text: By January 1 of each year, the commission shall submit to the Legislature a detailed budget for the expenditure of railroad corporation fees for the ensuing budget year, consistent with Section 421.

history: (History: Added by Stats. 2017, Ch. 425, Sec. 8. (SB 385) Effective January 1, 2018.)

article: 11. Reports to the Legislature


kind: section

code: PUC

citation: PUC § 918

text: The commission shall, within 30 days prior to commencement of the regular session of the Legislature, submit to the Governor a full and true report of transactions under Chapter 6 (commencing with Section 5001) of Division 2 during the preceding biennium, including a complete statement of receipts and expenditures during the period.

history: (History: Added by renumbering Section 5006 by Stats. 2015, Ch. 612, Sec. 60. (SB 697) Effective January 1, 2016.)

division: 1. REGULATION OF PUBLIC UTILITIES

part: 1. PUBLIC UTILITIES ACT

chapter: 4. Regulation of Public Utilities

article: 11. Reports to the Legislature

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4. Regulation of Public Utilities > 11. Reports to the Legislature


text: The commission and the Department of Insurance shall collaborate on a study of transportation network company insurance to assess whether coverage requirements are appropriate to the risk of transportation network company services in order to promote data-driven decisions on insurance requirements, and shall report the findings of this study to the Legislature no later than December 31, 2017.

history: (History: Added by renumbering Section 5436 by Stats. 2016, Ch. 842, Sec. 53. (SB 1222) Effective January 1, 2017.)

article: 11. Reports to the Legislature


text:
(a) The commission and the Department of Insurance shall collaborate on a study of the impacts of the requirements established for uninsured motorist coverage and underinsured motorist coverage under paragraph (2) of subdivision (b) of Section 5433 to assess whether those coverage requirements are appropriate to the risk of transportation network company services in order to promote data-driven decisions on insurance requirements, and shall report the findings of this study to the Assembly Committee on Insurance and the Senate Committee on Insurance on or before December 31, 2030.

(b) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 31, 2034, and, as of January 1, 2035, is repealed.

history: (History: Added by Stats. 2025, Ch. 314, Sec. 2. (SB 371) Effective January 1, 2026. Inoperative December 31, 2034, by its own provisions. Repealed as of January 1, 2035, by its own provisions.)

article: 11. Reports to the Legislature


citation: PUC § 920

text:
(a) (1) Unless expressly directed otherwise, a report to be submitted to the Legislature pursuant to this article is to be submitted in compliance with Section 9795 of the Government Code, except that an electronic copy may be submitted to the Secretary of the Senate, unless specifically requested to submit a printed copy of the report, with an electronic copy submitted to Legislative Counsel in compliance with subdivision (c) of Section 10242.5 of the Government Code.

(2) Any report that is expressly directed to be submitted to a committee of the Legislature shall be submitted as an electronic copy, unless specifically requested to submit a printed copy by chair of that committee, with an electronic copy submitted to Legislative Counsel in compliance with subdivision (c) of Section 10242.5 of the Government Code.

(b) Any report required to be submitted to the Governor pursuant to this article shall be submitted as an electronic copy unless specifically requested to submit a printed copy of the report by the Governor.

history: (History: Added by Stats. 2015, Ch. 612, Sec. 54. (SB 697) Effective January 1, 2016.)

article: 11. Reports to the Legislature


citation: PUC § 921

text:
For purposes of this article, the following definitions apply:

(a) “Disadvantaged community” means a community identified as a disadvantaged community pursuant to Section 39711 of the Health and Safety Code.

(b) “Eligible applicants” means owners or developers of new residential housing.

(c) “Low-income community” means a census tract or equivalent geographic area defined by the United States Census Bureau in which at least 50 percent of households have an income less than 60 percent of the area median gross income.

(d) “Low-income residential housing” means either of the following:

(1) A multifamily residential building of at least two rental housing units that is operated to provide deed-restricted low-income residential housing, as described in clause (i) of subparagraph (A) of paragraph (3) of subdivision (a) of Section 2852, and that meets one or both of the following conditions:

(A) The property is located in a disadvantaged community or low-income community.

(B) At least 80 percent of the households living in the building have incomes at or below 60 percent of the area median income, as defined in subdivision (f) of Section 50052.5 of the Health and Safety Code.

(2) An individual low-income residence, as described in subparagraph (C) of paragraph (3) of subdivision (a) of Section 2852.

(e) (1) “Near-zero-emission building technology” means technology that reduces both of the following:

(A) The energy demands of a building on the electrical or gas distribution system.

(B) The direct and indirect emissions of greenhouse gases from buildings.

(2) Near-zero-emission building technology includes a single technology, such as heat pumps, solar thermal systems, or advanced energy efficiency systems, and a combination of technologies, such as a solar photovoltaic system with an energy storage system.

(f) “Program” means the Building Initiative for Low-Emissions Development (BUILD) Program.

history: (History: Added by Stats. 2018, Ch. 378, Sec. 4. (SB 1477) Effective January 1, 2019.)

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4. Regulation of Public Utilities > 12. Building Initiative for Low-Emissions Development (BUILD) Program


text:
(a) (1) The commission, in consultation with the Energy Commission, shall develop and supervise the administration of the Building Initiative for Low-Emissions Development (BUILD) Program to require gas corporations to provide incentives to eligible applicants for the deployment of near-zero-emission building technologies to significantly reduce the emissions of greenhouse gases from those buildings below the minimum projected emissions reductions that would otherwise be expected to result from the implementation of the prescriptive standards described in Section 150.1 of Subchapter 8 of Part 6 of Title 24 of the California Code of Regulations.

(2) The commission may determine whether each gas corporation or a third party, including the Energy Commission, shall administer the program.

(3) Moneys allocated pursuant to Section 748.6 shall be available to each gas corporation, or the third-party administrator, for allocation consistent with this section.

(b) The amount of the incentive provided pursuant to the program shall take into account the availability of existing incentives and shall be based on the projected amount of reduction in the emissions of greenhouse gases resulting from the installation of the near-zero-emission building technology. The commission shall set the incentives to encourage building designs that reduce greenhouse gas emissions beyond industry practices and to offer greater incentives for larger projected greenhouse gas emissions reductions. Incentives for buildings that serve low-income residents may have different standards from those that serve other residents.

(c) (1) To encourage the adoption of near-zero-emission building technologies in new low-income residential housing located in disadvantaged communities or low-income communities, the program shall reserve a minimum of 30 percent of the amount allocated pursuant to Section 748.6 for new low-income residential housing.

(2) If, following the implementation of the outreach plan pursuant to paragraph (5) of subdivision (d), the moneys reserved pursuant to paragraph (1) remain unspent two years after those moneys were reserved, the commission shall evaluate potential changes to the program to increase participation and may make those moneys, or a portion of those moneys, available for other purposes consistent with the program.

(d) In supervising the administration of the program, the commission shall do all of the following:

(1) Ensure that projects funded with moneys reserved pursuant to subdivision (c) are offered technical assistance to encourage the use of the program.

(2) Provide higher incentives for buildings described in subdivision (c) than for installations in other new residential buildings.

(3) Ensure that projects funded with moneys reserved pursuant to subdivision (c) do not result in higher utility bills for building occupants.

(4) (A) Develop program guidelines that include, at a minimum, a list of eligible technologies, a process for evaluating new technologies, criteria for scoring and selecting projects, and a process and set of metrics by which to evaluate and track the program’s results.

(B) Program metrics shall include, at a minimum, the number of low-emission systems installed in each building type, projected utility bill savings, and the cost per metric ton of avoided greenhouse gas emissions.

(5) Implement an outreach plan to encourage applications for projects funded with moneys reserved pursuant to subdivision (c).

(e) Each gas corporation shall provide the commission with any information required by the commission to complete the report on the program required pursuant to Section 910.4.

article: 12. Building Initiative for Low-Emissions Development (BUILD) Program


citation: PUC § 922

text:
(a) (1) The commission shall develop and supervise the administration of the Technology and Equipment for Clean Heating (TECH) Initiative, a statewide market development initiative, to require gas corporations to advance the state’s market for low-emission space and water heating equipment for new and existing residential buildings through upstream market development, consumer education, contractor and vendor training, and the provision of upstream and midstream incentives to install low-emission space and water heating equipment in existing and new buildings, with technologies identified pursuant to subdivision (b).

(2) The commission may determine whether each gas corporation or a third party, including the Energy Commission, shall administer the TECH Initiative.

(b) As a part of the TECH Initiative, the commission shall identify and target key low-emission space and water heating equipment technologies that are in an early stage of market development and would assist the state in achieving the state’s greenhouse gas emissions reduction goal for 2030 and other long-term greenhouse gas emissions reduction goals established by the Legislature. In identifying and targeting these technologies, the commission shall give consideration to technologies that have the greatest potential to reduce greenhouse gas emissions in California and that improve the health and safety of, and energy affordability for, low-income households.

(c) (1) In supervising the administration of the TECH Initiative, the commission, in coordination with the Energy Commission, shall develop guidelines and evaluation metrics, implement outreach strategies for hard-to-reach customers, and provide for job training and employment opportunities.

(2) (A) The guidelines shall include, at a minimum, a list of eligible technologies, a process for evaluating new technologies, and a process and set of metrics by which to evaluate and track the TECH Initiative’s results.

(B) The metrics shall include, but are not limited to, the market share for eligible technologies, projected utility bill savings, and the cost per metric ton of avoided greenhouse gas emissions.

(d) Moneys allocated pursuant to Section 748.6 shall be available to each gas corporation, or the third-party administrator, for allocation consistent with this section.

(e) Each gas corporation shall provide the commission with any information required by the commission to complete the report on the TECH Initiative required pursuant to Section 910.4.

history: (History: Added by Stats. 2018, Ch. 378, Sec. 5. (SB 1477) Effective January 1, 2019.)

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4. Regulation of Public Utilities > 13. Technology and Equipment for Clean Heating (TECH) Initiative


citation: PUC § 930

text: This act shall be known, and may be cited, as the Powering Up Californians Act.

history: (History: Added by Stats. 2023, Ch. 394, Sec. 1. (SB 410) Effective January 1, 2024.)

article: 14.5. Powering Up Californians

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4. Regulation of Public Utilities > 14.5. Powering Up Californians


citation: PUC § 931

text:
For purposes of this article, the following definitions apply:

(a) “Electrification” means any new, expanded, or change in use of electricity related to the policies described in Section 933, including, but not limited to, in the industrial, commercial, agricultural, housing, or transportation sectors.

(b) “Energization” and “energize” mean connecting customers to the electrical distribution grid and establishing adequate electrical distribution capacity or upgrading electrical distribution or transmission capacity to provide electrical service for a new customer, or to provide upgraded electrical service to an existing customer. The determination of adequate electrical distribution capacity includes consideration of future load. “Energization” and “energize” do not include activities related to connecting electrical supply resources.

(c) “Energization time period” means the elapsed time beginning when the electrical corporation receives a substantially complete energization project application and ending when the electric service is installed and energized.

article: 14.5. Powering Up Californians


citation: PUC § 932

text:
(a) The Legislature finds and declares all of the following:

(1) It is the policy of the state to reach carbon neutrality no later than 2045 and to maintain net negative emissions of greenhouse gases after 2045. To meet these goals and federal, state, regional, and local air quality and decarbonization standards, plans, and regulations, projections from the commission and the Energy Commission show the need for a large increase in both the quantity of electricity used and the functions for which electricity will be used.

(2) To meet these decarbonization goals and federal, state, regional, and local air quality and decarbonization standards, plans, and regulations, the state’s electrical distribution systems must be substantially upgraded, new customers must promptly connect to the electrical distribution system, and existing customers must have their service level promptly upgraded.

(3) There are many reports of large housing developments that are unable to be promptly energized. California has an urgent need to increase its supply of housing, requiring both new electrical distribution capacity and the prompt energization of new housing.

(4) There are many reports of individual customers who are unable to have their electrical service promptly upgraded or energized and charging stations for light-duty, medium-duty, and heavy-duty vehicles and off-road vehicles, vessels, trains, and equipment that are unable to be promptly energized. These delays may inhibit the state’s ability to meet its decarbonization goals and federal, state, regional, and local air quality and decarbonization standards, plans, and regulations.

(5) To improve the speed at which energization and service upgrades are performed, each electrical corporation that distributes electricity must improve its advance planning, engineering, and construction of increased distribution and transmission system capacity.

(6) Paragraph (1) of subdivision (s) of Section 712.8 requires the operator of the Diablo Canyon powerplant to submit annually to the commission for its review the amount of compensation earned under paragraph (5) of subdivision (f) of Section 712.8, how it was spent, and a plan for prioritizing the uses of the compensation the next year. Paragraph (1) of subdivision (s) of Section 712.8 also provides that to the extent that it is not needed for Diablo Canyon, that compensation shall be spent on critical public purpose priorities, one of which is accelerating customer and generator interconnections.

(7) Electrifying transportation and buildings may put downward pressure on rates by spreading fixed costs over more kilowatthours of usage.

(8) Delays in energization, including service upgrades, are costly both to the customers awaiting service and to other customers deprived of the downward pressure on rates.

(9) To carry out the planning, engineering, and construction of electrical distribution systems needed to promptly serve customers, each electrical corporation that distributes electricity must recruit, train, and retain an adequately sized, qualified workforce.

(10) The commission should establish target deadlines for utilities that distribute electricity to energize new customers and upgrade the service of existing customers.

(11) The commission should establish reporting requirements requiring each electrical corporation that distributes electricity to report the extent to which it complied with the target deadlines and the reasons for its noncompliance.

(b) Nothing in paragraph (6) of subdivision (a) changes the requirements of Section 712.8.

article: 14.5. Powering Up Californians


citation: PUC § 933

text:
It is the policy of the state that each electrical corporation does all of the following:

(a) Upgrade the state’s electrical distribution systems as needed and in time to achieve the state’s decarbonization goals and implement federal, state, regional, and local air quality and decarbonization standards, plans, and regulations.

(b) Comply with its obligation to serve, as provided in Section 451, by conducting sufficient advance planning, engineering, and construction of increased distribution system capacity so that customers can be energized without substantial delay.

(c) Promptly energize new customers, including by ensuring that new housing, new businesses, new electric equipment in buildings, and new charging for light-duty, medium-duty, and heavy-duty vehicles and off-road vehicles, vessels, trains, and equipment can be used without delay caused by a failure of the electrical corporation to implement energization projects.

(d) Promptly upgrade service when needed by customers.

(e) Recruit, train, and retain an adequately sized and qualified workforce to carry out the planning, engineering, and construction of electrical distribution systems needed to promptly serve customers seeking energization and service upgrades without sacrificing other necessary activities of the workforce.

article: 14.5. Powering Up Californians


text:
(a) The commission shall determine the criteria for timely service for electric customers to be energized. The criteria shall include, but are not limited to, all of the following:

(1) Categories of timely electric service through energization, including, but not limited to, both of the following:

(A) The timely start of service, and timely fulfillment of requests, for energization, including new service connections and increased load from existing service connections after a customer has submitted a request for new or increased electrical load.

(B) Project types that justify unique or extended energization timelines. These may include, but are not limited to, projects requiring substantial upstream capacity upgrades or substation upgrades, unanticipated engineering or construction work, or projects requiring energization of significant, unanticipated new load.

(2) (A) Establishing annual reporting requirements, while leveraging existing reporting requirements for interconnections of generation and storage wherever possible, for the electrical corporations to report customer energization projects in order to evaluate the electrical corporations fulfillment of timely electric service.

(B) At a minimum, the reporting requirements shall include all of the following:

(i) The average, median, and standard deviation time between receiving an application for energizing the electrical service.

(ii) Explanations for energization time periods that exceed the target maximum for energization projects.

(iii) Constraints and obstacles to each type of energization, including funding limitations, qualified staffing availability, or equipment availability.

(iv) Any other information required by the commission.

(3) Annually convening a public workshop for the electrical corporations to discuss their reports with interested parties and experts in customer energization, including representatives from local governments, and to examine existing workflows and potential improvements to planning, timelines, processes, and customer communication and education, and criteria for determining timely service of energization requests. The workshops shall inform the commission in its determination of the criteria for timely service of energization for electric customers, and any subsequent revisions to established criteria.

(b) (1) In order to demonstrate improvement in energization performance and the resolution of backlogs of customers waiting for electricity, each electrical corporation that energized less than 35 percent of customers with completed applications exceeding 12 months in duration by January 31, 2023, shall submit a report to the commission, on or before December 1, 2024, demonstrating that the electrical corporation has energized 80 percent of customers with applications deemed complete as of January 31, 2023, excluding applications withdrawn, canceled, or with customer-requested energization dates beyond December 1, 2024. The commission may conduct an analysis of current energization status and adjust these thresholds and deadlines.

(2) If an electrical corporation fails to meet the performance metric in paragraph (1), the electrical corporation shall implement actions necessary to meet the performance metric and include a summary of these actions in the report submitted to the commission.

(3) Reports submitted to the commission pursuant to paragraphs (1) and (2) shall meet all of the following requirements:

(A) Be posted online to the commission’s and the electrical corporation’s internet websites.

(B) Include the number of withdrawn applications and aggregated data on the reasons, if any, given by customers for withdrawal.

(C) Include the number of canceled applications and aggregated data on the reasons for which the electrical corporation, or, if applicable, the customer, canceled the request.

(D) Include the number of projects delayed due to factors outside the electrical corporation’s control and aggregated data by factors, including, but not limited to, supply shortages and local permitting delays.

(c) (1) To improve the accuracy of projected demand and facilitate achievement of the goal of timely electric service through energization, each electrical corporation shall evaluate and update, as necessary, its existing distribution planning processes.

(2) To improve the accuracy of projected demand, each electrical corporation shall have annual meetings with interested parties and experts in customer energization, including representatives from local governments and the relevant county staff for each interested county in its service territory, which is presumed to include chief administrative officers, planning directors, public works directors, chief building officials, and economic development officials, to discuss relevant information, which may include, but is not limited to, customer service, existing capacity, planned capacity upgrades, projected local demand, local development plans, significant delays in customer energization in the county, distribution planning, existing workflows, and potential improvements to planning, timelines, processes, and customer communication and education.

(3) To increase the pace and scale of local projects intended to meet state, regional, and local housing and economic development objectives, each electrical corporation shall share relevant information, which may include, but is not limited to, data available through the integrated capacity analysis tool, upon request with local governments about those areas where existing capacity either exists or could be easily added, and where existing capacity is planned to be added, within the distribution system to meet those objectives. Local government employees authorized to request information include chief administrative officers, planning directors, public works directors, chief building officials, economic development officials, and city managers.

(d) (1) In order to inform the commission’s determination of criteria for timely service pursuant to subdivision (a), the commission shall annually collect the following information from each electrical corporation in the form of a report:

(A) The number of submitted requests for energization of new customer connections and upgraded service during the prior year.

(B) The number of completed requests for energization of new customer connections and upgraded service during the prior year.

(C) The number of pending and uncompleted requests for energization of new customer connections and upgraded service at the end of the prior year.

(D) The number of days between requests for energization of new customer connections or upgraded service and final service delivery.

(E) A summary of recorded spending on energization of customer connections and service upgrades compared to the amounts authorized for these activities for that year in the most recent general rate case.

(F) Any other information requested by the commission to evaluate the status of energization of customer connections and service upgrades.

(2) This subdivision shall apply only to energization of customers and does not include interconnection of generation resources to either the distribution or transmission grid.

(3) The reporting requirement in this subdivision shall become inoperative once the commission establishes new reporting requirements for monitoring timely electric service pursuant to paragraph (2) of subdivision (a).

(e) The commission may modify or adjust the requirements of this section for any electrical corporation with fewer than 100,000 service connections, as individual circumstances merit.

(f) This section shall not apply to an electrical cooperative, as defined in Section 2776.

(g) For purposes of this section, “energization” and “energize” mean connecting customers to the electrical distribution grid and establishing adequate electrical distribution capacity or upgrading electrical distribution or transmission capacity to provide electrical service for a new customer, or to provide upgraded electrical service to an existing customer. The determination of adequate electrical distribution capacity includes consideration of future load. “Energization” and “energize” do not include activities related to connecting electrical supply resources.

history: (History: Added by Stats. 2023, Ch. 317, Sec. 1. (AB 50) Effective January 1, 2024.)

article: 14.5. Powering Up Californians


citation: PUC § 934

text:
(a) On or before September 30, 2024, the commission shall do both of the following:

(1) Establish reasonable average and maximum target energization time periods. The targets shall ensure that work is completed in a manner that minimizes delay in meeting the date requested by the customer to the greatest extent possible and prioritizes work in a manner consistent with Sections 932 and 933. The targets may vary depending on the complexity and magnitude of the work required and uncertainties regarding the readiness of the customer project needing energization. The targets may also recognize any factors beyond the electrical corporation’s control.

(2) Establish a procedure for customers to report energization delays to the commission.

(b) If energization time periods exceed the commission’s target averages or if an electrical corporation has a substantial number of energization projects that exceed the commission’s target maximums, the electrical corporation shall include in its annual report a strategy for meeting the targets in the future. The commission may request modification of the electrical corporation’s strategy to ensure the electrical corporation meets targets promptly and consistent with the policies set forth in Section 933.

(c) Each electrical corporation shall report anonymized or averaged data to the extent necessary to prevent identifying individual customers. The commission shall require all reports to be publicly available.

(d) The commission shall require an electrical corporation to take remedial actions necessary to achieve the targets established pursuant to paragraph (1) of subdivision (a).

(e) The commission shall periodically update the energization time periods established in paragraph (1) of subdivision (a) and the electrical corporation’s annual reporting requirements to reflect changed circumstances, new information, and experience.

(f) The commission shall evaluate and report to the Legislature, in compliance with Section 9795 of the Government Code, on or before January 1, 2027, whether to require an electrical corporation to have an executive incentive compensation structure that includes incentive compensation based on meeting the targets adopted in paragraph (1) of subdivision (a) for all executive officers.

(g) On or before January 1, 2027, the commission shall establish an enforcement policy for the targets adopted in paragraph (1) of subdivision (a) that include penalties for not complying with the remedial actions required pursuant to subdivision (d).

history: (History: Amended by Stats. 2025, Ch. 119, Sec. 36. (SB 254) Effective September 19, 2025.)

article: 14.5. Powering Up Californians


citation: PUC § 935

text:
(a) As part of each annual report, including any updates pursuant to subdivision (e) of Section 934, and in each general rate case application, each electrical corporation shall include a detailed analysis of its current qualified staffing level and future required qualified staffing level for each job classification needed to be consistent with the findings and achieve the policies and requirements of this article.

(b) The commission shall require each electrical corporation to have adequate qualified staffing needed to be consistent with the findings and achieve the policies and requirements of this article.

(c) For job classifications that have apprentice training requirements, the commission shall require each electrical corporation to maintain a pipeline of apprentices sufficient to meet future qualified staffing needs, subject to any limitations based on safe staffing ratios.

article: 14.5. Powering Up Californians


citation: PUC § 936

text:
(a) In addition to the requirements of Section 740.21, the commission shall require an electrical corporation to do both of the following:

(1) Consider, in its annual distribution planning process, all of the following:

(A) Federal, state, regional, and local air quality and decarbonization standards, plans, and regulations.

(B) The transportation and building electrification policies of state law.

(C) State agency, local agency, and local government plans and requirements related to housing, economic development, critical facilities, transportation, and building electrification.

(D) Known load, and projections of load provided by the Energy Commission.

(E) Projections of load that exceed forecasts provided by the Energy Commission.

(2) Adopt and implement plans to satisfy the policies set forth in Section 933, to support achieving the requirements listed in subparagraphs (A) to (C), inclusive, of paragraph (1), and to meet the energization time periods established pursuant to paragraph (1) of subdivision (a) of Section 934, including any updates pursuant to subdivision (e) of Section 934.

(b) For purposes of subparagraph (E) of paragraph (1) of subdivision (a), an electrical corporation may only use a projection of load that exceeds forecasts provided by the Energy Commission if the electrical corporation provides to the commission detailed information on how the forecasts are developed and what state or local policies or customer requests necessitated the alternative forecast.

article: 14.5. Powering Up Californians


citation: PUC § 937

text:
(a) The commission shall ensure that each electrical corporation has sufficient and timely recovery of costs to be consistent with the findings and achieve the policies and requirements of this article, including for energization projects.

(b) If requested by the electrical corporation, the commission shall authorize, within 180 days of the request, the use of a ratemaking mechanism that does all of the following:

(1) Authorizes the electrical corporation to track costs for energization projects placed in service after January 1, 2024, that exceed the costs included in the electrical corporation’s annual authorized revenue requirement for energization, as established in the electrical corporation’s general rate case or any other proceeding.

(2) Requires the commission to establish an up-front annual cap on the amount that each electrical corporation can recover within the mechanism. Before establishing the cap, the commission shall review all information submitted by the electrical corporation pursuant to subdivision (c).

(3) Requires the commission to authorize the recovery of costs tracked within the mechanism through an annual rate adjustment until it determines whether the costs are just and reasonable in the electrical corporation’s next general rate case. The commission shall require the electrical corporation to include in its next general rate case application a demonstration that the costs incurred were just and reasonable. Any costs that the commission finds were not just and reasonable shall be subject to refund.

(4) Requires only costs associated with energization to be included in the mechanism and requires costs to be tracked using the same cost categories as used by the electrical corporation in its general rate case application.

(5) Prevents the electrical corporation from recovering any costs through the mechanism in any year until its recorded spending for energization projects exceeds its annualized revenue requirements for energization projects as established in the electrical corporation’s general rate case.

(c) An electrical corporation, as part of its request for a ratemaking mechanism pursuant to subdivision (b), shall include in its request all of the following:

(1) A detailed summary of energization costs authorized in its current general rate case or any other proceeding.

(2) Requested energization costs in its pending general rate case, if it has a pending case.

(3) Costs authorized for other purposes in its current general rate case or any other proceeding but used for energization.

(4) The number of anticipated energization projects per year that are expected to be started or completed.

(5) If the electrical corporation is an operator, as defined in Section 25548.1 of the Public Resources Code, the amount of the compensation identified in paragraph (1) of subdivision (s) of Section 712.8 that it has forecasted it will spend on energization.

(d) The commission shall ensure that each electrical corporation improves upon energization planning, consistent with the requirements of Section 936, when requesting an authorized revenue requirement during the electrical corporation’s general rate case, in order to minimize the need for any ratemaking mechanism authorized pursuant to this section.

(e) This section shall be repealed on January 1, 2027.

history: (History: Added by Stats. 2023, Ch. 394, Sec. 1. (SB 410) Effective January 1, 2024. Repealed as of January 1, 2027, by its own provisions.)

article: 14.5. Powering Up Californians


citation: PUC § 938

text:
(a) The commission shall require an electrical corporation that requests the use of a ratemaking mechanism, pursuant to Section 937, as a condition of authorizing the use of the mechanism, to satisfy all of the following requirements:

(1) The electrical corporation shall agree to retain an independent third-party auditor, which shall be selected by the commission based on nonbinding recommendations from the electrical corporation, to review the electrical corporation’s business practices and procedures for energizing new customers and how the electrical corporation is planning for demand growth, including new customer energizations.

(2) The electrical corporation shall not recover the costs of the third-party auditor from ratepayers.

(3) The third-party auditor shall review all of the following:

(A) The electrical corporation’s customer energization requests for the previous three years.

(B) The electrical corporation’s projections of customer demand growth included in the electrical corporation’s distribution plan, including growth in new customers and growth in demand from existing customers.

(C) The electrical corporation’s qualified staffing levels and future anticipated staffing needs to meet projections for customer demand growth, including the ability of the electrical corporation to sufficiently build its workforce.

(D) Funding requested by the electrical corporation to support energization requests for the previous three years in the general rate case or any other proceeding, and the efficacy of those previous requests in meeting customer demand.

(E) Commission authorized funding for the electrical corporation to support energization for the previous three years, future authorized funding, and authorized changes to the electrical corporation’s business practices or structures to improve its ability to respond to changing customer demand.

(F) The electrical corporation’s performance in meeting energization time periods established by the commission pursuant to this article.

(G) The electrical corporation’s performance in meeting its internally established energization time periods over the prior 10 years or longer, as necessary.

(H) Any other metrics deemed relevant by the commission or third-party auditor to support a thorough evaluation of the electrical corporation’s energization performance, including to identify and correct past flaws and to identify future best practices.

(4) The third-party auditor shall evaluate the electrical corporation’s current and future energization performance and make recommendations as to whether the electrical corporation is adequately meeting and anticipating customer demand, adequately training and retaining an adequate workforce, and is funded at sufficient levels to meet forecasted demand growth.

(5) The third-party auditor shall report to the commission on a biannual basis. The reports of the auditor shall be posted on the commission’s internet website and reported to the appropriate policy committees of the Legislature.

(b) The electrical corporation shall retain an independent third-party auditor as provided in paragraph (1) of subdivision (a) before the commission authorizes use of the ratemaking mechanism pursuant to Section 937. The work of the auditor described in paragraphs (3), (4), and (5) of subdivision (a) may occur after the electrical corporation requests authorization for the ratemaking mechanism but shall occur before July 1, 2028. The commission’s 180-day deadline for authorizing the mechanism provided in paragraph (b) of Section 937 shall not be affected by whether the auditor has completed the work described in paragraphs (3), (4), and (5) of subdivision (a).

(c) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

history: (History: Added by Stats. 2023, Ch. 394, Sec. 1. (SB 410) Effective January 1, 2024. Inoperative July 1, 2028, by its own provisions. Repealed as of January 1, 2029, by its own provisions.)

article: 14.5. Powering Up Californians


citation: PUC § 939

text: The commission may modify or adjust the requirements of this article for any electrical corporation with fewer than 100,000 service connections, as individual circumstances merit.

article: 14.5. Powering Up Californians


text: This article shall not apply to an electrical cooperative, as defined in Section 2776.

article: 14.5. Powering Up Californians


citation: PUC § 940

text:
(a) The commission shall require each electrical corporation to retain an independent third-party auditor, which shall be selected by the commission based on nonbinding recommendations from the electrical corporation, to review the electrical corporation’s business practices and procedures for energizing new customers and how the electrical corporation is planning for demand growth, including new customer energizations.

(b) The third-party auditor shall review all of the following:

(1) The electrical corporation’s customer energization requests for the previous three years.

(2) The electrical corporation’s projections of customer demand growth included in the electrical corporation’s distribution plan, including growth in new customers and growth in demand from existing customers.

(3) The electrical corporation’s qualified staffing levels and future anticipated staffing needs to meet projections for customer demand growth, including the ability of the electrical corporation to sufficiently build its workforce.

(4) Funding requested by the electrical corporation to support energization requests for the previous three years in the general rate case or any other proceeding, and the efficacy of those previous requests in meeting customer demand.

(5) Commission authorized funding for the electrical corporation to support energization for the previous three years, future authorized funding, and authorized changes to the electrical corporation’s business practices or structures to improve its ability to respond to changing customer demand.

(6) The electrical corporation’s performance in meeting the reasonable average and maximum target energization time periods pursuant Section 934.

(7) Any other metrics deemed relevant by the commission or third-party auditor to support a thorough evaluation of the electrical corporation’s energization performance, including to identify and correct past flaws and to identify future best practices.

(c) The third-party auditor shall evaluate the electrical corporation’s current and future energization performance and make recommendations as to whether the electrical corporation is adequately meeting and anticipating customer demand, adequately training and retaining an adequate workforce, and is funded at sufficient levels to meet forecasted demand growth.

(d) The third-party auditor shall report to the commission on a biannual basis. The reports of the auditor shall be posted on the commission’s internet website and reported to the appropriate policy committees of the Legislature.

(e) The commission may require an electrical corporation to take remedial actions necessary to address deficiencies identified in the report provided by the third-party auditor pursuant to subdivision (d), or to achieve the targets established pursuant to paragraph (1) of subdivision (a) of Section 934.

(f) For purposes of this section, “energization” means connecting customers to the electrical distribution grid and establishing adequate electrical distribution capacity or upgrading electrical distribution or transmission capacity to provide electrical service for a new customer, or to provide upgraded electrical service to an existing customer. The determination of adequate electrical distribution capacity includes consideration of future load. “Energization” does not include activities related to connecting electrical supply resources.

(g) This section shall remain in effect only until January 1, 2032, and as of that date is repealed.

history: (History: Added by Stats. 2025, Ch. 119, Sec. 37. (SB 254) Effective September 19, 2025. Repealed as of January 1, 2032, by its own provisions.)

article: 14.5. Powering Up Californians


citation: PUC § 950

text:
For purposes of this chapter, the following terms have the following meanings:

(a) “Commission-regulated gas pipeline facility” means an intrastate gas pipeline facility as defined in Section 60101 of Title 49 of the United States Code, that is subject to the safety regulatory authority of the commission to the extent authorized in the certification submitted by the commission and approved by the United States Secretary of Transportation pursuant to Section 60105 of Title 49 of the United States Code, including each of the following pipelines:

(1) An intrastate distribution line, which is a pipeline that is not subject to the jurisdiction of the Federal Energy Regulatory Commission pursuant to Section 717(b) of Title 15 of the United States Code because it is used for the local distribution of natural gas.

(2) An intrastate transmission line, which is a transmission pipeline that the commission, pursuant to Section 717(c) of Title 15 of the United States Code, has certified to the Federal Energy Regulatory Commission as being subject to the regulatory jurisdiction of the commission over rates and service. For these purposes, a transmission pipeline means a pipeline other than a gathering line that: (A) transports gas from a gathering line or storage facility to a distribution center, storage facility, or large volume customer that is not downstream from a distribution center, (B) operates at a hoop stress of 20 percent or more of specified minimum yield strength, or (C) transports gas within a storage field.

(3) An intrastate gathering line, which is a pipeline that transports gas from a current production facility to a transmission line or main.

(4) A mobilehome park master-metered natural gas distribution system that is subject to the commission’s safety inspection and enforcement program pursuant to Chapter 4 (commencing with Section 4351) of Division 2.

(5) A propane distribution system that is subject to the commission’s safety inspection and enforcement program pursuant to Chapter 4.1 (commencing with Section 4451) of Division 2.

(b) “Compatible emergency response standards” means emergency response standards that are applicable to intrastate transmission and distribution lines that are in addition to, or more stringent than, the minimum safety standards adopted by the United States Department of Transportation pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code and that the commission is authorized to adopt pursuant to Section 60104(c) of that chapter.

(c) “High consequence area” has the same meaning as defined in the regulations adopted by the United States Department of Transportation pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code (49 C.F.R. 192.903, as adopted January 1, 2011, or a successor regulation).

history: (History: Added by Stats. 2011, Ch. 520, Sec. 1. (SB 44) Effective January 1, 2012.)

chapter: 4.5. Gas Pipeline Safety

article: 1. General

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4.5. Gas Pipeline Safety > 1. General


text: This chapter shall not apply to gas pipeline facilities owned and operated by a local publicly owned utility.

article: 1. General


citation: PUC § 955

text:
(a) This article shall be known and may be cited as the Natural Gas Pipeline Safety Act of 2011.

(b) The commission is the state authority responsible for regulating and enforcing intrastate gas pipeline transportation and pipeline facilities pursuant to Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code, including the development, submission, and administration of a state pipeline safety program certification for natural gas pipelines pursuant to Section 60105 of that chapter.

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4.5. Gas Pipeline Safety > 2. Natural Gas Pipeline Safety Act of 2011


text:
(a) For purposes of this section, the following terms have the following meanings:

(1) “Gas pipeline” means an intrastate distribution line as described in paragraph (1) of, or an intrastate transmission line as described in paragraph (2) of subdivision (a) of Section 950.

(2) “Hospital” means a licensed general acute care hospital as defined in subdivision (a) of Section 1250 of the Health and Safety Code.

(3) “School” means a public or private preschool, elementary, or secondary school.

(b) A gas corporation shall provide not less than three working days’ notice to the administration of a school or hospital prior to undertaking nonemergency excavation or construction of a gas pipeline, excluding any work that only uses hand tools, pneumatic hand tools, or vacuum technology for the purpose of marking and locating a subsurface installation pursuant to Article 2 (commencing with Section 4216) of Chapter 3.1 of Division 5 of Title 1 of the Government Code, if the work is located within 500 feet of the school or hospital. The notification shall include all of the following:

(1) The name, address, telephone number, and emergency contact information for the gas corporation.

(2) The specific location of the gas pipeline where the excavation or construction will be performed.

(3) The date and time the excavation or construction is to be conducted and when the work is expected to be completed.

(4) An invitation and a telephone number to call for further information on what the school or hospital should do in the event of a leak.

(c) The gas corporation shall maintain a record of the date and time of any notification provided to the administration of a school or hospital prior to undertaking nonemergency excavation or construction of a gas pipeline and any subsequent contacts with the administration of a school or hospital relative to the excavation or construction and the actions taken, if any, in response to those subsequent contacts. The gas corporation shall maintain these records and make them available for inspection for no less than five years from the date of the notification.

history: (History: Amended by Stats. 2017, Ch. 561, Sec. 215. (AB 1516) Effective January 1, 2018.)

article: 2. Natural Gas Pipeline Safety Act of 2011


citation: PUC § 956

text:
(a) On or before July 1, 2012, the commission shall open an appropriate proceeding or expand the scope of an existing proceeding to establish compatible emergency response standards that owners or operators of commission-regulated gas pipeline facilities shall be required to follow for intrastate transmission and distribution lines. The commission shall establish the standards to ensure that intrastate transmission and distribution lines have emergency response plans that adequately prepare them for a natural disaster or malfunction that could cause injury to human life or property, with the purpose of minimizing the occurrence of both.

(b) The commission shall establish the compatible emergency response standards in consultation with the California Emergency Management Agency, the State Fire Marshal, and members of California’s first responder community including, but not limited to, members of the California Fire Chiefs Association.

(c) The compatible emergency response standards shall require owners or operators of intrastate transmission and distribution lines to implement emergency response plans that are compatible with the United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration’s regulations concerning emergency plans contained in Section 192.615 of Title 49 of the Code of Federal Regulations, and those plans shall include, but not be limited to, all of the following requirements:

(1) Emergency shutdown and pressure reduction shall be utilized whenever deemed necessary and appropriate by the owners or operators to minimize hazards to life or property. An owner or operator shall notify appropriate first responders of emergency shutdown and pressure reduction.

(2) During an emergency response effort, the incident commander may direct coordination between first responders and owners or operators to ensure timely and ongoing communication on decisions for emergency shutdown and pressure reduction.

(3) Owners or operators of intrastate transmission and distribution lines shall establish and maintain liaison with appropriate fire, police, and other public officials to do all of the following:

(A) Learn the responsibility and resources of each government organization that may respond to a gas pipeline emergency, including, but not limited to, the role of the incident commander in an emergency.

(B) Acquaint the officials with the owner’s or operator’s ability in responding to a gas pipeline emergency.

(C) Identify the types of gas pipeline emergencies of which the owner or operator notifies the officials.

(D) Plan how the owner or operator and officials can engage in mutual assistance to minimize hazards to life or property.

(E) Identify and update information on individual personnel responsible for the liaison with the appropriate first responder organizations.

(4) Owners and operators of intrastate transmission lines shall provide the State Fire Marshal and the chief fire official of the applicable city, county, city and county, or fire protection district with instructions on how to access and utilize the National Pipeline Mapping System developed by the United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration, utilizing data submitted pursuant to Section 60132 of Title 49 of the United States Code, to improve local response capabilities for pipeline emergencies.

history: (History: Amended by Stats. 2016, Ch. 842, Sec. 39. (SB 1222) Effective January 1, 2017.)


text: Owners and operators of intrastate transmission and distribution lines, at least once each calendar year, shall meet with each local fire department having fire suppression responsibilities in the area where those lines are located to discuss and review contingency plans for emergencies involving the intrastate transmission and distribution lines within the jurisdiction of the local fire department.

history: (History: Added by Stats. 2011, Ch. 519, Sec. 1. (AB 56) Effective January 1, 2012.)


citation: PUC § 957

text:
(a) (1) Unless the commission determines that it is prohibited from doing so by subdivision (c) of Section 60104 of Title 49 of the United States Code, the commission shall require the installation of automatic shutoff or remote controlled sectionalized block valves on both of the following facilities, if it determines those valves are necessary for the protection of the public:

(A) Intrastate transmission lines that are located in a high consequence area.

(B) Intrastate transmission lines that traverse an active seismic earthquake fault.

(2) Each owner or operator of a commission-regulated gas pipeline facility that is an intrastate transmission line shall provide the commission with a valve location plan, along with any recommendations for valve locations. The commission may make modifications to the valve location plan or provide for variations from any location requirements adopted by the commission pursuant to this section that it deems necessary or appropriate and consistent with protection of the public.

(3) The commission shall additionally establish action timelines, adopt standards for how to prioritize installation of automatic shutoff or remote controlled sectionalized block valves pursuant to paragraph (1), ensure that remote and automatic shutoff valves are installed as quickly as is reasonably possible, and establish ongoing procedures for monitoring progress in achieving the requirements of this section.

(b) The commission shall authorize recovery in rates for all reasonably incurred costs incurred for implementation of the requirements of this section.

(c) The commission, in consultation with the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation, shall adopt and enforce compatible safety standards for commission-regulated gas pipeline facilities that the commission determines should be adopted to implement the requirements of this section.

history: (History: Added by Stats. 2011, Ch. 521, Sec. 1. (SB 216) Effective January 1, 2012.)


citation: PUC § 958

text:
(a) Each gas corporation shall prepare and submit to the commission a proposed comprehensive pressure testing implementation plan for all intrastate transmission lines to either pressure test those lines or to replace all segments of intrastate transmission lines that were not pressure tested or that lack sufficient details related to performance of pressure testing. The comprehensive pressure testing implementation plan shall provide for testing or replacing all intrastate transmission lines as soon as practicable. The comprehensive pressure testing implementation plan shall set forth criteria on which pipeline segments were identified for replacement instead of pressure testing.

(b) The comprehensive pressure testing implementation plan shall include a timeline for completion that is as soon as practicable, and includes interim safety enhancement measures, including increased patrols and leak surveys, pressure reductions, prioritization of pressure testing for critical pipelines that must run at or near maximum allowable operating pressure values that result in hoop stress levels at or above 30 percent of specified minimum yield stress, and any other measure that the commission determines will enhance public safety during the implementation period. Engineering-based assumptions may be used to determine maximum allowable operating pressure in the absence of complete records, but only as an interim measure until such time as all the lines have been tested or replaced, in order to allow the gas system to continue to operate.

(c) At the completion of the implementation period, all California natural gas intrastate transmission line segments shall meet all of the following:

(1) Have been pressure tested.

(2) Have traceable, verifiable, and complete records readily available.

(3) Where warranted, be capable of accommodating in-line inspection devices.

history: (History: Added by Stats. 2011, Ch. 519, Sec. 3. (AB 56) Effective January 1, 2012.)


text:
(a) Twice a year, or as determined by the commission, each gas corporation shall file with the division of the commission responsible for utility safety a gas transmission and storage safety report. The division of the commission responsible for utility safety shall review the reports to monitor each gas corporation’s storage and pipeline-related activities to assess whether the projects that have been identified as high risk are being carried out, and to track whether the gas corporation is spending its allocated funds on these storage and pipeline-related safety, reliability, and integrity activities for which they have received approval from the commission.

(b) The gas transmission and storage safety report shall include a thorough description and explanation of the strategic planning and decisionmaking approach used to determine and rank the gas storage projects, intrastate transmission line safety, integrity, and reliability, operation and maintenance activities, and inspections of its intrastate transmission lines. If there has been no change in the gas corporation’s approach for determining and ranking which projects and activities are prioritized since the previous gas transmission and storage safety report, the subsequent report may reference the immediately preceding report.

(c) If the division of the commission responsible for utility safety determines that there is a deficiency in a gas corporation’s prioritization or administration of the storage or pipeline capital projects or operation and maintenance activities, the division shall bring the problems to the commission’s immediate attention.

history: (History: Amended by Stats. 2016, Ch. 842, Sec. 40. (SB 1222) Effective January 1, 2017.)


citation: PUC § 959

text: 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, in a cost-effective manner.

history: (History: Amended by Stats. 2018, Ch. 626, Sec. 35. (SB 901) Effective January 1, 2019.)


citation: PUC § 960

text:
(a) When the federal National Transportation Safety Board (NTSB) submits a safety recommendation letter concerning gas pipeline safety to the commission, the commission shall provide the NTSB with a formal written response to each recommendation not later than 90 days after receiving the letter. The response shall state one of the following:

(1) The commission’s intent to implement the recommendations in full, with a proposed timetable for implementation of the recommendations.

(2) The commission’s intent to implement part of the recommendations, with a proposed timetable for implementation of those recommendations, and detailed reasons for the commission’s refusal to implement those recommendations that the commission does not intend to implement.

(3) The commission’s refusal to implement the recommendations, with detailed reasons for the commission’s refusal to implement the recommendations.

(b) If the NTSB issues a safety recommendation letter concerning any commission-regulated gas pipeline facility to the United States Department of Transportation, the federal Pipeline and Hazardous Materials Safety Administration (PHMSA), a gas corporation, or the commission, or the PHMSA issues an advisory bulletin concerning any commission-regulated gas pipeline facility, the commission shall determine if implementation of the recommendation or advisory is appropriate. The basis for the commission’s determination shall be detailed in writing and shall be approved by a majority vote of the commission.

(c) If the commission determines that a safety recommendation made by the NTSB is appropriate or that action concerning an advisory bulletin is necessary, the commission shall issue orders or adopt rules to implement the safety recommendation or advisory as soon as practicable. In implementing the safety recommendation or advisory, the commission shall consider whether a more effective, or equally effective and less costly, alternative exists to address the safety issue that the recommendation or advisory addresses.

history: (History: Amended by Stats. 2015, Ch. 612, Sec. 56. (SB 697) Effective January 1, 2016.)


citation: PUC § 961

text:
(a) For purposes of this section, “gas corporation workforce” means the employees of a gas corporation and employees of an independent contractor of the gas corporation while working under contract with the gas corporation.

(b) (1) Each gas corporation shall develop a plan for the safe and reliable operation of its commission-regulated gas pipeline facility that implements the policy of paragraph (3) of subdivision (b) of Section 963, subject to approval, modification, and adequate funding by the commission.

(2) By December 31, 2012, the commission shall review and accept, modify, or reject the plan for each gas corporation as part of a proceeding that includes a hearing. The commission shall build into any approved plan sufficient flexibility to redirect activities to respond to safety requirements.

(3) Each gas corporation shall implement its approved plan.

(4) The commission shall require each gas corporation to periodically review and update the plan, and the commission shall review and accept, modify, or reject an updated plan at regular intervals thereafter. The commission, pursuant to Section 1701.1, shall determine whether a proceeding on a proposed update to a plan requires a hearing, consistent with subdivision (e).

(c) The plan developed, approved, and implemented pursuant to subdivision (b) shall be consistent with best practices in the gas industry and with federal pipeline safety statutes as set forth in Chapter 601 (commencing with Section 60101) of Subtitle VIII of Title 49 of the United States Code and the regulations adopted by the United States Department of Transportation pursuant to those statutes.

(d) The plan developed, approved, and implemented pursuant to subdivision (b) shall set forth how the gas corporation will implement the policy established in paragraph (3) of subdivision (b) of Section 963 and achieve each of the following:

(1) Identify and minimize hazards and systemic risks in order to minimize accidents, explosions, fires, and dangerous conditions, and protect the public and the gas corporation workforce.

(2) Identify the safety-related systems that will be deployed to minimize hazards, including adequate documentation of the commission-regulated gas pipeline facility history and capability.

(3) Provide adequate storage and transportation capacity to reliably and safely deliver gas to all customers consistent with rules authorized by the commission governing core and noncore reliability and curtailment, including provisions for expansion, replacement, preventive maintenance, and reactive maintenance and repair of its commission-regulated gas pipeline facility.

(4) Provide for effective patrol and inspection of the commission-regulated gas pipeline facility to detect leaks and other compromised facility conditions and to effect timely repairs.

(5) Provide for appropriate and effective system controls, with respect to both equipment and personnel procedures, to limit the damage from accidents, explosions, fires, and dangerous conditions.

(6) Provide timely response to customer and employee reports of leaks and other hazardous conditions and emergency events, including disconnection, reconnection, and pilot-lighting procedures.

(7) Include appropriate protocols for determining maximum allowable operating pressures on relevant pipeline segments, including all necessary documentation affecting the calculation of maximum allowable operating pressures.

(8) Prepare for, or minimize damage from, and respond to, earthquakes and other major events.

(9) Meet or exceed the minimum standards for safe design, construction, installation, operation, and maintenance of gas transmission and distribution facilities prescribed by regulations issued by the United States Department of Transportation in Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations.

(10) Ensure an adequately sized, qualified, and properly trained gas corporation workforce to carry out the plan.

(11) Any additional matter that the commission determines should be included in the plan.

(e) The commission and gas corporation shall provide opportunities for meaningful, substantial, and ongoing participation by the gas corporation workforce in the development and implementation of the plan, with the objective of developing an industrywide culture of safety that will minimize accidents, explosions, fires, and dangerous conditions for the protection of the public and the gas corporation workforce.

(f) Nothing in this section limits the obligation of a gas corporation to provide adequate service and facilities for the convenience of the public and its employees pursuant to Section 451 or the authority of the commission to enforce that obligation under state law.

history: (History: Added by Stats. 2011, Ch. 522, Sec. 1. (SB 705) Effective January 1, 2012.)


citation: PUC § 963

text:
(a) For purposes of this section, the following terms have the following meanings:

(1) “After-meter services” includes, but is not limited to, leak investigation, inspecting customer piping and appliances, carbon monoxide investigation, pilot relighting, and high bill investigation.

(2) “Basic gas service” includes transmission, storage for reliability of service, and distribution of natural gas, purchasing natural gas on behalf of a customer, revenue cycle services, and after-meter services.

(3) “Metering services” includes, but is not limited to, gas meter installation, meter maintenance, meter testing, collecting and processing consumption data, and all related services associated with the meter.

(4) “Revenue cycle services” means metering services, billing the customer, collection, and related customer services.

(b) The Legislature finds and declares all of the following:

(1) In order to ensure that all core customers of a gas corporation continue to receive safe basic gas service, each existing gas corporation shall continue to provide this essential service.

(2) A customer shall not be required to pay separate fees for utilizing services that protect public or customer safety.

(3) It is the policy of the state that the commission and each gas corporation place safety of the public and gas corporation employees as the top priority. The commission shall take all reasonable and appropriate actions necessary to carry out the safety priority policy of this paragraph consistent with the principle of just and reasonable cost-based rates.

(c) (1) The commission shall require each gas corporation to provide bundled basic gas service to all core customers in its service territory unless the customer chooses or contracts to have natural gas purchased and supplied by another entity.

(2) A gas corporation shall continue to be the exclusive provider of revenue cycle services to all customers in its service territory, except that an entity purchasing and supplying natural gas under the commission’s existing core aggregation program may perform billing and collection services for its customers under the same terms as currently authorized by the commission, and except that a supplier of natural gas to noncore customers may perform billing and collection for natural gas supply for its customers.

(3) The gas corporation shall continue to calculate its charges for services provided by that corporation. If the commission establishes credits to be provided by the gas corporation to core aggregation or noncore customers who obtain billing or collection services from entities other than the gas corporation, the credit shall be equal to the billing and collection services costs actually avoided by the gas corporation.

(4) The commission shall require the distribution rate to continue to include after-meter services and shall authorize sufficient revenues and employee staffing to provide for prompt provision of these services to the public, consistent with the policy developed and implemented by the gas corporation and approved by the commission pursuant to Section 961.

history: (History: Added by Stats. 2011, Ch. 522, Sec. 2. (SB 705) Effective January 1, 2012.)


citation: PUC § 969

text: In any ratemaking proceeding in which the commission authorizes a gas corporation to recover expenses for the gas corporation’s transmission pipeline integrity management program established pursuant to Subpart O (commencing with Section 192.901) of Part 192 of Title 49 of the United States Code or related capital expenditures for the maintenance and repair of transmission pipelines, the commission shall require the gas corporation to establish and maintain a balancing account for the recovery of those expenses. Any unspent moneys in the balancing account in the form of an accumulated account balance at the end of each rate case cycle, plus interest, shall be returned to ratepayers through a true-up filing. Nothing in this section is intended to interfere with the commission’s discretion to establish a two-way balancing account.

history: (History: Added by Stats. 2011, Ch. 523, Sec. 1. (SB 879) Effective January 1, 2012.)


citation: PUC § 970

text:
(a) The commission shall perform an analysis of benchmark data and adopt safety performance metrics for pipeline safety.

(b) The commission shall consider the following principles when adopting safety performance metrics:

(1) Each safety performance metric shall be designed to be an indicator of safety performance.

(2) Each safety performance metric shall be designed so that it may be reevaluated within a useful timeframe.

(3) Each safety performance metric shall be designed so that the data inputs to the metric are verifiable.

(4) The adopted set of safety performance metrics shall be robust enough to serve as a useful indicator of pipeline safety.

(c) The commission shall evaluate a gas corporation’s safety performance using the safety performance metrics adopted pursuant to subdivision (a) and may implement a rate incentive program. The rate incentive program may contain penalties based on safety performance.

history: (History: Added by Stats. 2012, Ch. 469, Sec. 2. (AB 1456) Effective January 1, 2013.)


citation: PUC § 972

text:
(a) A penalty assessed against a gas corporation pursuant to this part in regards to a natural gas storage facility leak shall at least equal the amount necessary to reduce the impact on the climate from greenhouse gases by an amount equivalent to the impact on the climate from the greenhouse gases emitted by the leak from the natural gas storage facility, as determined by the State Air Resources Board. In determining the amount necessary to fully offset the impact on the climate from the gases emitted by the leak, the commission shall consider the extent to which the gas corporation has mitigated, or is in the process of mitigating, the impact on the climate from greenhouse gas emissions resulting from the leak.

(b) This section shall not affect or be interpreted to affect the authority of the State Air Resources Board to adopt rules and regulations to reduce greenhouse gas emissions at natural gas storage facilities or to require mitigation of natural gas leaks from those facilities.

history: (History: Amended by Stats. 2017, Ch. 814, Sec. 1. (SB 801) Effective January 1, 2018.)


citation: PUC § 975

text:
(a) For purposes of this chapter, “commission-regulated gas pipeline facility” has the same meaning as defined in Section 950.

(b) With priority given to safety, reliability, and affordability of service, the commission shall adopt rules and procedures governing the operation, maintenance, repair, and replacement of those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines, as described in paragraphs (1) and (2) of subdivision (a) of Section 950, to achieve both of the following:

(1) Minimize leaks as a hazard to be mitigated pursuant to paragraph (1) of subdivision (d) of Section 961, consistent with the requirements of Section 192.703(c) of Subpart M of Title 49 of the Code of Federal Regulations, the commission’s General Order 112-E, and their successors.

(2) While giving due consideration to the cost considerations of Section 977, reduce emissions of natural gas from those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines to the maximum extent feasible in order to advance the state’s goals in reducing emissions of greenhouse gases pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).

(c) As soon as practicable, the commission shall require gas corporations to file a report that includes, but is not limited to, all of the following:

(1) A summary of utility leak management practices.

(2) A list of new methane leaks in 2013 by grade.

(3) A list of open leaks that are being monitored or are scheduled to be repaired.

(4) A best estimate of gas loss due to leaks.

(d) Not later than January 15, 2015, the commission, in consultation with the State Air Resources Board, shall commence a proceeding to adopt rules and procedures for those commission-regulated pipeline facilities that are intrastate transmission and distribution lines, as respectively described in paragraphs (1) and (2) of subdivision (a) of Section 950, to achieve the goals of subdivision (b).

(e) The rules and procedures adopted pursuant to subdivision (d) shall accomplish all of the following:

(1) Provide for the maximum technologically feasible and cost-effective avoidance, reduction, and repair of leaks and leaking components in those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines within a reasonable time after discovery, consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) to achieve the goals in subdivision (b).

(2) Provide for the repair of leaks as soon as reasonably possible after discovery, consistent with established safety requirements and the goals of reducing air pollution and the climate change impacts of methane emissions.

(3) Evaluate the operations, maintenance, and repair practices of those commission-regulated gas pipeline facilities that are intrastate transmission and distribution lines to determine whether existing practices are effective at reducing methane leaks and promoting public safety, consistent with Section 961, achieve the goals of subdivision (b), and whether alternative practices may be more effective at achieving the goals of subdivision (b).

(4) Establish and require the use of best practices for leak surveys, patrols, leak survey technology, leak prevention, and leak reduction. The commission shall consider in the development of best practices the quality of materials and equipment. Collected leak data shall remain the property of the utility and shall be available to the commission and parties in commission proceedings as determined by the commission or specified by statute.

(5) Establish protocols and procedures for the development and use of metrics to quantify the volume of emissions from leaking gas pipeline facilities, and for evaluating and tracking leaks geographically and over time, that may be incorporated into the plans required by Section 961, or into other state emissions tracking systems, or both, including the regulations for the reporting of greenhouse gases of the State Air Resources Board. The quantification of emissions shall provide operators, the commission, and the public with accurate information about the number and severity of leaks and about the quantity of natural gas that is emitted into the atmosphere over time.

(6) To the extent feasible, require the owner of each commission-regulated gas pipeline facility that is an intrastate transmission or distribution line to calculate and report to the commission and the State Air Resources Board a baseline systemwide leak rate, along with any data and computer models used in making that calculation, to periodically update that systemwide leak rate calculation, and to annually report on measures that will be taken in the following year to reduce the systemwide leak rate to achieve the goals of subdivision (b).

(f) The rules and procedures, including best practices and repair standards, shall be incorporated into the safety plans required by Section 961 and the applicable general orders adopted by the commission.

(g) Consistent with subdivision (e) of Section 961, the commission shall facilitate robust ongoing participation of the workforce of gas corporations and those state and federal entities that have regulatory roles of relevance in all aspects of the proceeding to ensure that the rules and procedures it adopts are not inconsistent with the regulations and procedures adopted by those agencies. Nothing in this section affects the commission’s authority to determine eligibility for intervenor compensation.

(h) Nothing in this article shall affect or shall be interpreted to affect the existing authority of the State Air Resources Board to adopt rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions and to maintain and continue emission reductions under the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).

history: (History: Added by Stats. 2014, Ch. 525, Sec. 2. (SB 1371) Effective January 1, 2015.)

article: 3. Methane Leakage Abatement

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4.5. Gas Pipeline Safety > 3. Methane Leakage Abatement


citation: PUC § 977

text:
In order to achieve transparency and accountability for rate revenues and best value for ratepayers, and consistent with the commission’s existing ratemaking procedures and authority to establish just and reasonable rates, the commission shall consider all of the following:

(a) Providing an adequate workforce to achieve the objectives of reducing hazards and emissions from leaks, including leak avoidance, reduction, and repair.

(b) Providing revenues for all activities identified and required pursuant to Section 975, including any adjustment of allowance for lost and unaccounted for gas related to actual leakage volumes.

(c) Providing guidance for treatment of expenditures as being either an item of expense or a capital investment.

(d) The impact on affordability of gas service for vulnerable customers as a result of the incremental costs of compliance with the adopted rules and procedures.

article: 3. Methane Leakage Abatement


citation: PUC § 978

text: Except as expressly so provided, this article does not expand or in any manner alter the commission’s jurisdiction over the regulation of emissions of greenhouse gases.

article: 3. Methane Leakage Abatement


citation: PUC § 980

text:
As used in this chapter, the following terms mean the following:

(a) “Core gas customer” has the same meaning as that specified in the tariff of the gas corporation whose territory the customer in question lies within. A core small commercial customer account that is associated with and part of the same business operation as a noncore large commercial customer account is not a “core gas customer” for purposes of this chapter.

(b) “Core transport agent” means an entity that offers core gas procurement service to customers within the service territory of a gas corporation, but does not include a gas corporation, and does not include a public agency that offers gas service to core and noncore gas customers within its jurisdiction, or within the service territory of a local publicly owned gas utility. “Core transport agent” includes the unregulated affiliates and subsidiaries of a gas corporation.

(c) “Gas corporation” has the same meaning as that set forth in Section 222.

history: (History: Added by Stats. 2013, Ch. 604, Sec. 4. (SB 656) Effective January 1, 2014.)

chapter: 4.7. Core Transport Agent

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4.7. Core Transport Agent


citation: PUC § 981

text:
(a) A core transport agent shall register with the commission within 90 days after the commission has adopted standards for financial viability, and technical and operational capacity. As a precondition to registration, the core transport agent shall provide, under oath, declaration, or affidavit, all of the following to the commission:

(1) Legal name and any other names under which the core transport agent is doing business in California.

(2) Current telephone number.

(3) Current address.

(4) Agent for service of process.

(5) State and date of incorporation, if any.

(6) Number for a customer contact representative, or other personnel for receiving customer inquiries.

(7) Brief description of the nature of the service being provided.

(8) Disclosure of any civil, criminal, or regulatory sanctions or penalties imposed within the 10 years immediately prior to registration, against the company or any owner, partner, officer, or director of the company pursuant to any state or federal consumer protection law or regulation, and of any felony convictions of any kind against the company or any owner, partner, officer, or director of the company. In addition, a core transport agent shall furnish the commission with fingerprints for those owners, partners, officers, and managers of the core transport agent specified by any commission decision applicable to all core transport agents. The commission shall submit completed fingerprint cards to the Department of Justice. Those fingerprints shall be available for use by the Department of Justice and the Department of Justice may transmit the fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The commission may use information obtained from a national criminal history record check conducted pursuant to this section to determine a core transport agent’s eligibility for registration.

(9) Proof of financial viability. The commission shall develop uniform standards for determining financial viability and shall publish those standards for public comment no later than June 30, 2014. In determining the financial viability of the core transport agent, the commission shall take into account the number of customers the potential registrant expects to serve, the number of therms of gas it expects to provide, and any other appropriate criteria to ensure that core gas customers have adequate recourse in the event of fraud or nonperformance.

(10) Proof of technical and operational ability. The commission shall develop uniform standards for determining technical and operational capacity and shall publish those standards for public comment no later than June 30, 2014.

(11) A statement stating the following: “Neither the applicant, any of its affiliates, officers, directors, partners, agents, or owners (directly or indirectly) with more than 10 percent interest in the applicant, or anyone acting in a management capacity for applicant has: (A) held one of those positions with a company that filed for bankruptcy, (B) been personally found liable, or held one of those positions with a company that has been found liable, for fraud, dishonesty, failure to disclose, or misrepresentations to consumers or others, (C) been convicted of a felony, (D) been (to his or her knowledge) the subject of a criminal referral by a judge or public agency, (E) had a license of operating authority denied, suspended, revoked, or limited in any jurisdiction, (F) personally entered into a settlement, or held one of those positions with a company that has entered into settlement, of criminal or civil claims involving violations of Chapter 4 (commencing with Section 17000) of Part 2 of, or Part 3 (commencing with Section 17500) of Division 7 of, the Business and Professions Code or of any other statute, regulation, or decisional law relating to fraud, dishonesty, failure to disclosure, or misrepresentations to consumers or others, (G) been found to have violated any statute, law, or rule pertaining to public utilities or other regulated industries, or (H) entered into any settlements or agreements, made any voluntary payments, or agreed to any other type of monetary forfeitures in resolution of any action by any regulatory body, agency, or attorney general.” (b) Before reentering the market, a core transport agent whose registration has been revoked shall file a formal application with the commission that satisfies the requirements set forth in Section 982 and demonstrates the fitness and ability of the core transport agent to comply with all applicable rules of the commission.

(c) Registration with the commission is an exercise of the licensing function of the commission, and does not constitute regulation of the rates or terms and conditions of service offered by core transport agents. This part does not authorize the commission to regulate the rates or terms and conditions of service offered by core transport agents.


citation: PUC § 982

text:
(a) The registration shall be deemed approved and a registration number issued no later than 45 days after the required information has been submitted, unless the commission’s executive director finds, upon review of the information submitted by the core transport agent or available to the commission, that there is evidence to support a finding that the core transport agent has committed an act constituting grounds for denial of registration as specifically set forth in the operative provisions of this chapter, including, but not limited to, subdivision (c).

(b) Upon a finding by the commission’s executive director that there is evidence to support a finding that the core transport agent has committed an act constituting grounds for denial of registration as set forth in this section, the commission shall notify the core transport agent in writing, cause the documents submitted by the core transport agent to be filed as a formal application for registration, and notice an expedited hearing on the registration of the core transport agent to be held within 30 days of the notification to the core transport agent of the executive director’s finding of evidence to support denial of registration. The commission shall, within 45 days after holding the hearing, issue a decision on the registration request which shall be based on the findings of fact and conclusions of law based on the evidence presented at the hearing. The decision shall include the findings of fact and the conclusions of law relied upon.

(c) (1) The commission may deny an application for registration in accordance with subdivision (b) on the grounds that the core transport agent or any officer or director of the core transport agent has one or more of the following:

(A) Been convicted of a crime as described in paragraph (8) of subdivision (a) of Section 981.

(B) Failure to make a sufficient showing with respect to paragraphs (1) to (10), inclusive, of subdivision (a) of Section 981.

(C) Knowingly made a false statement of fact in the application for registration.

(2) The commission may deny registration pursuant to this subdivision only if the crime or act is substantially related to the qualifications, functions, or duties required to provide gas service to end use customers of gas or the false statement is material to the registration application. For purposes of this subdivision, conviction of a crime shall be established in the same manner as that set forth in paragraph (1) of subdivision (a) of Section 480 of the Business and Professions Code.

(d) The commission shall require core transport agents registered under this section to update their registration information set forth in paragraphs (1) to (10), inclusive, of subdivision (a) of Section 981 within 60 days of any material change in the information provided. Material changes to any other information required pursuant to this article shall be updated annually.


citation: PUC § 983

text:
(a) The commission shall accept, compile, and attempt to informally resolve consumer complaints regarding core transport agents. If the commission reasonably suspects a pattern of customer abuses, the commission may, on its own motion, initiate investigations into the activities of a core transport agent offering gas service. Consumer complaints regarding service by a public agency offering gas service within the political boundary of the public agency or service territory of a local publicly owned gas utility shall continue to be resolved by the public agency. Within the service territory of a local publicly owned utility, consumer complaints arising from the violation of core transport service rules adopted by the governing body of the local publicly owned utility shall be resolved through the local publicly owned utility’s consumer complaint procedures.

(b) Notwithstanding other provisions, core gas customers shall have the option to proceed with a complaint against a core transport agent either through an action filed in the judicial court system or through a complaint filed with the commission. A customer who elects either the judicial or commission remedies may not raise the same claim in both forums. The commission shall have the authority to accept, compile, and resolve core gas consumer complaints, including the authority to award reparations. The commission’s authority in these complaint proceedings is limited to adjudication of complaints regarding core gas service provided by a core transport agent and shall not be expanded to include an award of any damages through regulation of the rates or charges of the core transport agent. However, a person or core transport agent that takes a conflict to the commission shall not be precluded from pursuing an appeal of the decision through the courts as provided for by law.

(c) In connection with customer complaints or commission investigations into customer abuses, core transport agents shall provide the commission access to their accounts, books, papers, and documents related to California transactions as described in Sections 313 and 314, if the information is relevant to the complaint or investigation.

(d) A core transport agent shall not discontinue service to a customer for a disputed amount if that customer has filed a complaint that is pending with the commission, and that customer has paid the disputed amount into an escrow account.


text:
(a) (1) The commission may enforce Sections 2102, 2103, 2104, 2105, 2107, 2108, and 2114 against a core transport agent as if the core transport agent is a public utility for purposes of those sections.

(2) Notwithstanding paragraph (1), this section does not grant the commission jurisdiction to regulate core transport agents other than as specifically set forth in this chapter. Core transport agents shall continue to be subject to Sections 2111 and 2112.

(3) Upon a finding by the commission’s executive director that there is evidence to support a finding that the core transport agent has committed an act constituting grounds for suspension or revocation of registration as set forth in subdivision (b), the commission shall notify the core transport agent in writing and notice an expedited hearing on the suspension or revocation of the core transport agent’s registration to be held within 30 days of the notification to the core transport agent of the executive director’s finding of evidence to support suspension or revocation of registration. The commission shall, within 45 days after holding the hearing, issue a decision on the suspension or revocation of registration, which shall be based on findings of fact and conclusions of law based on the evidence presented at the hearing. The decision shall include the findings of fact and the conclusions of law relied upon.

(b) A core transport agent may have its registration suspended or revoked, immediately or prospectively, in whole or in part, for any of the following acts:

(1) Making material misrepresentations in the course of soliciting customers, entering into service agreements with those customers, or administering those service agreements.

(2) Dishonesty, fraud, or deceit with the intent to substantially benefit the core transport agent or its employees, agents, or representatives, or to disadvantage retail gas customers.

(3) If the commission finds that there is evidence that the core transport agent is not financially or operationally capable of providing the offered gas service.

(4) The misrepresentation of a material fact by an applicant in obtaining a registration pursuant to Section 981.

(c) Pursuant to its authority to revoke or suspend registration, the commission may suspend a registration for a specified period or revoke the registration, or in lieu of suspension or revocation, impose a moratorium on adding or soliciting additional customers. Any suspension or revocation of a registration shall require the core transport agent to cease serving customers within the boundaries of investor-owned gas corporations, and the affected customers shall be served by the gas corporation until the time when they may select service from another core transport agent. A customer shall not be liable for the payment of any early termination fees or other penalties to any core transport agent under the service agreement if the serving core transport agent’s registration is suspended or revoked.

(d) If a customer of a core transport agent is involuntarily returned to service provided by a gas corporation, any reentry fee imposed on that customer that the commission deems is necessary to avoid imposing costs on other customers of the gas corporation shall be the obligation of the core transport agent, except in the case of a customer returned due to default in payment or other contractual obligations or because the customer’s contract has expired. As a condition of its registration, a core transport agent shall post a bond or demonstrate insurance sufficient to cover those reentry fees, including reentry fees for customers returned in the event of the core transport agent becoming insolvent.


text: If a customer files a claim with a gas corporation for damages to property resulting from the curtailment of gas service due to the failure of the gas corporation to reasonably provide service or restore service within a reasonable time after a fire, flood, earthquake, other natural disaster, or act of God, the gas corporation shall inform the customer that the claim may be pursued in small claims court or other judicial courts, depending on the amount of the claim.


citation: PUC § 984

text:
In order to carry out essential elements of a sustainable and effective consumer protection program in connection with core transport agents offering gas service to core gas customers as intended by the Legislature in this chapter, the following shall apply:

(a) A registration fee of one hundred dollars ($100) shall be collected from a core transport agent required to register under this chapter and the fee proceeds shall be deposited in the Public Utilities Reimbursement Account established under Section 402. The commission may adjust the fee as necessary to recover the cost of administering the program.

(b) The commission shall annually determine the costs of administering the registration program and other facets of consumer protection directly related to the core transport service transactions of core transport agents, including the cost for the duties imposed pursuant to subdivision (c) of Section 984.5. The commission shall only collect those costs not already being collected elsewhere. Registrants who fail to submit to the commission required fees or information upon which fees are calculated within 30 days of billing shall be subject to a 15-percent penalty.