SB 598: Public utilities: gas and electric service disconnections.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, and can establish its own procedures, subject to statutory limitations or directions and constitutional requirements of due process. Existing law requires the commission to designate a baseline quantity of electricity and gas necessary for a significant portion of the reasonable energy needs of the average residential customer, and to establish a higher energy allowance above the baseline for residential customers dependent on life-support equipment. Existing law requires certain notice be given before an electrical or gas corporation may terminate residential service for nonpayment of a delinquent account and prohibits termination of service for nonpayment in certain circumstances.

This bill would require the commission to develop policies, rules, or regulations with a goal of reducing, by January 1, 2024, the statewide level of gas and electric service disconnections for nonpayment by residential customers, as specified. The bill would require the commission in each gas and electrical corporation general rate case to, among other things, conduct an assessment of and properly identify the impact of any proposed increase in rates on disconnections for nonpayment. The bill would require the commission to include in an annual report to the Legislature information on residential and household gas and electric service disconnections, disaggregated by certain customer categories.

This bill would require the commission to adopt residential utility disconnections for nonpayment as a metric and incorporate the metric into each gas and electrical corporation general rate case. The bill would prohibit a gas or electrical corporation from disconnecting service for nonpayment by a residential customer dependent on life-support equipment who is unable to pay for service, who is willing to enter into an amortization agreement, as provided, and who satisfies certain other conditions. The bill would authorize the commission to identify strategies for reasonable cost recovery by a gas or electrical corporation for costs incurred in providing gas or electric service to customers whom the gas or electrical corporation was unable to disconnect due to compliance with that prohibition.

Under existing law, a violation of any provision of the Public Utilities Act or of any of the rules or orders issued under the act is a crime.

Because the provisions of this bill are within the act and require action by the commission to implement its requirements, a violation of these provisions 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.