Today's Law As Amended

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AB-2346 Public utilities: rates: wildfire expense memorandum accounts.(2017-2018)

As Amends the Law Today


 Section 454.85 is added to the Public Utilities Code, to read:

 (a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporation’s or gas corporation’s general rate case or recorded in the electrical corporation’s catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:
(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid by the electrical corporation.
(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.
(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.
(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.
(b) The recovery in rates of those costs recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.
(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
SEC. 2.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.