up to an amount
that does not exceed that which the local publicly owned electric or
gas utility would charge for nonpayment or delayed payment for
electric or gas service.
(b) Every master-meter customer of a gas or electrical corporation
subject to subdivision (a) who receives any rebate from the local
publicly owned electric or gas utility shall distribute to, or credit
to the account of, each current user served by the master-meter
customer that portion of the rebate which the amount of gas or
electricity, or both, consumed by the user during the last billing
period bears to the total amount furnished by the utility to the
master-meter customer during that period.
(c) (1) Every master-meter customer is responsible for maintenance
and repair of its submeter facilities beyond the master-meter, and
nothing in this section requires a local publicly owned electric or
gas utility to make repairs to or perform maintenance on the submeter
system. For purposes of this subdivision only, a master-meter
customer of a local publicly owned electric or gas utility is subject
to the jurisdiction of the commission.
(2) If the commission finds that a master-meter customer has
failed to maintain or repair its submeter facilities beyond the
master-meter, the commission may order the master-meter customer to
maintain or repair those facilities.
(3) In addition to any authority granted the commission to make or
enforce orders pursuant to Chapter 11 (commencing with Section
2100), if the commission finds that a master-meter customer has
failed to maintain or repair its submeter facilities beyond the
master-meter, the commission may order that any master-meter discount
provided to the master-meter customer by a local publicly owned
electric or gas utility be held in trust to be expended for
maintenance and repair of the submeter facilities.
(d) Every master-meter customer shall provide an itemized billing
of charges for electricity or gas, or both, to each user generally in
accordance with the form and content of bills of the local publicly
owned electric or gas utility to its residential customers, including
the opening and closing readings for the meter, and the
identification of all rates and quantities attributable to each block
in the applicable rate structure. The master-meter customer shall
also post, in a conspicuous place, the applicable prevailing
residential gas or electrical rate schedule, as published by the
utility.
(e) A local publicly owned electric or gas utility shall notify
each master-meter customer of its responsibilities to its users under
this section.
(f) The commission shall accept and respond to complaints of users
of a mater-meter customer concerning the requirements of subdivision
(c) through the consumer affairs branch, in addition to any other
staff that the commission deems necessary to assist the complainant.
In responding to the complaint, the commission shall consider the
role that the office of the county sealer in the complainant's county
of residence may have in helping to resolve the complaint and, where
appropriate, coordinate with that office.
SEC. 4. Section 12821.5 of the Public Utilities Code is repealed.
12821.5. (a) Whenever residential light, heat, or power is
furnished through a submeter system by a master-meter customer for
sale to users who are tenants of a mobilehome park, apartment
building, or similar residential complex, the master-meter customer
is responsible for maintenance and repair of its submeter facilities
beyond the master meter, and nothing in this section requires a
district to make repairs to or perform maintenance on the submeter
system.
(b) Every master-meter customer shall provide an itemized billing
of charges for light, heat, and power to each individual user
generally in accordance with the form and content of bills of the
district to its residential customers, including, but not limited to,
the opening and closing readings for the meter, and the
identification of all rates and quantities under the applicable rate
structure. The master-meter customer shall charge each user of the
service at a rate which does not exceed the rate which would be
applicable if the user were receiving residential light, heat, or
power directly from the district. The master-meter customer shall
also post, in a conspicuous place, the applicable prevailing
residential rate schedule, as published by the district.
(c) The district shall notify each master-meter customer of its
responsibilities to its users under this section.
SEC. 5. 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.