BILL NUMBER: AB 1479	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Patterson

                        FEBRUARY 27, 2015

   An act to amend Section 739.9 of the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1479, as introduced, Patterson. Electricity: residential rates.

   Existing law authorizes the Public Utilities Commission, beginning
January 1, 2015, to authorize fixed electricity charges that do not
exceed a specified amount per residential customer account per month.
Existing law, beginning January 1, 2016, authorizes the adjustment
of the maximum allowable fixed charge by no more than the annual
percentage increase in the Consumer Price Index for the prior
calendar year.
   This bill would make technical, nonsubstantive changes to that
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 739.9 of the Public Utilities Code is amended
to read:
   739.9.  (a) "Fixed charge" means any fixed customer charge, basic
service fee, demand differentiated basic service fee, demand charge,
or other charge not based upon the volume of electricity consumed.
   (b) Increases to electrical rates and charges in rate design
proceedings, including any reduction in the California Alternate
Rates for Energy (CARE) discount, shall be reasonable and subject to
a reasonable phase-in schedule relative to the rates and charges in
effect prior to January 1, 2014.
   (c) Except as provided in subdivision (c) of Section 745, the
commission shall require each electrical corporation to offer default
rates to residential customers with at least two usage tiers. The
first tier shall include electricity usage of no less than the
baseline quantity established pursuant to paragraph (1) of
subdivision (d) of Section 739.
   (d) Consistent with the requirements of Section 739, the
commission may modify the seasonal definitions and applicable
percentage of average consumption for one or more climatic zones.
   (e) The commission may adopt new, or expand existing, fixed
charges for the purpose of collecting a reasonable portion of the
fixed costs of providing electric service to residential customers.
The commission shall ensure that any approved charges do all of the
following:
   (1) Reasonably reflect an appropriate portion of the different
costs of serving small and large customers.
   (2) Not unreasonably impair incentives for conservation and energy
efficiency.
   (3) Not overburden low-income customers.
   (f) For the purposes of this section and Section 739.1, the
commission may, beginning January 1, 2015, authorize fixed charges
that do not exceed ten dollars ($10)  per   for
each  residential customer account per month for customers not
enrolled in the CARE program and five dollars ($5)  per
  for each  residential customer account per month
for customers enrolled in the CARE program. Beginning January 1,
2016, the maximum allowable fixed charge may be adjusted by no more
than the annual percentage increase in the Consumer Price Index for
the prior calendar year. This subdivision applies to any default rate
schedule, at least one optional tiered rate schedule, and at least
one optional time variant rate schedule.
   (g) This section does not require the commission to approve any
new or expanded fixed charge.
   (h) The commission may consider whether minimum bills are
appropriate as a substitute for any fixed charges.