Preliminary Matters - General Provisions - Public Utilities - CA

Section § 3400

This section names and identifies the division of legislation as the Golden State Energy Act.

This division shall be known, and may be cited, as the Golden State Energy Act.

Golden State Energy Act legislation naming division identification ...

Section § 3401

This law clarifies the intentions of the California Legislature about energy services in relation to Pacific Gas and Electric Company (PG&E). It emphasizes that safe, efficient, and reliable energy is vital for Californians and recognizes PG&E's responsibility to ensure operational safety and efficiency. However, if PG&E fails to meet these obligations or emerges from bankruptcy, Golden State Energy will be empowered to step in.

Golden State Energy is set to act only if PG&E cannot provide safe, reliable, and affordable services. Should PG&E not exit bankruptcy, this law aims to allow Golden State Energy to take over and ensure victims receive compensation. Additionally, Golden State Energy would be regulated as a nonprofit public benefit corporation, distinct from shareholder corporations, requiring alternative regulatory procedures.

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

(1) The safe, efficient, and reliable generation, procurement, transmission, distribution, and storage of energy for residents and businesses in California is essential for living and doing business in California. The economic strength and productivity of California and its residents require the availability of energy with which to operate their businesses and live safely in their homes.

(2) Californians residing, working, or doing business within Pacific Gas and Electric Company’s service territory deserve to be served by a utility that prioritizes operational safety and efficiency, is prudently managed and soundly financed, and has a capital structure that enables it to make critical safety investments.

(3) The Legislature recognizes that Pacific Gas and Electric Company may meet the requirements of Chapter 79 of the Statutes of 2019 and emerge from bankruptcy as a transformed utility that is positioned to provide Californians with access to safe, reliable, and affordable service.

(4) The purpose of this division is to ensure that if Pacific Gas and Electric Company fails to emerge from bankruptcy as a transformed utility, then Golden State Energy is duly empowered to serve in that critical role.

(b) It is the intent of the Legislature that Golden State Energy act pursuant to this division only in the event that a transformed utility does not emerge from the bankruptcy or the transformed utility fails to meet its duty to provide safe, reliable, and affordable energy services.

(c) A failure of Pacific Gas and Electric Company to exit bankruptcy will result in a risk to or delay of fair compensation to the victims that have already been waiting years to put their lives back together. It is therefore the intent of the Legislature that, should Pacific Gas and Electric Company not exit its bankruptcy, Golden State Energy be positioned to take over the utility and compensate victims.

(d) It is the intent of the Legislature that the commission regulate Golden State Energy as an electrical and gas corporation, except that the commission should recognize its status as a nonprofit public benefit corporation, which does not have shareholders and operates for its customers and for the benefit of the people of California. Due to this difference, it is necessary to establish some alternative procedures for Golden State Energy.

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Section § 3402

The law is aimed at ensuring that if Golden State Energy steps in to manage energy operations, it does so in a way that benefits customers and reduces the workload on the state. The transition from Pacific Gas and Electric Company to Golden State Energy aims at improving energy service reliability and focusing on public safety.

Golden State Energy is expected to consider how its rates affect all types of customers and operate with their best interests in mind. The company must focus on delivering safe, reliable, clean, and affordable energy.

The legislation also calls for Golden State Energy to have processes in place for choosing board members who bring the right skills and experience to safely and efficiently run a utility company.

It is the intent of the Legislature that all of the following occur if Golden State Energy commences energy operations:

(a) The operation of Golden State Energy, as the successor to Pacific Gas and Electric Company, will be for the benefit of its customers and will lessen the burdens on the State of California. The purpose of any acquisition of Pacific Gas and Electric Company’s property, including franchise rights and stock, pursuant to this division is to provide more reliable energy services with greater attention on public safety.

(b) Golden State Energy should take into account rate impacts on all customer classes and manage its operations to benefit customers throughout its entire service territory.

(c) Golden State Energy should manage its operations to best benefit the public that it serves, demonstrating leadership in the delivery of safe, reliable, clean, affordable energy.

(d) Golden State Energy should adopt procedures to encourage the election of board members who collectively reflect attributes, expertise, and experience relevant to the operation of a safe and reliable utility.

Golden State Energy Pacific Gas and Electric Company customer benefits ...