Bill Text: CA SB1474 | 2023-2024 | Regular Session | Amended
Bill Title: Public utilities: intervenor compensation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-16 - May 16 hearing: Held in committee and under submission. [SB1474 Detail]
Download: California-2023-SB1474-Amended.html
|
Amended
IN
Senate
April 30, 2024 |
|
Amended
IN
Senate
March 20, 2024 |
| Introduced by Senator Allen |
February 16, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law vests the Public Utilities Commission with regulatory authority over public utilities. Existing law provides compensation for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to public utility customers for preparation for and participation in a hearing or proceeding of the commission. Existing law defines “customer” for these purposes to include, among other individuals, a participant representing consumers, customers, or subscribers of any electrical, gas, telephone, telegraph, or water corporation subject to the jurisdiction of the commission.
Existing law requires the commission to award a customer
compensation if certain requirements are satisfied, including that the customer’s presentation makes a substantial contribution to the adoption of the commission’s order or decision. Existing law defines “substantial contribution” for these purposes to mean that, in the judgment of the commission, the customer’s presentation has substantially assisted the commission in the making of its order or decision because the order or decision has adopted in whole or in part one or more contentions or recommendations presented by the customer. Existing law requires a customer who intends to seek compensation to timely file and serve on all parties to the proceeding a notice of intent to claim compensation, as specified. Existing law requires the commission to issue a decision on the request for compensation within 75 days after the filing of the request or within 50 days after the filing of a report on an audit of the customer by the commission, whichever occurs later.
This bill would add a participant representing patrons or employees of any electrical, gas, telephone, telegraph, or water corporation to the definition of “customer” for these purposes. The bill would expand the definition of “substantial contribution” to include situations in which the commission’s order or decision is informed by reasoned decisionmaking made possible by the customer’s presentation even if the customer’s contentions or recommendations are not adopted by the commission. The bill would deem a request for compensation granted if the commission fails to issue a decision within 75 days after the filing of the request or within 50 days after the filing of an audit report, whichever occurs later. The bill would require the commission, if it reduces or denies the requested compensation, to provide a written explanation of that decision.
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 therefore a violation of the bill’s requirements or of a commission action implementing its requirements 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:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1804 of the Public Utilities Code is amended to read:1804.
(a) (1) A customer who, or eligible local government entity that, intends to seek an award under this article shall, within 30 days after the prehearing conference isThe purpose of this article is to provide compensation for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to public utility customers of participation or intervention in any proceeding of the commission, so that the commissioners have available to them on the record information from a wide variety of stakeholders to form a basis for reasoned decisionmaking.
It is the intent of the Legislature that:
(a)This article applies to all formal proceedings of the commission involving electrical, gas, water, and telephone utilities, including applications,
complaints, investigations, rulemakings, and advice letters.
(b)This article is administered in a manner that encourages the effective and efficient participation of all groups that have a stake in the public utility regulation
process, including patrons, employees, and the public.
(c)The process for finding eligibility for intervenor compensation be streamlined, by simplifying the preliminary showing by an intervenor of issues, budget, and costs.
(d)Intervenors be compensated for making a substantial contribution to proceedings of the commission on the same basis and according to the same criteria as utilities are permitted to recover their costs for regulatory affairs and activities in connection with formal proceedings, as determined by the commission in its orders and decisions, regardless of whether a settlement agreement is reached.
(e)Intervenor compensation be awarded to eligible intervenors in a timely manner, within a reasonable period not to exceed 75 days after the intervenor has made the substantial contribution to a proceeding that is the basis for the compensation award.
(f)This article be administered in a manner that avoids unproductive or unnecessary participation that duplicates the participation of similar interests otherwise adequately represented or participation that is not necessary for a fair determination of the proceeding.
As used in this article:
(a)“Compensation” means payment for all or part, as determined by the commission, of reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs of preparation for and participation in a proceeding, and includes the fees and costs of obtaining an award under this article and of obtaining judicial review, if any.
(b)(1)“Customer” means any of the following:
(A)A participant representing consumers, customers,
subscribers, patrons, or employees of any electrical, gas, telephone, telegraph, or water corporation that is subject to the jurisdiction of the commission.
(B)A representative who has been authorized by a customer.
(C)A representative of a group or organization authorized pursuant to its articles of incorporation or bylaws to represent the interests of residential customers, or to represent small commercial customers who receive bundled electric service from an electrical corporation.
(2)“Customer” does not include any state, federal, or local government agency, any publicly owned public utility, or any entity that, in the commission’s opinion, was established or formed by a local government entity for the purpose of participating in a commission proceeding.
(c)“Eligible local government entity” means a city, county, or city and county that is not a publicly owned public utility that intervenes or participates in a commission proceeding for the purpose of protecting the health and safety of the residents within the entity’s jurisdiction following a catastrophic material loss suffered by its residents either in significant damage to infrastructure or loss of life and property, or both, as a direct result of public utility infrastructure.
(d)“Expert witness fees” means recorded or billed costs incurred by a customer for an expert witness.
(e)“Other reasonable costs” means reasonable out-of-pocket expenses directly incurred by a customer that are directly related to the contentions or recommendations made by the customer that resulted in a substantial
contribution, including expenses for facilitating participation in public participation hearings or other commission outreach programs intended to educate the public.
(f)“Party” means any interested party, respondent public utility, or commission staff in a hearing or proceeding.
(g)“Proceeding” means an application, complaint, or investigation, rulemaking,
advice letter, alternative dispute resolution procedures in lieu of formal proceedings as may be sponsored or endorsed by the commission, or other formal proceeding before the commission.
(h)“Significant financial hardship” means either that the customer cannot afford, without undue hardship, to pay the costs of effective participation, including advocate’s fees, expert witness fees, and other reasonable costs of participation, or that, in the case of a group or organization, the economic interest of the individual members of the group or organization is small in comparison to the costs of effective participation in the proceeding.
(i)“Small commercial customer” means any nonresidential customer with a maximum peak demand of less than 50 kilowatts. The commission may establish rules to modify or change the definition of “small commercial customer,” including the use of criteria other than a peak demand threshold, if the commission determines that the modification or change will promote participation in proceedings at the commission by organizations representing small businesses, without incorporating large commercial and industrial customers.
(j)“Substantial contribution” means that, in the judgment of the commission, the customer’s presentation has substantially assisted the commission in the making of its order or decision because the order or decision has adopted in whole or in part one or more factual contentions, legal contentions, or specific policy or procedural recommendations presented by the customer, or because the order or decision is informed by reasoned decisionmaking made possible by the customer’s presentation even if the customer’s contentions or recommendations are not adopted. Where the customer’s participation has resulted in a substantial contribution, even if the decision
does not adopt that customer’s contention or recommendations or adopts them only in part, the commission may award the customer compensation for all reasonable advocate’s fees, reasonable expert fees, and other reasonable costs incurred by the customer in preparing or presenting that contention or recommendation.
(a)(1)A customer who, or eligible local government entity that, intends to seek an award under this article shall, within 30 days after the prehearing conference is held, file and serve on all parties to the proceeding a notice of intent to claim compensation. In cases where no prehearing conference is scheduled or where the commission anticipates that the proceeding will take less than 30 days, the commission may determine the procedure to be used in filing these requests. In cases where the schedule would not reasonably allow parties to identify issues within the timeframe set forth above, or where new issues emerge subsequent to the time set for filing, the commission may determine an appropriate procedure for accepting new or revised notices of intent.
(2)(A)The notice of intent to claim compensation shall include both of the following:
(i)A statement of the nature and extent of the customer’s or eligible local government entity’s planned participation in the proceeding as far as it is possible to set it out when the notice of intent is filed.
(ii)An itemized estimate of the compensation that the customer or eligible local government entity expects to request, given the likely duration of the proceeding as it appears at the time.
(B)The notice of intent may also include a showing by the customer or eligible local government entity that participation in the hearing or proceeding would pose a significant financial hardship. Alternatively, such a showing shall be included in the
request submitted pursuant to subdivision (c).
(C)Within 15 days after service of the notice of intent to claim compensation, the administrative law judge may direct the staff, and may permit any other interested party, to file a statement responding to the notice.
(b)(1)If the customer’s or eligible local government entity’s showing of significant financial hardship was included in the notice filed pursuant to subdivision (a), the administrative law judge, in consultation with the assigned commissioner, shall issue within 30 days thereafter a preliminary ruling addressing whether the customer or eligible local government entity will be eligible for an award of compensation. The ruling shall address whether a showing of significant financial hardship has been made. A finding of significant financial hardship shall create a rebuttable presumption of
eligibility for compensation in other commission proceedings commencing within one year of the date of that finding.
(2)The administrative law judge may, in any event, issue a ruling addressing issues raised by the notice of intent to claim compensation. The ruling may point out similar positions, areas of potential duplication in showings, unrealistic expectation for compensation, and any other matter that may affect the customer’s or eligible local government entity’s ultimate claim for compensation. Failure of the ruling to point out similar positions or potential duplication or any other potential impact on the ultimate claim for compensation shall not imply approval of any claim for compensation. A finding of significant financial hardship in no way ensures compensation. Similarly, the failure of the customer or eligible local government entity to identify a specific issue in the notice of intent or to precisely estimate potential
compensation shall not preclude an award of reasonable compensation if a substantial contribution is made.
(c)Following issuance of a final order or decision by the commission in the hearing or proceeding, a customer who, or eligible local government entity that, has been found, pursuant to subdivision (b), to be eligible for an award of compensation may file within 60 days a request for an award. The request shall include at a minimum a detailed description of services and expenditures and a description of the customer’s or eligible local government entity’s substantial contribution to the hearing or proceeding. Within 30 days after service of the request, the commission staff may file, and any other party may file, a response to the request.
(d)The commission may audit the records and books of the customer or eligible local government entity to the extent necessary to verify
the basis for the award. The commission shall preserve the confidentiality of the customer’s or eligible local government entity’s records in making its audit. Within 20 days after completion of the audit, if any, the commission shall direct that an audit report shall be prepared and filed. Any other party may file a response to the audit report within 20 days thereafter.
(e)(1)Within 75 days after the filing of a request for compensation pursuant to subdivision (c), or within 50 days after the filing of an audit report, whichever occurs later, the commission shall issue a decision that determines whether or not the customer or eligible local government entity has made a substantial contribution to the final order or decision in the hearing or proceeding. If the commission finds that the customer or eligible local
government entity requesting compensation has made a substantial contribution, the commission shall describe this substantial contribution and shall determine the amount of compensation to be paid pursuant to Section 1806.
(2)If the commission fails to issue a decision within the timeframe described in paragraph (1), the request for compensation shall be deemed granted.
(3)If the commission reduces or denies the compensation requested pursuant to subdivision (c), it shall provide a written explanation of the decision to reduce or deny the requested compensation.
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.
