Bill Text: CA AB726 | 2017-2018 | Regular Session | Amended

California Assembly Bill 726 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Energy.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2017-09-12 - Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). [AB726 Detail]

Download: California-2017-AB726-Amended.html

Amended IN Assembly March 15, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 726

Introduced by Assembly Member Holden

February 15, 2017

An act to add ~~Section 745.5~~ Sections 745.5, 745.6, and 745.7 to the Public Utilities Code, relating to ~~electricity.~~ energy.

LEGISLATIVE COUNSEL'S DIGEST

AB 726, as amended, Holden. Electricity: ~~tiered~~ natural gas: rates: notification of ~~usage.~~ energy usage and billing information.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas 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.

Existing law requires a provider of mobile telephony services, as defined, to provide subscribers with a means by which a subscriber can obtain reasonably current and available information on the subscriber’s calling plan or plans and service usage. Existing law additionally requires that a provider of mobile telephony services provide subscribers with a means by which a subscriber can obtain reasonably current and available information, as determined by the provider, on the subscriber’s text messaging and Internet usage and charges. A provider of mobile telephony service is required to inform subscribers to their service at the time service is established of the availability of this usage information and how it may be obtained.

This bill would require an electrical corporation or gas corporation to notify a residential customer in a reasonably expeditious manner when the customer’s usage of electricity or gas will cause the customer to be charged for additional electricity or gas consumption at a higher tiered rate during a billing cycle. The bill would require an electrical corporation or gas corporation that has historical electricity or gas usage information to notify the customer when that customer’s usage of energy significantly exceeds the customer’s historical energy usage and to further notify that customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. For those customers for which historical usage information does not exist, the bill would require an electrical corporation or gas corporation to notify the customer when the customer’s energy usage exceeds average usage for similarly situated residential customers by a percentage determined by the commission and to notify the customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. The bill would require an electrical corporation or gas corporation to offer the option to a residential customer to receive energy bill alert notifications when the customer’s energy bill exceeds an amount specified by the customer and energy bill warning notifications when the customer’s rate of energy usage, if it continues through a billing cycle, will result in a periodic bill that exceeds an amount specified by the customer, or both of these notification services. The bill would require an electrical corporation or gas corporation to also offer the option to a residential customer to receive notifications at a time near the middle of each billing period of the customer’s energy usage and projected bill. The bill would require an electrical corporation ~~providing service to a residential customer pursuant to a tiered rate structure based on usage~~ or gas corporation to notify the customer that the customer may receive notification of the customer’s ~~electricity usage~~ energy usage and billing information as required by the bill, the manner by which the customer can provide appropriate contact information, as determined by the commission, to receive this information, and the customer’s opportunity to opt in or opt out of receiving this information.

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 provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

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.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

The people of the State of California do enact as follows:

SECTION 1.

Section 745.5 is added to the Public Utilities Code, to read:

745.5.

(a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to a tiered rate structure based on usage where the customer pays more for each additional unit of electricity used by that customer once a set level of usage has been reached. The requirements of this section do not apply ~~where~~ if a customer receives service pursuant to time-variant pricing, as defined in Section 745, that does not include tiered usage ~~levels.~~ levels or if the customer exercises the option to not receive electricity usage or billing information.

(b) (1) An electrical corporation shall notify a residential customer ~~requesting notification~~ when the customer’s usage of electricity approaches the level that will cause the customer to be charged for additional electricity consumption at a higher tiered rate during a billing cycle. At a minimum, reasonably prompt notification shall be given when 100 kilowatthours of usage remain before the customer begins to be charged rates based upon a higher tier. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier. The commission may adopt more demanding requirements for an electrical corporation to provide electricity usage information to residential customers that promote a customer’s ability to make informed decisions as to the customer’s electricity usage.

(2) For those residential customers for which the electrical corporation has sufficient historical electricity usage information, the commission shall require the electrical corporation to notify the customer when that customer’s usage of electricity significantly exceeds the customer’s historical electricity usage and further notify that customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. The commission shall determine all of the following:
(A) When an electrical corporation has sufficient historical electricity usage information to be subject to this paragraph.
(B) The timing of the notification.
(C) The level of usage to trigger notification.
(3) (A) The commission shall develop metrics for an electrical corporation to determine when a residential customer’s electricity usage exceeds average usage for similarly situated residential customers. Based on those metrics, the commission shall require each electrical corporation to notify a residential customer for which the electrical corporation lacks sufficient historical electricity usage information when the customer’s electricity usage exceeds a specified percentage of the average usage for similarly situated residential customers and further notify the customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. Whether there is sufficient historical electricity usage information for a customer shall be determined pursuant to subparagraph (A) of paragraph (2). The commission shall determine both of the following:
(i) The appropriate percentage or percentages of average usage by comparable customers, which shall be significantly greater than 100 percent.
(ii) The timing of the notification, which may be at one or more times in the billing cycle and may be responsive to the level of excess usage.
(B) The commission may make the requirements of this paragraph applicable to those residential customers to whom the requirements of paragraph (2) are applicable.
(4) (A) An electrical corporation shall offer the option to a residential customer to receive energy bill alert notifications when the customer’s periodic bill exceeds an amount specified by the customer and energy bill warning notifications when the customer’s rate of electricity usage, if it continues through a billing cycle, will result in a periodic bill that exceeds an amount specified by the customer. Notification shall inform the customer as to how much the customer’s bill will be for that billing period if usage continues at the rate of usage up to the time of the notification.
(B) An electrical corporation shall also offer the option to a residential customer to receive notifications of the customer’s electricity usage and projected bill near the middle of each billing period. If the customer elects to receive this information, notification shall be provided to the customer on the first day following the midpoint of the customer’s billing cycle or the 16th day of the billing cycle, as determined by the commission.
(5) When available, notification pursuant to this subdivision shall be by short message service, commonly known as a text message, or by electronic mail. Notification shall not be by automatic dialing-announcing device, commonly known as a robocaller, unless the customer expressly elects to receive notification in this manner. Notifications need not include specification of taxes, special fees imposed by order of the commission, or special discounts.

(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customer’s electricity usage or billing information as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customer’s opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage or billing information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage or billing information. If the customer has previously provided the electrical corporation with an electronic mail address or number by which the electrical corporation can contact the customer by short message service, the customer shall be deemed to have opted in to receiving that information by electronic mail or short message service unless the customer notifies the electrical corporation that the customer does not wish to receive electricity usage or billing information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage or billing information, the customer ~~will~~ shall be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage or billing information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt ~~into~~ in to or out of these notification services in any other manner determined by the commission.

SEC. 2.

Section 745.6 is added to the Public Utilities Code, to read:

745.6.
(a) The requirements of this section apply to an electrical corporation providing service to a residential customer pursuant to time-variant pricing, as defined in Section 745. The requirements of this section do not apply where a customer exercises the option to not receive energy usage or billing information.
(b) (1) For those residential customers for which the electrical corporation has sufficient historical electricity usage information, the commission shall require the electrical corporation to notify the customer when that customer’s usage of electricity significantly exceeds the customer’s historical electricity usage and further notify that customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. The commission shall determine all of the following:
(A) When an electrical corporation has sufficient historical electricity usage information to be subject to this paragraph.
(B) The timing of the notification.
(C) The level of usage to trigger notification.
(2) (A) The commission shall develop metrics for an electrical corporation to determine when a residential customer’s electricity usage exceeds average usage for similarly situated residential customers. Based on those metrics, the commission shall require each electrical corporation to notify a residential customer for which the electrical corporation lacks sufficient historical electricity usage information when the customer’s electricity usage exceeds a specified percentage of the average usage for similarly situated residential customers and further notify the customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. Whether there is sufficient historical electricity usage information for a customer shall be determined pursuant to subparagraph (A) of paragraph (1). The commission shall determine both of the following:
(i) The appropriate percentage or percentages of average usage by comparable customers, which shall be significantly greater than 100 percent.
(ii) The timing of the notification, which may be at one or more times in the billing cycle and may be responsive to the level of excess usage.
(B) The commission may make the requirements of this paragraph applicable to those residential customers to whom the requirements of paragraph (2) are applicable.
(3) (A) An electrical corporation shall offer the option to a residential customer to receive energy bill alert notifications when the customer’s periodic bill exceeds an amount specified by the customer and energy bill warning notifications when the customer’s rate of electricity usage, if it continues through a billing cycle, will result in a periodic bill that exceeds an amount specified by the customer. Notification shall inform the customer as to how much the customer’s bill will be for that billing period if usage continues at the rate of usage up to the time of the notification.
(B) An electrical corporation shall also offer the option to a residential customer to receive notifications of the customer’s electricity usage and projected bill near the middle of each billing period. If the customer elects to receive this information, notification shall be provided to the customer on the first day following the midpoint of the customer’s billing cycle or the 16th day of the billing cycle, as determined by the commission.
(4) When available, notification pursuant to this subdivision shall be by short message service, commonly known as a text message, or by electronic mail. Notification shall not be by automatic dialing-announcing device, commonly known as a robocaller, unless the customer expressly elects to receive notification in this manner. Notifications need not include specification of taxes, special fees imposed by order of the commission, or special discounts.
(c) An electrical corporation shall notify a residential customer that the customer may receive notification of the customer’s electricity usage or billing information as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customer’s opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive electricity usage or billing information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the electrical corporation that the customer does not wish to receive this electricity usage or billing information. If the customer has previously provided the electrical corporation with an electronic mail address or number by which the electrical corporation can contact the customer by short message service, the customer shall be deemed to have opted in to receiving that information by electronic mail or short message service unless the customer notifies the electrical corporation that the customer does not wish to receive electricity usage or billing information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the electrical corporation with any contact information to receive electricity usage or billing information, the customer shall be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required electricity usage or billing information, the electrical corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt in to or out of these notification services in any other manner determined by the commission.

SEC. 3.

Section 745.7 is added to the Public Utilities Code, to read:

745.7.
(a) The requirements of this section apply to a gas corporation providing service to a residential customer.
(b) (1) A gas corporation shall notify a residential customer when the customer’s usage of gas approaches the level that will cause the customer to be charged for additional gas consumption at a higher tiered rate during a billing cycle. The commission shall determine when a customer’s usage triggers the duty to provide notification. If a customer is receiving service at more than two tiers, then the required notification applies to each tier above the baseline tier.
(2) For those residential customers for which the gas corporation has sufficient historical gas usage information, the commission shall require the gas corporation to notify the customer when that customer’s usage of gas significantly exceeds the customer’s historical gas usage and further notify that customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. The commission shall determine all of the following:
(A) When a gas corporation has sufficient historical gas usage information to be subject to this paragraph.
(B) The timing of the notification.
(C) The level of usage to trigger notification.
(3) (A) The commission shall develop metrics for a gas corporation to determine when a residential customer’s gas usage exceeds average usage for similarly situated residential customers. Based on those metrics, the commission shall require each gas corporation to notify a residential customer for which the gas corporation lacks sufficient historical gas usage information when the customer’s gas usage exceeds a specified percentage of the average usage for similarly situated residential customers and further notify the customer as to how much the customer’s bill will be for that billing period if usage continues at that rate. Whether there is sufficient historical gas usage information for a customer shall be determined pursuant to subparagraph (A) of paragraph (2). The commission shall determine both of the following:
(i) The appropriate percentage or percentages of average usage by comparable customers, which shall be significantly greater than 100 percent.
(ii) The timing of the notification, which may be at one or more times in the billing cycle and may be responsive to the level of excess usage.
(B) The commission may make the requirements of this paragraph applicable to those residential customers to whom the requirements of paragraph (2) are applicable.
(4) (A) A gas corporation shall offer the option to a residential customer to receive energy bill alert notifications when the customer’s periodic bill exceeds an amount specified by the customer and energy bill warning notifications when the customer’s rate of gas usage, if it continues through a billing cycle, will result in a periodic bill that exceeds an amount specified by the customer. Notification shall inform the customer as to how much the customer’s bill will be for that billing period if usage continues at the rate of usage up to the time of the notification.
(B) A gas corporation shall also offer the option to a residential customer to receive notifications of the customer’s gas usage and projected bill near the middle of each billing period. If the customer elects to receive this information, notification shall be provided to the customer on the first day following the midpoint of the customer’s billing cycle or the 16th day of the billing cycle, as determined by the commission.
(5) When available, notification pursuant to this subdivision shall be by short message service, commonly known as a text message, or by electronic mail. Notification shall not be by automatic dialing-announcing device, commonly known as a robocaller, unless the customer expressly elects to receive notification in this manner. Notifications need not include specification of taxes, special fees imposed by order of the commission, or special discounts.
(c) A gas corporation shall notify a residential customer that the customer may receive notification of the customer’s gas usage or billing information as required pursuant to subdivision (b), the manner by which the customer can provide appropriate contact information to receive this information, and the customer’s opportunity to opt in or opt out of receiving this information. If a customer provides appropriate contact information, as determined by the commission, to receive gas usage or billing information pursuant to this section, the customer shall be deemed to have opted in to receiving that information unless the customer notifies the gas corporation that the customer does not wish to receive this gas usage or billing information. If the customer has previously provided the gas corporation with an electronic mail address or number by which the gas corporation can contact the customer by short message service, the customer shall be deemed to have opted in to receiving that information by electronic mail or short message service unless the customer notifies the gas corporation that the customer does not wish to receive gas usage or billing information. If the customer, after having received appropriate notice as required by this subdivision, fails to supply the gas corporation with any contact information to receive gas usage or billing information, the customer shall be deemed to have opted out of receiving that information. If a customer supplies contact information but the supplied means of contact are inappropriate or inadequate to supply the customer with the required gas usage or billing information, the gas corporation shall notify the customer of the reason the means of contact are inappropriate or inadequate. A customer may opt in to or out of these notification services in any other manner determined by the commission.

SEC. 2.SEC. 4.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.