BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2207
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 2207 (Fong) - As Amended:  April 8, 2010

          Policy Committee:                               
          UtilitiesVote:10-4

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:  No

           SUMMARY  

          This bill:

          1)Requires gas and electrical corporations (utilities) to allow  
            a customer who is subject to termination of service for  
            nonpayment of a delinquent bill to enter into a bill payment  
            plan of three months, or more than 12 months depending on the  
            customer's situation and ability to pay. 

          2)Permits a utility to file with the Public Utilities Commission  
            (PUC) an advice letter to open a memorandum account to track  
            any significant additional costs associated with complying  
            with the above requirement, and requires the PUC to consider  
            the process "reasonable" for the utility to recover the costs.  


           FISCAL EFFECT  

          Negligible fiscal impact to the PUC.

           COMMENTS  

           Purpose  .  According to the author, this bill is intended to  
          ensure that utilities use uniform standards that provide  
          residential ratepayers an opportunity to finance their  
          delinquent bill charges. Some utilities are more lenient than  
          others and the author would like to provide a stronger level of  
          guidance than what is currently allowed in statute.

          In February, the PUC issued a Rulemaking to establish ways to  
          improve customer notification and education to decrease the  








                                                                  AB 2207
                                                                  Page  2

          number of gas and electric utility service disconnections due to  
          nonpayment by improving customer notification and education. The  
          PUC noted that the current economic crisis in California and a  
          recent increase in utility service disconnections have led it to  
          reexamine utility disconnection rules and practices. Under this  
          order, the PUC required Pacific Gas and Electric Company,  
          Southern California Edison, San Diego Gas and Electric Company,  
          and Southern California Gas Company to implement interim  
          practices that are virtually identical to the requirements  
          included in this bill.  The utilities and parties will have an  
          opportunity to comment on these interim practices and their  
          efficacies, as well as sunset provisions if appropriate, while  
          the parties continue to explore other solutions. The PUC is  
          expected to issue a decision this June. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081