Enrolled September 05, 2018 Passed IN Senate August 27, 2018 Passed IN Assembly August 31, 2018 Amended IN Senate August 22, 2018 Amended IN Senate August 08, 2018 Amended IN Senate July 05, 2018 Amended IN Senate June 13, 2018 Amended IN Assembly April 18, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2346Introduced by Assembly Member QuirkFebruary 13, 2018 An act to add Section 454.85 to the Public Utilities Code, relating to public utilities.LEGISLATIVE COUNSEL'S DIGESTAB 2346, Quirk. Public utilities: rates: wildfire expense memorandum accounts.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize public utilities to establish catastrophic event memorandum accounts and to record certain costs in those accounts.This bill would require the commission to authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record certain costs in those accounts. The bill would require the recovery in rates of those costs to be subject to review by, and the determination of, the commission, as specified. The bill would require an electrical corporation to notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and 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.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 454.85 is added to the Public Utilities Code, to read:454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
Enrolled September 05, 2018 Passed IN Senate August 27, 2018 Passed IN Assembly August 31, 2018 Amended IN Senate August 22, 2018 Amended IN Senate August 08, 2018 Amended IN Senate July 05, 2018 Amended IN Senate June 13, 2018 Amended IN Assembly April 18, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2346Introduced by Assembly Member QuirkFebruary 13, 2018 An act to add Section 454.85 to the Public Utilities Code, relating to public utilities.LEGISLATIVE COUNSEL'S DIGESTAB 2346, Quirk. Public utilities: rates: wildfire expense memorandum accounts.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize public utilities to establish catastrophic event memorandum accounts and to record certain costs in those accounts.This bill would require the commission to authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record certain costs in those accounts. The bill would require the recovery in rates of those costs to be subject to review by, and the determination of, the commission, as specified. The bill would require an electrical corporation to notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and 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.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Enrolled September 05, 2018 Passed IN Senate August 27, 2018 Passed IN Assembly August 31, 2018 Amended IN Senate August 22, 2018 Amended IN Senate August 08, 2018 Amended IN Senate July 05, 2018 Amended IN Senate June 13, 2018 Amended IN Assembly April 18, 2018
Enrolled September 05, 2018
Passed IN Senate August 27, 2018
Passed IN Assembly August 31, 2018
Amended IN Senate August 22, 2018
Amended IN Senate August 08, 2018
Amended IN Senate July 05, 2018
Amended IN Senate June 13, 2018
Amended IN Assembly April 18, 2018
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2346
Introduced by Assembly Member QuirkFebruary 13, 2018
Introduced by Assembly Member Quirk
February 13, 2018
An act to add Section 454.85 to the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2346, Quirk. Public utilities: rates: wildfire expense memorandum accounts.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize public utilities to establish catastrophic event memorandum accounts and to record certain costs in those accounts.This bill would require the commission to authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record certain costs in those accounts. The bill would require the recovery in rates of those costs to be subject to review by, and the determination of, the commission, as specified. The bill would require an electrical corporation to notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and 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.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.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize public utilities to establish catastrophic event memorandum accounts and to record certain costs in those accounts.
This bill would require the commission to authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record certain costs in those accounts. The bill would require the recovery in rates of those costs to be subject to review by, and the determination of, the commission, as specified. The bill would require an electrical corporation to notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be a part of the act and 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.
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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 454.85 is added to the Public Utilities Code, to read:454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 454.85 is added to the Public Utilities Code, to read:454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
SECTION 1. Section 454.85 is added to the Public Utilities Code, to read:
### SECTION 1.
454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
454.85. (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporations or gas corporations general rate case or recorded in the electrical corporations catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:
(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.
(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.
(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.
(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.
(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.
(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
### SEC. 2.