Public utilities: review of accounts: electrical and gas corporations: rates: political influence activities.

Plain English Breakdown

The official source does not provide details on specific criminal penalties or fines, only that violations would be considered crimes under existing law.

Public Utilities: Rules on Utility Rates and Political Activities

The bill sets rules about how electrical and gas companies can spend money from customers to oppose municipalization and what they need to report to the Public Utilities Commission.

What This Bill Does

• Adds new rules that stop electric and gas companies from using customer money for activities against city-owned utilities (municipalization).
• Requires the Public Utilities Commission to check if these companies follow the new rules.
• Gives the Public Advocate’s Office of the Public Utilities Commission the same power as the commission to look at company records.

Who It Names or Affects

• Electric and gas companies that charge customers for their services.
• The Public Utilities Commission, which sets rates and checks on utilities.
• Customers of these utility companies who pay bills.

Terms To Know

municipalization

When a city takes over the operation of its own electric or gas services instead of using private companies.

Public Utilities Commission (PUC)

A government agency that regulates public utilities to make sure they follow rules and charge fair prices.

Limits and Unknowns

• The bill does not specify how much money the Public Advocate’s Office will need to do its job.
• It is unclear if there are other activities besides opposing municipalization that electric and gas companies cannot use customer funds for.
• The bill has passed both chambers but needs further action before becoming law.

Official Summary Text

SB 327, as amended, McNerney.
Public utilities: review of accounts: electrical and gas corporations: rates: political influence activities.
Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires those rates and charges to be just and reasonable. Under existing law, a regulated public utility is prohibited from using ratepayer funds for advocacy-related activities that are political or do not otherwise benefit ratepayers.
Existing law prohibits each electrical corporation or gas corporation from recording to an above-the-line account, or otherwise recovering from ratepayers, direct or indirect costs of specified activities.
This bill would
additionally
prohibit, except as provided, each electrical corporation or gas corporation from recording to
accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers,
an above-the-line account,
or otherwise recovering from ratepayers,
the
direct or indirect costs of
activities related to
opposing the municipalization of electrical or gas
utility
service, as specified.
The bill would require the commission to monitor and investigate compliance and noncompliance with the prohibition.
Existing law authorizes the commission, each commissioner, and each officer and person employed by the commission to inspect the accounts, books, papers, and documents of any public utility.
This bill would specify that the Public Advocate’s Office of the Public Utilities Commission has the same authority to discover information and review the accounts of a public utility as the commission.
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-described provisions would be part of the act and a
violation of a commission action implementing the bill’s requirements would be a crime, this 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.

Current Bill Text

Download Bill PDF