Bill Text: CA AB895 | 2015-2016 | Regular Session | Introduced

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

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Bill Title: Utility rate refunds: energy crisis litigation: Public

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-01-19 - Consideration of Governor's veto stricken from file. [AB895 Detail]

Download: California-2015-AB895-Introduced.html

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BILL NUMBER: AB 895	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Rendon

                        FEBRUARY 26, 2015

   An act to amend Section 453.5 of the Public Utilities Code,
relating to utility rates.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 895, as introduced, Rendon. Utility rate refunds: energy crisis
litigation.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. 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. When
the commission orders rate refunds to be distributed, existing law
requires the commission to require the public utility to pay refunds
to all current utility customers, and, when practicable, to prior
customers, on an equitable pro rata basis without regard as to
whether or not the customer is classifiable as a residential or
commercial tenant, landlord, homeowner, business, industrial,
educational, governmental, nonprofit, agricultural, or any other type
of entity.
   Existing law establishes the Ratepayer Relief Fund in the State
Treasury to benefit electricity and natural gas ratepayers and to
fund investigation and litigation costs of the state in pursuing
allegations of overcharges and unfair business practices against
generators, suppliers, or marketers of electricity or natural gas
arising from the energy crisis of 2000-02. Existing law requires that
any energy settlement agreement, as defined, entered into by the
Attorney General, after reimbursing the Attorney General's litigation
and investigation expenses, direct settlement funds to the following
purposes in priority order: (1) to reduce ratepayer costs of those
utility ratepayers harmed by the actions of the settling parties; and
(2) for deposit in the Ratepayer Relief Fund. Existing law
authorizes the moneys deposited in the Ratepayer Relief Fund to be
appropriated for certain purposes for the benefit of ratepayers.
   This bill would prohibit the Public Utilities Commission from
distributing or expending the proceeds of claims in any litigation or
settlement to obtain ratepayer recovery for the effects of the
2000-02 energy crisis and would require that the proceeds be
deposited into the Ratepayer Relief Fund.
   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 453.5 of the Public Utilities Code is amended
to read:
   453.5.   Whenever   (a)    
(1)     If  the commission orders rate
refunds to be distributed, the commission shall require public
utilities to pay refunds to all current utility customers, and, when
practicable, to prior customers, on an equitable pro rata basis
without regard as to whether or not the customer is classifiable as a
residential or commercial tenant, landlord, homeowner, business,
industrial, educational, governmental, nonprofit, agricultural, or
any other type of entity. 
   For 
    (2)     For  the purposes of this
section, "equitable pro rata basis"  shall mean 
 means  in proportion to the amount originally paid for the
utility service involved, or in proportion to the amount of 
such   the  utility service actually received.

   Nothing in this 
    (3)     This  section shall  not
 prevent the commission from authorizing refunds to residential
and other small customers to be based on current usage. 
   (b) (1) The commission shall not distribute or expend the proceeds
of claims in any litigation or settlement to obtain ratepayer
recovery for the effects of the 2000-02 energy crisis.  
   (2) Proceeds of any claims arising out of the energy crisis of
2000-02 shall be deposited into the Ratepayer Relief Fund established
pursuant to Article 9.5 (commencing with Section 16428.1) of Chapter
2 of Part 2 of Division 4 of Title 2 of the Government Code.