Today's Law As Amended

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SB-819 Electrical and gas corporations: rates.(2017-2018)



SECTION 1.

 Section 748 is added to the Public Utilities Code, to read:

748.
 (a) An electrical corporation or gas corporation shall not recover through a rate approved by the commission either of the following:
(1) A fine or penalty.
(2) Costs or expenses resulting from damages caused by an electrical corporation’s electric plant or a gas corporation’s gas plant, if the commission determines that the electrical or gas corporation, or its agent, if applicable, did not reasonably construct, maintain, manage, control, or operate the plant and this unreasonable act or omission by the electrical or gas corporation, or its agent, increased the risk of the plant causing those damages. The commission’s determination of whether those damages were caused by the electric plant or gas plant shall not be admissible in a court action for damages brought against the electrical or gas corporation, or its agent, as applicable.
(b) For any rate application to recover costs or expenses filed by an electrical or gas corporation, the commission may authorize recovery of those costs or expenses, in full or in part. Only those costs or expenses that are just and reasonable, which may comprise only a portion of the costs or expenses contained in the application, may be recovered.
(c) (1) It is the intent of the Legislature that this section not limit or alter the commission’s authority or obligations under the Public Utilities Act, including to require that all charges be just and reasonable and that each electrical corporation and gas corporation demonstrate to the commission that all costs or expenses that the corporation seeks to recover from customers through a rate approved by the commission have been reasonably and prudently incurred.
(2) The Legislature finds and declares that, as of the operative date of this section, for rate recovery purposes, the commission was already authorized to calculate liability and to allocate costs or expenses in full or in part, if the full or partial approval of the costs or expenses was just and reasonable, when the commission ruled on an application by an electrical or gas corporation seeking to recover costs or expenses.

SEC. 2.

 Section 959 of the Public Utilities Code is amended to read:

959.
 (a) A gas corporation shall not recover any fine or penalty in any rate approved by the commission.
(b)  Each gas corporation shall demonstrate to the satisfaction of the commission, in its general rate case proceeding, that the requested revenue requirements will be sufficient to enable the gas corporation to fund those projects and activities necessary to maintain safe and reliable service and to meet federal and state safety requirements applicable to its gas plant, plant  in a cost-effective manner.