This bill would instead require the commission to establish a 3-tier rate structure for residential electric customers. The bill would exempt certain customers from the higher 3rd tier rate. This bill would require the commission to make rate adjustments for nonresidential customers that result in those customers paying a rate that provides revenue to an electrical corporation from nonresidential customers in a proportionate share of nonresidential revenue to total revenues, and, on a periodic basis, for residential customers, adjustments that are necessary to eliminate any linkage between recovery of an electrical corporation's authorized revenues and its electrical sales. Because existing law makes any public utility that violates specified provisions regulating public utilities guilty of a misdemeanor, this bill would impose a state-mandated local program by creating a new crime. 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. The commission shall designate a baseline quantity of gas and electricity which is necessary to supply a significant portion of the reasonable energy needs of the average residential customer. In estimating those quantities, the commission shall take into account differentials in energy needs between customers whose residential energy needs are currently supplied by electricity alone or by both electricity and gas. The commission shall develop a separate baseline quantity for all-electric residential customers. The commission shall also take into account differentials in energy use by climatic zone and season.