Bill Text: CA SB1441 | 2009-2010 | Regular Session | Amended

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Bill Title: Public utilities: transfer of moneys to a utility

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-04-20 - Held in committee without recommendation. [SB1441 Detail]

Download: California-2009-SB1441-Amended.html

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BILL NUMBER: SB 1441	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 13, 2010

INTRODUCED BY   Senator Leno

                        FEBRUARY 19, 2010

   An act to  amend Section 728   add Article
6.5 (commencing with Section 860) to Chapter 4 of Part 1 of Division
1  of the Public Utilities Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1441, as amended, Leno. Public utilities:  rates.
  transfer of moneys to a utility holding company. 

   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, as defined. Under the Public
Utilities Act, a public utility is required to seek commission
approval prior to selling, leasing, assigning, mortgaging, or
otherwise disposing of or encumbering any property necessary or
useful in the performance of its duties to the public.  
   This bill would prohibit a public utility from paying or
transferring moneys to its holding company unless approved by a 2/3
vote of the public utility's ratepayers.  
   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,
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.  
   Existing law authorizes the Public Utilities Commission to fix the
rates and charges for every public utility, and requires that those
rates and charges be just and reasonable. Existing law provides that
whenever the commission, after a hearing, finds that the rates
charged by a public utility for services are insufficient, unlawful,
unjust, unreasonable, discriminatory, or preferential, the commission
is required to determine and fix, by order, the just, reasonable, or
sufficient rates to be thereafter observed and in force. 

   This bill would make technical, nonsubstantive changes to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Article 6.5 (commencing with Section
860) is added to Chapter 4 of Part 1 of Division 1 of the  
Public Utilities Code   , to read:  

      Article 6.5.  Transfer of Moneys to A Utility Holding Company


   860.  A public utility shall not pay or transfer moneys to its
holding company unless approved by a two-thirds vote of the public
utility's ratepayers. 
   SEC. 2.    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.  
  SECTION 1.    Section 728 of the Public Utilities
Code is amended to read:
   728.  Whenever the commission, after a hearing, finds that the
rates or classifications demanded, observed, charged, or collected by
any public utility for or in connection with any service, product,
or commodity, or the rules, practices, or contracts affecting those
rates or classifications are insufficient, unlawful, unjust,
unreasonable, discriminatory, or preferential, the commission shall
determine and fix, by order, the just, reasonable, or sufficient
rates, classifications, rules, practices, or contracts to be
thereafter observed and in force.
   In determining and fixing rates for a telephone corporation
pursuant to this section or pursuant to Section 455, or in
determining whether or not a proposed rate increase is justified
pursuant to Section 454, the commission shall, among other things,
take into consideration any evidence offered concerning the quality
of the particular telephone corporation's services as compared with
that of telephone corporations in adjacent territory, and the
permissible rates for comparable service charged by telephone
corporations in adjacent territory.