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AB-2068 Electricity: rates: public schools.(2017-2018)

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Date Published: 04/25/2018 09:00 PM
AB2068:v97#DOCUMENT

Amended  IN  Assembly  April 25, 2018
Amended  IN  Assembly  April 03, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2068


Introduced by Assembly Member Chu

February 07, 2018


An act to add Section 749.5 to the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


AB 2068, as amended, Chu. Electricity: rates: public schools.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law authorizes the Public Utilities Commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires public utilities to develop programs in cooperation with local school districts to reduce their electricity and gas bills through conservation and improvements in efficiency.
This bill would require the commission to coordinate with direct all electrical and gas corporations to evaluate evaluate, and report findings to the commission on, the feasibility and economic impacts of establishing a public school electric and gas rate that would reflect a discount of at least 15% from the current rate structure. This report shall be submitted This bill would require the commission to compile these reports and submit this compilation to the Legislature, by January 1, 2020, and includes specified requirements. 2020. Because a violation of the commission’s directions would be a crime, this 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 (a)The Legislature finds and declares the following:

(1)

(a) The state’s public schools are nonprofit entities that provide a wide range of public benefits and do not have the ability to raise taxes or fees to meet budget shortfalls. benefits.

(2)

(b) The state has invested in energy efficiency improvements in public schools to reduce climate pollution and energy costs; however, energy needs are still great as schools are constantly improving and adapting to technological and operational essentials.

(3)

(c) Public schools spend the same amount on energy bills as they do on books and supplies annually.

(4)

(d) Recently, many public schools have experienced electricity rate increases that resulted in financial constraints and less funding for direct student services.

(5)

(e) The California Constitution and the Public Utilities Code authorizes the Public Utilities Commission to review and approve rates proposed by the public utilities in the state that reflect expenses and authorized revenue requirements.

(6)

(f) There are different rates for different energy users such as residential, commercial, and industrial; schools are under the commercial category.

(7)

(g) The Public Utilities Commission, in August 2017, made the recommendation, as part of the Decision Revenue Allocation and Rate Design for San Diego Gas & Electric Company (D17-08-030), that San Diego Gas & Electric Company develop a schools-only rate separate from the medium or large commercial and industrial class rates.

(b)It is the intent of the Legislature to require the Public Utilities Commission, as part of its ratesetting process, to direct all electrical and gas corporations to evaluate the impact and establish a public school rate that would reflect a discount of at least 15 percent from the current rate for public schools.

SEC. 2.

 Section 749.5 is added to the Public Utilities Code, to read:

749.5.
 (a) For the purposes of this section, “public school” means a public school, including a charter school, maintaining a kindergarten, or any of the grades 1 to 12, inclusive.
(b) The commission shall, as part of its ratesetting process, direct all each electrical and gas corporations corporation to evaluate and report findings, findings to the commission, by January 1, 2020, on the feasibility and economic impact of establishing a public school electric and gas rate rates that would reflect a discount of at least 15 percent from the current rate structure. The report shall include, but not be limited to, the following:
(1) Commercial rate increases in the past five years that affected public schools within the service territory of all each electrical and gas corporations. corporation.
(2) Economic impact to all rate payers ratepayers if all public schools within the service territory received a 15-percent discount from the current rate structure.

(b)The commission shall determine whether to adopt a public school electric and gas rate 90 days after completion of the report required pursuant to subdivision (a).

(3) The impact of planned modifications to the time intervals reflected in time-of-use rates and to rate design elements, as adopted by the commission and in the planning stages or proposed by electric and gas corporations.
(4) The cost shifts that would occur, if any, and to which consumers the costs would shift, as a result of a discounted rate for public schools.
(c)  The commission shall compile the reports required in subdivision (b) and submit the report required in subdivision (a) compilation to the Legislature, on or before January 1, 2020, in compliance with the requirements of Section 9795 of the Government Code.

SEC. 3.

 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.