SB 938: Electrical and gas corporations: rate recovery: political activities and advertising.

Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical and gas corporations. Existing law authorizes the commission to fix the rates and charges for public utilities and requires those rates and charges to be just and reasonable.

This bill would prohibit, except as provided, an electrical or gas corporation from recording various expenses associated with political influence activities, as defined, or with advertising, as defined, to accounts that contain expenses that the electrical or gas corporation recovers from ratepayers. The bill would require an electrical or gas corporation to provide the commission with all information deemed necessary to monitor compliance with that prohibition. The bill also would require an electrical or gas corporation, for each business unit of the corporation that performs work associated with political influence activities or advertising, to annually file with the commission a report containing specified information. The bill would require the commission to make the report publicly available.

The bill would require the commission to assess a civil penalty against an electrical or gas corporation that violates the prohibition described above, or that fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing the prohibition, as provided. The bill would require ³/₄ of the moneys collected pursuant to any settlement or penalties collected by the commission for a violation of the prohibition to be deposited into the Zero-Emission Equity Fund, which the bill would establish in the State Treasury. The bill would authorize the moneys in the Zero-Emission Equity Fund, upon appropriation by the Legislature, to be allocated for purposes of assisting low-income households in transitioning to zero-emission appliances to mitigate air quality and public health impacts of using combustion appliances. The bill would require the balance of the moneys collected, upon appropriation by the Legislature, to be used by the commission to increase resources for enforcing the bills requirements.

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 above provisions would be part of the act and a violation of a commission action implementing this bills 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.