California Senate Bill SB1142

California 2023-2024 Regular Session

• Introduced: 2/14/24
• Refer: 2/21/24
• Refer: 3/18/24
• Refer: 4/3/24
• Report Pass: 4/25/24
• Refer: 4/29/24
• Report Pass: 5/16/24
• Engrossed: 5/21/24
• Refer: 5/28/24
• Report Pass: 7/2/24
• Refer: 7/3/24
• Report Pass: 8/15/24
• Enrolled: 8/29/24
• Chaptered: 9/25/24
• Passed: 9/25/24

Caption

Electrical and gas corporations: restoration and termination of services.

Impact

This bill represents a significant change to existing laws governing utility service discontinuance. Historically, utility companies have been allowed to terminate service with minimal notice, often leading to hardships for vulnerable customers. With SB1142, the law will ensure that customers have an opportunity to enter into manageable payment arrangements before any service termination occurs. Additionally, it requires the PUC to evaluate customers' ability to pay before taking action to terminate services, potentially altering how utility corporations approach service discontinuance in future cases.

Summary

Senate Bill No. 1142, introduced by Senator Menjivar, seeks to amend the Public Utilities Code in relation to the restoration and termination of services by electrical and gas corporations. The key provision mandates that utility companies must restore service to residential customers who have had their service terminated due to nonpayment, provided the customer enters into an amortization agreement or any alternative payment plan determined by the Public Utilities Commission (PUC). This restoration must occur by specific deadlines set by the commission, thereby ensuring a more systematic approach to handling nonpayment scenarios.

Sentiment

The general sentiment surrounding SB1142 appears to be positive, particularly among consumer advocacy groups and individuals who face financial challenges. Supporters argue that the bill lays out humane guidelines for utility service management, emphasizing the importance of accessibility to essential services, especially during economic hardships. Conversely, some utility companies may express concern over the administrative burdens associated with complying with the new restoration protocols and the potential increase in customer defaults.

Contention

One point of contention revolves around the projected fiscal impact on utility companies. The bill imposes new obligations for service restoration that may require additional resources for implementation. Critics highlight the potential for increased operational costs, which could lead to higher rates for all customers. There's also debate regarding how effective the PUC will be in assessing customers' ability to pay, as well as concerns about balancing regulatory requirements with the financial viability of utility companies.