Amended IN Senate March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 24Introduced by Senator McNerneyDecember 02, 2024An act to amend Section 2771 of add Sections 748.3, 748.4, and 779.9 to the Public Utilities Code, relating to electrical and gas corporations. LEGISLATIVE COUNSEL'S DIGESTSB 24, as amended, McNerney. Electrical and gas corporations. corporations: rates: political influence activities and promotional advertising: termination of services.Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires those rates and charges to be just and reasonable. Under existing law, a regulated public utility is prohibited from using ratepayer funds for advocacy-related activities that are political or do not otherwise benefit ratepayers.This bill would prohibit, except as provided, an electrical corporation or gas corporation from recording various expenses associated with political influence activities, as defined, promotional advertising, as defined, or opposing the municipalization of electrical or gas service, to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers. The bill would require electrical corporations and gas corporations to clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are paid for by the corporations shareholders or ratepayers. The bill would require an electrical corporation or gas corporation, on or before April 30, 2026, and annually thereafter, to provide the commission with a report of expenses from the previous calendar year and would require that, for each business unit of the corporation that performs work associated with political influence activities or promotional advertising, the report contain specified information. The bill would require the commission to make the report publicly available and would authorize the commission to redact information that the commission deems to be confidential in the report.The bill would require the commission to assess a civil penalty against an electrical corporation or gas corporation that violates certain prohibitions described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing those provisions, as provided.Existing law prohibits an electrical corporation or gas corporation from terminating a customers residential service for nonpayment of a delinquent account in certain circumstances, including, among other circumstances, the corporation gives notice to the customer of the delinquency and impending termination, during the pendency of an investigation by the corporation of the customers dispute or complaint, or when the customer has been granted an extension of the period for payment of a bill. Existing law requires an electrical corporation or gas corporation to restore service to a residential customer whose service was previously terminated for nonpayment of a delinquent amount upon the customer entering into an amortization agreement or other arrearage payment plan determined by the commission.This bill would prohibit an electrical corporation or gas corporation from terminating residential service at a service address on a day in which the air quality index (AQI) of the ZIP Code area in which the service address is located is in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category. The bill would require an electrical corporation or gas corporation to restore residential service for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category at the ZIP Code area.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above-described provisions would be part of the act and a violation of a commission action implementing the bills requirements would be a crime, this 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.Existing law requires the Public Utilities Commission to establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, as provided.This bill would make nonsubstantive changes to that requirement.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section, all of the following definitions apply:(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.(3) Compensation means salary, a bonus, benefits, or other consideration of any value.(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.(7) (A) Political influence activity means either of the following:(i) An activity for the purpose of directly or indirectly influencing any of the following:(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.(III) The approval, modification, or revocation of franchises of a utility.(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.(V) Decisions of federal, state, or local public officials.(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).(B) Political influence activity does not include either of the following:(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.(B) Promotional advertising does not include any of the following:(i) Public messages that the utility is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(10) Utility means an electrical corporation or gas corporation.(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.(12) Vendor means a person or business that provides goods and services.(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.(3) Political influence activities.(4) Promotional advertising.(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.(9) Penalties or fines, including tax penalties or fines, issued against a utility.(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(12) Investor relations.(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:(i) A list of each employees name and job title.(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.(iii) The total annual compensation provided to each employee with a listed employee job title.(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.(v) The percent of total annual compensation booked to an above-the-line account for each employee.(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.SEC. 2. Section 748.4 is added to the Public Utilities Code, to read:748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:(1) Lobbying.(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.SEC. 3. Section 779.9 is added to the Public Utilities Code, to read:779.9. (a) For purposes of this section, the following definitions apply:(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.(3) Utility means an electrical corporation or gas corporation.(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).(d) The commission shall monitor and investigate compliance with this section.SEC. 4. The Legislature finds and declares that Section 1 of this act, which adds Section 748.3 to the Public Utilities Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To preserve confidential information of an electrical corporation or gas corporation, including any personally identifiable information that is not otherwise available to the public, to protect the privacy of individuals, it is necessary to limit the disclosure of certain information provided by the electrical corporation or gas corporation to the commission.SEC. 5. 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.SECTION 1.Section 2771 of the Public Utilities Code is amended to read:2771.The commission shall establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, and among the uses of electricity or gas by those customers. The commission shall determine which of those customers and uses provide the most important public benefits and serve the greatest public need and shall categorize all other customers and uses in order of descending priority based on these standards. The commission shall establish no such priority after the effective date of this chapter that would cause a reduction in the transmission of gas to California pursuant to any federal rule, order, or regulation.
Amended IN Senate March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 24Introduced by Senator McNerneyDecember 02, 2024An act to amend Section 2771 of add Sections 748.3, 748.4, and 779.9 to the Public Utilities Code, relating to electrical and gas corporations. LEGISLATIVE COUNSEL'S DIGESTSB 24, as amended, McNerney. Electrical and gas corporations. corporations: rates: political influence activities and promotional advertising: termination of services.Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires those rates and charges to be just and reasonable. Under existing law, a regulated public utility is prohibited from using ratepayer funds for advocacy-related activities that are political or do not otherwise benefit ratepayers.This bill would prohibit, except as provided, an electrical corporation or gas corporation from recording various expenses associated with political influence activities, as defined, promotional advertising, as defined, or opposing the municipalization of electrical or gas service, to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers. The bill would require electrical corporations and gas corporations to clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are paid for by the corporations shareholders or ratepayers. The bill would require an electrical corporation or gas corporation, on or before April 30, 2026, and annually thereafter, to provide the commission with a report of expenses from the previous calendar year and would require that, for each business unit of the corporation that performs work associated with political influence activities or promotional advertising, the report contain specified information. The bill would require the commission to make the report publicly available and would authorize the commission to redact information that the commission deems to be confidential in the report.The bill would require the commission to assess a civil penalty against an electrical corporation or gas corporation that violates certain prohibitions described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing those provisions, as provided.Existing law prohibits an electrical corporation or gas corporation from terminating a customers residential service for nonpayment of a delinquent account in certain circumstances, including, among other circumstances, the corporation gives notice to the customer of the delinquency and impending termination, during the pendency of an investigation by the corporation of the customers dispute or complaint, or when the customer has been granted an extension of the period for payment of a bill. Existing law requires an electrical corporation or gas corporation to restore service to a residential customer whose service was previously terminated for nonpayment of a delinquent amount upon the customer entering into an amortization agreement or other arrearage payment plan determined by the commission.This bill would prohibit an electrical corporation or gas corporation from terminating residential service at a service address on a day in which the air quality index (AQI) of the ZIP Code area in which the service address is located is in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category. The bill would require an electrical corporation or gas corporation to restore residential service for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category at the ZIP Code area.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above-described provisions would be part of the act and a violation of a commission action implementing the bills requirements would be a crime, this 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.Existing law requires the Public Utilities Commission to establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, as provided.This bill would make nonsubstantive changes to that requirement.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES
Amended IN Senate March 25, 2025
Amended IN Senate March 25, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 24
Introduced by Senator McNerneyDecember 02, 2024
Introduced by Senator McNerney
December 02, 2024
An act to amend Section 2771 of add Sections 748.3, 748.4, and 779.9 to the Public Utilities Code, relating to electrical and gas corporations.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 24, as amended, McNerney. Electrical and gas corporations. corporations: rates: political influence activities and promotional advertising: termination of services.
Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires those rates and charges to be just and reasonable. Under existing law, a regulated public utility is prohibited from using ratepayer funds for advocacy-related activities that are political or do not otherwise benefit ratepayers.This bill would prohibit, except as provided, an electrical corporation or gas corporation from recording various expenses associated with political influence activities, as defined, promotional advertising, as defined, or opposing the municipalization of electrical or gas service, to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers. The bill would require electrical corporations and gas corporations to clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are paid for by the corporations shareholders or ratepayers. The bill would require an electrical corporation or gas corporation, on or before April 30, 2026, and annually thereafter, to provide the commission with a report of expenses from the previous calendar year and would require that, for each business unit of the corporation that performs work associated with political influence activities or promotional advertising, the report contain specified information. The bill would require the commission to make the report publicly available and would authorize the commission to redact information that the commission deems to be confidential in the report.The bill would require the commission to assess a civil penalty against an electrical corporation or gas corporation that violates certain prohibitions described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing those provisions, as provided.Existing law prohibits an electrical corporation or gas corporation from terminating a customers residential service for nonpayment of a delinquent account in certain circumstances, including, among other circumstances, the corporation gives notice to the customer of the delinquency and impending termination, during the pendency of an investigation by the corporation of the customers dispute or complaint, or when the customer has been granted an extension of the period for payment of a bill. Existing law requires an electrical corporation or gas corporation to restore service to a residential customer whose service was previously terminated for nonpayment of a delinquent amount upon the customer entering into an amortization agreement or other arrearage payment plan determined by the commission.This bill would prohibit an electrical corporation or gas corporation from terminating residential service at a service address on a day in which the air quality index (AQI) of the ZIP Code area in which the service address is located is in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category. The bill would require an electrical corporation or gas corporation to restore residential service for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category at the ZIP Code area.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the above-described provisions would be part of the act and a violation of a commission action implementing the bills requirements would be a crime, this 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.Existing law requires the Public Utilities Commission to establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, as provided.This bill would make nonsubstantive changes to that requirement.
Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires those rates and charges to be just and reasonable. Under existing law, a regulated public utility is prohibited from using ratepayer funds for advocacy-related activities that are political or do not otherwise benefit ratepayers.
This bill would prohibit, except as provided, an electrical corporation or gas corporation from recording various expenses associated with political influence activities, as defined, promotional advertising, as defined, or opposing the municipalization of electrical or gas service, to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers. The bill would require electrical corporations and gas corporations to clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are paid for by the corporations shareholders or ratepayers. The bill would require an electrical corporation or gas corporation, on or before April 30, 2026, and annually thereafter, to provide the commission with a report of expenses from the previous calendar year and would require that, for each business unit of the corporation that performs work associated with political influence activities or promotional advertising, the report contain specified information. The bill would require the commission to make the report publicly available and would authorize the commission to redact information that the commission deems to be confidential in the report.
The bill would require the commission to assess a civil penalty against an electrical corporation or gas corporation that violates certain prohibitions described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing those provisions, as provided.
Existing law prohibits an electrical corporation or gas corporation from terminating a customers residential service for nonpayment of a delinquent account in certain circumstances, including, among other circumstances, the corporation gives notice to the customer of the delinquency and impending termination, during the pendency of an investigation by the corporation of the customers dispute or complaint, or when the customer has been granted an extension of the period for payment of a bill. Existing law requires an electrical corporation or gas corporation to restore service to a residential customer whose service was previously terminated for nonpayment of a delinquent amount upon the customer entering into an amortization agreement or other arrearage payment plan determined by the commission.
This bill would prohibit an electrical corporation or gas corporation from terminating residential service at a service address on a day in which the air quality index (AQI) of the ZIP Code area in which the service address is located is in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category. The bill would require an electrical corporation or gas corporation to restore residential service for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for 3 days immediately after the AQI is no longer in the unhealthy for sensitive groups category at the ZIP Code area.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above-described provisions would be part of the act and a violation of a commission action implementing the bills requirements would be a crime, this 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.
Existing law requires the Public Utilities Commission to establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, as provided.
This bill would make nonsubstantive changes to that requirement.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section, all of the following definitions apply:(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.(3) Compensation means salary, a bonus, benefits, or other consideration of any value.(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.(7) (A) Political influence activity means either of the following:(i) An activity for the purpose of directly or indirectly influencing any of the following:(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.(III) The approval, modification, or revocation of franchises of a utility.(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.(V) Decisions of federal, state, or local public officials.(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).(B) Political influence activity does not include either of the following:(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.(B) Promotional advertising does not include any of the following:(i) Public messages that the utility is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(10) Utility means an electrical corporation or gas corporation.(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.(12) Vendor means a person or business that provides goods and services.(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.(3) Political influence activities.(4) Promotional advertising.(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.(9) Penalties or fines, including tax penalties or fines, issued against a utility.(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(12) Investor relations.(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:(i) A list of each employees name and job title.(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.(iii) The total annual compensation provided to each employee with a listed employee job title.(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.(v) The percent of total annual compensation booked to an above-the-line account for each employee.(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.SEC. 2. Section 748.4 is added to the Public Utilities Code, to read:748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:(1) Lobbying.(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.SEC. 3. Section 779.9 is added to the Public Utilities Code, to read:779.9. (a) For purposes of this section, the following definitions apply:(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.(3) Utility means an electrical corporation or gas corporation.(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).(d) The commission shall monitor and investigate compliance with this section.SEC. 4. The Legislature finds and declares that Section 1 of this act, which adds Section 748.3 to the Public Utilities Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To preserve confidential information of an electrical corporation or gas corporation, including any personally identifiable information that is not otherwise available to the public, to protect the privacy of individuals, it is necessary to limit the disclosure of certain information provided by the electrical corporation or gas corporation to the commission.SEC. 5. 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.SECTION 1.Section 2771 of the Public Utilities Code is amended to read:2771.The commission shall establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, and among the uses of electricity or gas by those customers. The commission shall determine which of those customers and uses provide the most important public benefits and serve the greatest public need and shall categorize all other customers and uses in order of descending priority based on these standards. The commission shall establish no such priority after the effective date of this chapter that would cause a reduction in the transmission of gas to California pursuant to any federal rule, order, or regulation.
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 748.3 is added to the Public Utilities Code, to read:748.3. (a) For purposes of this section, all of the following definitions apply:(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.(3) Compensation means salary, a bonus, benefits, or other consideration of any value.(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.(7) (A) Political influence activity means either of the following:(i) An activity for the purpose of directly or indirectly influencing any of the following:(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.(III) The approval, modification, or revocation of franchises of a utility.(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.(V) Decisions of federal, state, or local public officials.(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).(B) Political influence activity does not include either of the following:(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.(B) Promotional advertising does not include any of the following:(i) Public messages that the utility is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(10) Utility means an electrical corporation or gas corporation.(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.(12) Vendor means a person or business that provides goods and services.(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.(3) Political influence activities.(4) Promotional advertising.(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.(9) Penalties or fines, including tax penalties or fines, issued against a utility.(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(12) Investor relations.(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:(i) A list of each employees name and job title.(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.(iii) The total annual compensation provided to each employee with a listed employee job title.(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.(v) The percent of total annual compensation booked to an above-the-line account for each employee.(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.
SECTION 1. Section 748.3 is added to the Public Utilities Code, to read:
### SECTION 1.
748.3. (a) For purposes of this section, all of the following definitions apply:(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.(3) Compensation means salary, a bonus, benefits, or other consideration of any value.(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.(7) (A) Political influence activity means either of the following:(i) An activity for the purpose of directly or indirectly influencing any of the following:(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.(III) The approval, modification, or revocation of franchises of a utility.(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.(V) Decisions of federal, state, or local public officials.(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).(B) Political influence activity does not include either of the following:(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.(B) Promotional advertising does not include any of the following:(i) Public messages that the utility is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(10) Utility means an electrical corporation or gas corporation.(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.(12) Vendor means a person or business that provides goods and services.(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.(3) Political influence activities.(4) Promotional advertising.(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.(9) Penalties or fines, including tax penalties or fines, issued against a utility.(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(12) Investor relations.(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:(i) A list of each employees name and job title.(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.(iii) The total annual compensation provided to each employee with a listed employee job title.(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.(v) The percent of total annual compensation booked to an above-the-line account for each employee.(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.
748.3. (a) For purposes of this section, all of the following definitions apply:(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.(3) Compensation means salary, a bonus, benefits, or other consideration of any value.(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.(7) (A) Political influence activity means either of the following:(i) An activity for the purpose of directly or indirectly influencing any of the following:(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.(III) The approval, modification, or revocation of franchises of a utility.(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.(V) Decisions of federal, state, or local public officials.(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).(B) Political influence activity does not include either of the following:(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.(B) Promotional advertising does not include any of the following:(i) Public messages that the utility is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(10) Utility means an electrical corporation or gas corporation.(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.(12) Vendor means a person or business that provides goods and services.(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.(3) Political influence activities.(4) Promotional advertising.(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.(9) Penalties or fines, including tax penalties or fines, issued against a utility.(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(12) Investor relations.(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:(i) A list of each employees name and job title.(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.(iii) The total annual compensation provided to each employee with a listed employee job title.(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.(v) The percent of total annual compensation booked to an above-the-line account for each employee.(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.
748.3. (a) For purposes of this section, all of the following definitions apply:(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.(3) Compensation means salary, a bonus, benefits, or other consideration of any value.(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.(7) (A) Political influence activity means either of the following:(i) An activity for the purpose of directly or indirectly influencing any of the following:(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.(III) The approval, modification, or revocation of franchises of a utility.(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.(V) Decisions of federal, state, or local public officials.(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).(B) Political influence activity does not include either of the following:(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.(B) Promotional advertising does not include any of the following:(i) Public messages that the utility is directed to publish by a federal, state, or local agency.(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.(10) Utility means an electrical corporation or gas corporation.(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.(12) Vendor means a person or business that provides goods and services.(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.(3) Political influence activities.(4) Promotional advertising.(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.(9) Penalties or fines, including tax penalties or fines, issued against a utility.(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.(12) Investor relations.(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:(i) A list of each employees name and job title.(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.(iii) The total annual compensation provided to each employee with a listed employee job title.(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.(v) The percent of total annual compensation booked to an above-the-line account for each employee.(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.
748.3. (a) For purposes of this section, all of the following definitions apply:
(1) Above-the-line account means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.
(2) Below-the-line account means an account that contains expenses that a utility does not recover from ratepayers.
(3) Compensation means salary, a bonus, benefits, or other consideration of any value.
(4) Covered business unit means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).
(5) Covered political influence employee means an employee of a utility who conducts a political influence activity.
(6) Expense includes a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.
(7) (A) Political influence activity means either of the following:
(i) An activity for the purpose of directly or indirectly influencing any of the following:
(I) The adoption, repeal, or modification of federal, state, or local legislation, regulations, or ordinances.
(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.
(III) The approval, modification, or revocation of franchises of a utility.
(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.
(V) Decisions of federal, state, or local public officials.
(ii) Research, preparation, or any other activity undertaken to support any activities specified in clause (i).
(B) Political influence activity does not include either of the following:
(i) An activity that is directly and necessarily related to appearances before regulatory bodies in connection with the utilitys existing or proposed operations of the utilitys regulated system. Policies affecting demand for gaseous fuels or electricity are not directly and necessarily related to the utilitys existing or proposed operations.
(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.
(8) (A) Promotional advertising means written, online, video, or audio communications that primarily build the public image of a utility, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.
(B) Promotional advertising does not include any of the following:
(i) Public messages that the utility is directed to publish by a federal, state, or local agency.
(ii) Public messages providing information on safety measures, emergency conditions, or service interruptions.
(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.
(9) Public official means a decisionmaker within an administrative agency or legislative body at the local, state, or federal level, and the staff that support the decisionmakers policy development.
(10) Utility means an electrical corporation or gas corporation.
(11) Utility affiliate means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.
(12) Vendor means a person or business that provides goods and services.
(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account direct or indirect costs of any of the following:
(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.
(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.
(3) Political influence activities.
(4) Promotional advertising.
(5) Payments to outside attorneys or experts for work related to commission proceedings, including both the hourly rates and number of total hours devoted by each individual to relevant tasks, that exceed the amounts that would be permitted for rate recovery under the commissions intervenor compensation program.
(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.
(7) Litigation regarding existing or proposed federal, state, or local regulations, legislation, or ordinances.
(8) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.
(9) Penalties or fines, including tax penalties or fines, issued against a utility.
(10) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utilitys board of directors and officers or the board of directors and officers of a utility affiliate.
(11) An owned, leased, or chartered aircraft for the utilitys board of directors and officers or the board of directors and officers of a utility affiliate.
(12) Investor relations.
(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account a payment made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payment authorized by the federal National Labor Management Cooperation Act of 1978 (Pub. L. 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.
(d) (1) A utility shall clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are being paid for by the utilitys shareholders or ratepayers.
(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.
(3) For an advertising recorded to an above-the-line account, the utility shall identify, in response to a public request, which expense or capital account is the source of the funding.
(e) (1) On or before April 30, 2026, and annually thereafter, each utility shall submit to the commission a report of expenses from the previous calendar year to ensure the utilitys compliance with this section. The report shall include, but not be limited to, all of the following:
(A) A list of covered business units of the utility. For each covered business unit, the report shall contain all of the following:
(i) A list of each employees name and job title.
(ii) A job description of each listed employee job title sufficient to describe the employees responsibilities.
(iii) The total annual compensation provided to each employee with a listed employee job title.
(iv) The number of hours booked to an above-the-line account for each employee with a listed employee job title.
(v) The percent of total annual compensation booked to an above-the-line account for each employee.
(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, and how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).
(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.
(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available. The commission may redact information that the commission has determined to be necessary to protect confidential information, including any personally identifiable information that is not otherwise available to the public, in the reports made publicly available.
(f) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.
(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.
(h) (1) In addition to any refunds that the commission orders a utility to pay to ratepayers, the commission shall assess a civil penalty in accordance with paragraph (2) against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).
(2) (A) A utility that violates subdivision (b) or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b) is subject to a civil penalty of not less than one thousand dollars ($1,000) and not more than ten thousand dollars ($10,000) for each violation.
(B) For an expense for which a utility has improperly recorded to an above-the-line account in violation of subdivision (b), the utility shall have 30 days from the date on which the expense was initially recorded to the above-the-line account to record that expense to a below-the-line account. After the 30-day time period, each day the expense remains improperly recorded in an above-the-line account in violation of subdivision (b) constitutes a separate and distinct violation.
(i) Notwithstanding Section 2104, one-fourth of the moneys collected pursuant to any settlement or penalties collected for violations of subdivision (b) shall, upon appropriation by the Legislature, be used by the commission for purposes of increasing resources for the enforcement of this section.
SEC. 2. Section 748.4 is added to the Public Utilities Code, to read:748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:(1) Lobbying.(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.
SEC. 2. Section 748.4 is added to the Public Utilities Code, to read:
### SEC. 2.
748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:(1) Lobbying.(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.
748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:(1) Lobbying.(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.
748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:(1) Lobbying.(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.
748.4. (a) For purposes of this section, the definitions set forth in Section 748.3 apply.
(b) A utility shall not record to an above-the-line account direct or indirect costs for opposing the municipalization of electrical or gas service, including, but not limited to, any of the following:
(1) Lobbying.
(2) Engaging in city or county political proceedings, such as city county meetings or county board of supervisors meetings.
(3) Other political activities intended to undermine or prevent the establishment of a publicly owned municipal utility.
(c) The commission shall monitor and investigate compliance and noncompliance with this section. The Public Advocates Office of the Public Utilities Commission shall have the same authority to discover information and review utility accounts as the commission.
(d) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed.
SEC. 3. Section 779.9 is added to the Public Utilities Code, to read:779.9. (a) For purposes of this section, the following definitions apply:(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.(3) Utility means an electrical corporation or gas corporation.(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).(d) The commission shall monitor and investigate compliance with this section.
SEC. 3. Section 779.9 is added to the Public Utilities Code, to read:
### SEC. 3.
779.9. (a) For purposes of this section, the following definitions apply:(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.(3) Utility means an electrical corporation or gas corporation.(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).(d) The commission shall monitor and investigate compliance with this section.
779.9. (a) For purposes of this section, the following definitions apply:(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.(3) Utility means an electrical corporation or gas corporation.(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).(d) The commission shall monitor and investigate compliance with this section.
779.9. (a) For purposes of this section, the following definitions apply:(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.(3) Utility means an electrical corporation or gas corporation.(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).(d) The commission shall monitor and investigate compliance with this section.
779.9. (a) For purposes of this section, the following definitions apply:
(1) Air quality index or AQI means the United States Air Quality Index established by the United States Environmental Protection Agency.
(2) Unhealthy for sensitive groups means the AQI category indicating that members of sensitive groups may experience health effects due to air quality and is represented in the AQI by the color orange.
(3) Utility means an electrical corporation or gas corporation.
(b) (1) A utility shall not terminate residential or commercial service for nonpayment of a delinquent account at a service address on a day in which the air quality index for the ZIP Code area of the service address is in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area.
(2) (A) A utility shall restore residential or commercial service at a service address for which service is terminated due to nonpayment of a delinquent account on a day in which the ZIP Code area of the service address has an AQI in the unhealthy for sensitive groups category or worse and for three days immediately after the AQI is no longer in the unhealthy for sensitive groups category or worse at the ZIP Code area. The utility shall restore service within 24 hours of the time at which the AQI is initially rated as unhealthy for sensitive groups or worse. The utility shall notify the customer about the availability of repayment plans, including, but not limited to, an arrearage payment plan determined by the commission, for the permanent restoration of services.
(B) Section 779.1 does not apply to the termination of service for a service address for which service was restored pursuant to subparagraph (A), three days immediately after the AQI is no longer rated as unhealthy for sensitive groups or worse at the ZIP Code area.
(c) The customer of the utility shall be responsible for any additional amount due from usage during the time period specified in subdivision (b).
(d) The commission shall monitor and investigate compliance with this section.
SEC. 4. The Legislature finds and declares that Section 1 of this act, which adds Section 748.3 to the Public Utilities Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To preserve confidential information of an electrical corporation or gas corporation, including any personally identifiable information that is not otherwise available to the public, to protect the privacy of individuals, it is necessary to limit the disclosure of certain information provided by the electrical corporation or gas corporation to the commission.
SEC. 4. The Legislature finds and declares that Section 1 of this act, which adds Section 748.3 to the Public Utilities Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To preserve confidential information of an electrical corporation or gas corporation, including any personally identifiable information that is not otherwise available to the public, to protect the privacy of individuals, it is necessary to limit the disclosure of certain information provided by the electrical corporation or gas corporation to the commission.
SEC. 4. The Legislature finds and declares that Section 1 of this act, which adds Section 748.3 to the Public Utilities Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
### SEC. 4.
To preserve confidential information of an electrical corporation or gas corporation, including any personally identifiable information that is not otherwise available to the public, to protect the privacy of individuals, it is necessary to limit the disclosure of certain information provided by the electrical corporation or gas corporation to the commission.
SEC. 5. 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. 5. 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. 5. 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. 5.
The commission shall establish priorities among the types or categories of customers of each electrical corporation and each gas corporation, and among the uses of electricity or gas by those customers. The commission shall determine which of those customers and uses provide the most important public benefits and serve the greatest public need and shall categorize all other customers and uses in order of descending priority based on these standards. The commission shall establish no such priority after the effective date of this chapter that would cause a reduction in the transmission of gas to California pursuant to any federal rule, order, or regulation.