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AB-1370 Public Utilities Commission: policies: ratepayers’ interest.(2011-2012)

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AB1370:v98#DOCUMENT

Amended  IN  Assembly  March 31, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1370


Introduced  by  Assembly Member Roger Hernández

February 18, 2011


An act to amend Section 740.8 of the Public Utilities Code, relating to public utilities.


LEGISLATIVE COUNSEL'S DIGEST


AB 1370, as amended, Roger Hernández. Public Utilities Commission: policies: ratepayers’ interest.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical and gas corporations. Existing law requires the commission, in cooperation with the State Energy Resources Conservation and Development Commission, the State Air Resources Board, air quality management districts and air pollution control districts, regulated electrical and gas corporations, and the motor vehicle industry, to evaluate and implement policies to promote the development of equipment and infrastructure needed to facilitate the use of electric power and natural gas to fuel low-emission vehicles. Existing law requires those policies to ensure that the costs and expenses of those programs are not passed through to electric or gas ratepayers unless the commission finds and determines that those programs are in the ratepayers’ interest, as that term is defined.
This bill would make technical, nonsubstantive changes to the definition of ratepayers’ interest revise the definition of what is the ratepayer’s interest and require that activities that benefit ratepayers be measured by the program’s impact on rates and costs and benefits of the program from the perspective of ratepayers, determined by calculating a benefit versus cost ratio greater than one on a total portfolio basis.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 740.8 of the Public Utilities Code is amended to read:

740.8.
 (a) As used in Section 740.3, “ratepayers’ interest,” short or long term, means both of the following:

(a)

(1) Direct benefits that are specific to ratepayers in the form of safer, more reliable, or less costly gas or electrical service, consistent with Section 451.

(b)

(2) Activities that benefit ratepayers and that promote all of the following:

(1)

(A) Energy efficiency.

(2)

(B) Reduction of health and environmental impacts from air pollution and greenhouse gas emissions related to electricity and natural gas production and use.

(3)

(C) Increased use of alternative fuels.
(b) Activities that benefit ratepayers pursuant to paragraph (2) of subdivision (a), shall be measured by the program’s impact on rates and costs and benefits of the program from the perspective of ratepayers, determined by calculating a benefit versus cost ratio greater than one on a total portfolio basis.