BILL NUMBER: SB 1476	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 23, 2010
	AMENDED IN ASSEMBLY  JUNE 10, 2010
	AMENDED IN SENATE  APRIL 20, 2010
	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Padilla

                        FEBRUARY 19, 2010

   An act to add Chapter 5 (commencing with Section 8380) to Division
4.1 of, and to repeal Section 393 of, the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1476, as amended, Padilla. Public utilities: customer privacy:
advanced metering infrastructure.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations, as defined.
   Existing law requires the commission to conduct a pilot study of
certain customers of each electrical corporation to determine the
relative value to ratepayers of information, rate design, and
metering innovations using specified approaches, but prohibits this
data from being used for any commercial purpose, unless authorized by
the customer.
   This bill would repeal the provisions relating to the pilot study.

    The bill would require an electrical corporation or gas
corporation that utilizes an advanced metering infrastructure that
allows a customer to access the customer's electrical or gas
consumption data, as defined, to ensure that the customer has an
option to access that data without being required to agree to the
sharing of his or her personally identifiable information, including
electrical or gas consumption data, with a 3rd party. The 
 This  bill would prohibit an electrical corporation or gas
corporation from sharing, disclosing, or otherwise making accessible
to any 3rd party a customer's electrical or gas consumption data,
 as defined,  except as specified, and would require those
utilities to use reasonable security procedures and practices to
protect a customer's electrical and gas consumption data from
unauthorized access, destruction, use, modification, or disclosure.
The bill would prohibit an electrical corporation or gas corporation
from selling a customer's electrical or gas consumption data or any
other personally identifiable information for any purpose.  The
bill would prohibit an electrical corporation or gas corporation from
conditioning a customer's access to electrical or gas consumption
data on the payment of an incentive or discount. The bill would
provide that if the electrical corporation or gas corporation
contracts with a 3rd party for a service that allows a customer to
monitor his or her electricity or gas usage, and the 3rd party uses
the data for a secondary commercial purpose, the utility is required
to ensure that the 3rd party prominently discloses that secondary use
of the data to the customer and requires the utility to provide the
customer with an option to monitor his or her electricity and gas
usage that is not   conditioned upon the use of the data by
a 3rd party for a secondary commercial purpose.  The bill would
adopt near identical requirements applicable to a local publicly
owned electric utility with respect to electrical consumption data,
as defined.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 393 of the Public Utilities Code is repealed.
  SEC. 2.  Chapter 5 (commencing with Section 8380) is added to
Division 4.1 of the Public Utilities Code, to read:
      CHAPTER 5.  PRIVACY PROTECTIONS FOR ENERGY CONSUMPTION DATA


   8380.  (a)  (1)    For purposes
of this section, "electrical or gas consumption data" means data
about a customer's electrical or natural gas usage that is made
available as part of an advanced metering infrastructure. 
   (2) For purposes of this section, an authorization,
acknowledgment, or consent is "written" or "in writing" if made by an
"electronic record" that includes a "digital signature" as those
terms are defined in Section 1633 of the Civil Code. 

   (b) An electrical or gas corporation that utilizes an advanced
metering infrastructure that allows a customer to access the customer'
s electrical and gas consumption data shall ensure that the customer
has an option to access that data without being required to agree to
the sharing of his or her personally identifiable information,
including electrical or gas consumption data, with a third party. The
electrical corporation or gas corporation shall not contract with
any third party that facilitates access to electrical or gas
consumption data that provides an incentive or discount to the
customer for accessing his or her electrical or gas consumption data,
except as provided in paragraph (3) of subdivision (b). 

   (c) 
    (b)  (1) An electrical corporation or gas corporation
shall not share, disclose, or otherwise make accessible to any third
party a customer's electrical or gas consumption data, except as
provided in  paragraph (3)  subdivision (e) or
upon the consent of the customer  .
   (2) An electrical corporation or gas corporation shall not sell a
customer's electrical or gas consumption data or any other personally
identifiable information for any purpose. 
   (3) An electrical corporation or gas corporation may make a
customer's electrical or gas consumption data accessible to a third
party if the customer was given the option, pursuant to subdivision
(b), to access electrical or gas consumption data without being
required to share personally identifiable information with a third
party and the customer has given his or her express written consent
for a demand response or energy efficiency program, provided by a
third party, that manages the customer's consumption of energy in
response to supply or pricing conditions.  
   (c) An electrical corporation, gas corporation, and any contractor
of the utility shall not condition a customer's access to electrical
or gas consumption data on the payment of an incentive or discount.
If an electrical corporation or gas corporation contracts with a
third party for a service that allows a customer to monitor his or
her electricity or gas usage, and that third party uses the data for
a secondary commercial purpose, the electrical corporation or gas
corporation shall ensure that the third party prominently discloses
that secondary use to the customer. The electrical corporation or gas
corporation shall also provide the customer with an option to
monitor his or her electricity or gas usage, which is not conditioned
on the use of the data by a third party for a secondary commercial
purpose. 
   (d) An electrical corporation or gas corporation shall use
reasonable security procedures and practices to protect a customer's
electrical or gas consumption data from unauthorized access,
destruction, use, modification, or disclosure.
   (e)  (1) Nothing in this section shall preclude an electrical
corporation or gas corporation from using customer aggregate
electrical or gas consumption data for analysis, reporting, or
program management if all information has been removed regarding the
individual identity of a customer.
   (2) Nothing in this section shall preclude an electrical
corporation or gas corporation from disclosing a customer's
electrical or gas consumption data to a third party for system, grid,
or  other operational needs   operational
needs, or the implementation of demand response or energy efficiency
programs,  provided that the utility has required by contract
that the third party implement and maintain reasonable security
procedures and practices appropriate to the nature of the
information, to protect the personal information from unauthorized
access, destruction, use, modification, or disclosure.
   (3) Nothing in this section shall preclude an electrical
corporation or gas corporation from disclosing electrical or gas
consumption data as required under state or federal law or by an
order of the commission.
   (f) If a customer chooses to disclose his or her electrical or gas
consumption data to a third party that is unaffiliated with, and has
no other business relationship with, the electrical or gas
corporation, the electrical or gas corporation shall not be
responsible for the security of that data  , or its use or misuse
 .
   8381.  (a)  (1)    For purposes
of this section, "electrical consumption data" means data about a
customer's electrical usage that is made available as part of an
advanced metering infrastructure. 
   (2) For purposes of this section, an authorization,
acknowledgment, or consent is "written" or "in writing" if made by an
"electronic record" that includes a "digital signature" as those
terms are defined in Section 1633 of the Civil Code. 

   (b) A local publicly owned electric utility that utilizes an
advanced metering infrastructure that allows a customer to access the
customer's electrical consumption data shall ensure that the
customer has an option to access that data without being required to
agree to the sharing of his or her personally identifiable
information, including electrical consumption data, with a third
party. The local publicly owned electric utility shall not contract
with any third party that facilitates access to electrical
consumption data that provides an incentive or discount to the
customer for accessing his or her electrical consumption data, except
as provided in paragraph (3) of subdivision (b).  
   (c) 
    (b)  (1) A local publicly owned electric utility shall
not share, disclose, or otherwise make accessible to any third party
a customer's electrical consumption data, except as provided in
 paragraph (3).   subdivision (e) or upon the
consent of the customer. 
   (2) A local publicly owned electric utility shall not sell a
customer's electrical consumption data or any other personally
identifiable information for any purpose. 
   (3) A local publicly owned electric utility may make a customer's
electrical consumption data accessible to a third party if the
customer was given the option, pursuant to subdivision (b), to access
electrical consumption data without being required to share
personally identifiable information with a third party and the
customer has given his or her express written consent for a demand
response or energy efficiency program, provided by a third party,
that manages the customer's consumption of electricity in response to
electrical supply or pricing conditions.  
   (c) A local publicly owned electric utility and any contractor of
the utility shall not condition a customer's access to electrical
consumption data on the payment of an incentive or discount. If a
local publicly owned electric utility contracts with a third party
for a service that allows a customer to monitor his or her
electricity usage, and that third party uses the data for a secondary
commercial purpose, the local publicly owned electric utility shall
ensure that the third party prominently discloses that secondary use
to the customer. The local publicly owned electric utility shall also
provide the customer with an option to monitor his or her
electricity usage, which is not conditioned on the use of the data by
a third party for a secondary commercial purpose. 
   (d) A local publicly owned electric utility shall use reasonable
security procedures and practices to protect a customer's electrical
consumption data from unauthorized access, destruction, use,
modification, or disclosure.
   (e) (1) Nothing in this section shall preclude a local publicly
owned electric utility from using customer aggregate electrical
consumption data for analysis, reporting, or program management if
all information has been removed regarding the individual identity of
a customer.
   (2) Nothing in this section shall preclude a local publicly owned
electric utility from disclosing a customer's electrical consumption
data to a third party for system, grid, or  other operational
needs   operational needs, or the implementation of
demand response or energy efficiency programs,  provided that
the utility has required by contract that the third party implement
and maintain reasonable security procedures and practices appropriate
to the nature of the information, to protect the personal
information from unauthorized access, destruction, use, modification,
or disclosure.
   (3) Nothing in this section shall preclude a local publicly owned
electric utility from disclosing electrical consumption data as
required under state or federal law.
   (f) If a customer chooses to disclose his or her electrical
consumption data to a third party that is unaffiliated with, and has
no other business relationship with, the local publicly owned
electric utility, the utility shall not be responsible for the
security of that data  , or its use or misuse  .