Legislative record

Natural Gas Ratepayer Protection Act.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas 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, until at least December 31, 2029, each gas corporation to submit to the commission a map that includes, among other things, the location of all potential gas distribution line replacement projects identified in its distribution integrity management plan and any foreseeable gas distribution pipeline replacements, as provided. This bill would require each gas corporation to submit an annual report to the commission that describes its expenditures associated with gas distribution infrastructure replacement and upgrade projects, as provided. The bill would require the commission, as part of its long-term gas planning rulemaking or a successor proceeding, to consider a framework for the depreciation of gas distribution infrastructure that reflects reasonably foreseeable changes in gas demand and is designed to minimize future ratepayer exposure to stranded asset costs, and would authorize the commission to apply the framework in evaluating the depreciation of, and cost recovery for, gas distribution infrastructure replacements and upgrades. Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the above provisions would be part of the Public Utilities Act and a violation of a commission action implementing this bill's 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.