BILL ANALYSIS �
SENATE JUDICIARY COMMITTEE
Senator Noreen Evans, Chair
2013-2014 Regular Session
SB 196 (Cannella)
As Amended April 2, 2013
Hearing Date: April 16, 2013
Fiscal: No
Urgency: No
BCP
SUBJECT
Utility Rates: Mobilehomes and Apartment Buildings
DESCRIPTION
Existing law requires the management of a mobilehome park,
apartment building, or similar residential complex, who provides
both master-meter and submeter utility service, to post the
prevailing residential utilities rate schedule, as published by
the serving utility, in a conspicuous place.
This bill would allow the management of a mobilehome park,
apartment building, or similar residential complex to, instead,
post the Internet Web site address where the rate schedule is
posted.
BACKGROUND
In California, many mobilehome park owners (and some apartment
buildings) provide utility service to their tenants through a
master meter. The utility service is then distributed to the
residents of the individual mobilehomes on the property - those
residents either have a submeter or are unmetered and split the
cost with other residents. When a submeter is used, the cost of
the charges for each billing period shall be separately stated
along with the opening and closing readings for the resident's
submeter. Furthermore, existing law mandates the Public
Utilities Commission to require a master-meter customer who
provides gas or electric service to charge each user of the
service the same rate that would be applicable if the user were
receiving gas or electricity directly from the gas or electrical
(more)
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corporation. That corporation must, in turn, provide the
master-meter customer with rates that provide a sufficient
deferential to cover the costs of providing submeter service.
To ensure that residents are aware of the prevailing rates for
their utility service, the master-meter customer (park owner or
management) is required to conspicuously post the prevailing
residential utilities rate schedule as published by the serving
utility. This bill, sponsored by the Western Manufactured
Housing Communities Association (WMA), would alternatively allow
the master-meter customer to post the Internet Web site address
where the information is posted.
CHANGES TO EXISTING LAW
1. Existing law , the Mobilehome Residency Law, governs the
relationship between park owners or managers and the residents
in mobilehome parks and manufactured housing communities.
(Civ. Code Sec. 798 et seq.)
Existing law states that when management provides both
master-meter and submeter service of utilities to a homeowner,
the cost of the charges for each billing period must be
separately stated along with the opening and closing readings
for his or her meter. Management must also post, in a
conspicuous place, the prevailing residential utilities rate
schedule as published by the serving utility. (Civ. Code Sec.
798.40.)
This bill would, alternatively, allow the management to post
the Internet Web site address where the information is posted.
2. Existing law states that the Public Utilities Commission
shall require that, whenever gas or electric service, or both,
is provided by a master-meter customer to users who are
tenants of a mobilehome park, apartment building, or similar
residential complex, the master-meter customer shall charge
each user of the service at the same rate that would be
applicable if the user were receiving gas or electricity, or
both, directly from the gas or electrical corporation. (Pub.
Util. Code Sec. 739.5(a).)
Existing law requires every master-meter customer to provide
an itemized billing of charges for electricity or gas, or
both, to each individual user generally in accordance with the
form and content of bills of the corporation to its
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residential customers, as specified. The master-meter
customer must also post, in a conspicuous place, the
applicable prevailing residential gas or electrical rate
schedule, as published by the corporation. (Pub. Util. Code
Sec 739.5(e).)
This bill would, alternatively, allow the master-meter
customer to post the Internet Web site address where the
corporation posts the prevailing residential gas or electrical
rate schedule.
COMMENT
1. Stated need for the bill
According to the author:
Since Civil Code 798.40 was adopted in 1978, the rate sheets
from the serving utilities have become voluminous and
cumbersome to post. In its origin, gas and electric
companies had single rate tiers, which meant the sheets were
user-friendly and easy to understand. Now, with multiple
tiers and rate schedules, they are much more difficult for
both the [mobilehome] park management and residents to
decipher and comprehend.
In reality, these rate sheets are rarely sought out and
viewed by park residents. Furthermore, when changes are
made to the prevailing rates, park management often receives
the new rate sheets in the mail after the fact.
Posting of these rates has become burdensome on park
management over the years. The time has come to update the
law to allow posting of the website where the information
may be obtained.
2. Switching from paper copies to Internet web addresses
Under existing law, park management is required to post the
prevailing utilities rate schedule as published by the serving
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utility. That conspicuous posting arguably allows residents
with submeters to both proactively check their utility rates,
and, double check their bill to ensure that the appropriate rate
was charged for utility service. While SB 196 would not remove
the posting requirement, it would allow park management to,
instead, post the link to an Internet Web site address where the
information is posted by the serving utility. As a result,
residents with Internet access would arguably be able to
retrieve the most updated rate schedule at their convenience and
in the comfort of their own home. The sponsor further notes
that there is precedent for directing residents to Web sites for
information - most notably the Megan's Law Web site which allows
individuals to look up registered sex offenders in their area.
From a public policy standpoint, residents who are billed via a
submeter must have access to the permissible rates that may be
charged. Even if, as asserted by the author, the posted rate
sheets are lengthy and rarely sought out, it is essential to
ensure that the information continues to be available to
residents. While electronic access may be more convenient for
some residents and ensure that the most updated rate schedule is
provided (thus addressing issues were the posted schedule does
not reflect recent changes), it could also create a potential
obstacle for those residents who do not have access to the
Internet. To address that issue, the following amendment would
require park management to additionally provide a printed copy
of the rate schedule, upon request. That requirement would
appear to impose only a minimal burden given the stated
infrequency in which these schedules are sought out.
Suggested amendments :
(1) On page 2, strike out lines 9 through 10 and insert:
serving utility or the Internet Web site address where the
homeowner may access the schedule. If the management elects to
post the Internet Web address where the schedule may be
accessed, the management shall also: (1) provide a copy of the
prevailing residential utilities rate schedule, upon request,
at no cost; and (2) state in the posting that a homeowner may
request a copy of the rate schedule from management.
(2) On page 3, strike out lines 28 through 29 and insert:
corporation, or the corporation's Internet Web site address
where the individual user may access the schedule. If the
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master-meter customer elects to post the Internet Web address
where the schedule may be accessed, the master-meter customer
shall also: (1) provide a copy of the prevailing residential
gas or electrical
rate schedule, upon request, at no cost; and (2) state in the
posting that an individual user may request a copy of the rate
schedule from the master-meter customer.
3. Scope expanded beyond mobilehome parks
The April 2, 2013 amendments expanded the scope of SB 196 to
additionally cover other master-meter customers such as
apartment buildings and other residential complexes. Those
amendments were intended to remove a conflict between the
Mobilehome Residency Law and the Public Utilities Code, but, by
making the corresponding change to the Public Utilities Code,
the amendments allowed other residential complexes to also post
an Internet Web site address instead of the applicable
prevailing electrical or gas rate schedule.
In support of that extension, the California Apartment
Association (CAA) similarly contends that the current
requirement to post the actual rates has become burdensome on
apartment owners as well. Since the amendment discussed in
Comment 2 would also require any apartment building that elects
to post an Internet Web site address for a rate schedule to also
provide a printed copy of the schedule to any tenant, upon
request, any tenant that does want to view the schedule would
have the option of doing so via either an electronic or paper
version. Given that the Committee has not received any letters
of opposition or concern about the inclusion of the apartment
building provisions, and that the suggested amendment above
would continue to ensure access to a paper version, the
extension to multi-meter apartment building may be appropriate.
Support : California Apartment Association
Opposition : None Known
HISTORY
Source : Western Manufactured Housing Communities Association
Related Pending Legislation : None Known
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Prior Legislation : None Known
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