BILL NUMBER: AB 2207 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Fong
FEBRUARY 18, 2010
An act to add Section 779.3 to the Public Utilities Code, relating
to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2207, as amended, Fong. Utilities: termination of services.
Existing law prohibits an electrical, gas, heat, or water
corporation from terminating residential service for nonpayment of a
delinquent account unless the corporation first gives prescribed
notice of the delinquency and impending termination. Existing law
also prohibits termination in specified situations.
This bill would require a gas or electrical corporation to
implement specified practices, including prescribed bill payment
plans for customers who are subject to termination of service for
nonpayment of a delinquent bill, and a prohibition on requiring
that a customer pay reestablishment of credit deposits for
either late payments or nonpayment of bills, or following a
termination of service specified low-income customers
to pay reestablishment of credit deposits unless the
low-income customer's service has been terminated for nonpayment of
bills. The bill would also require the commission to establish a
benchmark for termination of gas and electrical service , and to
require the commission to require a gas or electrical corporation to
conduct a biennial affordability survey .
Under existing law, a violation of the Public Utilities Act is a
crime. Because this bill would be within the act, by imposing
requirements on gas and electrical corporations, the violation of
which 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. Section 779.3 is added to the Public Utilities Code, to
read:
779.3. (a) A gas or electrical corporation shall implement the
following practices:
(1) Notwithstanding subdivision (c) of Section 779, if a customer
is subject to termination of service for nonpayment of a delinquent
bill, the gas or electrical corporation shall allow a customer to
enter into a bill payment plan in accordance with this paragraph. The
gas or electrical corporation shall require a customer service
representative to inform the customer that he or she has a right to
arrange a bill payment plan extending the period for payment of the
bill a minimum of three months. The gas or electrical corporation
shall authorize a customer service representative to extend a bill
payment plan period up to 12 months , depending on the
particulars of the customer's situation and ability to pay
. A gas or electrical corporation may authorize bill payment plan
schedules that exceed 12 months , depending upon the customer's
situation and ability to pay . A customer service
representative may arrange a bill payment plan with a payment period
shorter than three months, at the option of the customer, if the
customer is informed of his or her right to the three-month option. A
customer shall be responsible for any charges that accrue to the
service account after entering into a bill payment plan pursuant to
this paragraph.
(2) If a customer has established credit as a customer of the
corporation, a gas or electrical corporation shall not require that
customer to pay reestablishment of credit deposits for either late
payments or nonpayment of bills, or following a termination of
service.
(b) A gas or electrical corporation may file with the commission a
Tier 1 advice letter to open a memorandum account to track any
significant additional costs associated with complying with practices
pursuant subdivision (a), including the operations and maintenance
charges associated with implementing the practices and any
uncollectables that are in excess of those projected in the last
general rate case for the gas or electrical corporation. The
commission shall consider the process for determining the categories
and amounts of costs in the memorandum account that should be
considered reasonable for recovery, and the appropriate methods for
recovery.
(2) A gas or electrical corporation shall not require a low-income
customer who is eligible to participate in the low-income energy
assistance program, known as the California Alternate Rates for
Energy program, to pay reestablishment of credit deposits unless the
low-income customer's service has been terminated for nonpayment of
bills.
(b) (1) The commission shall establish a benchmark for termination
of gas and electrical service.
(2) The commission shall require a gas or electrical corporation
to conduct a biennial affordability survey to determine the number
and characteristics of households whose gas or electrical service was
involuntarily terminated and the reasons and conditions affecting
those lapses in service.
(3) The commission shall include within the periodic low-income
needs assessment required by subdivision (e) of Section 382 an
estimation of the number of California households that do not receive
continuous gas and electrical service, as informed by the results of
the affordability survey conducted pursuant to paragraph (2).
SEC. 2. 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.