Bill Text: CA AB1710 | 2023-2024 | Regular Session | Amended
Bill Title: Electrical corporations: rates.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1710 Detail]
Download: California-2023-AB1710-Amended.html
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Amended
IN
Assembly
May 01, 2023 |
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Amended
IN
Assembly
March 23, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1710
| Introduced by Assembly Member Ta |
February 17, 2023 |
An act to add Section 748.3 to the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1710, as amended, Ta.
Electrical corporations: rates.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would prohibit an electrical corporation from proposing a rate increase above the rate of inflation, as specified, except with the support of a majority of the electrical corporation’s voting customers in an election conducted according to specified requirements. approval of the commission. The bill would prohibit the commission from approving, modifying, or denying a request to increase rates above the rate of inflation without prior approval by the electrical corporation’s customers, except
authorize the commission may to approve a rate increase above the rate of inflation if the commission determines that those costs are directly related to safety enhancements and modernization, or higher commodity or fuel costs.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above-described requirements would be a part of the act, and because a violation of an action of the commission implementing the above-described prohibition would be a crime, the 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill 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)(b) An electrical corporation shall not propose a rate increase above the rate of inflation, as a systemwide average, for any given general rate case cycle.
(b)
(c) Notwithstanding subdivision (a), (b), an electrical corporation may propose a rate increase above the rate of inflation subject to approval by a majority of the electrical corporation’s voting customers through an election conducted in accordance with all of the following:
the commission.
(1)The electrical corporation shall provide each customer with one ballot.
(2)The electrical corporation shall provide each customer with information regarding the proposed rate increase.
(3)The commission may set additional procedures and rules for the election.
(4)The cost of conducting an election shall be borne exclusively by the shareholders of the electrical corporation.
(5)An electrical corporation may propose as many rate plans as necessary until one receives the support of a majority of voting customers.
(6)The commission shall determine an interim rate plan, not to exceed the rate of inflation, until an electrical corporation’s proposed rate plan is approved.
(c)The commission shall not approve, modify, or deny a request to increase rates above the rate of inflation without prior approval by the electrical corporation’s customers based on the results of an election conducted pursuant to subdivision (b).
(d) The commission may approve a rate increase above the rate of inflation if the commission determines that those costs are directly related to safety enhancements and modernization, or higher commodity or fuel costs.
