SB 1359: Natural Gas Ratepayer Protection Act.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires, until at least December 31, 2029, each gas corporation to submit to the commission a map that includes, among other things, the location of all potential gas distribution line replacement projects identified in its distribution integrity management plan and any foreseeable gas distribution pipeline replacements, as provided.

This bill would require each gas corporation to submit an annual report to the commission that describes its expenditures associated with gas distribution infrastructure replacement and upgrade projects, as provided. The bill would require the commission, before authorizing recovery of costs associated with a gas distribution infrastructure replacement and upgrade project, to consider whether cost-effective electrification alternatives or nonpipeline alternatives could reasonably avoid or reduce the project. costs, and to adopt rules implementing this requirement, including a reasonable cost threshold below which the requirement would not apply. The bill would require the commission to evaluate whether depreciation schedules for gas distribution infrastructure replacement and upgrade projects appropriately reflect projected reductions in gas demand and consider alternative depreciation methodologies that minimize future ratepayer exposure to stranded asset costs.

Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the above provisions would be part of the Public Utilities 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.