BILL NUMBER: AB 1108	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 17, 2010
	AMENDED IN SENATE  SEPTEMBER 9, 2009
	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN SENATE  JULY 15, 2009
	AMENDED IN SENATE  JUNE 29, 2009
	AMENDED IN ASSEMBLY  JUNE 1, 2009
	AMENDED IN ASSEMBLY  MAY 4, 2009
	AMENDED IN ASSEMBLY  APRIL 22, 2009

INTRODUCED BY   Assembly Member Fuentes

                        FEBRUARY 27, 2009

    An act to amend Sections 739.5, 2791, 2796, and 2797 of,
to repeal Sections 2793, 2794, 2795, and 2799 of, and to repeal and
add Sections 2792 and 2798 of,   An act to add and
repeal Section 2800 of  the Public Utilities Code, relating to
utility service.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1108, as amended, 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 make the existing provisions of law relating to
master-meter customers applicable only to master-meter customers
providing submetered service to tenants of an apartment building or
similar multifamily residential dwelling. The bill would adopt
separate provisions that are applicable to a master-meter customer
that provides submetered service to tenants of a mobilehome park or
manufactured housing community prior to any transfer of
responsibility for gas or electric service to the gas or electrical
corporation, as described below. These provisions 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 require the commission, in addition to the
commission's authority to make or enforce orders pursuant to the
Public Utilities Act, to order that certain moneys received as a
result of the master-meter discount be held in trust, by the owner,
to be expended for maintenance and repair of the submetered
facilities of the mobilehome park or manufactured housing community
or to be paid to the gas or electrical corporation assuming
responsibility for the gas or electric service.  
   (2) Existing 
    Existing  law authorizes the owner of a master-metered
mobilehome park or manufactured housing community that provides gas
or electric service to residents to transfer ownership and
operational responsibility for its gas or electric system to the gas
or electrical corporation providing service in the area in which the
park or community is located, pursuant to specified transfer and cost
allocation procedures.
   This bill would require the  commission to open a
rulemaking   Public Utilities Commission, by July 1,
2011, to open an investigation  or other appropriate proceeding
 and adopt criteria for determining   to
evaluate and report to the Legislature, by January 1, 2013, 
when an owner of a master-metered mobilehome park or manufactured
housing community that provides gas or electric service to residents
of the park or community  will   should  be
required to transfer responsibility for gas or electric service
 , along with those plant, facilities, and interests in real
property that the gas or electrical corporation determines are
necessary, convenient, or cost effective to provide service,
 to the gas or electrical corporation providing service in
the area in which the park or community is located  , along with
those plant, facilities, and interests in real property that the gas
or electrical corporation determines are necessary, convenient, or
cost effective to provide service  . The bill would require the
commission  , in consultation   to consult 
with the Department of Housing and Community Development and county
departments of weights and measures, to  develop a system for
inspections for determining   identify  those
master-metered mobilehome parks and manufactured housing communities
 that, under the criteria established by the commission, are
to transfer responsibility for the gas or electric service to the gas
or electrical corporation. The bill would require the commission to
order the transfer of service if the commission finds that a
master-metered mobilehome park or manufactured housing community
meets the criteria. The bill would require the gas or electrical
corporation to either acquire, improve, upgrade, repair, or replace
those plant and facilities the gas or electrical corporation
determines are necessary, convenient, or cost effective to provide
service and undertake the responsibility for operating and
maintaining them, or to extend its own system in parallel to the
existing submetered system. The bill would require the commission, by
January 1, 2010, to open a proceeding to adopt rules that authorize
gas and electrical corporations to extend corporation-owned lines,
plant, facilities, and systems to provide service consistent with
applicable laws, standards, and rules, that balance certain goals and
requirements. The commission would be required to establish a
procedure for identifying mobilehome parks and manufactured housing
communities with unsafe or substandard gas or electric systems and,
in coordination with the Department of Housing and Community
Development and the county departments of weights and measures, to
establish a recommended phase-in schedule for improving, upgrading,
repairing, replacing, or extending a corporation's own system in
parallel to the existing submetered system, to address those unsafe
or substandard systems and to prioritize the transfer of gas or
electric systems with unsafe or substandard conditions. The bill
would require the commission to promptly establish interim balancing
accounts or, upon request, memorandum accounts, to permit the gas or
electrical corporation to recover, in its revenue requirements and
rates, the costs the commission finds reasonable for the corporation'
s evaluation, improvement, upgrade, repair, replacement, acquisition,
extension of its own system in parallel to the existing submetered
system, operation, and maintenance of plant, facilities, and
interests in real property to serve the mobilehome park or
manufactured housing community and the tenants of the park or
community. The bill would require the commission to address, in each
gas or electrical corporation's next general rate case, or other
appropriate proceeding, a method to replace any interim balancing
accounts or memorandum accounts, consistent with the commission's
standard ratemaking practices   with unsafe or
substandard conditions that should be transferred  . 
   Under existing law, a violation of any order, decision, rule,
direction, demand, or requirement of the commission is a crime.
 
   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. 

   (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   no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 2800 is added to the  
Public Utilities Code   , to read:  
   2800.  (a) By July 1, 2011, the commission shall open an
investigation or other appropriate proceeding to evaluate and report
to the Legislature when the owner of a master-metered mobilehome park
or manufactured housing community that provides gas or electric
service to residents should be required to transfer responsibility
for gas or electric service to the gas or electrical corporation
providing service in the area in which the park or community is
located, along with those plant, facilities, and interests in real
property that the gas or electrical corporation determines are
necessary, convenient, or cost effective to provide service.
   (b) The commission shall consult with the Department of Housing
and Community Development and the county departments of weights and
measures to identify those gas or electric systems with unsafe or
substandard conditions that should be transferred. The report shall
include a recommended phase-in schedule for the potential transfers
and the estimated costs to the gas or electrical corporations for the
transfers of responsibility.
   (c) The report shall balance the goal of providing residents of
mobilehome parks and manufactured housing communities with gas and
electric service that is as safe and reliable as that which the
commission requires gas and electrical corporations to supply to
residential customers and the requirement of fairness to the gas or
electrical corporation's ratepayers, who have already reimbursed the
master-meter customer for maintenance costs, operating costs, return
on investment, and depreciation, as well as other costs associated
with providing submetered electric and gas service, through the rate
differential afforded master-meter customers pursuant to Section
739.5.
   (d) The commission shall report the plan to the Legislature no
later than January 1, 2013. The report shall be submitted in
compliance with Section 9795 of the Government Code.
   (e) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2017.  
  SECTION 1.    Section 739.5 of the Public
Utilities Code is amended to read:
   739.5.  (a) (1) The commission shall require that, if gas or
electric service, or both, is provided by a master-meter customer to
users who are tenants of an apartment building or similar multifamily
residential dwelling, 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.
   (2) The commission shall require the gas or electrical 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 at an apartment
building or similar multifamily residential dwelling, 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 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 at an apartment building or similar
multifamily residential dwelling 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) Every master-meter customer at an apartment building or
similar multifamily residential dwelling 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.
   (e) Every master-meter customer at an apartment building or
similar multifamily residential dwelling 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 gas
or electrical 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.
   (f) The commission shall require that every electrical and gas
corporation shall notify each master-meter customer at an apartment
building or similar multifamily residential dwelling 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 Alternate 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 apartment building or similar multifamily
residential dwelling do not receive gas or electric service through a
submetered system.  
  SEC. 2.    Section 2791 of the Public Utilities
Code is amended to read:
   2791.  (a) The commission shall open a rulemaking or other
appropriate proceeding and adopt criteria for determining when an
owner of a master-metered mobilehome park or manufactured housing
community that provides gas or electric service to residents shall
transfer responsibility for the gas or electric service, along with
those plant, facilities, and interests in real property that the gas
or electrical corporation determines are necessary, convenient, or
cost effective to provide service, to the gas or electrical
corporation providing service in the area in which the park or
community is located. The criteria shall implement the public purpose
that tenants of master-metered mobilehome parks and manufactured
housing communities receive gas and electric service that is as safe
and reliable as that which the commission requires gas and electrical
corporations to supply to residential customers.
   (b) The commission, in consultation with the Department of Housing
and Community Development and county departments of weights and
measures, shall develop a system for inspections for determining
those master-metered mobilehome parks and manufactured housing
communities that, under the criteria established by the commission,
shall transfer responsibility for the gas or electric service to the
gas or electrical corporation providing service in the area in which
the park or community is located. The system of inspections shall
utilize existing complaint records to establish priorities for
inspections and be performed by the Department of Housing and
Community Development.
   (c) If the commission finds that a master-metered mobilehome park
or manufactured housing community meets the criteria for transfer of
responsibility for gas or electric service to the gas or electrical
corporation, the commission shall order that the transfer take place.
Any transfer shall take place pursuant to this chapter, or as the
park or community owner and the serving gas or electrical corporation
mutually agree.
   (d) If the commission orders that gas or electric service is to be
transferred, the gas or electrical corporation shall either acquire,
improve, upgrade, repair, or replace those plant and facilities the
gas or electrical corporation determines are necessary, convenient,
or cost effective to provide service and undertake the responsibility
for operating and maintaining them, or extend its own system in
parallel to the existing submetered system, in which case the gas or
electrical corporation shall assume no ownership or responsibility
for the existing submetered facilities and none of the existing
submetered facilities shall be necessary, convenient, or cost
effective for the corporation to provide service.
   (e) The owner of a master-metered mobilehome park or manufactured
housing community shall provide to the gas or electrical corporation
all rights-of-way, rights of ingress and egress, and other property
rights that the gas or electrical corporation requires or determines
are necessary to complete the evaluation and improvement, upgrade,
repair, or replacement of the gas or electric system, or extension of
the corporation's own system in parallel to the existing submetered
system, and to provide safe electric or gas service.
   (f) A gas or electrical corporation shall not be required,
pursuant to this chapter, to acquire those plant and facilities that
are part of a submetered system that are beyond the master meter that
the gas or electrical corporation determines are not necessary,
convenient, or cost effective to providing gas or electric service to
tenants of the mobilehome park or manufactured housing community.
 
  SEC. 3.    Section 2792 of the Public Utilities
Code is repealed.  
  SEC. 4.    Section 2792 is added to the Public
Utilities Code, to read:
   2792.  (a) (1) The commission shall require that, if gas or
electric service, or both, is provided by a master-meter customer to
users who are tenants of a mobilehome park or manufactured housing
community, 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.
   (2) The commission shall, prior to any transfer of responsibility
for gas or electric service to the gas or electrical corporation,
require the gas or electrical 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 to tenants of a mobilehome park or
manufactured housing community, 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 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) (1) Prior to any transfer of responsibility for gas or
electric service to the gas or electrical corporation, every
master-meter customer providing submetered service to tenants of a
mobilehome park or manufactured housing community is responsible for
maintenance and repair of its submetered facilities beyond the
master-meter, and nothing in this section requires a gas or
electrical corporation, prior to any transfer of responsibility for
gas or electric service to the gas or electrical corporation, to make
repairs to or perform maintenance on the submetered system.
   (2) If the commission finds, prior to any transfer of
responsibility for gas or electric service to the gas or electrical
corporation, that a master-metered mobilehome park or manufactured
housing community owner has failed to maintain or repair its
submetered 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)
of Part 1, if the commission finds that a master-metered mobilehome
park or manufactured housing community owner has failed to maintain
or repair its submetered facilities beyond the master meter, the
commission shall order the portion of the rate differential
established pursuant to subdivision (a) for an electric plant or a
gas plant be held in trust by the owner to be expended for
maintenance and repair of the submetered facilities or paid to the
gas or electrical corporation assuming responsibility for the gas or
electric service.
   (d) Every master-meter customer shall, prior to any transfer of
responsibility for gas or electric service to the gas or electrical
corporation, provide an itemized billing of charges for gas or
electricity, or both, to each user generally in accordance with the
form and content of bills of the gas or electrical 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.
   (e) The commission shall require that every gas and electrical
corporation notify each master-meter customer of its responsibilities
to its users under this section.
   (f) 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.
   (g) Notwithstanding any other provision of law or decision of the
commission, the commission shall not deny eligibility for the
California Alternate 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 or manufactured housing
community do not receive gas or electric service through a submetered
system.  
  SEC. 5.    Section 2793 of the Public Utilities
Code is repealed.  
  SEC. 6.    Section 2794 of the Public Utilities
Code is repealed.  
  SEC. 7.    Section 2795 of the Public Utilities
Code is repealed.  
  SEC. 8.    Section 2796 of the Public Utilities
Code is amended to read:
   2796.  (a) During the pendency of a transfer of responsibility for
gas or electric service, the owner of the park or community shall be
responsible for the continued maintenance to preserve the integrity
of the park or community gas or electric system and safe and reliable
operation of the park or community system in accordance with
applicable laws, until the gas or electrical corporation has
completed its improvements, upgrades, repairs, or replacement of the
submetered system, or the extension of its own system in parallel to
the existing submetered system, at which time the owner of the park
or community shall transfer to the gas or electrical corporation all
remaining property rights that the gas or electrical corporation
requires or determines are necessary, convenient, or cost effective
to enable the gas or electrical corporation to do both of the
following:
   (1) Provide gas or electric service to the park or community.
   (2) Provide gas or electric service to the end-use customers in
the park or community.
   (b) During the pendency of a transfer of responsibility for gas or
electric service, the owner of the park or community shall be liable
for injury and damage resulting from operation of the submetered gas
and electric system. After completion of the transfer of
responsibility for gas or electric service, including any transfer of
property rights pursuant to subdivision (a), the gas or electrical
corporation shall assume responsibility for the provision of service
to residents of the park or community and shall assume liability for
any future injury or damage resulting from operation of the
corporation's gas or electric system. The gas or electrical
corporation shall bear no legal or financial responsibility or
liability for the master-metered gas or electric system of an owner
of a park or community, its operation or maintenance, including any
environmental contamination that may have been caused by the park or
community, or any injury to person or property resulting from the gas
or electric system or its operation, nor shall the gas or electrical
corporation be liable for any claim relating to any expected timing
of the transfer of responsibility of service pursuant to Section
2791.
   (c) The commission shall not require the gas or electrical
corporation to perform any environmental mitigation on the submetered
system of an owner of a park or community. However, to the extent
that an electrical or gas corporation determines that there is a need
to remove or remediate any part of the submetered system to provide
service, the commission may require the park or community owner to
perform the removal or remediation prior to the transfer of service
to the gas or electrical corporation. Alternatively, the commission
may authorize the corporation to perform the removal or remediation,
and the commission shall permit the electrical or gas corporation to
recover the costs of the removal or remediation in rates.
   (d) To ensure the continuity and safety of service for residents
of mobilehome parks and manufactured housing communities, the
Department of Housing and Community Development shall ensure that
connections to each individual mobilehome or manufactured housing
unit meet applicable building code standards prior to the transfer of
service to the gas or electrical corporation. The gas or electrical
corporation shall not be required to assume service to a mobilehome
park or manufactured housing community unless and until all
connections to individual homes or units meet applicable building
code standards.  
  SEC. 9.    Section 2797 of the Public Utilities
Code is amended to read:
   2797.  (a) The commission shall do both of the following:
   (1) On an interim basis, promptly establish balancing accounts or,
at the request of the gas or electrical corporation, a memorandum
account, to permit the gas or electrical corporation to recover in
its revenue requirement and rates the costs the commission finds
reasonable for the corporation's evaluation, improvement, upgrade,
repair, replacement, acquisition, operation, and maintenance of
plant, facilities, and interests in real property to serve the
mobilehome park or manufactured housing community and the tenants of
the park or community.
   (2) Address in each gas or electrical corporation's next general
rate case, or in another appropriate proceeding, a method to replace
any interim balancing accounts or memorandum accounts and to permit
the gas or electrical corporation to recover in its revenue
requirements and rates, consistent with the commission's standard
ratemaking practices, the improvement, upgrade, repair, replacement,
acquisition, operation, and maintenance of plant, facilities, and
interests in real property to serve the mobilehome park or
manufactured housing community and the tenants of the park or
community.
   (b) The costs recovered by the gas or electrical corporation shall
be allocated in accordance with the commission's standard rate
design practices and shall not be imposed solely on tenants of
master-metered mobilehome parks and manufactured housing communities.
 
  SEC. 10.    Section 2798 of the Public Utilities
Code is repealed.  
  SEC. 11.    Section 2798 is added to the Public
Utilities Code, to read:
   2798.  (a) By January 1, 2010, the commission shall open a
proceeding to adopt rules that authorize gas and electrical
corporations to extend corporation-owned lines, plant, facilities,
and systems, consistent with applicable laws, standards, and rules
for service and line extensions to provide service consistent with
the requirements of Section 2791. The rules shall balance the goal of
providing residents of mobilehome parks and manufactured housing
communities with gas and electric service that is as safe and
reliable as that which the commission requires gas and electrical
corporations to supply to residential customers and the requirement
of fairness to the gas or electrical corporation's ratepayers, who
have already reimbursed the master-meter customer for maintenance
costs, operating costs, return on investment, and depreciation, as
well as other costs associated with providing submetered electric and
gas service, through the rate differential afforded master-meter
customers pursuant to Section 739.5.
   (b) In adopting rules governing the transfers required by Section
2791, the commission shall also adopt a process for ordering the
transfer of any plant, facilities, and property rights that the gas
or electrical corporation determines are necessary, convenient, or
cost effective to provide gas or electric service and to ensure that
any reasonable costs associated with the gas or electrical
corporation's improvement, upgrade, repair, replacement, or
aquisition of the existing submetered system, or the extension of the
corporation's own system in parallel to the existing submetered
system, and the operation and maintenance of plant and facilities to
serve the mobilehome park or manufactured housing community and the
tenants of the park or community will be borne by the ratepayers of
the serving gas or
electrical corporation are collected in rates. The commission shall
establish a procedure for identifying mobilehome parks and
manufactured housing communities with unsafe or substandard gas or
electric systems, shall establish a recommended phase-in schedule for
improving, upgrading, repairing, replacing, or extending a
corporation's own system in parallel to the existing submetered
system, to address those unsafe or substandard systems, and shall
prioritize, in coordination with the Department of Housing and
Community Development and the county department of weights and
measures, the transfer of those gas or electric systems with unsafe
or substandard conditions. The phase-in schedule shall take into
account the overall feasibility of the schedule, the impact on
resources of the gas or electrical corporation required to implement
improvements, upgrades, repairs, replacements, or extensions of the
corporation's own system in parallel to the existing submetered
system, the necessity for coordination of different entities that
provide gas and electric service to the master-meter customer, and
the financial impact, including the impact on rates. The gas or
electrical corporation shall extend its own system in parallel to the
existing submetered system or improve, upgrade, repair, or replace
the gas or electric system in a manner that conforms to all
applicable state and federal codes, standards, regulations, rules,
and laws respecting gas and electric systems and consistent with the
standards the gas or electrical corporation uses for other facilities
it owns, operates, and maintains, and construction to those
standards is reasonable for purposes of Article 1 (commencing with
Section 451) of Chapter 3 and Article 2 (commencing with Section 727)
of Chapter 4 of Part 1.
   (c) To the maximum extent feasible, the commission shall establish
a recommended phase-in schedule in conjunction with the gas or
electrical corporation's next general rate case proceeding and shall
establish rates that take into account the anticipated costs of
implementing the phase-in schedule established pursuant to
subdivision (b). The commission shall promptly allow further
adjustment of rates to reflect additional costs reasonably incurred
in implementing this chapter, including additional capital
investments.
   (d) The commission shall require, as a condition for the transfers
of service required by Section 2791, that the gas or electrical
corporation accept as a customer of the utility any tenant of the
mobilehome park or manufactured housing community who, prior to the
transfer, received gas or electric service from the master-metered
customer pursuant to the requirements for establishing service
provided in the corporation's applicable rules and tariffs. 

  SEC. 12.    Section 2799 of the Public Utilities
Code is repealed.  
  SEC. 13.    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.