Public utilities: gas and electric service disconnections.
The bill introduces comprehensive measures that affect the Public Utilities Code by prohibiting gas and electric corporations from disconnecting service for those residential customers reliant on life-support equipment who cannot pay due to financial hardship and are willing to enter into amortization agreements. It highlights the necessity for the commission to evaluate any increase in rates and its likely effects on disconnections thereby integrating consumer protection into the financial regulatory framework. This legislative action is particularly beneficial for vulnerable populations, including low-income families and those with medical needs.
Senate Bill No. 598, presented by Senator Hueso, focuses on the regulation of gas and electric service disconnections due to nonpayment. This legislation arises from increasing concerns regarding the significant rise in residential disconnections over recent years, which escalated from 547,000 in 2010 to 816,000 in 2015. The law mandates the California Public Utilities Commission to develop policies aimed at minimizing such disconnections by setting a target to lower the statewide rates of disconnections for residential customers by January 1, 2024. Furthermore, it emphasizes the need for stakeholders, including public health officials and consumer advocates, to contribute to developing these policies.
The sentiment surrounding SB 598 is primarily positive amongst advocates for consumer rights and public health. Proponents view the bill as a necessary step toward protecting the most vulnerable individuals in society from the adverse impacts of losing essential services. However, there may be contention among utility corporations regarding the potential financial implications of the restrictions imposed by the bill. The balanced approach taken by the legislation seeks to maintain service accessibility while ensuring responsible regulatory oversight.
Notable points of contention likely revolve around the balance between protecting vulnerable populations and the operational costs for utilities. The bill requires the commission to adopt residential utility disconnection metrics in general rate cases, presenting a challenge for utilities in justifying rate adjustments while complying with the new regulations. There are concerns about the implications for cost recovery for the services provided and whether the mandated health and safety allowances will lead to increased financial burdens for utilities.