Bill Text: CA AB2346 | 2017-2018 | Regular Session | Enrolled
Bill Title: Public utilities: rates: wildfire expense memorandum accounts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2018-09-21 - Vetoed by Governor. [AB2346 Detail]
Download: California-2017-AB2346-Enrolled.html
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Enrolled
September 05, 2018 |
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Passed
IN
Senate
August 27, 2018 |
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Passed
IN
Assembly
August 31, 2018 |
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Amended
IN
Senate
August 22, 2018 |
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Amended
IN
Senate
August 08, 2018 |
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Amended
IN
Senate
July 05, 2018 |
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Amended
IN
Senate
June 13, 2018 |
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Amended
IN
Assembly
April 18, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 2346 |
| Introduced by Assembly Member Quirk |
February 13, 2018 |
An act to add Section 454.85 to the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2346, Quirk.
Public utilities: rates: wildfire expense memorandum accounts.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize public utilities to establish catastrophic event memorandum accounts and to record certain costs in those accounts.
This bill would require the commission to authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record certain costs in those accounts. The bill would require the recovery in rates of those costs to be subject to review by, and the
determination of, the commission, as specified. The bill would require an electrical corporation to notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 454.85 is added to the Public Utilities Code, to read:454.85.
(a) The commission shall authorize an electrical corporation, upon request, to establish a wildfire expense memorandum account for incremental unreimbursed costs relating to California wildfires that occur on or after January 1, 2015, and to record in that account all of the following costs incurred after the start of each wildfire, excluding costs recoverable in the electrical corporation’s or gas corporation’s general rate case or recorded in the electrical corporation’s catastrophic event memorandum account pursuant to Section 454.9, and excluding costs recoverable through any other mechanism the commission has provided to allow for recovery:(1) Payments and costs to satisfy wildfire claims, including coinsurance and deductible expenses paid
by the electrical corporation.
(2) Outside legal costs incurred by the electrical corporation either to settle claims or to defend against claims relating to the wildfires.
(3) Increases in insurance premiums and the cost of other financial risk transfer instruments incurred by the electrical corporation.
(4) Increases in fire risk mitigation costs, including infrastructure hardening and vegetation management costs incurred by the electrical corporation. However, costs of grid hardening and vegetation management activities intended to comply with existing state law or commission regulations and costs for which recovery may be available through other commission cost recovery mechanisms shall not be recorded.
(b) The recovery in rates of those costs
recorded in the account shall be subject to review by, and the determination of, the commission pursuant to Section 451.
(c) An electrical corporation shall notify the commission by letter within 30 days after the electrical corporation begins recording costs in its wildfire expense memorandum account.
