WildfireOperation of the Account

Section § 3299

Explanation

This section mandates that large electrical corporations in California must inform the state commission within 15 days whether they choose to participate in a specific account related to utility operations and funding. Participation involves agreeing to several terms, including contributing funds annually and allowing an administrator to manage the account. Failure to notify the commission means the corporation opts out automatically. If all corporations agree to participate, certain government bodies will be informed. However, if any corporation opts out, the chapter becomes inactive and is repealed the following year.

(a)Copy CA Public Utilities Code § 3299(a)
(1)Copy CA Public Utilities Code § 3299(a)(1) (A) Within 15 days of the effective date of this chapter, each large electrical corporation shall provide to the commission a written notification of its election to participate, or not to participate, in the account and provide, if applicable, annual contributions and additional contributions pursuant to this chapter.
(B)CA Public Utilities Code § 3299(a)(1)(B) A large electrical corporation’s election to participate in the account shall be considered as its agreement to do all of the following:
(i)CA Public Utilities Code § 3299(a)(1)(B)(i) To authorize the administration of the account by the administrator pursuant to this chapter and Chapter 4 (commencing with Section 3298).
(ii)CA Public Utilities Code § 3299(a)(1)(B)(ii) To provide an annual contribution pursuant to subdivision (a) of Section 3299.3 and any additional contributions pursuant to subdivision (b) of Section 3299.3.
(iii)CA Public Utilities Code § 3299(a)(1)(B)(iii) To consent to the changes in the operation of the fund as provided in clause (ii) of subparagraph (C) of paragraph (2) of subdivision (h) of, and subdivision (k) of, Section 3292, as those provisions read on the effective date of this chapter.
(iv)CA Public Utilities Code § 3299(a)(1)(B)(iv) To authorize the use of the Wildfire Fund assets and account assets for purposes of Section 719, as added by the measure adding this chapter.
(2)CA Public Utilities Code § 3299(a)(2) A large electrical corporation that fails to provide the notification pursuant to this subdivision is deemed to have elected not to participate in the account.
(b)CA Public Utilities Code § 3299(b) If all large electrical corporations provide written notification to the commission of their election to participate in the account and their commitment to provide annual contributions and additional contributions pursuant to this chapter, the commission shall notify the administrator, the Secretary of State, and the relevant policy committees of the Legislature of the election.
(c)CA Public Utilities Code § 3299(c) If a notification provided pursuant to subdivision (a) indicates that a large electrical corporation has elected not to participate in the account, or if a large electrical corporation fails to provide the notification pursuant to subdivision (a), the commission shall provide notification of the nonparticipation to the administrator, Secretary of State, and the relevant policy committees of the Legislature and this chapter shall become inoperative on the date of the notification and is repealed on January 1 of the year following the notification.
large electrical corporations participation election written notification ...

Section § 3299.1

Explanation
This law section allows a designated administrator to evaluate whether more annual contributions are necessary for a specific fund, particularly if two situations arise: (1) without extra contributions, there's a plan to close the fund, or (2) a large electrical company anticipates possible claims related to wildfires for a specific year. If the need for extra contributions is confirmed, the administrator must notify relevant authorities and companies.
(a)CA Public Utilities Code § 3299.1(a) On or after the date the commission provides the notification pursuant to subdivision (b) of Section 3299, but not later than December 31, 2028, the administrator may determine if additional annual contributions pursuant to subdivision (b) of Section 3299.3 are required for either of the following reasons:
(1)CA Public Utilities Code § 3299.1(a)(1) Absent additional annual contributions, the administrator would provide a plan for winding up the fund pursuant to Section 3283.
(2)CA Public Utilities Code § 3299.1(a)(2) The administrator receives a notification from a large electrical corporation that it has a reasonable belief that it likely will have eligible claims for a single coverage year resulting from one or more covered wildfires.
(b)CA Public Utilities Code § 3299.1(b) If the administrator determines that additional contributions are required, the administrator shall provide notification to the commission, the Department of Water Resources, and each large electrical corporation of its determination.
fund contributions winding up the fund large electrical corporation ...

Section § 3299.2

Explanation

This law outlines a process for the California Public Utilities Commission to decide on charging electricity customers a fee to support specific funding needs related to water management bonds. The commission has 15 days to start a rulemaking process once they receive a notification, with the goal of considering a nonbypassable charge for each large electricity provider's customers. This charge would help pay for bonds and meet a revenue requirement set by water-related statutes. If the commission finds the charge fair and necessary, they will instruct utilities to begin collecting it starting February 1, 2036, using the same method as certain Department of Water Resources payments. The commission must make a decision on this charge within 90 days of starting the process, and cannot change their decision until January 1, 2046.

(a)CA Public Utilities Code § 3299.2(a) Within 15 days of receiving the notification pursuant to Section 3299.1, the commission shall initiate a rulemaking proceeding to consider using its authority pursuant to Section 701 to require each large electrical corporation to collect a nonbypassable charge from ratepayers of each large electrical corporation to support the account, including the payment of bonds issued pursuant to paragraph (2) of subdivision (a) of Section 80540 of the Water Code, in an amount sufficient to fund the revenue requirement as established pursuant to Section 80524 of the Water Code.
(b)CA Public Utilities Code § 3299.2(b) If the commission determines that the imposition of the charge described in subdivision (a) is just and reasonable, and that it is just and reasonable to exercise its authority pursuant to Section 701 to do so, the commission shall direct each large electrical corporation to impose and collect that charge commencing February 1, 2036. The charge shall be collected in the same manner as that for the payments made to reimburse the Department of Water Resources under paragraph (2) of subdivision (a) of Section 3289.
(c)CA Public Utilities Code § 3299.2(c) Notwithstanding other law, no later than 90 days after the initiation of the rulemaking proceeding, the commission shall adopt a decision regarding the imposition of the charge.
(d)CA Public Utilities Code § 3299.2(d) Notwithstanding Sections 455.5 and 1708, or any other law, the commission shall not revise, amend, or otherwise modify a decision to impose a charge imposed pursuant to this section before January 1, 2046.
electrical corporation nonbypassable charge ratepayers ...

Section § 3299.3

Explanation

This law section states that if a special charge is applied, large electrical companies like Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric have to contribute a specific amount each year. From 2029 to 2045, these companies must provide a combined total of $300 million annually for this purpose.

If more funds are needed, additional contributions totaling $3.9 billion may be required, paid over five years. The companies can't pass these costs on to customers, and these contributions shouldn't affect their financial assessments. Furthermore, if a company's undistributed payments are needed to close the account earlier, these payments should be used as credits for customers.

(a)Copy CA Public Utilities Code § 3299.3(a)
(1)Copy CA Public Utilities Code § 3299.3(a)(1) If the commission imposes a nonbypassable charge pursuant to Section 3299.2, each large electrical corporation shall provide to the administrator for deposit into the account its annual contribution, as determined pursuant to paragraph (2), by January 1 of each year from calendar year 2029 to 2045, inclusive, except, if the commission’s decision to impose the nonbypassable charge was made on or after January 1, 2029, the annual contribution for calendar year 2029 shall be made within 90 days of the commission’s decision.
(2)CA Public Utilities Code § 3299.3(a)(2) The aggregate total of the annual contributions from the large electrical corporations for each year shall be three hundred million dollars ($300,000,000) and shall be allocated as follows:
(A)CA Public Utilities Code § 3299.3(a)(2)(A) 47.85 percent for Pacific Gas and Electric Company.
(B)CA Public Utilities Code § 3299.3(a)(2)(B) 47.85 percent for Southern California Edison Company.
(C)CA Public Utilities Code § 3299.3(a)(2)(C) 4.30 percent for San Diego Gas and Electric Company.
(b)Copy CA Public Utilities Code § 3299.3(b)
(1)Copy CA Public Utilities Code § 3299.3(b)(1) In addition to subdivision (a), if the administrator determines that additional contributions from large electrical corporations are needed to enable the account to fund the timely payment of eligible claims due to the likelihood of exhaustion of revenues in the account, including the proceeds to bonds issued pursuant to Section 80540 of the Water Code, the administrator shall notify each large electrical corporation that additional contributions, with an aggregate total of three billion nine hundred million dollars ($3,900,000,000), is required. The proportionate share of those additional contributions shall be allocated to large electrical corporations as described in paragraph (2) of subdivision (a) and each large electrical corporation shall pay its proportionate share of the additional contributions to the administrator in equal installments over a five-year period. Each large electrical corporation shall pay its proportionate share of the additional contributions within 120 days of the administrator notifying the large electrical corporation and on the anniversary of its first installment payment each year thereafter.
(2)CA Public Utilities Code § 3299.3(b)(2) If the administrator winds up and terminates the account before the final installment payment is paid pursuant to paragraph (1), the large electrical corporation shall provide one-half of the remaining unpaid installment payments pursuant to paragraph (1) as rate credits to its ratepayers.
(c)CA Public Utilities Code § 3299.3(c) Contributions made pursuant to this section shall not be recovered from the ratepayers of a large electrical corporation and shall be excluded from the measurement of its authorized capital structure.
(d)CA Public Utilities Code § 3299.3(d) If a large electrical corporation is required to reimburse the account in accordance with subdivision (b) of Section 3299.10, the large electrical corporation may reduce the amount required to be reimbursed by the amount of contributions it has paid pursuant to this section for which the large electrical corporation has not claimed a reduction pursuant to this subdivision.
nonbypassable charge large electrical corporations annual contributions ...

Section § 3299.4

Explanation

This law requires big electrical companies to have reasonable insurance coverage. A designated official will regularly assess and recommend how much insurance they should have based on factors like the availability of insurance, fire risk in their service area, the size and value of the territory, their safety record, their wildfire prevention efforts, and how their insurance costs affect customer rates.

A large electrical corporation shall maintain reasonable insurance coverage. The administrator shall periodically review and make a recommendation as to the appropriate amount of insurance coverage required, taking into account the availability of insurance, the large electrical corporation’s service territory, including the fire risk of the territory, the size of the territory, and the value of the real estate in the territory, the safety record of the large electrical corporation, the wildfire mitigation measures implemented by the large electrical corporation, the impact to the ratepayers, and other factors deemed appropriate by the administrator.
large electrical corporation reasonable insurance coverage administrator review ...

Section § 3299.10

Explanation

This law section lays out rules for large electrical corporations in California regarding payments from a specific account for wildfire-related claims. Corporations can request payment for settled or legally acknowledged claims, but these must be approved by a designated administrator. Once approved, the settlement is not subject to further review by the commission.

If a claim is disallowed by the commission, the corporation must reimburse the account within six months, but the repayment amount is limited. It must be either the disallowed costs or a calculated figure based on the corporation’s transmission and distribution equity rate base, minus any previous reimbursements for unjust costs related to wildfires. The administrator publishes these calculations annually.

Exceptions to these reimbursement limits apply if the corporation acted with disregard for safety, or if it lacked a valid safety certificate at the time of the wildfire. These rules are active until the account is officially terminated.

(a)CA Public Utilities Code § 3299.10(a) A large electrical corporation may seek payment from the account to satisfy settled or finally adjudicated eligible claims. Only eligible claims shall be made against or paid by the account. In accordance with the procedures established by the administrator, the administrator shall review and approve any settlement of an eligible claim as being in the reasonable business judgment of the large electrical corporation before releasing funds to the large electrical corporation for payment. To the extent approved by the administrator, a settlement shall not be subject to further review by the commission.
(b)Copy CA Public Utilities Code § 3299.10(b)
(1)Copy CA Public Utilities Code § 3299.10(b)(1) Except as provided in paragraph (2), within six months of the commission adopting a decision for an application filed pursuant to Section 1701.8, a large electrical corporation shall reimburse the account for the full amount of costs and expenses the commission determined were disallowed pursuant to Section 1701.8.
(2)Copy CA Public Utilities Code § 3299.10(b)(2)
(A)Copy CA Public Utilities Code § 3299.10(b)(2)(A) The requirement on a large electrical corporation to reimburse the account shall be the lesser amount of subparagraph (B) or (C).
(B)CA Public Utilities Code § 3299.10(b)(2)(A)(B) The costs and expenses determined not to be just and reasonable pursuant to Section 1701.8.
(C)Copy CA Public Utilities Code § 3299.10(b)(2)(A)(C)
(i)Copy CA Public Utilities Code § 3299.10(b)(2)(A)(C)(i) The amount determined pursuant to clause (ii) minus the amount determined pursuant to clause (iii).
(ii)CA Public Utilities Code § 3299.10(b)(2)(A)(C)(i)(ii) Twenty percent of the large electrical corporation’s total transmission and distribution equity rate base, including, but not limited to, its Federal Energy Regulatory Commission (FERC) assets, as determined by the administrator for the calendar year in which the ignition of the covered wildfire occurred.
(iii)CA Public Utilities Code § 3299.10(b)(2)(A)(C)(i)(iii) The sum of the amounts actually reimbursed to the account for measurement costs that were determined not to be just and reasonable pursuant to Section 1701.8 added to the amount of any reimbursements to the account owed by the large electrical corporation for measurement costs disallowed that have not yet been paid.
(iv)CA Public Utilities Code § 3299.10(b)(2)(A)(C)(i)(iv) For purposes of this subparagraph, “measurement costs” means costs and expenses that arose out of any covered wildfire ignited within three years of the ignition of the wildfire that is the subject of the application and any measurement costs as defined in subparagraph (C) of paragraph (2) of subdivision (h) of Section 3292.
(D)CA Public Utilities Code § 3299.10(b)(2)(A)(D) The administrator shall publish calculations of the amounts determined pursuant to subparagraphs (B) and (C) on or before January 1 of each calendar year for each large electrical corporation.
(E)CA Public Utilities Code § 3299.10(b)(2)(A)(E) Except as provided in paragraph (3), a large electrical corporation shall not be required to reimburse the account for any additional amounts for any measurement period.
(F)CA Public Utilities Code § 3299.10(b)(2)(A)(F) The limitation set forth in this section shall apply only so long as the account has not been terminated pursuant to paragraph (2) of subdivision (d) of Section 3298.
(3)CA Public Utilities Code § 3299.10(b)(3) Paragraph (2) does not apply under either of the following circumstances:
(A)CA Public Utilities Code § 3299.10(b)(3)(A) If the administrator determines that the large electrical corporation’s actions or inactions that resulted in the covered wildfire constituted conscious or willful disregard of the rights and safety of others.
(B)CA Public Utilities Code § 3299.10(b)(3)(B) If the large electrical corporation failed to maintain a valid safety certification on the date of the ignition.
large electrical corporation reimbursement wildfire-related claims settled eligible claims ...

Section § 3299.20

Explanation

This law says that if a big electricity company chooses not to take part in a certain program, as explained in a related section, then this chapter of the law will no longer be in effect. It will officially be removed from the books on January 1 of the year that comes after the commission announces this decision.

This chapter shall become inoperative if a large electrical corporation elects not to participate pursuant to Section 3299 and is repealed on January 1 of the year following a notification by the commission pursuant to subdivision (c) of Section 3299.
large electrical corporation non-participation program participation ...