California Assembly Bill AB1108 Amended / Bill

 BILL NUMBER: AB 1108AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 1, 2009 AMENDED IN ASSEMBLY MAY 4, 2009 AMENDED IN ASSEMBLY APRIL 22, 2009 INTRODUCED BY Assembly Member Fuentes FEBRUARY 27, 2009 An act to amend Sections 739.5, 2791,  2797, and 2798   2796, and 2797 of,  and  to repeal Sections 2792, 2793, 2794, 2795,  2796,  and 2799  of, and to repeal and add Section 2798  of, the Public Utilities Code, relating to utility service. LEGISLATIVE COUNSEL'S DIGEST AB 1108, as amended, Fuentes. Electric and gas utility service: master-meter customers. (1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires that, when gas or electric service 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 charge each user at the same rate that would be applicable if the user were receiving gas or electricity directly from the gas or electrical corporation. Existing law additionally requires the electrical or gas corporation to establish uniform rates to master-meter customers at a level that will provide a sufficient differential to cover the reasonable average costs to master-meter customers of providing submeter service, except that these costs shall not exceed the average cost that the corporation would have incurred in providing comparable services directly to the users of the service (master-meter discount). Existing law provides that every master-meter customer is responsible for the maintenance and repair of its submeter facilities beyond the master-meter. This bill would authorize the commission, if it finds that a master-meter customer has failed to maintain or repair its submeter facilities beyond the master-meter, to order the master-meter customer to maintain or repair those facilities and would authorize the commission, in addition to the commission's authority to make or enforce orders pursuant to the Public Utilities Act, to order that  certain  moneys received as a result of the master-meter discount be held in trust to be expended for maintenance and repair of the submeter facilities. The bill would require a master-meter customer to separately bill for gas or electric service, or both, and rent.  This   The  bill would prohibit a master-meter customer from charging a user of electricity or gas any late charge for nonpayment or delayed payment of rent. The bill would require that any late charge imposed by a master-meter customer for nonpayment or delayed payment by a user for gas or electric service be in an amount that does not exceed that which the electrical or gas corporation would charge for nonpayment or delayed payment for electric or gas service. (2) Existing law authorizes the owner of a master-metered mobilehome park or manufactured housing community that provides gas or electric service to residents to transfer ownership and operational responsibility for its gas or electric system to the gas or electrical corporation providing service in the area in which the park or community is located, pursuant to specified transfer and cost allocation procedures. This bill would require the owner of a master-metered mobilehome park or manufactured housing community that provides gas or electric service to residents to transfer ownership and operational responsibility for its gas or electric system to the gas or electrical corporation providing service in the area in which the park or community is located.  The bill would require the commission, by January 1, 2010, to open a proceeding to adopt rules that establish the terms and conditions for the transfers, that balance certain goals and requirements. The commission would be required to prioritize the transfer of gas or electric systems with unsafe or substandard conditions.  The bill would require the commission to permit the gas or electrical corporation to recover, in its revenue requirements and rates,  all   the  costs  the commission finds reasonable  to acquire, improve,  and  upgrade  , operate, and maintain  transferred mobilehome park or manufactured housing community gas or electric systems  and would require, to the extent practical, that these costs be collected over 2 rate case cycles, rather than in a single cycle  . The bill would require the commission  , by January 1, 2011,  to adopt a standard form agreement for transfer of gas and electric  distribution facilities   systems  in mobilehome parks and manufactured housing communities  , based upon the rules adopted by the commission,  that would be the basis for expedited approval of the transfers  and would require that the contract be based on rules approved by the commission  .  The bill would require that transfers commence as soon as the standard contract is available, to proceed according to the process adopted by the commission, and to be completed by January 1, 2016.  Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime. (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. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 739.5 of the Public Utilities Code is amended to read: 739.5. (a) (1) The 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. (2) The commission shall require the electrical or gas corporation furnishing service to the master-meter customer to establish uniform rates for master-meter service at a level that will provide a sufficient differential to cover the reasonable average costs to master-meter customers of providing submeter service, except that these costs shall not exceed the average cost that the corporation would have incurred in providing comparable services directly to the users of the service. (b) Every master-meter customer of a gas or electrical corporation subject to subdivision (a) who, on or after January 1, 1978, receives any rebate from the corporation shall distribute to, or credit to the account of, each current user served by the master-meter customer that portion of the rebate which the amount of gas or electricity, or both, consumed by the user during the last billing period bears to the total amount furnished by the corporation to the master-meter customer during that period. (c) An electrical or gas corporation furnishing service to a master-meter customer shall furnish to each user of the service within a submetered system every public safety customer service which it provides beyond the meter to its other residential customers. The corporation shall furnish a list of those services to the master-meter customer who shall post the list in a conspicuous place accessible to all users. Every corporation shall provide these public safety customer services to each user of electrical or gas service under a submetered system without additional charge unless the corporation has included the average cost of these services in the rate differential provided to the master-meter customer on January 1, 1984, in which case the commission shall deduct the average cost of providing these public safety customer services when approving rate differentials for master-meter customers. (d) (1) Every master-meter customer is responsible for maintenance and repair of its submeter facilities beyond the master-meter, and nothing in this section requires an electrical or gas corporation to make repairs to or perform maintenance on the submeter system. (2) If the commission finds that a master-meter customer has failed to maintain or repair its submeter facilities beyond the master-meter, the commission may order the master-meter customer to maintain or repair those facilities. (3) In addition to any authority granted the commission to make or enforce orders pursuant to Chapter 11 (commencing with Section 2100), if the commission finds that a master-meter customer has failed to maintain or repair its submeter facilities beyond the master-meter, the commission may order  that   the portion of  the rate differential established pursuant to subdivision (a)  for an electric plant or a gas plant  be held in trust to be expended for maintenance and repair of the submeter facilities. (e) (1) Every master-meter customer shall provide an itemized billing of charges for electricity or gas, or both, to each user generally in accordance with the form and content of bills of the corporation to its residential customers, including, but not limited to, the opening and closing readings for the meter, and the identification of all rates and quantities attributable to each block in the applicable rate structure. The master-meter customer shall also post, in a conspicuous place, the applicable prevailing residential gas or electrical rate schedule, as published by the corporation. (2) Notwithstanding any other provision of law, a master-meter customer shall separately bill each user for gas or electric service, or both, and rent. A master-meter customer shall not charge a user of electricity or gas any late charge for gas or electric service as a result of nonpayment or delayed payment of rent. For nonpayment of delayed payment of gas or electric service by a user, the master-meter customer may impose a late charge up to an amount that does not exceed that which the electrical or gas corporation would charge for nonpayment or delayed payment for electric or gas service. (f) The commission shall require that every electrical and gas corporation shall notify each master-meter customer of its responsibilities to its users under this section. (g) The commission shall accept and respond to complaints concerning the requirements of this section through the consumer affairs branch, in addition to any other staff that the commission deems necessary to assist the complainant. In responding to the complaint, the commission shall consider the role that the office of the county sealer in the complainant's county of residence may have in helping to resolve the complaint and, where appropriate, coordinate with that office. (h) Notwithstanding any other provision of law or decision of the commission, the commission shall not deny eligibility for the California Alternative Rates for Energy (CARE) program, created pursuant to Section 739.1, for a residential user of gas or electric service who is a submetered resident or tenant served by a master-meter customer on the basis that some residential units in the master-meter customer's mobilehome park, apartment building, or similar residential complex do not receive gas or electric service through a submetered system. SEC. 2. Section 2791 of the Public Utilities Code is amended to read: 2791. The owner of a master-metered mobilehome park or manufactured housing community that provides gas or electric service to residents shall transfer ownership and operational responsibility for the gas or electric system to the gas or electrical corporation providing service in the area in which the park or community is located pursuant to this chapter, or as the park or community owner and the serving gas or electrical corporation mutually agree. SEC. 3. Section 2792 of the Public Utilities Code is repealed. SEC. 4. Section 2793 of the Public Utilities Code is repealed. SEC. 5. Section 2794 of the Public Utilities Code is repealed. SEC. 6. Section 2795 of the Public Utilities Code is repealed.  SEC. 7.   Section 2796 of the Public Utilities Code is repealed.   SEC. 7.   Section 2796 of the   Public Utilities Code   is amended to read:  2796. (a) During the pendency of a transfer  request  , the owner of the park or community shall be responsible for the continued maintenance to preserve the integrity of the park or community gas or electric system and safe and reliable operation of the park or community system in accordance with applicable laws. (b) During the pendency of a transfer  request   ,  the owner of the park or community shall be liable for injury and damage resulting from operation of the submetered gas and electric system. After transfer  ,  the gas or  electric   electrical  corporation shall assume responsibility for operation of the gas or electric system and provision of service to residents of the park or community and shall assume liability for any future injury or damage resulting from operation of the gas or electric system except with respect to defects known to the park or community owner and not disclosed to the gas or  electric   electrical  corporation during the transfer of ownership process. SEC. 8. Section 2797 of the Public Utilities Code is amended to read: 2797. The commission shall permit the gas or electrical corporation to recover in its revenue requirement and rates  all costs to acquire, improve, upgrade, operate, and maintain   the costs the commission finds reasonable to acquire, improve, and upgrade  transferred mobilehome park or manufactured housing community gas or electric systems, as well as the reasonable costs associated with operating and maintaining the transferred  systems.  SEC. 9.   Section 2798 of the Public Utilities Code is amended to read: 2798. The commission shall adopt a standard form of agreement for transfer of gas and electric distribution facilities in mobilehome parks and manufactured housing communities that shall be the basis for expedited approval of the transfers. The contract shall be based on rules approved by the commission.   SEC. 9.   Section 2798 of the   Public Utilities Code   is repealed.   2798. The commission shall adopt a standard form of agreement for transfer of gas and electric distribution facilities in mobilehome parks and manufactured housing communities that shall be the basis for expedited approval of the transfers. The contract shall be based on this chapter, the regulations of the commission, and on gas or electric corporation rules and regulations, as approved by the commission.   SEC. 10.   Section 2798 is added to the   Public Utilities Code   , to read:   2798. (a) By January 1, 2010, the commission shall open a proceeding to adopt rules that establish the terms and conditions, including cost responsibilities, for the transfers required by Section 2791. The rules shall balance the goal of making residents of mobilehome parks and manufactured housing communities customers of record of the serving gas or electrical corporation as expeditiously as possible and the requirement of fairness to ratepayers, who have already reimbursed the master-meter customer for maintenance costs, operating costs, return on investment, and depreciation, as well as other costs associated with providing submetered electric and gas service, through the rate differential afforded master-meter customers pursuant to Section 739.5. (b) In adopting rules governing the transfers required by Section 2791, the commission shall also adopt a process for ordering the transfers to ensure that any reasonable costs associated with acquiring, improving, or upgrading the gas or electric systems that will be borne by the ratepayers of the serving gas or electrical corporation are collected in rates over two rate case cycles, rather than in a single cycle, to the extent practicable. The commission shall prioritize the transfer of mobilehome parks and manufactured housing communities that have gas or electric systems with unsafe or substandard conditions. (c) By January 1, 2011, the commission shall adopt a standard form of agreement for transfer of a gas or electric system in a mobilehome park or manufactured housing community, based on the rules adopted in the proceeding required by this section, that shall be the basis for expedited approval of the transfers. Transfers shall commence as soon as the standard contract is available and proceed according to the process adopted by the commission. (d) All transfers required by Section 2791 shall be completed by January 1, 2016.   SEC. 10.   SEC. 11.  Section 2799 of the Public Utilities Code is repealed.  SEC. 11.   SEC. 12.  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.