Today's Law As Amended


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AB-2505 Public utilities: stocks and security transactions.(2003-2004)



As Amends the Law Today


SECTION 1.
 It is the intent of the Legislature that the amendments to Section 829 of the Public Utilities Code made by the act adding this section not hinder the commission’s existing authority to disallow imprudent expenses or capital expenditures of the utilities under its jurisdiction, or the commission’s authority to impute a capital structure or cost of capital for utilities under its jurisdiction.

SEC. 2.

 Section 829 of the Public Utilities Code is amended to read:

829.
 (a) This article shall does  not apply to any a  person or corporation which that  transacts no business subject to regulation under this part, except performing services or delivering commodities for or to public utilities or municipal or other public corporations primarily for resale or use in serving the public or any portion thereof. This article shall  thereof but shall nevertheless  apply to any public utility if the commission finds, in a proceeding to which the public utility is or may become a party, that the application of this article is required by the public interest.  
(b) (1) (1)The  Except for Section 828,   requirements in this article for commission approval of utility financing do not apply to  a telephone corporation that is not  regulated under a rate-of-return regulatory structure is exempt from this article. This subdivision does not exempt a  new regulatory framework that utilizes a price-cap index, price adjustment formula, or substantially similar mechanism established by the commission, if the corporation does not pledge a plant or assets to secure the financing. However, this article shall continue to apply to any  telephone corporation that is also an electrical corporation or a gas corporation, unless the commission determines the telephone corporation is exempt pursuant to subdivision (c). As used in this subdivision, a “rate-of-return regulatory structure” means a system under which the rates and charges of the telephone corporation are limited by a maximum permissible price that may be charged for a specific service. Telephone corporations regulated by a framework under which they may exercise pricing flexibility for all or most of the services offered are not regulated under a rate-of-return regulatory structure. gas corporation that is a public utility, as defined in Section 216, 218, or 222. 
(2) Notwithstanding paragraph (1), a telephone corporation as described in this subdivision shall remain subject to Sections 817, 820, 824, 826, 828, 830, and subdivision (a) of Section 827.
(2) (3)  Notwithstanding paragraph (1), the  The  commission may impose reimpose  any requirement of this article on a telephone corporation  or all of the requirements of this article for commission approval of utility financing upon a utility exempt under paragraph (1)  if the commission finds, after an evidentiary hearing  in a proceeding in which the telephone corporation is or may become a party,  considering the financial condition of the utility,  that the application of any provision of  or all of the requirements of  this article is required by the public interest.
(c) The commission may from time to time by order or rule, and subject to such those  terms and conditions as that  may be prescribed therein,  in the order or rule,  exempt any public utility or class of public utility from this article  article, or any portion of this article,  if it finds that the application thereof to such of this article to the  public utility or class of public utility is not necessary in the public interest.