BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1879
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1879 (Beall)
          As Amended  April 8, 2010
          Majority vote 

           UTILITIES & COMMERCE            14-0                 
          APPROPRIATIONS      12-5        
           
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          |Ayes:|Knight, Tom Berryhill,    |Ayes:|Fuentes, Ammiano,         |
          |     |Buchanan, Carter,         |     |Bradford,                 |
          |     |Fletcher, Fong, Fuller,   |     |Charles Calderon, Coto,   |
          |     |Furutani, Huffman, Ma,    |     |Davis, Monning, Ruskin,   |
          |     |Skinner, Swanson,         |     |Skinner, Solorio,         |
          |     |Villines, Bradford        |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Requires the California Public Utilities Commission  
          (CPUC) to open a proceeding to examine whether the three year  
          limit on billing adjustments for meter and billing errors is an  
          appropriate timeframe for small commercial customers of gas and  
          electrical corporations. 

           FISCAL EFFECT:   According to the Assembly Appropriations  
          Committee, absorbable cost to CPUC, which has already opened a  
          proceeding on this issue.  [Public Utilities Reimbursement  
          Account]

          COMMENTS  :   The utilities' tariffs are authorized by CPUC and  
          govern the timing of adjustment of bills for meter or billing  
          error (PG&E Rule 17 and 17.1, SCE Rule 17, and SDG&E Rule 18).   
          A current CPUC tariff, promulgated in 1986, allows residential  
          customers to only be backbilled for three months worth of  
          undercharges.  However, for commercial and industrial customers,  
          the tariff allows the utility to backbill up to three years  
          worth of undercharges.  

          CPUC Commissioner Bohn has been investigating the backbilling  
          issue and has endorsed the policy of treating small businesses  
          the same as residential customers in terms of the duration of  








                                                                  AB 1879
                                                                  Page  2


          allowable backbilling.   Subsequently, on May 6, Commissioner  
          Bohn filed an Order Instituting a Rulemaking.  CPUC Business &  
          Community Outreach branch will hold a workshop to discuss the  
          revisions to the rules in July. 

           
          Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083 



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