Current Status:

Failed

(2024-05-16: May 16 hearing: Held in committee and under submission.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

This bill would instead require a customer who intends to seek compensation to file and serve on all parties to the proceeding a notice of intent to claim compensation within 30 days after the prehearing conference is held or within 30 days of becoming a party to the proceeding, whichever is later.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities. Existing law provides compensation for reasonable advocates 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 customers presentation makes a substantial contribution to the adoption of the commissions order or decision. Existing law defines substantial contribution for these purposes to mean that, in the judgment of the commission, the customers 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 commissions order or decision is informed by reasoned decisionmaking made possible by the customers presentation even if the customers 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 bills 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.

Existing law requires the commission to award a customer compensation if certain requirements are satisfied, including that the customers presentation makes a substantial contribution to the adoption of the commissions order or decision. Existing law defines substantial contribution for these purposes to mean that, in the judgment of the commission, the customers 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 commissions order or decision is informed by reasoned decisionmaking made possible by the customers presentation even if the customers 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 bills 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.

Existing law requires the Public Utilities Commission to require each residential unit in an apartment house or similar multiunit residential structure, condominium, and mobilehome park for which a building permit has been obtained on or after July 1, 1982, with specific exceptions, to be individually metered for electrical and gas service.This bill would make nonsubstantive changes to that requirement.

Version:

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 is held, held or within 30 days of becoming a party to the proceeding, whichever is later, 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 If 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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)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.

SECTION 1.Section 1801 of the Public Utilities Code is amended to read:1801.The purpose of this article is to provide compensation for reasonable advocates 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.SEC. 2.Section 1801.3 of the Public Utilities Code is amended to read:1801.3.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.SEC. 3.Section 1802 of the Public Utilities Code is amended to read:1802.As used in this article:(a)Compensation means payment for all or part, as determined by the commission, of reasonable advocates 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 commissions 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 entitys 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 advocates 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 customers 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 customers presentation even if the customers contentions or recommendations are not adopted. Where the customers participation has resulted in a substantial contribution, even if the decision does not adopt that customers contention or recommendations or adopts them only in part, the commission may award the customer compensation for all reasonable advocates fees, reasonable expert fees, and other reasonable costs incurred by the customer in preparing or presenting that contention or recommendation.SEC. 4.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 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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 customers or eligible local government entitys 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.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

The people of the State of California do enact as follows:SECTION 1.Section 1801 of the Public Utilities Code is amended to read:1801.

The purpose of this article is to provide compensation for reasonable advocates fees, reasonable expert witness fees, and other reasonable costs to public utility customers of participation or intervention in any proceeding of the commission. 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.

SEC. 2.Section 1801.3 of the Public Utilities Code is amended to read:1801.3.

It is the intent of the Legislature that:

(a)The provisions of this This article shall apply applies to all formal proceedings of the commission involving electrical, gas, water, and telephone utilities. utilities, including applications, complaints, investigations, rulemakings, and advice letters.

(b)The provisions of this This article shall be 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. 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, 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 shall 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.

SEC. 3.Section 1802 of the Public Utilities Code is amended to read:1802.

As used in this article:

(a)Compensation means payment for all or part, as determined by the commission, of reasonable advocates 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, or subscribers 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 commissions opinion, was established or formed by a local government entity for the purpose of participating in a commission proceeding.

(c)Expert witness fees means recorded or billed costs incurred by a customer for an expert witness.(d)

(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 entitys 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. 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 advocates 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 customers 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. customer, or because the order or decision is informed by reasoned decisionmaking made possible by the customers presentation even if the customers contentions or recommendations are not adopted. Where the customers participation has resulted in a substantial contribution, even if the decision adopts does not adopt that customers contention or recommendations or adopts them only in part, the commission may award the customer compensation for all reasonable advocates fees, reasonable expert fees, and other reasonable costs incurred by the customer in preparing or presenting that contention or recommendation.SEC. 4.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 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:

(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.

(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.

SEC. 5.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

SECTION 1.Section 780.5 of the Public Utilities Code is amended to read:780.5.The commission shall require each residential unit in an apartment house or similar multiunit residential structure, condominium, and mobilehome park for which a building permit has been obtained on or after July 1, 1982, other than a dormitory or other housing accommodation provided by a postsecondary educational institution for its students or employees and other than farmworker housing, to be individually metered for electrical and gas service, except that separate metering for gas service is not required for residential units that are not equipped with gas appliances requiring venting, are equipped only with vented decorative appliances, or receive the majority of energy used for water or space heating from a solar energy system or through cogeneration technology.

Date	Status
May 16, 2024	May 16 hearing: Held in committee and under submission.
May 14, 2024	Set for hearing May 16.
May 13, 2024	May 13 hearing: Placed on APPR suspense file.
May 3, 2024	Set for hearing May 13.
Apr 30, 2024	Read second time and amended. Re-referred to Com. on APPR.
Apr 29, 2024	From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 4. Page 3702.) (April 22).
Apr 4, 2024	Set for hearing April 22.
Apr 3, 2024	Re-referred to Com. on E., U. & C.
Mar 20, 2024	From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
Feb 29, 2024	Referred to Com. on RLS.
Feb 20, 2024	From printer. May be acted upon on or after March 18.
Feb 16, 2024	Introduced. Read first time. To Com. on RLS. for assignment. To print.

Date	Description	Location	Votes
May 13, 2024	Placed on suspense file	Senate Standing Committee on Appropriations	7 0 0 Passed
Apr 22, 2024	Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]	Senate Standing Committee on Energy, Utilities and Communications	13 4 1 Passed

Key

Pro

Against

Did Not Vote

This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.

Positions by individuals are not included.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
California State Association Of Electrical Workers	** Against
Coalition of California Utility Employees	** Against
Pacific Gas & Electric Company	* Against	Apr 22, 2024
Pacific Gas And Electric Company	** Against
San Diego Gas & Electric Company	* Against Unless Amend	Apr 22, 2024
San Diego Gas and Electric Company	** Against
Southern California Edison	** Against
Southern California Edison	* Against	Apr 22, 2024
Southern California Gas Company	** Against

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

SB 1474 (Allen) - Public utilities: intervenor compensation


Version:	Policy Vote:
Urgency:	Mandate:
Hearing Date:	Consultant:

Bill Summary:

This bill would require, under the intervenor compensation program at the California Public Utilities Commission (CPUC), a customer who intends to seek compensation to file and serve on all parties to the proceeding a notice of intent to claim compensation within 30 days after the prehearing conference is held or within 30 days of becoming a party to the proceeding, whichever is later.

Fiscal Impact:

To the extent that this bill increases claims for intervenor compensation, unknown but potentially significant ongoing costs to the state as a natural gas and electric utility ratepayer. The State of California is a natural gas and electrical customer, purchasing roughly one percent of the state’s electricity and four percent of its natural gas. As such, the state incurs costs when rates increase. Public utilities generally pay these intervenor compensation awards from the amounts they collect from their ratepayers. These awards affect utility rates so that utilities can recoup any amounts they pay to intervenors.

Background:

The CPUC initiated its intervenor compensation program in 1981 and state law was enacted in 1984 to govern the program. The program is intended to ensure that intervenors – individuals and groups that represent the interests of utility ratepayers – have the financial resources to bring their concerns and interest to the CPUC at its proceedings. Intervenors advocate for a variety of ratepayers, including residential and small-business customers, environmental groups, and the disabled. State law allows intervenors that participate in CPUC proceedings involving utilities, such as electric, gas, and water utilities, to request compensation for the costs associated with that participation. Public utilities generally pay these intervenor compensation awards from the amounts they collect from their ratepayers. These awards affect utility rates so that utilities can recoup any amounts they pay to intervenors.

Intervenor compensation process. An intervenor planning to claim intervenor compensation must get involved in the proceeding by filing a notice of intent to claim compensation that indicates the planned extent and estimated costs of the intervenor’s planned participation in a proceeding. In addition, to be eligible for compensation, the intervenor must show that it meets various mandates that state law imposes, including the need to demonstrate “substantial contribution” to the CPUC proceeding. When an intervenor participates in a proceeding they are expected to contribute via factual contentions, legal arguments, or policy recommendations. These efforts can be demonstrated by bringing witnesses, submitting testimony from multiple witnesses, raising issues when it cross-examines the utility’s witnesses during evidentiary hearings, working with other intervenors to achieve a settlement and others. When the CPUC issues a final decision on a proceeding, the intervenor may file a claim for intervenor compensation. The CPUC reviews the claim and adjusts up or down based on their assessment of the intervenor’s participation. Additionally, intervenors must show “significant financial hardship” to receive compensation, by submitting documents demonstrating either that the intervenor could not afford to participate without undue hardship or that the economic interest of the individual members is small in comparison to the cost of effective participation in the proceeding.

Proposed Law:

This bill would require, under the intervenor compensation program at the CPUC, a customer who intends to seek compensation to file and serve on all parties to the proceeding a notice of intent to claim compensation within 30 days after the prehearing conference is held or within 30 days of becoming a party to the proceeding, whichever is later.

Related Legislation:

AB 2120 (Weber, 2016) would have authorize compensation for participation or intervention of a county office of education, or a consortium of public school districts or agencies on behalf of local K–12 educational agencies (LEAs) in a CPUC proceeding relating to gas or electricity rates. The bill was held in this committee.

SB 512 (Hill, Chapter 808, Statutes of 2016) among its provisions, authorized intervenor compensation to be paid to certain local government entities that intervene or participate in CPUC proceedings and clarified that intervenor compensation is allowed for intervenors who made a substantial contribution regardless of whether or not a settlement is reached.

-- END --

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Steven Bradford, Chair

2023 - 2024 Regular

Bill No: Hearing Date: 4/22/2024

Author:
Version:	Amended
Urgency:		Fiscal:
Consultant:

SUBJECT:

DIGEST: This bill proposes various changes to the intervenor compensation program at the California Public Utilities Commission (CPUC).

ANALYSIS:

Existing law:

Establishes and vests the CPUC with regulatory authority over public utilities. (Article XII of the California Constitution)
Authorizes intervenors involving electric, water, and telephone utilities to be compensated for making a substantial contribution to proceedings of the CPUC, as determined by the CPUC. (Public Utilities Code §1801 et seq.)
Requires intervenor compensation to be awarded to eligible intervenors in a timely manner, within a reasonable period after the intervenor has made the substantial contribution to a proceeding that is the basis for the compensation award. (Public Utilities Code §1801.3)
Defines "compensation" to mean payments for all or part, as determined by the CPUC, 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, as specified, and of obtaining judicial review, if any. (Public Utilities Code §1802(a))
Defines "customer" to mean any of the following: a) A participant representing consumers, customers, or subscribers of any electrical, gas, telephone, telegraph, or water corporation that is subject to the jurisdiction of the CPUC; b) A representative who has been authorized by a customer; or 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. (Public Utilities Code §1802(b)(2))
Defines “substantial contribution” for these purposes to mean that, in the judgment of the CPUC, the customer’s presentation has substantially assisted the CPUC 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. (Public Utilities Code §1802 (j))
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. (Public Utilities Code §1804)
Requires the CPUC 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 CPUC, whichever occurs later. (Public Utilities Code §1804(e))

This bill:

Adds a participant representing “patrons” or “employees” of any electrical, gas, telephone, telegraph, or water corporation to the definition of “customer” for these purposes.
Expands the definition of “substantial contribution” to include situations in which the CPUC’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 CPUC.
Deems a request for compensation granted if the CPUC 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.
Requires the CPUC, if it reduces or denies the requested compensation, to provide a written explanation of that decision.

Background

Intervenor compensation. The CPUC initiated its intervenor compensation program in 1981 and state law was enacted in 1984 to govern the program. The program is intended to ensure that intervenors – individuals and groups that represent the interests of utility ratepayers – have the financial resources to bring their concerns and interest to the CPUC at its proceedings. Intervenors advocate for a variety of ratepayers, including residential and small-business customers, environmental groups, and the disabled. State law allows intervenors that participate in CPUC proceedings involving utilities, such as electric, gas, and water utilities, to request compensation for the costs associated with that participation. Public utilities generally pay these intervenor compensation awards from the amounts they collect from their ratepayers. These awards affect utility rates so that utilities can recoup any amounts they pay to intervenors.

Comments

Need for this bill. The author intends to support participation of more advocates in support of ratepayers within the intervenor compensation program. However, the author has expressed concerns that the current process has several issues regarding the need to expand eligibility, expand the definition substantial contribution requirements, address the long backlog of claims awaiting review, the ability to recover costs in a manner that is consistent with regulated utilities, require the CPUC to provide written explanation for any decision to reduce or deny compensation claims, and deem a claim granted if the CPUC fails to issue a determination by the statutory deadline. Though well-intended, many of the provisions proposed in this bill are likely to increase the number of claims, but may not increase the level of participation in CPUC proceedings. Additionally, the proposed changes are likely to increase costs on the program which are funded by utility ratepayers.

Need for amendments. In consideration of the concerns and challenges related to the proposed language in this bill, the author and committee may wish to delete the existing provisions and replace with language that allows parties to a proceeding to serve a notice on all parties, within 30 days of becoming a party, about their intention to claim compensation.

Prior/Related Legislation

AB 2120 (Weber, 2016) would have authorize compensation for participation or intervention of a county office of education, or a consortium of public school districts or agencies on behalf of local K–12 educational agencies (LEAs) in a CPUC proceeding relating to gas or electricity rates. The bill was held in the Senate Committee on Appropriations.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

None received

OPPOSITION:

California State Association of Electrical Workers
Coalition of California Utility Employees
Pacific Gas and Electric Company
San Diego Gas and Electric Company
Southern California Edison
Southern California Gas Company

ARGUMENTS IN SUPPORT: According to the author:

SB 1474 makes several necessary changes to the Intervenor Compensation Program to ensure intervenors are fairly compensated in a timely manner and are afforded the same ability to participate in proceedings. By bringing reliability, certainty, and access to the Intervenor Compensation Program, SB 1474 will improve public participation during CPUC proceedings that affect all California ratepayers.

ARGUMENTS IN OPPOSITION: In opposition to this bill, SCE, SDG&E, and PG&E state:

[SB 1474 (Allen)] …would unreasonably burden customers by broadening the scope of activities and entities eligible for intervenor compensation, and unnecessarily restricting the California Public Utilities Commission’s (CPUC’s) ability to thoroughly evaluate each claim. Intervenor compensation is funded by utility customers and should be held to the highest possible standards to ensure that customers receive value commensurate with the funding they provide. Unfortunately, SB 1474 would only increase the opportunity for frivolous claims and additional, unwarranted customer costs to proceed, with no clear benefit to customers.

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Discussed in Hearing