BILL ANALYSIS
AB 2207
Page 1
ASSEMBLY THIRD READING
AB 2207 (Fong)
As Amended April 8, 2010
Majority vote
UTILITIES & COMMERCE 10-4
APPROPRIATIONS 12-5
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|Ayes:|Buchanan, Carter, Fong, |Ayes:|Fuentes, Ammiano, |
| |Fuentes, Furutani, | |Bradford, |
| |Huffman, Ma, Skinner, | |Charles Calderon, Coto, |
| |Swanson, Bradford | |Davis, |
| | | |De Leon, Hall, Skinner, |
| | | |Solorio, Torlakson, |
| | | |Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Knight, Fletcher, Fuller, |Nays:|Conway, Harkey, Miller, |
| |Villines | |Nielsen, Norby |
| | | | |
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SUMMARY : 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 twelve months depending on
the customer's situation and ability to pay.
EXISTING LAW :
1)Requires utilities to first provide notice of delinquency and
impending termination prior to terminating residential service
for nonpayment.
2)Precludes a utility from terminating service for nonpayment if
there is a pending investigation resulting from a complaint,
when a customer has been granted an extension, or on the
certification of a licensed physician or surgeon that
termination of service would be life-threatening to the
customer and the customer is financially unable to pay and is
willing to enter into an amortization agreement with the
utility.
AB 2207
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3)When granted an extension due to a life-threatening situation,
requires the utility to allow the customer to amortize, over a
period not to exceed twelve months, the unpaid balance of any
bill asserted to be beyond the means of the customer to pay.
4)Requires utilities to provide a residential customer an
opportunity for review of the complaint by a review manager,
where the customer has initiated a complaint or requested an
investigation within five days of receiving the disputed bill,
or who has before termination of service made a request for
extension of the payment period of a bill that's beyond their
ability to pay in full within the normal period for payment.
5)Permits any customer whose complaint or request for an
investigation has resulted in an adverse determination by the
utility to appeal the determination to California Public
Utilities Commission (PUC).
6)Requires every electrical, gas, heat, or water corporation to
first give notice of an impending termination at least 10 days
prior to the proposed termination, and not earlier than 19
days from the date of mailing the utility's bill for services.
7)Requires every utility to make a reasonable attempt to contact
an adult person residing at the premises of the customer by
telephone or personal contact at least 24 hours prior to any
termination of service, with an exception.
8)Requires every utility to make available to residential
customer who are 65 years or age or older, a third-party
notification service and requires the utility to attempt to
notify the designated person.
9)Precludes a utility from terminating service of a customer who
fails to comply with an amortization agreement without giving
notice to the customer at least 48 hours prior to termination
of the conditions the customer is required to meet to avoid
termination.
FISCAL EFFECT : Negligible fiscal impact to PUC.
COMMENTS : According to the author, the purpose of this bill is
to ensure the utilities use uniform standards that provide
residential ratepayers an opportunity to finance their
AB 2207
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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.
On February 4, 2010, PUC issued a Rulemaking (10-02-005) to
establish ways to improve customer notification and education to
decrease the number of gas and electric utility service
disconnections due to nonpayment by improving customer
notification and education. PUC noted that the economic crisis
currently existing in California and a recent increase in
utility service disconnections has led it to reexamine utility
disconnection rules and practices.
PUC's goal was to identify more effective ways for the utilities
to work with their customers and develop solutions that avoid
unnecessary disconnections without placing an undue cost burden
on other customers. PUC focused on incorporating the productive
and effective practices that each utility can share so that all
gas and electric utilities have the benefit of implementing best
practices in its service territory.
Under that order, PUC requires PG&E, SCE, SDG&E, and SoCalGas to
implement interim practices by February 11, 2010, or no later
than five business days from the mailing of the order. Those
interim practices 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
and dialogue about other solutions to assist customers to pay
their utility bills and avoid disconnection of service. PUC is
expected to issue a decision in June of this year.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0004250