citation: PUC § 745

text:
(a) For purposes of this section, “time-variant pricing” includes time-of-use rates, critical peak pricing, and real-time pricing, but does not include programs that provide customers with discounts from standard tariff rates as an incentive to reduce consumption at certain times, including peak time rebates.

(b) The commission may authorize an electrical corporation to offer residential customers the option of receiving service pursuant to time-variant pricing and to participate in other demand response programs. The commission shall not establish a mandatory or default time-variant pricing tariff for any residential customer except as authorized in subdivision (c).

(c) Beginning January 1, 2018, and subject to the commission making the findings required by subdivision (d), the commission may require or authorize an electrical corporation to employ default time-of-use rates for residential customers subject to all of the following:

(1) Residential customers receiving a medical baseline allowance pursuant to subdivision (c) of Section 739, customers requesting third-party notification pursuant to subdivision (c) of Section 779.1, customers who the commission has ordered cannot be disconnected from service without an in-person visit from a utility representative (Decision 12-03-054 (March 22, 2012), Decision on Phase II Issues: Adoption of Practices to Reduce the Number of Gas and Electric Service Disconnections, Order 2 (b) at page 55), and other customers designated by the commission in its discretion shall not be subject to default time-of-use rates without their affirmative consent.

(2) The commission shall ensure that any time-of-use rate schedule does not cause unreasonable hardship for senior citizens or economically vulnerable customers in hot climate zones.

(3) The commission shall strive for time-of-use rate schedules that utilize time periods that are appropriate for at least the following five years.

(4) A residential customer shall not be subject to a default time-of-use rate schedule unless that residential customer has been provided with not less than one year of interval usage data from an advanced meter and associated customer education and, following the passage of this period, is provided with no less than one year of bill protection during which the total amount paid by the residential customer for electric service shall not exceed the amount that would have been payable by the residential customer under that customer’s previous rate schedule.

(5) Each electrical corporation shall provide each residential customer, not less than once per year, using a reasonable delivery method of the customer’s choosing, a summary of available tariff options with a calculation of expected annual bill impacts under each available tariff. The summary shall not be provided to customers who notify the utility that they choose not to receive the summary. The reasonable costs of providing this service shall be recovered in rates.

(6) Residential customers have the option to not receive service pursuant to a time-of-use rate schedule and incur no additional charges as a result of the exercise of that option. Prohibited charges include, but are not limited to, administrative fees for switching away from time-of-use rates, hedging premiums that exceed any actual costs of hedging, and more than a proportional share of any discounts or other incentives paid to customers to increase participation in time-of-use rates. This prohibition on additional charges is not intended to ensure that a customer will necessarily experience a lower total bill as a result of the exercise of the option to not receive service pursuant to a time-of-use rate schedule.

(d) The commission shall not require or authorize an electrical corporation to employ default time-of-use rates for residential customers unless it has first explicitly considered evidence addressing the extent to which hardship will be caused on either of the following:

(1) Customers located in hot, inland areas, assuming no changes in overall usage by those customers during peak periods.

(2) Residential customers living in areas with hot summer weather, as a result of seasonal bill volatility, assuming no change in summertime usage or in usage during peak periods.

history: (History: Amended by Stats. 2014, Ch. 625, Sec. 1. (SB 1090) Effective January 1, 2015.)

article: 2. Rates


kind: section

code: PUC

citation: PUC § 746

text: The commission shall determine the appropriate ratemaking treatment for incentive compensation paid to officers or employees of an electrical corporation or gas corporation for incentive compensation that is linked to the stock price or financial performance of the electrical corporation or gas corporation.

history: (History: Added by Stats. 2012, Ch. 464, Sec. 1. (AB 861) Effective January 1, 2013.)

division: 1. REGULATION OF PUBLIC UTILITIES

part: 1. PUBLIC UTILITIES ACT

chapter: 4. Regulation of Public Utilities

article: 2. Rates

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4. Regulation of Public Utilities > 2. Rates


citation: PUC § 747

text: It is the intent of the Legislature that the commission reduce rates for electricity and natural gas to the lowest amount possible.

history: (History: Amended by Stats. 2015, Ch. 612, Sec. 18. (SB 697) Effective January 1, 2016.)

article: 2. Rates


text: Except for Golden State Energy, an electrical corporation or gas corporation shall not recover, through a rate approved by the commission, a fine or penalty.

history: (History: Amended by Stats. 2020, Ch. 27, Sec. 7. (SB 350) Effective January 1, 2021.)

article: 2. Rates


text:
(a) Except as specified in subdivision (b), an electrical corporation or gas corporation shall not recover, through a rate approved by the commission, costs arising directly from new or additional activities expressly agreed to by the corporation, or any direct payment, fine, or penalty paid by the corporation, in a settlement agreement resolving a criminal or civil inquiry, investigation, or prosecution for a violation of law, conducted by the Attorney General or a district attorney, county counsel, city attorney, or city prosecutor, and in exchange for the inquiry, investigation, or prosecution to be terminated or concluded.

(b) Notwithstanding subdivision (a), the commission shall only approve an electrical corporation or gas corporation to recover, through a rate, costs described in subdivision (a) if the commission determines that those costs were just and reasonably incurred.

history: (History: Added by Stats. 2022, Ch. 689, Sec. 1. (AB 2083) Effective January 1, 2023.)

article: 2. Rates


text:
(a) For purposes of this section, all of the following definitions apply:

(1) “Above-the-line account” means an account that contains expenses that a utility recovers from ratepayers, including an account that contains expenses that the utility used to calculate a revenue requirement request in its general rate case.

(2) “Below-the-line account” means an account that contains expenses that a utility does not generally recover from ratepayers.

(3) “Compensation” means salary, a bonus, benefits, or other consideration of any value.

(4) “Covered business unit” means a division, department, or other organizational employee group within a utility that performs activities specified in subdivision (b).

(5) “Expense” means a payment to an external entity, a cost incurred by a parent company or corporate affiliate and invoiced to a utility, and compensation paid to an employee of a utility.

(6) (A) “Political influence activity” means either of the following:

(i) An activity for the purpose of directly or indirectly influencing any of the following:

(I) The adoption, repeal, or modification of federal, state, regional, or local legislation, regulations, or ordinances.

(II) The election, recall, appointment, or removal of a public official or the adoption of initiatives or referenda.

(III) The approval, modification, or revocation of franchises of a utility.

(IV) Public opinion with respect to legislation, regulations, ordinances, elections, referenda, or rate setting of a utility.

(V) Decisions of federal, state, regional, or local public officials.

(ii) Research, preparation, or any other activity undertaken for the purpose of supporting any activities specified in clause (i).

(B) “Political influence activity” does not include any of the following:

(i) An activity that is directly and necessarily related to appearances before regulatory or other governmental bodies in connection with the utility’s existing or proposed operations of the utility’s regulated system. Policies affecting the use of gaseous fuels or electricity are not directly and necessarily related to the utility’s existing or proposed operations.

(ii) An activity that is directly related to a commission-approved energy efficiency program or another commission-approved public purpose program if the participation of the utility has not otherwise been prohibited by the commission.

(iii) An activity that responds to a request by a legislative committee, the commission, or a government agency for technical information from the utility.

(iv) An activity required by applicable federal or state statute, or by order of a regulatory authority, and undertaken for the purpose of satisfying that statutory or regulatory requirement.

(7) (A) “Promotional advertising” means written, online, video, or audio communications that primarily build the public image of a utility and that is not required by the commission, including communications about the undergrounding of electrical lines or other actions that a utility may take in the future.

(B) “Promotional advertising” does not include, except as specified in subparagraph (A), any of the following:

(i) Public messages that the utility is directed to publish by a federal, state, or local agency.

(ii) Public messages that provide information on safety measures, emergency conditions, the conservation of energy as described in subdivision (b) of Section 796, rates, utility programs and services approved by the commission, or service interruptions, and that do not primarily build the public image of the utility.

(iii) Public messages providing necessary information to customers about specific actions the customers can take for their safety.

(8) “Public official” means a decisionmaker within an administrative agency or legislative body at the local, regional, state, or federal level, or an executive officer at the local, regional, state, or federal level.

(9) “Utility” means an electrical corporation or gas corporation.

(10) “Utility affiliate” means an entity that is related to the utility as a subsidiary, parent, or sibling corporation, including by shareholding or other means of control.

(11) “Vendor” means a person or business that provides goods and services.

(b) Except as provided in subdivision (c), a utility shall not record to an above-the-line account, or otherwise recover from ratepayers, direct or indirect costs of any of the following:

(1) Membership dues, sponsorships, or other contributions to an industry trade association, group, or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, as amended, if any portion of those contributions support political influence activities or advertising. This paragraph does not apply to fees for professional licenses necessary for employee job duties.

(2) Charitable giving, including contributions to an organization that qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended.

(3) Political influence activities.

(4) Promotional advertising.

(5) Payments to outside attorneys representing utilities in commission proceedings or experts testifying on behalf of, or otherwise supporting the participation by, utilities in commission proceedings that exceed the hourly rates that would be permitted for rate recovery under the commission’s intervenor compensation program.

(6) Contributions to political candidates, political parties, campaign committees, issue committees, or independent expenditure committees, or other political expenses.

(7) A cost, including marketing, administration, or customer service, for products or services not regulated by the commission.

(8) Penalties or fines, including tax penalties or fines, issued against a utility.

(9) Board of directors and officers liability insurance, and travel, lodging, food, or beverage expenses for a utility’s board of directors and officers or the board of directors and officers of a utility affiliate.

(10) An owned, leased, or chartered aircraft for the utility’s board of directors and officers or the board of directors and officers of a utility affiliate.

(11) Investor relations.

(c) Subdivision (b) does not prohibit a utility from recording to an above-the-line account payments made pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.) or payments authorized by the federal National Labor Management Cooperation Act of 1978 (Public Law 95-524), and does not restrict any use permitted by federal law of moneys paid pursuant to those federal acts.

(d) (1) A utility shall clearly and conspicuously disclose in all of its public messages whether the costs of the public messages are being paid for by the utility’s shareholders or ratepayers, consistent with rules and regulations related to candidate disclosure rules adopted pursuant to Article 5 (commencing with Section 84501) of Chapter 4 of Title 9 of the Government Code.

(2) A disclosure is not clear and conspicuous if the disclosure is difficult to hear or read, or if the placement of the disclosure is easily overlooked.

(3) For public messages recorded to an above-the-line account, the utility shall identify, in response to a request from a party in the utility’s most recent general rate case, which expense or capital account is the source of the funding.

(e) (1) On or before May 31, 2026, and annually thereafter, each utility shall report, as part of the statement required under General Order 77-M, all of the following information from the previous calendar year to ensure the utility’s compliance with this section:

(A) (i) A list of covered business units of the utility. Except as specified in clause (ii), for each covered business unit, the report shall contain all of the following:

(I) A list of each employee’s name and job title.

(II) A job description of each listed employee sufficient to describe the employee’s responsibilities.

(III) The total annual compensation provided to each listed employee.

(IV) The number of hours booked to an above-the-line account for each listed employee.

(V) The percent of total annual compensation booked to an above-the-line account for each employee.

(ii) This subparagraph does not apply to an employee represented by a labor organization, covered under a valid collective bargaining agreement, and performing activities described in this chapter at the direction of the labor organization.

(B) To the extent the utility retains outside vendors to perform activities described in subdivision (b) and those vendors conduct any other work where the costs of the work are recorded to above-the-line accounts, the utility shall provide the Federal Energy Regulatory Commission Uniform System of Accounts number under which those costs are recorded and a log documenting the time, work performed, total cost incurred, how those costs benefit ratepayers, and the reason those activities are not deemed to be activities for which the recovery through rates of those costs is prohibited pursuant to subdivision (b).

(C) A detailed accounting of expenses booked to an above-the-line account for participation in each commission proceeding for which the utility is a party, including employee compensation, and vendor and other expenses.

(2) The commission shall make all reports filed pursuant to paragraph (1) with the commission publicly available, consistent with Section 583.

(f) The commission shall monitor and investigate compliance and noncompliance with this section.

(g) Moving an expense to a below-the-line account after it was booked to an above-the-line account does not protect that expense from being disclosed to the commission or disclosed in response to a discovery request or order in a general rate case or other relevant commission proceeding.

(h) (1) In addition to any disallowance or future adjustment ordered by the commission, the commission shall assess a civil penalty, based on the severity of the violation, against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).

(2) This section does not limit the commission’s authority under any other law to assess a penalty or sanction against a utility that violates subdivision (b) or fails or neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission implementing subdivision (b).

history: (History: Added by Stats. 2025, Ch. 634, Sec. 3. (AB 1167) Effective January 1, 2026.)

article: 2. Rates


text:
(a) (1) Except as provided in subdivisions (c), (d), and (e), the commission shall require revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electric utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations to be credited directly to the residential customers of the electrical corporation.

(2) Small business, emissions-intensive, trade-exposed retail customers of the electrical corporation that are covered entities under the regulations adopted pursuant to Section 38562 of the Health and Safety Code, and emissions-intensive, trade-exposed retail customers of the electrical corporation that are not covered entities under the regulations adopted pursuant to Section 38562 of the Health and Safety Code, may also be credited from the revenues in paragraph (1), as determined by the commission.

(3) The credits provided to residential customers of an electrical corporation shall be provided on the bills of those customers in no more than four high-billed months of each year to maximize customer electric bill affordability, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances.

(b) (1) Not later than January 1, 2013, the commission shall require the adoption and implementation of a customer outreach plan for each electrical corporation, including, but not limited to, such measures as notices in bills and through media outlets, for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. Costs associated with the implementation of this plan are subject to recovery in rates pursuant to Section 454.

(2) Not later than January 1, 2027, the commission shall require each electrical corporation to update the customer outreach plan developed pursuant to paragraph (1) to include a statement at the top of customer bills in applicable months specifying the amount of money saved on a utility bill in that month and attributing those savings to the climate credit and the California Cap-and-Invest Program.

(c) The commission may allocate up to 15 percent of the revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations, for clean energy and energy efficiency projects established pursuant to statute that are administered by the electrical corporation, or a qualified third-party administrator as approved by the commission, and that are not otherwise funded by another funding source. This subdivision shall become inoperative on July 1, 2026.

(d) (1) The commission shall require an electrical corporation to annually remit to the State Treasury 5 percent of the revenues, including any accrued interest, received by the electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations for deposit in the California Transmission Accelerator Revolving Fund, pursuant to Section 63049.72 of the Government Code. This paragraph shall become operative on July 1, 2026, and shall become inoperative on July 1, 2031.

(2) The revenues deposited in the fund shall be available to the California Infrastructure and Economic Development Bank for purposes of the California Transmission Accelerator Revolving Fund Program established pursuant to Sections 63049.71 to 63049.73, inclusive, of the Government Code.

history: (History: Amended by Stats. 2025, Ch. 117, Sec. 13. (AB 1207) Effective September 19, 2025.)

article: 2. Rates


text:
(a) A local publicly owned electric utility that receives an allowance allocation in addition to the allowance totals specified in Section 95892 of Title 17 of the California Code of Regulations pursuant to subparagraph (B) of paragraph (1) of subdivision (b) of Section 38562 of the Health and Safety Code shall provide a credit in an amount equal to the total value of that additional allocation directly to ratepayers. This section does not limit the acceptable uses, as specified in paragraph (3) of subdivision (d) of Section 95892 of Title 17 of the California Code of Regulations, of other allowances allocated to local publicly owned electric utilities.

(b) A local publicly owned electric utility shall report to the State Air Resources Board on the uses of all revenues, including any accrued interest, received by that local publicly owned electric utility as a result of the direct allocation of greenhouse gas allowances to electric utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations.

(c) Notwithstanding Section 10231.5 of the Government Code, the State Air Resources Board shall annually submit a report to the Legislature on the uses of revenues specified in subdivision (b) in accordance with Section 9795 of the Government Code.

history: (History: Added by Stats. 2025, Ch. 117, Sec. 14. (AB 1207) Effective September 19, 2025.)

article: 2. Rates


text: Beginning with the fiscal year commencing July 1, 2019, and ending with the fiscal year ending June 30, 2023, the commission shall annually allocate fifty million dollars ($50,000,000) of the revenues, including any accrued interest, received by a gas corporation as a result of the direct allocation of greenhouse gas emissions allowances provided to gas corporations as part of a market-based compliance mechanism adopted pursuant to subdivision (c) of Section 38562 of the Health and Safety Code to fund the Building Initiative for Low-Emissions Development (BUILD) Program (Article 12 (commencing with Section 921)) and the Technology and Equipment for Clean Heating (TECH) Initiative (Article 13 (commencing with Section 922)).

history: (History: Amended by Stats. 2019, Ch. 497, Sec. 241. (AB 991) Effective January 1, 2020.)

article: 2. Rates


citation: PUC § 749

text: Public utilities shall develop programs in cooperation with local school districts in reducing their electricity and gas bills through conservation and improvements in efficiency. Utilities may offer to school districts on a priority basis, and school districts may utilize, any programs or incentives for commercial customers developed by the utility and approved by the commission, including rebates, loan programs and incentives for the installation of efficient lighting, heating, or cooling systems.

history: (History: Added by Stats. 1993, Ch. 1178, Sec. 5. Effective January 1, 1994.)

article: 2. Rates


text:
(a) For the purposes of this section, “public school” means a public school, including a charter school, maintaining a kindergarten, or any of the grades 1 to 12, inclusive.

(b) The commission shall, as part of its ratesetting process, direct each electrical and gas corporation to evaluate and report findings to the commission, by January 1, 2020, on the feasibility and economic impact of establishing public school electric and gas rates that would reflect a discount from the current rate structure. The report shall include, but not be limited to, the following:

(1) Commercial rate increases in the past five years that affected public schools within the service territory of each electrical and gas corporation.

(2) Economic impact to all ratepayers if all public schools within the service territory received a discount from the current rate structure.

(3) The impact of planned modifications to the time intervals reflected in time-of-use rates and to rate design elements, as adopted by the commission and in the planning stages or proposed by electric and gas corporations.

(4) The cost shifts that would occur, if any, and to which consumers the costs would shift, as a result of a discounted rate for public schools.

(c) The commission shall compile the reports required in subdivision (b) and submit the compilation to the Legislature, on or before January 1, 2020, in compliance with the requirements of Section 9795 of the Government Code.

history: (History: Added by Stats. 2018, Ch. 208, Sec. 2. (AB 2068) Effective January 1, 2019.)

article: 2. Rates


citation: PUC § 750

text: The commission shall develop formal procedures to consider safety in a rate case application by an electrical corporation or gas corporation. The procedures shall include a means by which safety information acquired by the commission through monitoring, data tracking and analysis, accident investigations, and audits of an applicant’s safety programs may inform the commission’s consideration of the application.

history: (History: Added by Stats. 2014, Ch. 552, Sec. 2. (SB 900) Effective January 1, 2015.)

article: 2. Rates


citation: PUC § 751

text:
(a) This section applies only to those public utilities over which the commission exercises its authority to fix rates and only to the extent the revenue requirements of the utility were based upon the tax rates in effect at the time rates were fixed for the utility by the commission. This section does not limit the discretionary authority of the commission to adjust any incentives provided pursuant to any state supervised or administered program, including the state’s telecommunications universal service programs administered pursuant to Chapter 1.5 (commencing with Section 270).

(b) The commission shall evaluate the full effect of the enactment of federal House Resolution 1 (Public Law 115-97) upon the expenses and tax liabilities incurred by public utilities for payment of federal taxes. If the commission determines that the projected expenses and tax liabilities for federal taxes that the commission has authorized in the rates for a public utility are materially affected by the enactment of federal House Resolution 1 (Public Law 115-97), the commission shall adjust the rates of the utility to reflect the changes in projected expenses and tax liabilities in light of the changes in federal law. This section does not limit the discretionary authority of the commission to determine the full effect of the changes in federal tax law on each utility’s cost of service, to utilize appropriate mechanisms at its disposal to track changes and adjust rates accordingly, and to allocate the impacts from changes in federal tax law over the period of time that results in the most reasonable allocation based on the particular circumstances of each utility.

history: (History: Added by Stats. 2018, Ch. 411, Sec. 1. (SB 1028) Effective January 1, 2019.)

article: 2. Rates


citation: PUC § 755

text:
(a) It is the intent of the Legislature that:

(1) An electrical, gas, or water corporation that offers customers credit card or debit card payment options, may recover the reasonable expenses incurred by the electrical, gas, or water corporation for providing the customers the option of paying their bills by credit card or debit card.

(2) Only the customers that choose to use these payment options incur the additional charge and that no portion of the expense is shifted to customers that do not choose to pay a bill by credit card or debit card, unless and until the commission determines that the savings to ratepayers exceeds the net cost of accepting those cards.

(3) The acceptance of credit cards or debit cards neither increases nor decreases the profitability of the electrical, gas, or water corporation.

(b) An electrical, gas, or water corporation may offer credit card and debit card bill payment options, if approved by the commission. The electrical, gas, or water corporation may recover reasonable transaction costs incurred by the electrical, gas, or water corporation only from those customers that choose to pay by those payment options.

(c) The commission shall determine through existing regulatory mechanisms the reasonableness of transaction costs charged to customers that choose to pay an electrical, gas, or water corporation by a credit card or debit card bill payment option pursuant to this section. The commission shall determine how any associated costs or potential savings as a result of those customers paying by the credit card or debit card payment option shall be passed on to electrical, gas, or water corporation customers. In determining how these savings or costs are passed on to customers, the commission shall do the following:

(1) The transaction costs that are passed on to customers pursuant to subdivision (b) shall be offset by any savings in transaction costs the electrical, gas, or water corporation derives as a result of those customers paying by credit card and debit card.

(2) If the commission determines that the use of credit cards and debit cards results in no net cost to the electrical, gas, or water corporation, there shall be no individual customer transaction fee as provided for in subdivision (b).

(3) If the commission determines that the savings to the electrical, gas, or water corporation exceeds the costs to the electrical, gas, or water corporation, the net savings shall be passed on to electrical, gas, or water corporation customers.

history: (History: Added by Stats. 2005, Ch. 426, Sec. 2. Effective January 1, 2006.)

article: 2. Rates


text:
(a) Notwithstanding Section 755, the commission shall allow a water corporation with 10,000 or more service connections to recover the reasonable expenses incurred by the water corporation in providing to its customers bill payment options, including credit card, debit card, and prepaid card bill payment options, and shall not require the water corporation to impose a transaction fee on its customers.

(b) The costs of the bill payment options undertaken pursuant to subdivision (a) shall not be recovered from customers participating in a water rate relief program for low-income ratepayers established pursuant to Section 739.8.

(c) The commission shall ensure that accepting bill payment options pursuant to subdivision (a) neither increases nor decreases the rate of return of the water corporation.

history: (History: Amended by Stats. 2021, Ch. 269, Sec. 1. (AB 1058) Effective January 1, 2022.)

article: 2. Rates


citation: PUC § 758

text:
(a) The commission shall allow an electrical corporation to recover in rates amounts assessed to the utility pursuant to Section 8610.5 of the Government Code.

(b) The commission shall ensure that any moneys refunded to an electrical corporation from the Nuclear Planning Assessment Special Account pursuant to subdivision (h) of Section 8610.5 of the Government Code are credited to ratepayers.

history: (History: Added by Stats. 2007, Ch. 492, Sec. 2. Effective January 1, 2008.)

article: 2. Rates


citation: PUC § 761

text: Whenever the commission, after a hearing, finds that the rules, practices, equipment, appliances, facilities, or service of any public utility, or the methods of manufacture, distribution, transmission, storage, or supply employed by it, are unjust, unreasonable, unsafe, improper, inadequate, or insufficient, the commission shall determine and, by order or rule, fix the rules, practices, equipment, appliances, facilities, service, or methods to be observed, furnished, constructed, enforced, or employed. The commission shall prescribe rules for the performance of any service or the furnishing of any commodity of the character furnished or supplied by any public utility, and, on proper demand and tender of rates, such public utility shall furnish such commodity or render such service within the time and upon the conditions provided in such rules.

history: (History: Enacted by Stats. 1951, Ch. 764.)

article: 3. Equipment, Practices, and Facilities

path: 1. REGULATION OF PUBLIC UTILITIES > 1. PUBLIC UTILITIES ACT > 4. Regulation of Public Utilities > 3. Equipment, Practices, and Facilities


text:
(a) Notwithstanding subdivision (g) of Section 216 and subdivision (c) of Section 218.5, the commission shall implement and enforce standards for the maintenance and operation of facilities for the generation and storage of electricity owned by an electrical corporation or located in the state to ensure their reliable operation. The commission shall enforce the protocols for the scheduling of powerplant outages of the Independent System Operator.

(b) This section does not authorize the commission to establish rates for wholesale sales in interstate commerce from those facilities, or to approve the sale or transfer of control of facilities if an exempt wholesale generator, as defined in the federal Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)).

(c) (1) (A) Except as otherwise provided in this subdivision, this section does not apply to nuclear powered generating facilities that are federally regulated and subject to standards developed by the Nuclear Regulatory Commission and that participate as members of the Institute of Nuclear Power Operations.

(B) The owner or operator of a nuclear powered generating facility shall file with the commission an annual schedule of maintenance, including repairs and upgrades, updated quarterly, for each generating facility. The owner or operator of a nuclear powered generating facility shall make good faith efforts to conduct its maintenance in compliance with its filed plan and shall report to the Independent System Operator any significant variations from its filed plan.

(C) The owner or operator of a nuclear powered generating facility shall report on a monthly basis to the commission all actual planned and unplanned outages of each facility during the preceding month. The owner or operator of a nuclear powered generating facility shall report on a daily basis to the Independent System Operator the daily operational status and availability of each facility.

(2) (A) Except as otherwise provided in this subdivision, this section does not apply to a qualifying small power production facility or a qualifying cogeneration facility within the meaning of Sections 201 and 210 of Title 11 of the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Secs. 796(17), 796(18), and 824a-3), and the regulations adopted pursuant to those sections by the Federal Energy Regulatory Commission (18 C.F.R. Secs. 292.101 to 292.602, inclusive), nor does this section apply to other generation units installed, operated, and maintained at a customer site exclusively to serve that customer’s load.

(B) An electrical corporation that has a contract with a qualifying small power production facility, or a qualifying cogeneration facility, with a name plate rating of 10 megawatts or greater, shall report to the commission maintenance schedules for each facility, including all actual planned and unplanned outages of the facility and the daily operational status and availability of the facility. Each facility with a name plate rating of 10 megawatts or greater shall be responsible for directly reporting to the Independent System Operator maintenance schedules for each facility, including all actual planned and unplanned outages of the facility and the daily operational status and availability of the facility, if that information is not provided to the electrical corporation pursuant to a contract.

(d) This section shall not result in the modification, delay, or abrogation of any deadline, standard, rule, or regulation adopted by a federal, state, or local agency for the purposes of protecting public health or the environment, including, but not limited to, any requirements imposed by the State Air Resources Board or by an air pollution control district or an air quality management district pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code. The Independent System Operator shall consult with the State Air Resources Board and the appropriate local air pollution control districts and air quality management districts to coordinate scheduled outages to provide for compliance with those retrofits.

(e) The Independent System Operator shall maintain records of generation and storage facility outages and shall provide those records to the commission on a daily basis. Each entity that owns or operates an electric generating unit in California with a rated maximum capacity of 10 megawatts or greater shall provide a monthly report to the Independent System Operator that identifies any periods during the preceding month when the unit was unavailable to produce electricity or was available only at reduced capacity. The report shall identify the reasons for any such unscheduled unavailability or reduced capacity. The Independent System Operator shall immediately transmit the information to the commission.

(f) This section does not apply to any of the following:

(1) A facility owned by a local publicly owned electric utility.

(2) A public agency that may generate electricity incidental to the provision of water or wastewater treatment.

(3) A facility owned by a city and county operating as a public utility, furnishing electric service as provided in Section 10001.

(g) (1) In order to ensure the safety of employees, emergency responders, and surrounding communities, each battery energy storage facility located in the state and subject to subdivision (a) shall have an emergency response and emergency action plan that covers the premises of the battery energy storage facility, consistent with Sections 142.3 and 6401 of the Labor Code and any related regulations, including the regulatory requirements applicable to emergency action plans pursuant to Section 3220 of Title 8 of the California Code of Regulations.

(2) The emergency response and emergency action plan shall do all of the following:

(A) Establish response procedures for an equipment malfunction or failure.

(B) Include procedures that provide for the safety of surrounding residents, neighboring properties, emergency responders, and the environment. These procedures shall be established in consultation with local emergency management agencies.

(C) Establish notification and communication procedures between the battery energy storage facility and local emergency management agencies.

(3) The emergency response and emergency action plan may do all of the following:

(A) Consider responses to potential offsite impacts, including, but not limited to, poor air quality, threats to municipal water supplies, water runoff, and threats to natural waterways.

(B) Include procedures for the local emergency response agency to establish shelter-in-place orders and road closure notifications when appropriate.

(4) In developing the emergency response and emergency action plan, the owner or operator of the battery energy storage facility shall coordinate with local emergency management agencies, unified program agencies, and local first response agencies.

(5) The owner or operator of each battery energy storage facility shall submit the emergency response and emergency action plan to the county and, if applicable, the city where the facility is located.

history: (History: Amended by Stats. 2023, Ch. 377, Sec. 1. (SB 38) Effective January 1, 2024.)

article: 3. Equipment, Practices, and Facilities


text:
(a) Where the commission determines that it would be cost-effective, the commission shall authorize electrical and gas corporations to participate in a centralized credit check system to share information on customers; and the electrical and gas corporations may also share information on customers with telephone corporations and publicly owned public utilities. No public utility which participates in the centralized credit check system shall utilize any information obtained through the database for its internal marketing purposes. A public utility may release pertinent information to a collection agency for the purpose of collecting an outstanding bill, but shall not otherwise release, transfer, or sell any information obtained through the centralized credit check system.

(b) Every electrical and gas corporation which participates in a centralized credit check system is subject to the Consumer Credit Reporting Agencies Act (Title 1.6 (commencing with Section 1785.1) of Part 4 of Division 3 of the Civil Code) and the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.).

history: (History: Added by Stats. 1989, Ch. 1066, Sec. 2.5.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 762

text: Whenever the commission, after a hearing, finds that additions, extensions, repairs, or improvements to, or changes in, the existing plant, equipment, apparatus, facilities, or other physical property of any public utility or of any two or more public utilities ought reasonably to be made, or that new structures should be erected, to promote the security or convenience of its employees or the public, or in any other way to secure adequate service or facilities, the commission shall make and serve an order directing that such additions, extensions, repairs, improvements, or changes be made or such structures be erected in the manner and within the time specified in the order. If the commission orders the erection of a new structure, it may also fix the site thereof. If the order requires joint action by two or more public utilities, the commission shall so notify them and shall fix a reasonable time within which they may agree upon the portion or division of the cost which each shall bear. If at the expiration of such time the public utilities fail to file with the commission a statement that an agreement has been made for a division or apportionment of the cost, the commission may, after further hearing, make an order fixing the proportion of such cost to be borne by each public utility and the manner in which payment shall be made or secured.

article: 3. Equipment, Practices, and Facilities


text:
The commission, as a basis for making any order pursuant to the provisions of Section 762 relating to location of structures, shall give consideration to, and include in its order findings upon, the following factors:

(a) Community values.

(b) Recreational and park areas.

(c) Historical and aesthetic values.

(d) Influence on environment, except that in the case of any structure located in another state which will be subject to environmental impact review pursuant to the National Environmental Policy Act of 1969 (Chapter 55 (commencing with Section 4321) of Title 42 of the United States Code) or similar state laws in the other state, the commission shall not consider influence on the environment unless any emissions or discharges therefrom would have a significant influence on the environment of this state.

history: (History: Amended by Stats. 1981, Ch. 573, Sec. 1.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 763

text:
(a) Whenever the commission, after a hearing, finds that any railroad corporation or street railroad corporation does not run a sufficient number of trains or cars, or possess or operate sufficient motive power, reasonably to accommodate the traffic, passenger or freight, transported by or offered for transportation to it, or does not run its trains or cars with sufficient frequency or at a reasonable or proper time having regard to safety, or does not stop its trains or cars at proper places, or does not run any train or car upon a reasonable time schedule for the run, the commission may make an order directing such corporation to increase the number of its trains or cars or its motive power or to change the time for starting its trains or cars or to change the time schedule for the run of any train or car, or to change the stopping place or places thereof. The commission may make any other order that it determines to be reasonably necessary to accommodate and transport the traffic, passenger or freight, transported or offered for transportation.

(b) Subdivision (a) is not applicable to network railroad transportation.

history: (History: Amended by Stats. 1999, Ch. 1005, Sec. 44. Effective January 1, 2000.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 764

text:
(a) An electrical corporation that has a contract for private fire safety and prevention, mitigation, or maintenance services, shall only use those services for the direct defense of utility infrastructure when conducting fire safety and prevention, mitigation, and maintenance activities as determined to be appropriate by the electrical corporation.

(b) An electrical corporation that has a contract for private fire safety and prevention, mitigation, or maintenance services shall make an effort to reduce or eliminate the use of contract private fire safety and prevention, mitigation, and maintenance personnel in favor of employing highly skilled and apprenticed personnel to perform those services in direct defense of utility infrastructure in collaboration with public agency fire departments having jurisdiction.

(c) Nothing in this section prohibits an electrical corporation from contracting with a public agency fire department or relevant jurisdiction for the purposes of providing fire safety and prevention, mitigation, or maintenance services.

history: (History: Added by Stats. 2018, Ch. 626, Sec. 31. (SB 901) Effective January 1, 2019.)

article: 3. Equipment, Practices, and Facilities


text:
(a) A fire protection district may require an electrical corporation or local publicly owned electric utility to notify the fire protection district at least 24 hours before performing a prescribed or controlled burn.

(b) If an electrical corporation or local publicly owned electric utility cannot provide 24 hours’ notice pursuant to subdivision (a) due to unforeseen circumstances, the electrical corporation or local publicly owned electric utility shall notify the fire protection district at the earliest possible time.

(c) An electrical corporation or local publicly owned electric utility shall provide notice to a fire protection district pursuant to this section by both telephone and email.

(d) This section does not limit or otherwise affect the ability of a fire protection district or any other local agency to require different notice for a prescribed or controlled burn, or impose other requirements allowable by law regarding a prescribed or controlled burn.

history: (History: Added by Stats. 2024, Ch. 753, Sec. 1. (AB 3062) Effective January 1, 2025.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 765

text:
(a) When the federal National Transportation Safety Board (NTSB) submits a safety recommendation letter concerning rail safety to the commission, the commission shall provide the NTSB with a formal written response to each recommendation no 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 rail facility to the United States Department of Transportation, the Federal Transit Administration, a commission-regulated rail operator, or the commission, or if the Federal Transit Administration issues a safety advisory concerning any commission-regulated rail 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 a safety advisory 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. 21. (SB 697) Effective January 1, 2016.)

article: 3. Equipment, Practices, and Facilities


text:
(a) The purpose of this section is to provide that the commission takes all appropriate action necessary to ensure the safe operation of railroads in this state.

(b) The commission shall dedicate sufficient resources necessary to adequately carry out the State Participation Program for the regulation of rail transportation of hazardous materials as authorized by the Hazardous Material Transportation Uniform Safety Act of 1990 (P.L. 101-615).

(c) On or before July 1, 1992, the commission shall hire a minimum of six additional rail inspectors who are or shall become federally certified, consisting of three additional motive power and equipment inspectors, two signal inspectors, and one operating practices inspector, for the purpose of enforcing compliance by railroads operating in this state with state and federal safety regulations.

(d) On or before July 1, 1992, the commission shall establish, by regulation, a minimum inspection standard to ensure, at the time of inspection, that railroad locomotives, equipment, and facilities located in class I railroad yards in California will be inspected not less frequently than every 120 days, and inspection of all branch and main line track not less frequently than every 12 months.

(e) Commencing July 1, 2008, in addition to the minimum inspections undertaken pursuant to subdivision (d), the commission shall conduct focused inspections of railroad yards and track, either in coordination with the Federal Railroad Administration, or as the commission determines to be necessary. The focused inspection program shall target railroad yards and track that pose the greatest safety risk, based on inspection data, accident history, and rail traffic density.

history: (History: Amended by Stats. 2006, Ch. 885, Sec. 1. Effective September 30, 2006.)

article: 3. Equipment, Practices, and Facilities


text: Federal funds available to the commission for rail safety inspection and enforcement purposes shall be allocated to eligible passenger and freight rail activities on a proportionate basis.

history: (History: Added by Stats. 1991, Ch. 767, Sec. 7.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 766

text: Whenever the commission, after a hearing finds that a physical connection can reasonably be made between the lines of two or more telephone corporations or two or more telegraph corporations whose lines can be made to form a continuous line of communication, by the construction and maintenance of suitable connections for the transfer of messages or conversations, and that public convenience and necessity will be served thereby, or finds that two or more telegraph or telephone corporations have failed to establish joint rates, tolls, or charges for service by or over their lines, and that joint rates, tolls, or charges ought to be established, the commission may, by its order, require that such connection be made on the payment of such compensation, if any, as it finds to be just and reasonable, except where the purpose of the connection is primarily to secure the transmission of local messages or conversations between points within the same city, or city and county. The commission may, by order, require that conversations be transmitted and messages transferred over such connection under such rules as it may establish, and may prescribe through lines and joint rates, tolls, and charges. If such telephone or telegraph corporations do not agree upon the division between them of the cost of such physical connection or connections or the division of such joint rates, tolls, or charges established by the commission over such through lines, the commission may after further hearing, establish such division by supplemental order.

article: 3. Equipment, Practices, and Facilities


text: The commission shall investigate the practices of every telephone corporation in billing its subscribers for telephone calls, including, but not limited to, whether a corporation is unable to determine whether any telephone call was not completed and as a consequence may charge the subscriber for that uncompleted call. If the commission finds that any corporation does not have the capability of determining in every instance whether a call placed by a subscriber was completed, the commission shall require the corporation to furnish written notice, in a form and manner approved by the commission, to its subscribers of its billing practices, including, but not limited to, its practice of charging for calls placed but not completed.

history: (History: Added by Stats. 1984, Ch. 712, Sec. 1.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 767

text: Whenever the commission, after a hearing had upon its own motion or upon complaint of a public utility affected, finds that public convenience and necessity require the use by one public utility of all or any part of the conduits, subways, tracks, wires, poles, pipes, or other equipment, on, over, or under any street or highway, and belonging to another public utility, and that such use will not result in irreparable injury to the owner or other users of such property or equipment or in any substantial detriment to the service, and that such public utilities have failed to agree upon such use or the terms and conditions or compensation therefor, the commission may by order direct that such use be permitted, and prescribe a reasonable compensation and reasonable terms and conditions for the joint use. If such use is directed, the public utility to whom the use is permitted shall be liable to the owner or other users for such damage as may result therefrom to the property of the owner or other users thereof, and the commission may ascertain and direct the payment, prior to such use, of fair and just compensation for damage suffered, if any.

article: 3. Equipment, Practices, and Facilities


text:
(a) As used in this section:

(1) “Public utility” includes any person, firm, or corporation, except a publicly owned public utility, which owns or controls, or in combination jointly owns or controls, support structures or rights-of-way used or useful, in whole or in part, for wire communication.

(2) “Support structure” includes, but is not limited to, a utility pole, anchor, duct, conduit, manhole, or handhole.

(3) “Pole attachment” means any attachment to surplus space, or use of excess capacity, by a cable television corporation for a wire communication system on or in any support structure located on or in any right-of-way or easement owned, controlled, or used by a public utility.

(4) “Surplus space” means that portion of the usable space on a utility pole which has the necessary clearance from other pole users, as required by the orders and regulations of the commission, to allow its use by a cable television corporation for a pole attachment.

(5) “Excess capacity” means volume or capacity in a duct, conduit, or support structure other than a utility pole or anchor which can be used, pursuant to the orders and regulations of the commission, for a pole attachment.

(6) “Usable space” means the total distance between the top of the utility pole and the lowest possible attachment point that provides the minimum allowable vertical clearance.

(7) “Minimum allowable vertical clearance” means the minimum clearance for communication conductors along rights-of-way or other areas as specified in the orders and regulations of the commission.

(8) “Rearrangements” means work performed, at the request of a cable television corporation, to, on, or in an existing support structure to create such surplus space or excess capacity as is necessary to make it usable for a pole attachment. When an existing support structure does not contain adequate surplus space or excess capacity and cannot be so rearranged as to create the required surplus space or excess capacity for a pole attachment, “rearrangements” shall include replacement, at the request of a cable television corporation, of the support structure in order to provide adequate surplus space or excess capacity.

(9) “Annual cost of ownership” means the sum of the annual capital costs and annual operation costs of the support structure which shall be the average costs of all similar support structures owned by the public utility. The basis for computation of annual capital costs shall be historical capital costs less depreciation. The accounts upon which the historical capital costs are determined shall include a credit for all reimbursed capital costs of the public utility. Depreciation shall be based upon the average service life of the support structure. As used in this paragraph, “annual cost of ownership” shall not include costs for any property not necessary for a pole attachment.

(b) The Legislature finds and declares that public utilities have dedicated a portion of such support structures to cable television corporations for pole attachments in that public utilities have made available, through a course of conduct covering many years, surplus space and excess capacity on and in their support structures for use by cable television corporations for pole attachments, and that the provision by such public utilities of surplus space and excess capacity for such pole attachments is a public utility service delivered by public utilities to cable television corporations.

The Legislature further finds and declares that it is in the interests of the people of California for public utilities to continue to make available such surplus space and excess capacity for use by cable television corportions.

(c) Whenever a public utility and a cable television corporation or association of cable television corporations are unable to agree upon the terms, conditions, or annual compensation for pole attachments or the terms, conditions, or costs of rearrangements, the commission shall establish and enforce the rates, terms, and conditions for pole attachments and rearrangements so as to assure a public utility the recovery of both of the following:

(1) A one-time reimbursement for actual costs incurred by the public utility for rearrangements performed at the request of the cable television corporation.

(2) An annual recurring fee computed as follows:

(A) For each pole and supporting anchor actually used by the cable television corporation, for a period of four years following the effective date of this section, the annual fee shall be two dollars and fifty cents ($2.50). Thereafter, the annual fee shall be two dollars and fifty cents ($2.50) or 7.4 percent of the public utility’s annual cost of ownership for the pole and supporting anchor, whichever is greater, except that if a public utility applies for establishment of a fee in excess of two dollars and fifty cents ($2.50) under this section, the annual fee shall be 7.4 percent of the public utility’s annual cost of ownership for the pole and supporting anchor.

(B) For support structures used by the cable television corporation, other than poles or anchors, a percentage of the annual cost of ownership for the support structure, computed by dividing the volume or capacity rendered unusable by the cable television corporation’s equipment by the total usable volume or capacity. As used in this paragraph, “total usable volume or capacity” means all volume or capacity in which the public utility’s line, plant, or system could legally be located, including the volume or capacity rendered unusable by the cable television corporation’s equipment.

(d) In the event that it becomes necessary for the public utility to use space or capacity on or in a support structure occupied by the cable television corporation’s equipment, the cable television corporation shall either (1) pay all costs for rearrangements necessary to maintain the pole attachment or (2) remove its cable television equipment at its own expense.

history: (History: Repealed and added by Stats. 1980, Ch. 652, Sec. 2. Effective July 20, 1980.)

article: 3. Equipment, Practices, and Facilities


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

(1) The Legislature has encouraged, and continues to encourage, the rapid and economic development of telecommunications services to all Californians.

(2) Pursuant to Section 767.5, public utilities have dedicated a portion of their support structures to cable television corporations which have been increasingly attaching fiber optic cable that is capable of a variety of telecommunications uses. Other utilities not under the jurisdiction of the commission have also made the same dedication.

(3) Public utility and publicly owned utility support structures are also used by entities, other than cable television corporations, with the acquiescence of the public utility and voluntary permission of the publicly owned utility, for the purpose of installing fiber optic cable in order to provide various telecommunications services.

(4) Electric public utilities are currently installing fiber optic cables on their systems to enhance their operations and better serve their customers. Fiber optic cables installed by telephone, cable, and other telecommunications corporations may be accessed by electric public utilities and publicly owned utilities to enhance their operations and better serve their customers. The access may be accomplished by contract or through the purchase of tariffed services.

(b) It is therefore the intent of the Legislature that public utilities and publicly owned utilities be fairly and adequately compensated for the use of their rights-of-way and easements for the installation of fiber optic cable, and that electric public utilities and publicly owned utilities have the ability, if they so desire, to negotiate a purchase, lease, or rent of access to those fiber optic cables for their own use.

(c) Nothing in this section shall be deemed to change existing law with respect to Section 767.5.

history: (History: Added by Stats. 1994, Ch. 623, Sec. 1. Effective January 1, 1995.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 768

text: The commission may, after a hearing, require every public utility to construct, maintain, and operate its line, plant, system, equipment, apparatus, tracks, and premises in a manner so as to promote and safeguard the health and safety of its employees, passengers, customers, and the public. The commission may prescribe, among other things, the installation, use, maintenance, and operation of appropriate safety or other devices or appliances, including interlocking and other protective devices at grade crossings or junctions and block or other systems of signaling. The commission may establish uniform or other standards of construction and equipment, and require the performance of any other act which the health or safety of its employees, passengers, customers, or the public may demand. The Department of the California Highway Patrol shall have the primary responsibility for the regulation of the safety of operation of passenger stage corporations. The commission shall cooperate with the Department of the California Highway Patrol to ensure safe operation of these carriers.

history: (History: Amended by Stats. 1996, Ch. 1042, Sec. 21. Effective September 29, 1996.)

article: 3. Equipment, Practices, and Facilities


text:
The commission may, after a hearing, by general or special orders, rules, or otherwise, require every cable television corporation to construct, maintain, and operate its plant, system, equipment, apparatus, and premises in such manner as to promote and safeguard the health and safety of its employees, customers, and the public, and may prescribe, among other things, the installation, use, maintenance, and operation of appropriate safety or other devices or appliances, establish uniform or other standards of construction and equipment, and require the performance of any other act which the health or safety of its employees, customers, or the public may demand.

Nothing in this section shall be construed to either grant or deny a cable antenna television corporation the right to use the easement of a public utility.

history: (History: Added by Stats. 1968, Ch. 1240.)

article: 3. Equipment, Practices, and Facilities


text:
(a) The commission shall establish standards for disaster and emergency preparedness plans within an existing proceeding, including, but not limited to, use of weather reports to preposition manpower and equipment before anticipated severe weather, methods of improving communications between governmental agencies and the public, and methods of working to control and mitigate an emergency or disaster and its aftereffects. The commission, when establishing standards pursuant to this subdivision, may make requirements for small water corporations similar to those imposed on class A water corporations under paragraph (2) of subdivision (f).

(b) An electrical corporation, as defined in Section 218, providing service in California shall develop, adopt, and update an emergency and disaster preparedness plan in compliance with the standards established by the commission pursuant to subdivision (a).

(1) (A) In developing and adopting an emergency and disaster preparedness plan, an electrical corporation providing service in California shall invite appropriate representatives of every city, county, or city and county within that electrical corporation’s service area in California to meet with, and provide consultation to, the electrical corporation.

(B) Every city, county, or city and county within the electrical corporation’s service area in California may designate a point of contact for the electrical corporation to consult with on emergency and disaster preparedness plans.

(C) The electrical corporation shall provide the point of contact designated pursuant to subparagraph (B) with an opportunity to comment on draft emergency and disaster preparedness plans.

(2) For the purposes of best preparing an electrical corporation for future emergencies or disasters, an emergency and disaster preparedness plan shall address recent emergencies and disasters associated with the electrical corporation or similarly situated corporations, and shall address remedial actions for possible emergencies or disasters that may involve that corporation’s provision of service.

(3) Every two years, in order to update and improve that electrical corporation’s emergency and disaster preparedness plan, an electrical corporation providing service in California shall invite appropriate representatives of every city, county, or city and county within that electrical corporation’s service area to meet with, and provide consultation to, the electrical corporation.

(4) For the purposes of best preparing an electrical corporation for future emergencies or disasters, an electrical corporation updating its emergency and disaster preparedness plan shall review the disasters and emergencies that have affected similarly situated corporations since the adoption of the plan, remedial actions taken during those emergencies or disasters, and proposed changes to the plan. The electrical corporation shall adopt in its plan the changes that will best ensure the electrical corporation is reasonably prepared to deal with a disaster or emergency.

(c) A meeting pursuant to subdivision (b) shall be noticed and shall be conducted in a public meeting that allows for the participation of appropriate representatives of counties and cities within the electrical corporation’s service area.

(1) A county participating in a meeting pursuant to subdivision (b) may inform each city within the county of the time and place of the meeting.

(2) An electrical corporation holding a meeting pursuant to subdivision (b) shall provide participating counties and cities with the opportunity to provide written and verbal input regarding the corporation’s emergency and disaster preparedness plan. For purposes of this public meeting, an electrical corporation may convene a closed meeting with representatives from every city, county, or city and county within that electrical corporation’s service area to discuss sensitive security-related information in the electrical corporation’s emergency and disaster preparedness plan and to solicit comment.

(3) An electrical corporation shall notify the commission of the date, time, and location of a meeting pursuant to subdivision (b).

(d) An electrical corporation shall conduct a meeting pursuant to subdivision (b) no later than April 1, 2013, and every two years thereafter.

(e) An electrical corporation shall memorialize a meeting pursuant to subdivision (b), and shall submit its records of the meeting to the commission.

(f) (1) A water company regulated by the commission shall develop, adopt, and update an emergency and disaster preparedness plan in compliance with the standards established by the commission pursuant to subdivision (a). This requirement shall be deemed fulfilled when the water company files an emergency and disaster preparedness plan pursuant to another state statutory requirement.

(2) A water company developing, adopting, or updating an emergency and disaster preparedness plan pursuant to paragraph (1) shall hold meetings with representatives from each city, county, or city and county in the water company’s service area regarding the emergency and disaster preparedness plan.

(g) An electrical corporation or a water corporation may fulfill a meeting requirement imposed by this section by making a presentation regarding its emergency and disaster preparedness plan at a regularly scheduled public meeting of each disaster council created pursuant to Article 10 (commencing with Section 8610) of Chapter 7 of Division 1 of Title 2 of the Government Code within the corporation’s service area, or at a regularly scheduled public meeting of the governing body of each city, county, or city and county within the service area.

history: (History: Added by Stats. 2012, Ch. 472, Sec. 1. (AB 1650) Effective January 1, 2013.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 769

text:
(a) For purposes of this section, “distributed resources” means distributed renewable generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies.

(b) Not later than July 1, 2015, each electrical corporation shall submit to the commission a distribution resources plan proposal to identify optimal locations for the deployment of distributed resources. Each proposal shall do all of the following:

(1) Evaluate locational benefits and costs of distributed resources located on the distribution system. This evaluation shall be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed resources provide to the electrical grid or costs to ratepayers of the electrical corporation.

(2) Propose or identify standard tariffs, contracts, or other mechanisms for the deployment of cost-effective distributed resources that satisfy distribution planning objectives.

(3) Propose cost-effective methods of effectively coordinating existing commission-approved programs, incentives, and tariffs to maximize the locational benefits and minimize the incremental costs of distributed resources.

(4) Identify any additional utility spending necessary to integrate cost-effective distributed resources into distribution planning consistent with the goal of yielding net benefits to ratepayers.

(5) Identify barriers to the deployment of distributed resources, including, but not limited to, safety standards related to technology or operation of the distribution circuit in a manner that ensures reliable service.

(c) The commission shall review each distribution resources plan proposal submitted by an electrical corporation and approve, or modify and approve, a distribution resources plan for the corporation. The commission may modify any plan as appropriate to minimize overall system costs and maximize ratepayer benefit from investments in distributed resources.

(d) Any electrical corporation spending on distribution infrastructure necessary to accomplish the distribution resources plan shall be proposed and considered as part of the next general rate case for the corporation. The commission may approve proposed spending if it concludes that ratepayers would realize net benefits and the associated costs are just and reasonable. The commission may also adopt criteria, benchmarks, and accountability mechanisms to evaluate the success of any investment authorized pursuant to a distribution resources plan.

history: (History: Amended by Stats. 2014, Ch. 71, Sec. 151. (SB 1304) Effective January 1, 2015.)

article: 3. Equipment, Practices, and Facilities


text:
(a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).

(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:

(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.

(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.

(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records, in a format consistent with systems used for compliance with Section 1776 of the Labor Code, for projects subject to this section. The commission shall retain these records as public records for five years.

(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:

(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.

(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.

(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.

(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall remain eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.

(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.

(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.

(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.

(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.

(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.

(g) (1) The entity that engaged the contractor to perform work on a renewable electrical generation facility and associated battery storage described in subdivision (a) is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entity’s liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.

(2) The contractor who enters into a contract with the entity described in paragraph (1) to perform work on a renewable electrical generation facility and associated battery storage described in subdivision (a) is the awarding body only for the limited purposes of Section 1773.3 of the Labor Code.

history: (History: Amended by Stats. 2025, Ch. 632, Sec. 1. (AB 1104) Effective January 1, 2026.)

article: 3. Equipment, Practices, and Facilities


text:
(a) For purposes of this section, the following definitions apply:

(1) “Community choice aggregator” has the same meaning as defined in Section 331.1.

(2) “Customer renewable energy subscription program” does not include the net energy metering program specified in Sections 2827 and 2827.1 or the Multifamily Affordable Housing Solar Roofs Program established pursuant to Chapter 9.5 (commencing with Section 2870) of Part 2. “Customer renewable energy subscription program” includes an alternative designed for growth among residential customers in disadvantaged communities pursuant to paragraph (1) of subdivision (b) of Section 2827.1.

(3) “Low-income customer” means either of the following:

(A) An individual or household who qualifies for one or more of the following programs:

(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.

(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.

(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.

(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).

(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).

(B) An individual or household who resides within an underserved community.

(4) “Underserved community” includes each of the following:

(A) A “low-income community” as defined in Section 39713 of the Health and Safety Code.

(B) A community within an area identified as among the 25 percent most disadvantaged areas in the state according to the California Environmental Protection Agency and based on the most recent California Communities Environmental Health Screening Tool, also known as CalEnviroScreen, that is used to identify disadvantaged communities pursuant to Section 39711 of the Health and Safety Code.

(C) A community located on lands belonging to a California Native American tribe, as defined in Section 21073 of the Public Resources Code.

(b) On or before March 31, 2024, the commission shall, in a new or existing proceeding, do both of the following:

(1) (A) Evaluate each customer renewable energy subscription program, including the Green Tariff Shared Renewables Program (Chapter 7.6 (commencing with Section 2831) of Part 2) and any program established as an alternative designed for growth among residential customers in disadvantaged communities pursuant to paragraph (1) of subdivision (b) of Section 2827.1, to determine if the program meets all of the following goals:

(i) Efficiently serves distinct customer groups.

(ii) Minimizes duplicative offerings.

(iii) Promotes robust participation by low-income customers.

(B) Consider, as part of the evaluation, the energy load migration trends among bundled and nonbundled customers and any associated risks with maintaining or creating a customer renewable energy subscription program.

(C) If the commission determines a customer renewable energy subscription program does not meet all of the goals described in subparagraph (A), authorize the termination or modification of the program.

(2) (A) Determine whether it would be beneficial to ratepayers to establish a new tariff or program for an electrical corporation, or modify an existing tariff or program administered by an electrical corporation, to establish a community renewable energy program consistent with the criteria described in subdivision (c). If the commission determines that it would be beneficial to ratepayers to establish the community renewable energy program, the commission shall, on or before July 1, 2024, establish the program as part of the same proceeding and require each electrical corporation to participate in the program.

(B) If the commission establishes a community renewable energy program pursuant to subparagraph (A), each community choice aggregator and electric service provider, within 180 days of the establishment of the program, shall notify the commission whether it will participate in the program. A community choice aggregator or electric service provider may begin participating in, or end its participation in, the program at any time by notifying the commission.

(c) The community renewable energy program, if established, shall do all of the following:

(1) Be complementary to, and consistent with, the requirements of Section 10-115 of the California Building Standards Code (Title 24 of the California Code of Regulations). For purposes of this paragraph, the commission shall consult with the Energy Commission.

(2) Ensure at least 51 percent of the program’s capacity serves low-income customers.

(3) Minimize impacts to nonparticipating customers by prohibiting the program’s costs from being paid by nonparticipating customers in excess of the avoided costs. Qualifying funds for financial incentives shall only be available through an appropriation by the Legislature.

(4) (A) Except as provided in subparagraph (B), require that all of the following requirements apply to the construction of a community renewable energy facility pursuant to the program:

(i) All construction workers employed in the execution of the project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.

(ii) The owner of the community renewable energy facility shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work.

(iii) All contractors and subcontractors shall maintain payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section.

(iv) The requirement on contractors and subcontractors to pay prevailing wages pursuant to this section may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the project, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee through a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.

(B) Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code and subparagraph (A) shall not apply to the construction of a community renewable energy facility pursuant to the program if all contractors and subcontractors performing work on the project are subject to a project labor agreement that requires the payment of prevailing wages and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as defined in Section 2500 of the Public Contract Code.

(5) Provide bill credits to subscribers based on the avoided costs of the program’s facilities, as determined by the commission’s methods for calculating the full set of benefits of distributed energy resources. The commission may use actual wholesale market prices for the energy supply portion of an avoided cost calculation or credit value.

(6) Prioritize the maximum use of state and federal incentives and accelerate implementation of the program to ensure that time- or quantity-limited federal incentives can be obtained for the benefit of subscribers. As part of this prioritization, the commission shall ensure that a community renewable energy facility participating in the community renewable energy program is eligible for an enhanced federal investment tax credit available as a qualified low-income economic benefit project pursuant to subsection (e) of Section 48 of Title 26 of the United States Code.

history: (History: Added by Stats. 2022, Ch. 350, Sec. 2. (AB 2316) Effective January 1, 2023.)

article: 3. Equipment, Practices, and Facilities


text:
(a) The commission may establish an expedited distribution grid interconnection dispute resolution process with the goal of resolving disputes over interconnection applications that are within the jurisdiction of the commission in no more than 60 days from the time the dispute is formally brought to the commission. If the commission establishes an expedited distribution grid interconnection dispute resolution process, the commission may provide exceptions to the 60-day time period when more than 60 days are needed to fairly and safely address a dispute.

(b) The expedited distribution grid interconnection dispute resolution process shall include the following elements:

(1) A distribution grid interconnection technical panel consisting of at least eight individuals selected by the commission. Four of the technical panel members shall be from electrical corporations and four shall not be from electrical corporations. The commission shall determine the length of the term of each member. A member shall not participate as a review panel member for the dispute resolution process for a contested interconnection application in any of the following situations:

(A) The member is an employee of, a contractor to, or an employee of a contractor to, an electrical corporation to which the contested interconnection application has been submitted.

(B) The member is the applicant, an installer or an employee of an installer for the applicant, or a third-party electricity purchase agreement provider for the applicant.

(C) The member has a direct financial interest in the contested interconnection application.

(2) A review panel of four members shall be selected from the technical panel for each dispute.

(3) If an applicant is unable to resolve an interconnection-related dispute after working with the electrical corporation operating the distribution grid, the applicant may seek resolution of the dispute using the commission’s expedited distribution grid interconnection dispute resolution process.

(4) Upon agreeing to a final settlement of the dispute, parties shall be free to withdraw from the expedited distribution grid interconnection dispute resolution process.

(5) If the dispute is filed with the commission, the commission shall ensure that the review panel shall review the dispute and make a recommendation to the executive director of the commission within 30 days of receiving the dispute.

(6) The commission shall establish a public process to allow the electrical corporation, the applicant, and other interested parties to file written comments on the recommendation of the review panel.

(7) The review panel shall request appropriate documents from the electrical corporation involved in the dispute, including, but not limited to, interconnection application studies.

(8) The scope of the review panel’s review shall be limited to issues regarding compliance with the established interconnection rules. Any recommendations shall ensure safe and reliable interconnection.

(9) The scope of the review panel’s review is limited to making recommendations to resolve specific customer disputes and recommending associated corrective actions, and the panel shall have no authority to assess penalties.

(10) Upon receipt of the recommendation from the review panel, the executive director shall have 30 days to review the recommendation and to prepare an order to the electrical corporation resolving the dispute. If the review panel cannot agree on recommendations, then each recommendation of a review panel member shall be submitted to the executive director, who shall make the decision resolving the dispute.

(11) Any interested person seeking commission review of the executive director’s determination shall file the request for review within 10 days of the determination. Upon receipt of the request for review, the executive director or the energy division director shall prepare a proposed resolution of the matter for approval by the commission.

(c) The commission shall provide the members of the technical panel who are not from electrical corporations with an appropriate per diem compensation consistent with Section 19822.5 of the Government Code.

(d) The commission shall appoint a qualified electrical systems engineer with substantial interconnection expertise to advise the director of the energy division and shall provide adequate commission staff to assist in resolving interconnection disputes.

history: (History: Added by Stats. 2016, Ch. 672, Sec. 1. (AB 2861) Effective January 1, 2017.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 770

text:
The commission may after hearing:

(a) Ascertain and fix just and reasonable standards, classifications, regulations, practices, measurements, or service to be furnished, imposed, observed, and followed by all electrical, gas, water, and heat corporations.

(b) Ascertain and fix adequate and serviceable standards for the measurement of quantity, quality, pressure, or other condition pertaining to the supply of the product, commodity, or service furnished or rendered by any such public utility. No standard of the commission applicable to any water corporation shall be inconsistent with the regulations and standards of the State Department of Health pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.

(c) Prescribe reasonable regulations for the examination and testing of the product, commodity, or service and for the measurement thereof.

(d) Establish reasonable rules, specifications, and standards to secure the accuracy of all meters and appliances for measurements. The commission shall require a public utility that estimates meter readings to so indicate on its billings, and shall require any estimate that is incorrect to be corrected by the next billing period, except that for reasons beyond its control due to weather, or in cases of unusual conditions, corrections for any overestimate or underestimate shall be reflected on the first regularly scheduled bill and based on an actual reading following the period of inaccessibility.

(e) Provide for the examination and testing of any and all appliances used for the measurement of any product, commodity, or service of any such public utility.

history: (History: Amended by Stats. 1996, Ch. 1023, Sec. 410. Effective September 29, 1996.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 771

text: The commissioners and their officers and employees may enter upon any premises occupied by any public utility, for the purpose of making the examinations and tests and exercising any of the other powers provided for in this part, and may set up and use on such premises any apparatus and appliances necessary therefor. The agents and employees of the public utility may be present at the making of such examinations and tests.

history: (History: Enacted by Stats. 1951, Ch. 764.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 772

text: Any consumer or user of any product, commodity, or service of a public utility may have any appliance used in the measurement thereof tested upon paying the fees fixed by the commission. The commission shall establish and fix reasonable fees to be paid for testing such appliances on the request of the consumer or user. The fee shall be paid by the consumer or user at the time of his request, but if the appliance is found defective or incorrect to the disadvantage of the consumer or user, the fee shall be paid by the public utility and repaid to the consumer or user under such rules as the commission prescribes.

article: 3. Equipment, Practices, and Facilities


citation: PUC § 773

text: Section 4200 of the Government Code shall not apply to a public utility under the jurisdiction of the Public Utilities Commission of the State of California.

history: (History: Added by Stats. 1961, Ch. 2128.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 774

text: No water corporation which has undertaken to provide fire protection service, nor any employee of such corporation acting in the course and scope of his employment, shall be liable for any death or injury to a person or damage to or loss of property resulting from a failure to provide or maintain an adequate water supply or pressure, or any equipment or other fire protection facility or service; provided, that such immunity from liability shall not exceed that of a public agency or any of its employees, as the case may be, under similar circumstances. Nothing in this section shall preclude the enforcement of any rule, regulation, or order of the commission.

history: (History: Added by Stats. 1972, Ch. 663.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 775

text: Whenever an electric or gas corporation sells fuel oil which is, or is reasonably expected to be, useful in the performance of its public utility function, at a price higher than the electric or gas corporation’s purchase cost, the commission shall, in any rate proceeding, require that the amount higher than the purchase cost be credited with interest against the expense claimed by the electric or gas corporation.

history: (History: Added by Stats. 1976, Ch. 1360.)

article: 3. Equipment, Practices, and Facilities


citation: PUC § 776

text:
(a) The commission shall, upon making the determination pursuant to subdivision (c), develop and implement performance reliability standards for all backup power systems installed on the property of residential and small commercial customers by a facilities-based provider of telephony services. Those standards shall do all the following:

(1) Establish minimum operating life.

(2) Establish minimum periods of time during which a telephone system with a charged backup power system will provide the customer with sufficient electricity for emergency usage.

(3) Establish means to warn a customer when the backup power system’s charge is low or when the system can no longer hold a charge.

(b) The commission, in developing and implementing any standards in accordance with subdivision (a), shall consider current best practices and technical feasibility for establishing battery backup requirements.

(c) The commission shall not implement standards in accordance with this section unless it determines that the benefits of the standards exceed the costs.

history: (History: Amended by Stats. 2017, Ch. 425, Sec. 4. (SB 385) Effective January 1, 2018.)

article: 3. Equipment, Practices, and Facilities