Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2695

Introduced by Assembly Member Patterson

February 21, 2014

begin delete An act to amend Section 739.9 of the Public Utilities Code, relating to electricity. end delete begin insert An act to add Sections 715.5 and 9621 to the Public Utilities Code, relating to electricity. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2695, as amended, Patterson. begin delete Electricity: residential rates. end delete begin insert Electricity: billing disclosures. end insert

begin insert

(1) The Public Utilities Act vests the Public Utilities Commission (PUC) with the regulatory authority over public utilities, including electrical corporations.

end insert begin insert

This bill would require the PUC to require an electrical corporation to include in its billing statements for its residential customers and to post on its Internet Web site an easy-to-understand chart breaking down all the costs reflected in the retail price of electricity charged by the electrical corporation.

end insert begin insert

Because a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime, this bill would impose a state-mandated local program.

end insert begin insert

(2) Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with certain regulatory authority over local publicly owned electric utilities regarding energy efficiency and purchase of renewable energy resources.

end insert begin insert

This bill would require the Energy Commission to develop guidelines for local publicly owned electric utilities on the development of an easy-to-understand chart breaking down all the costs reflected in the retail price of electricity charged by the utilities that would be included in the billing statements for their residential customers and posted on their Internet Web sites.

end insert begin insert

(3) 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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

Existing law authorizes the Public Utilities Commission, beginning January 1, 2015, to authorize fixed electricity charges that do not exceed a specified amount per residential customer account per month. Existing law, beginning January 1, 2016, authorizes the adjustment of the maximum allowable fixed charge by no more than the annual percentage increase in the Consumer Price Index for the prior calendar year.

end delete begin delete

This bill would make technical, nonsubstantive changes to that provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 715.5 is added to the end insert begin insert Public Utilities
Code end insert begin insert , to read: end insert

begin insert

begin insert 715.5. end insert   

The commission shall order an electrical corporation
to include in its billing statements for its residential customers and
to post on its Internet Web site an easy-to-understand chart
breaking down all the costs, including costs associated with
mandated programs, reflected in the retail price of electricity
charged by that electrical corporation. The chart may take the
form cited in page 44 of the Little Hoover Commission’s report,
“Rewiring California: Integrating Agendas for Energy Reform,”
issued December 2012.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 9621 is added to the end insert begin insert Public Utilities Code end insert begin insert , to
read: end insert

begin insert

begin insert 9621. end insert   

The Energy Commission shall develop guidelines for
local publicly owned electric utilities on the development of an
easy-to-understand chart that would be included in the billing
statements for their residential customers and posted on their
Internet Web sites, breaking down all the costs, including costs
associated with mandated programs, reflected in the retail price
of electricity charged by that electrical corporation. The chart
may take the form cited in page 44 of the Little Hoover
Commission’s report, “Rewiring California: Integrating Agendas
for Energy Reform,” issued December 2012.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

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.

end insert

begin delete

SECTION 1.  

Section 739.9 of the Public Utilities Code is
amended to read:

739.9.  

(a) “Fixed charge” means any fixed customer charge,
basic service fee, demand differentiated basic service fee, demand
charge, or other charge not based upon the volume of electricity
consumed.

(b) Increases to electrical rates and charges in rate design
proceedings, including any reduction in the California Alternate
Rates for Energy (CARE) discount, shall be reasonable and subject
to a reasonable phase-in schedule relative to the rates and charges
in effect prior to January 1, 2014.

(c) Except as provided in subdivision (c) of Section 745, the
commission shall require each electrical corporation to offer default
rates to residential customers with at least two usage tiers. The
first tier shall include electricity usage of no less than the baseline
quantity established pursuant to paragraph (1) of subdivision (d)
of Section 739.

(d) Consistent with the requirements of Section 739, the
commission may modify the seasonal definitions and applicable
percentage of average consumption for one or more climatic zones.

(e) The commission may adopt new, or expand existing, fixed
charges for the purpose of collecting a reasonable portion of the
fixed costs of providing electric service to residential customers.
The commission shall ensure that any approved charges do all of
the following:

(1) Reasonably reflect an appropriate portion of the different
costs of serving small and large customers.

(2) Not unreasonably impair incentives for conservation and
energy efficiency.

(3) Not overburden low-income customers.

(f) For the purposes of this section and Section 739.1, the
commission may, beginning January 1, 2015, authorize fixed
charges that do not exceed ten dollars ($10) for each residential
customer account per month for customers not enrolled in the
CARE program and five dollars ($5) for each residential customer
account per month for customers enrolled in the CARE program.
Beginning January 1, 2016, the maximum allowable fixed charge
may be adjusted by no more than the annual percentage increase
in the Consumer Price Index for the prior calendar year. This
subdivision applies to any default rate schedule, at least one
optional tiered rate schedule, and at least one optional time variant
rate schedule.

(g) This section does not require the commission to approve
any new or expanded fixed charge.

(h) The commission may consider whether minimum bills are
appropriate as a substitute for any fixed charges.

end delete