Bill Text: CA SB1041 | 2015-2016 | Regular Session | Amended
Bill Title: Energy: electric rates: public elementary and secondary schools.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1041 Detail]
Download: California-2015-SB1041-Amended.html
BILL NUMBER: SB 1041 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 2, 2016
AMENDED IN SENATE APRIL 7, 2016
INTRODUCED BY Senator Hueso
FEBRUARY 12, 2016
An act to add Section 749.5 to, and to add Part 3
(commencing with Section 9525) to Division 4.8 of, to
the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1041, as amended, Hueso. Energy: electric and gas
rates: public elementary and secondary schools.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical
corporations and gas corporations, while local publicly owned
electric utilities are under the direction of their governing board.
corporations. Existing law authorizes the
commission to fix the rates and charges for electrical
corporations and gas corporations, corporations
and requires that those rates and charges be just and reasonable.
Existing law requires public utilities to develop programs in
cooperation with local school districts in reducing their electricity
and gas bills through conservation and improvements in
efficiency and efficiency. Existing law
authorizes public utilities to offer school districts on a priority
basis basis, and authorizes school districts
to utilize, any programs or incentives for commercial customers
developed by the utility and approved by the commission, including
rebates, loan programs, and incentives for the installation of
efficient lighting, heating, or cooling systems.
This bill would require each electrical corporation and
gas corporation to develop and submit to the commission for its
approval a rate for service applicable to public elementary and
secondary schools that is just and reasonable and reflects the costs
of providing service to those schools. Because this requirement is
part of the Public Utilities Act and would require an act by the
commission for its implementation and because a violation of the
Public Utilities Act or any order, decision, rule, direction, demand,
or requirement of the commission is a crime, the bill would impose a
state-mandated local program by creating a new crime.
the commission to consider the effects of establishing a rate for
electric service specific to public elementary and secondary schools,
including consideration of the extent to which the average
electrical bills paid by public elementary and secondary schools will
increase or decrease and the consistency between establishing the
rate and other statutory obligations and state policies. The bill
would require the commission to report its findings and conclusions
to the relevant policy committees of the Legislature by January 1,
2018 .
This bill would require a local publicly owned electric utility to
develop and submit to its governing board for its approval a rate
for service applicable to public elementary and secondary schools
that is just and reasonable and reflects the costs of providing
service to those schools. By imposing additional duties upon local
publicly owned electric utilities, 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 specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The California Constitution authorizes the Public Utilities
Commission to fix the rates of public utilities in the state and the
Public Utilities Act requires that all charges of a public utility be
just and reasonable.
(b) The cost-causation principle, that rates should reflect the
cost of providing service, guides the commission's ratemaking
decisions involving electrical corporations and gas corporations.
(c) The state funds public elementary and secondary schools to
provide for the education of the state's children and young people.
(d) The state's public elementary and secondary schools represent
a category of energy users that differs from commercial categories of
energy users.
(e) The state has enacted numerous measures to directly and
indirectly reduce the amount of money that public elementary and
secondary schools spend on utility bills so that they may focus their
limited resources on education. education,
including, but not limited to, numerous programs to reduce utility
bills available through the State Energy Resources Conservation and
Development Commission, the Department of Education, and the Public
Utilities Commission.
(f) Recently, many public elementary and secondary schools in the
state have experienced dramatic increases in the rates they pay for
electricity, thereby increasing their overall utility bills and
decreasing the moneys available for education.
(g) For example, in the San Diego region, the bills for electric
service paid by some public elementary and secondary schools have
increased considerably, despite no change in those schools' energy
usage.
(h)
(g) It is the intent of the Legislature that the
commission, Public Utilities Commission,
in reviewing and approving an electrical or gas corporation's
rates that are applicable to public elementary and secondary schools,
act according to the cost-causation principle.
SEC. 2. Section 749.5 is added to the Public
Utilities Code, to read:
749.5. Each electrical corporation and gas corporation shall
develop and submit to the commission for its approval a rate for
service applicable to public elementary and secondary schools that is
just and reasonable and reflects the costs of providing service to
those schools.
SEC. 3. Part 3 (commencing with Section 9525)
is added to Division 4.8 of the Public Utilities Code, to read:
PART 3. RATES
9525. A local publicly owned electric utility shall develop and
submit to its governing board for its approval a rate for service
applicable to public elementary and secondary schools that is just
and reasonable and reflects the costs of providing service to those
schools.
SEC. 4. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act or
because 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.
SEC. 2. Section 749.5 is added to the
Public Utilities Code , to read:
749.5. (a) The commission shall consider the effects of
establishing a rate for electric service specific to public
elementary and secondary schools.
(b) In implementing subdivision (a), the commission shall consider
the extent to which the average electrical bills paid by public
elementary and secondary schools will increase or decrease and the
consistency between establishing the rate and other statutory
obligations and state policies.
(c) (1) The commission shall report to the relevant policy
committees of the Legislature on its findings and conclusions by
January 1, 2018.
(2) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
(3) Pursuant to Section 10231.5 of the Government Code, the
requirements of this subdivision are inoperative on January 1, 2022.
