BILL NUMBER: AB 2207AMENDED BILL TEXT AMENDED IN SENATE JUNE 16, 2010 AMENDED IN ASSEMBLY APRIL 8, 2010 INTRODUCED BY Assembly Member Fong FEBRUARY 18, 2010 An act to add Section 779.3 to the Public Utilities Code, relating to public utilities. LEGISLATIVE COUNSEL'S DIGEST AB 2207, as amended, Fong. Utilities: termination of services. Existing law prohibits an electrical, gas, heat, or water corporation from terminating residential service for nonpayment of a delinquent account unless the corporation first gives prescribed notice of the delinquency and impending termination. Existing law also prohibits termination in specified situations. This bill would require a gas or electrical corporation to implement specified practices, including prescribed bill payment plans for customers who are subject to termination of service for nonpayment of a delinquent bill, and a prohibition on requiringthat a customer pay reestablishment of credit deposits for either late payments or nonpayment of bills, or following a termination of servicespecified low-income customers to pay reestablishment of credit deposits unless the low-income customer's service has been terminated for nonpayment of bills. The bill would also require the commission to establish a benchmark for termination of gas and electrical service , and to require the commission to require a gas or electrical corporation to conduct a biennial affordability survey . Under existing law, a violation of the Public Utilities Act is a crime. Because this bill would be within the act, by imposing requirements on gas and electrical corporations, the violation of which would be a crime, the bill would impose a state-mandated local program by creating a new crime. 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 779.3 is added to the Public Utilities Code, to read: 779.3. (a) A gas or electrical corporation shall implement the following practices: (1) Notwithstanding subdivision (c) of Section 779, if a customer is subject to termination of service for nonpayment of a delinquent bill, the gas or electrical corporation shall allow a customer to enter into a bill payment plan in accordance with this paragraph. The gas or electrical corporation shall require a customer service representative to inform the customer that he or she has a right to arrange a bill payment plan extending the period for payment of the bill a minimum of three months. The gas or electrical corporation shall authorize a customer service representative to extend a bill payment plan period up to 12 months, depending on the particulars of the customer's situation and ability to pay. A gas or electrical corporation may authorize bill payment plan schedules that exceed 12 months , depending upon the customer's situation and ability to pay . A customer service representative may arrange a bill payment plan with a payment period shorter than three months, at the option of the customer, if the customer is informed of his or her right to the three-month option. A customer shall be responsible for any charges that accrue to the service account after entering into a bill payment plan pursuant to this paragraph.(2) If a customer has established credit as a customer of the corporation, a gas or electrical corporation shall not require that customer to pay reestablishment of credit deposits for either late payments or nonpayment of bills, or following a termination of service.(b) A gas or electrical corporation may file with the commission a Tier 1 advice letter to open a memorandum account to track any significant additional costs associated with complying with practices pursuant subdivision (a), including the operations and maintenance charges associated with implementing the practices and any uncollectables that are in excess of those projected in the last general rate case for the gas or electrical corporation. The commission shall consider the process for determining the categories and amounts of costs in the memorandum account that should be considered reasonable for recovery, and the appropriate methods for recovery.(2) A gas or electrical corporation shall not require a low-income customer who is eligible to participate in the low-income energy assistance program, known as the California Alternate Rates for Energy program, to pay reestablishment of credit deposits unless the low-income customer's service has been terminated for nonpayment of bills. (b) (1) The commission shall establish a benchmark for termination of gas and electrical service. (2) The commission shall require a gas or electrical corporation to conduct a biennial affordability survey to determine the number and characteristics of households whose gas or electrical service was involuntarily terminated and the reasons and conditions affecting those lapses in service. (3) The commission shall include within the periodic low-income needs assessment required by subdivision (e) of Section 382 an estimation of the number of California households that do not receive continuous gas and electrical service, as informed by the results of the affordability survey conducted pursuant to paragraph (2). SEC. 2. 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.