California 2017 2017-2018 Regular Session

California Assembly Bill AB726 Introduced / Bill

Filed 02/15/2017

                    CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 726Introduced by Assembly Member HoldenFebruary 15, 2017 An act to add Section 745.5 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 726, as introduced, Holden. Electricity: tiered rates: notification of usage.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 a provider of mobile telephony services, as defined, to provide subscribers with a means by which a subscriber can obtain reasonably current and available information on the subscribers calling plan or plans and service usage. Existing law additionally requires that a provider of mobile telephony services provide subscribers with a means by which a subscriber can obtain reasonably current and available information, as determined by the provider, on the subscribers text messaging and Internet usage and charges. A provider of mobile telephony service is required to inform subscribers to their service at the time service is established of the availability of this usage information and how it may be obtained.This bill would require an electrical corporation to notify a residential customer in a reasonably expeditious manner when the customers usage of electricity will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. The bill would require an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage to notify the customer that the customer may receive notification of the customers electricity usage as required by the bill, the manner by which the customer can provide appropriate contact information, as determined by the commission, to receive this information, and the customers opportunity to opt in or opt out of receiving this information.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 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.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 745.5 is added to the Public Utilities Code, to read:745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.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.

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 726Introduced by Assembly Member HoldenFebruary 15, 2017 An act to add Section 745.5 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 726, as introduced, Holden. Electricity: tiered rates: notification of usage.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 a provider of mobile telephony services, as defined, to provide subscribers with a means by which a subscriber can obtain reasonably current and available information on the subscribers calling plan or plans and service usage. Existing law additionally requires that a provider of mobile telephony services provide subscribers with a means by which a subscriber can obtain reasonably current and available information, as determined by the provider, on the subscribers text messaging and Internet usage and charges. A provider of mobile telephony service is required to inform subscribers to their service at the time service is established of the availability of this usage information and how it may be obtained.This bill would require an electrical corporation to notify a residential customer in a reasonably expeditious manner when the customers usage of electricity will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. The bill would require an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage to notify the customer that the customer may receive notification of the customers electricity usage as required by the bill, the manner by which the customer can provide appropriate contact information, as determined by the commission, to receive this information, and the customers opportunity to opt in or opt out of receiving this information.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 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 





 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 726

Introduced by Assembly Member HoldenFebruary 15, 2017

Introduced by Assembly Member Holden
February 15, 2017

 An act to add Section 745.5 to the Public Utilities Code, relating to electricity. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 726, as introduced, Holden. Electricity: tiered rates: notification of usage.

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 a provider of mobile telephony services, as defined, to provide subscribers with a means by which a subscriber can obtain reasonably current and available information on the subscribers calling plan or plans and service usage. Existing law additionally requires that a provider of mobile telephony services provide subscribers with a means by which a subscriber can obtain reasonably current and available information, as determined by the provider, on the subscribers text messaging and Internet usage and charges. A provider of mobile telephony service is required to inform subscribers to their service at the time service is established of the availability of this usage information and how it may be obtained.This bill would require an electrical corporation to notify a residential customer in a reasonably expeditious manner when the customers usage of electricity will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. The bill would require an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage to notify the customer that the customer may receive notification of the customers electricity usage as required by the bill, the manner by which the customer can provide appropriate contact information, as determined by the commission, to receive this information, and the customers opportunity to opt in or opt out of receiving this information.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 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.

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 a provider of mobile telephony services, as defined, to provide subscribers with a means by which a subscriber can obtain reasonably current and available information on the subscribers calling plan or plans and service usage. Existing law additionally requires that a provider of mobile telephony services provide subscribers with a means by which a subscriber can obtain reasonably current and available information, as determined by the provider, on the subscribers text messaging and Internet usage and charges. A provider of mobile telephony service is required to inform subscribers to their service at the time service is established of the availability of this usage information and how it may be obtained.

This bill would require an electrical corporation to notify a residential customer in a reasonably expeditious manner when the customers usage of electricity will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. The bill would require an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage to notify the customer that the customer may receive notification of the customers electricity usage as required by the bill, the manner by which the customer can provide appropriate contact information, as determined by the commission, to receive this information, and the customers opportunity to opt in or opt out of receiving this information.

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 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.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 745.5 is added to the Public Utilities Code, to read:745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.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 745.5 is added to the Public Utilities Code, to read:745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.

SECTION 1. Section 745.5 is added to the Public Utilities Code, to read:

### SECTION 1.

745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.

745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.

745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.



745.5. (a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply where a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage levels.

(b) An electrical corporation shall notify a residential customer requesting notification when the customers usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.

(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customers electricity usage as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customers opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage information, the customer will be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt into or out of these notification services in any other manner determined by the commission.

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.