Electrical or gas corporations: deferment of payments: hardship.

Plain English Breakdown

The bill summary and digest indicate that the payment deferment is for three months, not six as initially stated.

Electricity and Gas Companies: Help for People Who Can't Pay

The bill stops electricity or gas companies from turning off service to people who can't pay their bills due to hardship, provides a three-month payment deferment period, and requires customers to enter into an arrearage management program or payment plan after the deferment ends.

What This Bill Does

• Prevents electrical or gas corporations from disconnecting service for non-payment if a customer meets certain conditions.
• Gives eligible customers a three-month deferment on all payments due during this period.
• Requires customers to enroll in an arrearage management program or payment plan after the deferment ends.
• Limits customers who use the deferment option from getting another one for 18 months.
• Authorizes the Public Utilities Commission to create rules to enforce these requirements.

Who It Names or Affects

• Customers of electrical and gas companies who are facing financial hardship.
• Electrical and gas corporations that provide service to residential customers.

Terms To Know

Public Utilities Commission

The government agency responsible for regulating public utilities like electricity and gas companies.

Arrearage management program

A plan that helps customers pay off their overdue bills over time.

Limits and Unknowns

• The bill does not specify the exact conditions a customer must meet to qualify for payment deferment.
• It is unclear how the Public Utilities Commission will enforce these rules.

Official Summary Text

SB 636, as amended, Menjivar.
Electrical or gas corporations: deferment of payments: hardship.
Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical corporations and gas corporations. Existing law prohibits an electrical or gas corporation from disconnecting service for nonpayment by a residential customer receiving a medical baseline allowance, financially unable to pay for service within the normal payment period, willing to enter into an amortization agreement with the corporation with respect to all charges that the customer is unable to pay, and meets certain other requirements.
This bill would prohibit an electrical or gas corporation from disconnecting service of a customer for
6
3
months, if the customer meets certain requirements, as provided. The bill would require the corporation to grant that customer a
6-month
3-month
deferment for any and all payments due from the date that the deferment is granted. Upon the expiration of the deferment period, the bill would require the customer to enroll in the electrical or gas corporation’s arrearage management program or be enrolled in an available payment plan for which the customer is eligible, if the customer is not eligible for the arrearage management plan, for any and all debts on the customer’s account.
The bill would prohibit a customer who participates in the payment deferral from being eligible for a subsequent 3-month payment deferral within 18 months
of their participation in the payment deferral.
The bill would authorize the commission to adopt rules to implement these provisions.
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 provisions of this bill would be a part of the act, a violation of which, or a violation of an order, decision, rule, direction, demand, or requirement of the commission implementing those provisions, 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.

Current Bill Text

Download Bill PDF