Bill Text: CA AB995 | 2013-2014 | Regular Session | Amended
Bill Title: Public utilities: intervenor fees: customers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee without further action pursuant to Joint Rule 62(a). [AB995 Detail]
Download: California-2013-AB995-Amended.html
BILL NUMBER: AB 995 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 16, 2013
INTRODUCED BY Assembly Member Frazier
FEBRUARY 22, 2013
An act to amend Section Sections 1801.3,
1802, 1802.5, 1803, and 1804 of , and to add Section
1802.1 to, the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 995, as amended, Frazier. Public utilities: intervenor fees:
customers.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical, gas,
telephone, telegraph, and water corporations, as defined, and can
establish its own procedures, subject to statutory limitations or
directions and constitutional requirements of due process. Existing
law requires the commission to award reasonable advocate's fees,
reasonable expert witness fees, and other reasonable costs to
customers, as defined, of an electrical, gas, telegraph, telephone,
and water corporation who comply with specified procedures, if the
customer's presentation makes a substantial contribution, as defined,
to the adoption, in whole or in part, of the commission's order or
decision and the customer's participation or intervention without an
award of fees or costs imposes a significant financial hardship, as
defined. A "substantial contribution" is defined as meaning that, in
the judgment of the commission, the customer's presentation has
substantially assisted the commission in the making of its order or
decision because the order or decision has adopted in whole or in
part one or more factual contentions, legal contentions, or specific
policy or procedural recommendations presented by the customer.
This bill would require the commission, by July 1, 2015, to adopt
rules establishing standards to verify that a customer representative
is authorized by consumers, customers, or subscribers of any
electrical, gas, telephone, telegraph, or water corporation to
represent their interests. The bill would revise the definition of
"substantial contribution" to additionally require that the
commission find that the customer's participation promoted a public
purpose that directly benefits other customers. The bill would
require the commission to award reasonable advocate's fees,
reasonable expert witness fees, and other reasonable costs to
customers of an electrical, gas, telegraph, telephone, and water
corporation who comply with specified procedures, if the customer's
presentation makes a substantial contribution to the adoption, in
whole or in part, of the commission's order or decision and promotes
a public purpose that benefits other customers, and the customer's
participation or intervention without an award of fees or costs
imposes a significant financial hardship, as defined. The bill would
prohibit the total amount the commission annually awards for
intervenor compensation from exceeding the mean average of awards for
the previous 3 calendar years.
Existing law provides that participation by a customer that
materially supplements, complements, or contributes to the
presentation of another party, including the commission staff, may be
fully eligible for compensation if the participation makes a
substantial contribution to a commission order or decision,
consistent with specified requirements.
Existing law establishes a division within the commission, known
as the Division of Ratepayer Advocates, to represent the interests of
public utility customers and subscribers, with the goal of obtaining
the lowest possible rate for service consistent with reliable and
safe service levels.
This bill would provide that a customer's participation that
substantially duplicates the presentation of the commission's
Division of Ratepayer Advocates, or that falls within the scope and
purview of the division, is not eligible for compensation, unless the
commission determines that it provided a substantial contribution to
promote a public purpose that the division did not provide.
Existing law requires a customer who intends to seek an award for
intervenor fees to timely file and serve on all parties to the
proceeding a notice of intent to claim compensation ,
containing specified information. Existing law authorizes an
administrative law judge that is assigned to the proceeding in which
intervenor compensation is sought to issue a ruling addressing issues
raised by the notice of intent to claim compensation and to point
out similar positions, areas of potential duplication in showings,
unrealistic expectation for compensation, and any other matter that
may affect the customer's ultimate claim for compensation. Existing
law authorizes a customer found to be eligible for compensation to
file within 60 days of the issuance of a final order or decision of
the Public Utilities Commission a request for an award.
which includes a statement of the nature and extent of the
customer's planned participation in the proceeding and an itemized
estimate of the compensation that the customer expects to request,
given the likely duration of the proceeding as it appears at the time
of the filing of the notice.
This bill would revise the time period for a customer to
file a request for an award to 30 days of the issuance of a final
order or decision. additionally require that the
notice of intent to claim compensation include a verification of the
individual customer or group of customers being represented.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The intervenor compensation program administered by the Public
Utilities Commission provides compensation to individuals and groups
participating in commission proceedings involving electrical, gas,
water, and telephone corporations to cover the reasonable costs of
participation.
(b) The program compensates individual customers, and groups
representing customers, that lack the financial resources otherwise
necessary to advocate in commission proceedings.
(c) Intervenor awards are paid from funds collected from
ratepayers.
(d) The intent of the program is to compensate an intervenor for
participation, when his or her participation promotes a public
purpose and benefits other, nonparticipating ratepayers, and when it
presents evidence or arguments that are separate and distinct from
those presented by the commission's Division of Ratepayer Advocates.
(e) The Division of Ratepayer Advocates is the independent
consumer advocate within the commission.
(f) The Division of Ratepayer Advocates has a statutory directive
to represent consumer interests at commission proceedings, to obtain
the lowest possible rate for service consistent with reliable and
safe service levels, and to advocate for customer and environmental
protections.
SEC. 2. Section 1801.3 of the Public
Utilities Code is amended to read:
1801.3. It is the intent of the Legislature that:
(a) The provisions of this article shall apply to all formal
proceedings of the commission involving electric, gas, water, and
telephone utilities.
(b) The provisions of this article shall be administered in a
manner that encourages the effective and efficient participation of
all groups that have a stake in the public utility regulation
process.
(c) The process for finding eligibility for intervenor
compensation be streamlined, by simplifying the preliminary showing
by an intervenor of issues, budget, and costs.
(d) Intervenors be compensated for making a substantial
contribution to proceedings of the commission, as determined by the
commission in its orders and decisions.
(e) Intervenor compensation be awarded to eligible intervenors in
a timely manner, within a reasonable period after the intervenor has
made the substantial contribution to a proceeding that is the basis
for the compensation award.
(f) This article shall be administered in a manner that avoids
unproductive or unnecessary participation that
duplicates the participation of similar interests otherwise
adequately represented or participation that is not necessary for a
fair determination of the proceeding.
SEC. 3. Section 1802 of the Public
Utilities Code is amended to read:
1802. As used in this article:
(a) "Compensation" means payment for all or part, as determined by
the commission, of reasonable advocate's fees, reasonable expert
witness fees, and other reasonable costs of preparation for and
participation in a proceeding, and includes the fees and costs of
obtaining an award under this article and of obtaining judicial
review, if any.
(b) (1) "Customer" means any of the following:
(A) A participant representing consumers, customers, or
subscribers of any electrical, gas, telephone, telegraph, or water
corporation that is subject to the jurisdiction of the commission.
(B) A representative who has been authorized by a customer.
(C) A representative of a group or organization authorized
pursuant to its articles of incorporation or bylaws to represent the
interests of residential customers, or to represent small commercial
customers who receive bundled electric service from an electrical
corporation.
(2) "Customer" does not include any state, federal, or local
government agency, any publicly owned public utility, or any entity
that, in the commission's opinion, was established or formed by a
local government entity for the purpose of participating in a
commission proceeding.
(c) "Expert witness fees" means recorded or billed costs incurred
by a customer for an expert witness.
(d) "Other reasonable costs" means reasonable out-of-pocket
expenses directly incurred by a customer that are directly related to
the contentions or recommendations made by the customer that
resulted in a substantial contribution.
(e) "Party" means any interested party, respondent public utility,
or commission staff in a hearing or proceeding.
(f) "Proceeding" means an application, complaint, or
investigation, rulemaking, alternative dispute resolution procedures
in lieu of formal proceedings as may be sponsored or endorsed by the
commission, or other formal proceeding before the commission.
(g) "Significant financial hardship" means either that the
customer cannot afford, without undue hardship, to pay the costs of
effective participation, including advocate's fees, expert witness
fees, and other reasonable costs of participation, or that, in the
case of a group or organization, the economic interest of the
individual members of the group or organization is small in
comparison to the costs of effective participation in the proceeding.
(h) "Small commercial customer" means any nonresidential customer
with a maximum peak demand of less than 50 kilowatts. The commission
may establish rules to modify or change the definition of "small
commercial customer," including use of criteria other than a peak
demand threshold, if the commission determines that the modification
or change will promote participation in proceedings at the commission
by organizations representing small businesses, without
incorporating large commercial and industrial customers.
(i) "Substantial contribution" means that, in the judgment of the
commission, the customer's presentation has substantially assisted
the commission in the making of its order or decision because the
order or decision has adopted in whole or in part one or more factual
contentions, legal contentions, or specific policy or procedural
recommendations presented by the customer and the customer's
participation promoted a public purpose that directly benefits other
customers . Where the customer's participation has resulted in
a substantial contribution, even if the decision adopts that customer'
s contention or recommendations only in part, the commission may
award the customer compensation for all reasonable advocate's fees,
reasonable expert fees, and other reasonable costs incurred by the
customer in preparing or presenting that contention or
recommendation.
SEC. 4. Section 1802.1 is added to the
Public Utilities Code , to read:
1802.1. By July 1, 2015, the commission shall adopt rules
establishing standards to verify that a "customer" representative is
authorized by consumers, customers, or subscribers of any electrical,
gas, telephone, telegraph, or water corporation to represent their
interests.
SEC. 5. Section 1802.5 of the Public
Utilities Code is amended to read:
1802.5. Participation by a customer that materially supplements,
complements, or contributes to the presentation of another party,
including the commission staff, may be fully eligible for
compensation if the participation makes a substantial contribution to
a commission order or decision, consistent with Section 1801.3.
Participation that substantially duplicates the
presentation of the Division of Ratepayer Advocates, or that falls
within the scope and purview of the division, shall not be eligible
for compensation, unless the commission determines that it provided a
substantial contribution to promote a public purpose that
the division did not provide.
SEC. 6. Section 1803 of the Public
Utilities Code is amended to read:
1803. (a) The commission shall award
reasonable advocate's fees, reasonable expert witness fees, and other
reasonable costs of preparation for and participation in a hearing
or proceeding to any customer who complies with Section 1804 and
satisfies both of the following requirements:
(a)
(1) The customer's presentation makes a substantial
contribution to the adoption, in whole or in part, of the commission'
s order or decision and promotes a public purpose
that benefits other customers .
(b)
(2) Participation or intervention without an award of
fees or costs imposes a significant financial hardship.
(b) The total amount the commission may annually award for
intervenor compensation shall not exceed the mean average of awards
for the previous three calendar years.
SECTION 1. SEC. 7. Section 1804 of
the Public Utilities Code is amended to read:
1804. (a) (1) A customer who intends to seek an award under this
article shall, within 30 days after the prehearing conference is
held, file and serve on all parties to the proceeding a notice of
intent to claim compensation. In cases where no prehearing conference
is scheduled or where the commission anticipates that the proceeding
will take less than 30 days, the commission may determine the
procedure to be used in filing these requests. In cases where the
schedule would not reasonably allow parties to identify issues within
the timeframe set forth above, or where new issues emerge subsequent
to the time set for filing, the commission may determine an
appropriate procedure for accepting new or revised notices of intent.
(2) (A) The notice of intent to claim compensation shall include
both all of the following:
(i) A statement of the nature and extent of the customer's planned
participation in the proceeding as far as it is possible to set it
out when the notice of intent is filed.
(ii) An itemized estimate of the compensation that the customer
expects to request, given the likely duration of the proceeding as it
appears at the time.
(iii) A verification of the individual customer or group of
customers being represented.
(B) The notice of intent may also include a showing by the
customer that participation in the hearing or proceeding would pose a
significant financial hardship. Alternatively, such a showing shall
be included in the request submitted pursuant to subdivision (c).
(C) Within 15 days after service of the notice of intent to claim
compensation, the administrative law judge may direct the staff, and
may permit any other interested party, to file a statement responding
to the notice.
(b) (1) If the customer's showing of significant financial
hardship was included in the notice filed pursuant to subdivision
(a), the administrative law judge, in consultation with the assigned
commissioner, shall issue within 30 days thereafter a preliminary
ruling addressing whether the customer will be eligible for an award
of compensation. The ruling shall address whether a showing of
significant financial hardship has been made. A finding of
significant financial hardship shall create a rebuttable presumption
of eligibility for compensation in other commission proceedings
commencing within one year of the date of that finding.
(2) The administrative law judge may, in any event, issue a ruling
addressing issues raised by the notice of intent to claim
compensation. The ruling may point out similar positions, areas of
potential duplication in showings, unrealistic expectation for
compensation, and any other matter that may affect the customer's
ultimate claim for compensation. Failure of the ruling to point out
similar positions or potential duplication or any other potential
impact on the ultimate claim for compensation shall not imply
approval of any claim for compensation. A finding of significant
financial hardship in no way ensures compensation. Similarly, the
failure of the customer to identify a specific issue in the notice of
intent or to precisely estimate potential compensation shall not
preclude an award of reasonable compensation if a substantial
contribution is made.
(c) Following issuance of a final order or decision by the
commission in the hearing or proceeding, a customer who has been
found, pursuant to subdivision (b), to be eligible for an award of
compensation may file within 30 60 days
a request for an award. The request shall include at a minimum a
detailed description of services and expenditures and a description
of the customer's substantial contribution to the hearing or
proceeding. Within 30 days after service of the request, the
commission staff may file, and any other party may file, a response
to the request.
(d) The commission may audit the records and books of the customer
to the extent necessary to verify the basis for the award. The
commission shall preserve the confidentiality of the customer's
records in making its audit. Within 20 days after completion of the
audit, if any, the commission shall direct that an audit report shall
be prepared and filed. Any other party may file a response to the
audit report within 20 days thereafter.
(e) Within 75 days after the filing of a request for compensation
pursuant to subdivision (c), or within 50 days after the filing of an
audit report, whichever occurs later, the commission shall issue a
decision that determines whether or not the customer has made a
substantial contribution to the final order or decision in the
hearing or proceeding. If the commission finds that the customer
requesting compensation has made a substantial contribution, the
commission shall describe this substantial contribution and shall
determine the amount of compensation to be paid pursuant to Section
1806.
