Bill Text: CA SB1097 | 2009-2010 | Regular Session | Amended
Bill Title: Gas and electric utility service: master-meter customers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-05-27 - Held in committee and under submission. [SB1097 Detail]
Download: California-2009-SB1097-Amended.html
BILL NUMBER: SB 1097 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 11, 2010
AMENDED IN SENATE APRIL 27, 2010
INTRODUCED BY Senator Strickland
FEBRUARY 17, 2010
An act to amend Sections 2791, 2792, 2793, 2794, 2795, 2796, 2797,
2798, and 2799 of the Public Utilities Code, relating to utility
services.
LEGISLATIVE COUNSEL'S DIGEST
SB 1097, as amended, Strickland. Gas and electric utility service:
master-meter customers.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations. Existing law authorizes the owner of a
master-metered mobilehome park or manufactured housing community that
provides gas or electric service to residents to transfer ownership
and operational responsibility for its gas or electric system to the
gas or electric corporation providing service in the area in which
the park or community is located, pursuant to specified transfer and
cost allocation procedures . Existing law authorizes the gas or
electric corporation to charge a $150 fee for initial inspection.
Existing law requires the commission to adopt a standard transfer
agreement to serve as the basis for expedited approval of transfers
.
This bill would correct existing references in the above-described
master-meter system transfer statutes by revising an "electric
corporation" to an "electrical corporation." The bill would require a
gas or electrical corporation that receives an offer to transfer a
gas or electric system from a master-metered mobilehome park or
manufactured housing community that is within its service territory
to accept transfer if certain criteria are met and require the
corporation to assign a representative who will have responsibility
for oversight of the proposed transfer, until the transfer is
complete or the transfer process is terminated. The bill would
increase the authorized fee amount for initial inspection to $200.
The bill would require a gas or electrical corporation to
provide the commission with copies of certain notices, reports, and
estimates generated during the transfer process and would require the
commission, upon receipt of these materials, to monitor and
facilitate the transfer until the transfer is completed or the
transfer process is terminated. The bill would authorize the
commission to modify the expedited approval process to allow for
extensions of time to establish a queue of priority for expedited
approvals in a calendar year with an extraordinarily high volume of
transfers. The bill would authorize the owner of a
master-metered mobilehome park or manufactured housing community to
bring a complaint before the commission for violation of the transfer
laws and require the commission to establish an expedited procedure
for the review of the complaint and to ensure that a final
determination of the issues raised by the complaint be reached not
later than one year after filing of the complaint.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2791 of the Public Utilities Code is amended to
read:
2791. (a) The owner of a master-metered mobilehome park or
manufactured housing community that provides gas or electric service
to residents may transfer ownership and operational responsibility to
the gas or electrical corporation providing service in the area in
which the park or community is located pursuant to this chapter, or
as the park or community owner and the serving gas or electrical
corporation mutually agree.
(b) A gas or electrical corporation that receives an offer to
transfer a gas or electric system from a master-metered mobilehome
park or manufactured housing community that is within its service
territory shall accept transfer of the system pursuant to Section
2794.
(c) Costs, including both costs related to transfer procedures and
costs related to construction, related to the transfer of ownership
process, whether or not resulting in a transfer of ownership to the
serving gas or electrical corporation, shall not be passed through to
the park or community residents. Costs related to the transfer of
ownership process, whether or not resulting in a transfer of
ownership to the serving gas or electrical corporation, shall not be
passed through to the gas or electrical corporation, except as
otherwise provided in this chapter.
(d) Residents of mobilehome parks and manufactured housing
communities constructed after January 1, 1997, shall be individually
metered and served by gas and electric distribution facilities owned,
operated, and maintained by the gas or electrical corporation
providing the service in the area where the new park or community is
located consistent with the commission's orders regarding unbundling,
aggregation, master-metering, and selection of suppliers by
residential customers. Each gas and electrical corporation shall
cooperate with the owner of any park or community constructed after
January 1, 1997, to ensure timely and expeditious installation of the
gas and electric distribution system and to eliminate any delay in
the design, construction, permitting, and operation of the gas and
electric system in the park or community.
SEC. 2. Section 2792 of the Public Utilities Code is amended to
read:
2792. (a) Upon receipt of a written notice of intent to transfer
from the mobilehome park or manufactured housing community owner, the
gas or electrical corporation shall assign a representative of the
gas or electrical corporation who will have responsibility for
oversight of the proposed transfer pursuant to the chapter, until the
transfer is complete or the transfer process is terminated. The gas
or electrical corporation shall notify the commission and the owner
of the park or community of the identity of the assigned
representative, and within 90 days, do all of the following:
(1) Meet with the park or community owner to describe the
procedures involved in a transfer of ownership and operation
responsibility.
(2) Perform a preliminary review of the gas or electric system, or
both, in the park or community.
(3) Inspect documentation provided by the park or community owner
of the construction, operation, and condition of the gas or electric
system, or both.
(4) Advise the park or community owner concerning the general
condition of the plant and equipment, along with a preliminary
opinion concerning the extent of construction work or other activity
necessary to comply with Section 2794.
(5) Offer a preliminary nonbinding estimate of the cost of
transfer.
(6) Offer the park or community owner a preliminary nonbinding
cost estimate to perform an engineering evaluation and estimate the
construction work and equipment replacement to be performed by the
gas or electrical corporation at the owner's expense.
(b) The gas or electrical corporation shall develop the cost
estimate for the engineering evaluation in good faith using the same
methodology as is used for similar projects. The preliminary cost
estimate shall be effective for a minimum of 90 days. The gas or
electrical corporation shall give the owner timely notice of any
increase in the estimated cost of the engineering evaluation.
(c) The gas or electrical corporation may charge a fee for the
initial inspection not to exceed one hundred fifty dollars
($150) two hundred dollars ($200) .
(d) The gas or electrical corporation shall provide the commission
with a copy of all of the following:
(1) The written notice of intent to transfer from the owner of the
park or community.
(2) Any report of the results of the preliminary review of the gas
or electric system, or both, in the park or community undertaken
pursuant to paragraph (2) of subdivision (a).
(3) Any report of the inspection undertaken pursuant to paragraph
(3) of subdivision (a).
(4) The preliminary nonbinding estimate of the cost of transfer
offered to the park or community owner pursuant to paragraph (5) of
subdivision (a).
(5) The preliminary nonbinding cost estimate for performing an
engineering evaluation and estimate of the construction work and
equipment replacement offered to the park or community owner pursuant
to paragraph (6) of subdivision (a).
(e) Upon receipt of the materials supplied by the gas or
electrical corporation pursuant to subdivision (d), the commission
shall monitor and facilitate the transfer, until the transfer is
complete or the transfer process is terminated.
SEC. 3. Section 2793 of the Public Utilities Code is amended to
read:
2793. (a) Upon receipt from the park or community owner of a
deposit representing the gas or electrical corporation's estimated
cost of the engineering evaluation, the gas or electrical corporation
shall, within 90 days, do all of the following:
(1) Develop an engineering plan for bringing the gas or electric
system to the standard described in Section 2794, incorporating all
relevant documentation including plans, drawings, engineering
studies, and other existing documentation provided by the park or
community owner, and considering incorporation of all portions of the
gas or electric system found to be used, useful, and compatible.
(2) Develop an appraisal of the value to the gas or electrical
corporation of the physical plant and equipment found to be used,
useful, and compatible that comprise the gas or electric system, or
both, to be transferred, including an estimate of the remaining
useful life of the gas or electric system. The value to the gas or
electrical corporation shall take into consideration the expenditures
by the park or community owner to comply with the criteria
established in Section 2794.
(3) Present a proposal, in sufficient detail, to serve as a bid
document for the transfer of ownership of the system to the gas or
electrical corporation.
(b) The proposal may be based on either of the following
approaches or as the park or community owner and the gas or
electrical corporation mutually agree:
(1) The park or community owner is responsible for all
construction and equipment replacement activity, if any, at the park
or community owner's expense less any credits or allowances, if any,
including credits or allowances based on incremental increases in the
gas or electrical corporation's revenues associated with the park or
community owner's investment in the gas or electric system. The
construction and equipment replacement and the credits and allowances
shall be based on the principles established in the gas or
electrical corporation's line and service extension rules, if
applicable.
(2) The gas or electrical corporation shall pay the park or
community owner for the appraised value to the gas or electrical
corporation of any gas or electric distribution facilities found to
be used, useful, and compatible. If any new facilities are necessary,
the park or community owner shall be responsible for the costs of
the excavation, installation of substructures, conduit and meter
panels, and surface repairs. Except as provided in paragraph (4) of
subdivision (c), the gas or electrical corporation shall be
responsible for the costs of any additional construction and
equipment replacement, including cabling and transformers.
(c) The proposal shall include the following:
(1) A description of construction and equipment replacement
activity, if any, to be accomplished at the park or community owner's
expense.
(2) Requirements for any additional provisions or rights for the
construction or maintenance of public utility facilities on park or
community premises, including easements and rights-of-way acceptable
to the gas or electrical corporation.
(3) Any specific requirements or costs, or both, with respect to
the presence of used and useful materials or equipment that are
nonstandard, including, but not limited to, inventory requirements,
specialized equipment requirements, or specialized personnel or
training.
(4) Any specific requirements or costs, or both, with respect to
the presence of exceptional construction conditions or operation and
maintenance conditions.
(d) If the actual cost of the engineering evaluation is greater
than the gas or electrical corporation estimate, the park or
community owner shall pay the gas or electrical corporation the
difference within 30 days of receipt of notice. If the actual cost of
the engineering evaluation is less than the deposit, the gas or
electrical corporation shall pay the park or community owner the
difference within 30 days. The content of the proposal shall become
the property of the park or community owner.
(e) Within 90 days of receipt of the proposal for transfer of
ownership, a park or community owner may do any of the following:
(1) Present objections to the gas or electrical corporation in
writing for resolution and may require mediation of the commission if
the parties are unable to resolve the objection. In any mediation,
the commission, at the expense of the gas or electrical corporation,
shall obtain the services of an independent qualified professional to
evaluate the system inspection and valuation and to advise the
commission.
(2) Decline to proceed, without prejudice to the right to present
a new notice at any future date.
(3) Accept the proposal and contract with the gas or electrical
corporation for completion of the construction work and equipment
replacement, if any, or the acquisition of the gas or electric
system, or both.
(4) Accept the proposal and contract with an approved third party
for completion of the construction work and equipment replacement, if
any, in accordance with the applicable gas or electrical corporation
applicant installation rules.
(f) Any new facilities provided by the gas or electrical
corporation to extend distribution or service facilities from the
existing gas or electrical corporation system within the park to
previously undeveloped locations shall be provided in accordance with
line extension rules and service extension rules contained in gas or
electrical corporation tariffs filed with the commission, including
any and all free extensions, allowances, and advances subject to
refund.
(g) Upon completion of construction work and equipment
replacement, if any, receipt of appropriate inspection approval from
the gas or electrical corporation and authorities having jurisdiction
for the inspections, and completion of all financial transactions
among the parties, the park or community owner shall transfer and the
gas or electrical corporation shall acquire ownership and
operational responsibility for the gas or electric system.
(h) Upon receipt of the proposal described in paragraph (3) of
subdivision (a), the park or community owner shall notify the park
residents concerning the pendency of a transfer process request and
the provisions of the transfer process law.
SEC. 4. Section 2794 of the Public Utilities Code is amended to
read:
2794. (a) If a gas or electric system is acceptable for transfer
pursuant to the criteria in this section, the gas or electrical
corporation shall approve the transfer, accept ownership and
operational responsibility, and purchase the gas or electric system.
A gas or electric system shall be acceptable for transfer if it is in
compliance with the following criteria:
(1) It was constructed to meet the building and safety regulatory
standards in effect at the time of construction.
(2)
(1) It is capable of providing the end users a safe and
reliable source of gas or electric service.
(3)
(2) It meets the commission's general orders, is
compatible, and, in the case of new construction only, meets the gas
or electrical corporation's design and construction standards insofar
as they are related to safety and reliability. The parties may waive
these requirements by mutual agreement and, where necessary, with
commission approval. The deviations as are agreed upon may be
reflected in the purchase price.
(4)
(3) For a gas system, it meets any applicable federal
safety standards adopted by the Pipeline and Hazardous Materials
Safety Administration of the Department of Transportation, or a
successor federal entity, including any applicable minimum federal
safety standards in Part 192 of Title 49 of the Code of Federal
Regulations.
(5)
(4) It is capable of serving the customary expected
load in the park or community determined in accordance with a
site-specific study, studies of comparable parks or communities,
industry standards, and the gas or electrical corporation's rules as
approved by the commission.
(b) As used in this section, "customary expected load" means the
anticipated level of service demanded by the existing dwelling units
in the park or community. The park or community owner shall not be
responsible for betterments or improvements to the gas or electrical
corporation's distribution system facilities or operations that do
not benefit the park or community, in contrast to those that benefit
the gas or electrical corporation or its other customers.
(c) Satisfaction of the criteria shall not require any particular
system architecture or replacement of used and useful equipment,
plant, or facilities, except as needed to comply with subdivision
(a). Equipment, facilities, or plant that are part of the existing
gas or electric system shall be considered compatible unless their
presence in the system would cause substantial increase in the
frequency or duration of outages in the case of failure or emergency,
or they have no remaining useful life. Pursuant to subdivision (c)
of Section 2793, equipment, facilities, or plant that require special
training for the gas or electrical corporation's employees, or
require the gas or electrical corporation to maintain inventories of
nonstandard equipment may be considered compatible, but their
presence may be reflected in the appraised value or the cost imposed
on the park or community owner.
SEC. 5. Section 2795 of the Public Utilities Code is amended to
read:
2795. The park or community owner and the gas or electrical
corporation shall develop a cost for the transfer of the gas or
electric system that reflects the factors in Section 2793, indemnity
and liability issues, and any other factors as the parties may
mutually agree upon, and to which the gas or electrical corporation's
ratepayers are indifferent. The parties may agree on a schedule for
phasing in facilities to meet expected load increases and
betterments, and the costs associated with those activities.
SEC. 6. Section 2796 of the Public Utilities Code is amended to
read:
2796. (a) During the pendency of a transfer request, the owner of
the park or community shall be responsible for the continued
maintenance to preserve the integrity of the park or community gas or
electric system and safe and reliable operation of the park or
community system in accordance with applicable laws.
(b) During the pendency of a transfer request the owner of the
park or community shall be liable for injury and damage resulting
from operation of the submetered gas and electric system. After
transfer, the gas or electrical corporation shall assume
responsibility for operation of the gas or electric system and
provision of service to residents of the park or community and shall
assume liability for any future injury or damage resulting from
operation of the gas or electric system except with respect to
defects known to the park or community owner and not disclosed to the
gas or electrical corporation during the transfer of ownership
process.
SEC. 7. Section 2797 of the Public Utilities Code is amended to
read:
2797. The commission shall permit the gas or electrical
corporation to recover in its revenue requirement and rates all costs
to acquire, improve, upgrade, operate, and maintain transferred
mobilehome park or manufactured housing community gas or electric
systems.
SEC. 8. Section 2798 of the Public Utilities Code is amended to
read:
2798. (a) The commission shall adopt a standard form of agreement
for transfer of gas and electric distribution facilities in
mobilehome parks and manufactured housing communities that shall be
the basis for expedited approval of the transfers. The contract shall
be based on this chapter, the regulations of the commission, and on
gas or electrical corporation rules and regulations, as approved by
the commission. The commission may modify the expedited approval
process to allow for extensions of time to establish a queue of
priority for expedited approvals in a calendar year with an
extraordinarily high volume of transfers.
(b) The owner of a master-metered mobilehome park or manufactured
housing community may bring a complaint before the commission for
violation of any requirement of this chapter by a gas or electrical
corporation. The commission shall establish an expedited procedure,
pursuant to Article 1 (commencing with Section 1701) of Chapter 9 of
Part 1, for the review of the complaint. The commission shall ensure
that the expedited procedure results in a final determination of the
issues raised by the complaint not later than one year after filing
of the complaint. Nothing in this subdivision limits the authority of
the commission to open an appropriate proceeding in order to monitor
and facilitate the transfer pursuant to subdivision (e) of Section
2792.
SEC. 9. Section 2799 of the Public Utilities Code is amended to
read:
2799. (a) The mobilehome park or manufactured housing community
owner may, by written notice, stop the transfer process at any time.
Within 60 days of delivery to the park or community owner of an
itemized bill, the owner shall reimburse the gas or electrical
corporation for all costs incurred through the date notice is
provided.
(b) At any time during the transfer of ownership process, either
party may apply to the commission for informal mediation and
resolution of any issue, finding, determination, or delay in the
conversion process.
(c) If the initiation of the transfer process does not result in a
transfer of the park or community owner's gas or electric system to
the gas or electrical corporation, all information, data, reports,
studies, and proposals shall be retained by the gas or electrical
corporation for a period of five years or offered to the park or
community owner. Prior to disposal of the records, the gas or
electrical corporation shall offer them to the park or community
owner, except that the gas or electrical corporation shall not be
required to provide proprietary information to the park or community
owner.
