Electrical RestructuringConsumer Protection
Section § 394
This law outlines the rules for electric service providers that offer electricity to customers where traditional electrical corporations are present. These providers must register with the commission, offering detailed information under oath about their business and any past legal issues. They must prove financial and operational strength, and any existing unfulfilled registrations must be updated to remain valid.
Public agencies offering certain services can withdraw from registration if they qualify. Providers with revoked registrations must reapply, proving their capability to meet standards. Importantly, registration does not allow the commission to control prices or service terms for these providers.
Section § 394.1
This law section explains the process for registering an electric service provider in California. It states that after submitting the required information, the registration is considered approved within 45 days unless there are reasons for denial. If the commission's executive director finds that there are grounds for denial, the provider is notified and a hearing is scheduled within 30 days to make a decision. The commission can deny registration if the provider or its officers have committed certain acts, like a crime related to their duties, or made false statements in their application. Providers must keep their registration info updated, reporting significant changes within 60 days and annually updating other information.
Section § 394.2
This law outlines how consumer complaints against electric service providers are handled in California. The commission handles complaints and can open investigations if there's evidence of customer abuse. Complaints about services from public agencies or within local utility territories are managed by those entities.
Residential and small business customers can choose to file complaints in court or with the commission, but not both. The commission can resolve these complaints and award reparations, but cannot set rates or award other damages. Decisions by the commission can be appealed in court.
Electric service providers must provide access to relevant records if needed for complaints or investigations. They cannot discontinue service if a dispute is being reviewed by the commission and the disputed amount is paid into escrow.
Section § 394.3
This law mandates that electric service providers in California, who supply electricity to homes and small businesses, must pay a $100 registration fee. The fee is used to help fund consumer protection programs. These providers need to register with the commission, which oversees and supports these consumer protections.
Each year, the commission will calculate the costs involved in running this registration program and any related consumer protection efforts. They'll charge electric service providers only for costs that haven't been covered elsewhere. If a provider doesn't pay the required fee or provide necessary information within 30 days of being billed, they'll face a 15% penalty.
Section § 394.4
This law establishes rules for electric service providers who offer services to residential and small commercial customers in California. Customer information must remain confidential unless otherwise consented to, protecting details about billing and usage. Only entities providing physical electricity connections can disconnect or reconnect customers, under specific guidelines. Customers can change electricity providers given they are notified, and any fees for such transitions must be disclosed. Communication about services, including terms and late payment notices, must be clear and in the language services were provided. Bills must be simple to understand, allowing customers to verify charges and resolve disputes. Meters must be checked for accuracy, with rules on testing costs. Deposits cannot exceed a three-month estimated bill. Additional consumer protections can be adopted to serve the public interest.
Section § 394.5
This California law requires electric service providers, except certain publicly owned utilities, to give potential residential or small business customers a written notice describing service details before starting service. This notice must clearly outline the price, terms, and conditions, including costs per kilowatt-hour and any recurring or one-time charges. If extra services are offered, their costs need to be itemized too.
The notice should also explain potential fees like the competition transition charge, customers' rights to cancel the contract without penalties, and how to change service providers. Information about low-income assistance programs must be included, along with the provider’s registration number, if necessary.
The law allows the commission to help develop these notices and requires providers to submit copies to the commission twice a year. If a provider denies service, they must inform the consumer of the denial reason in writing if requested, within 30 days.
Section § 394.6
This law specifies how the service territory boundaries of a local publicly owned electric utility are defined for regulatory purposes. The boundaries are as they were on December 20, 1995, or as specified in any legal agreements concerning service territory boundaries with other utilities. Specifically, for the Merced Irrigation District, it includes its boundaries as of December 20, 1995, plus the area of Castle Air Force Base.
Section § 394.7
This law mandates that a list is kept of residential and small commercial customers who do not want to receive telephone solicitations regarding changes to their electric service provider. This list must be updated at least every three months and be accessible electronically to electric service providers.
No electric service provider or their representatives can call customers on this list. If they do, they must pay the customer $25 for each illegal call. This does not affect the separate phone verification processes outlined in another section (Section 366.5).
Section § 394.8
This law states that the rules that apply to electric service providers do not apply to local publicly owned electric utilities if they are providing services to customers within their own area of service.
Section § 394.9
If the commission orders refunds that aren't claimed, they can use that money, along with any interest it earns, to support more consumer protection actions.
Section § 394.25
This section outlines how the commission can enforce regulations on electric service providers similarly to public utilities, but it does not expand the commission's regulatory power beyond what's specified. Providers can have their registration suspended or revoked for actions like lying during sales, fraud, inability to provide service, or misrepresenting information when registering. The commission can halt operations or freeze customer growth as penalties.
If a registration is revoked for misrepresentation, providers must refund customer credits to the Renewable Resource Trust Fund, beyond other fines. If customers are forced back to utility service, the provider or aggregator must cover any reentry fees to avoid extra costs on others, unless the switch is due to non-payment or contract end. Providers must have a bond or insurance for potential reentry fee coverage, and fees shift to customers if the provider is insolvent.
Section § 394.27
If you suffer property damage because your electric company fails to provide or restore service quickly after events like natural disasters, you can file a claim against them. They must tell you that you can take your claim to small claims court or another court, depending on how much you're claiming.
Section § 395
This law gives residential and small commercial electricity customers in California the right to cancel a contract for electric service up until midnight of the third business day after signing it.
To cancel, the customer must send written notice to the seller at the address in the contract. If mailed, the cancellation is effective when the letter is mailed, not when it's received.
The notice doesn’t have to follow any specific format; it just needs to clearly show the intent to cancel.
Section § 396
If an electric service provider breaks the rules in this article, the affected consumer can take legal action to recover damages. This includes any actual financial damages, reasonable attorney's fees, court costs, and possibly additional exemplary damages if the violation was intentional or willful. The court may also grant other appropriate types of relief.
This law's protections and remedies are in addition to other legal rights and actions a consumer might have. Importantly, this law doesn't limit the Attorney General's power to enforce other laws.
Section § 396.5
This law requires the leaders of a community choice aggregator to create a rule that bans sharing false or misleading information about their pricing or service terms. They have to make sure that any claims made are truthful and accurate, and they should know, or reasonably verify, if the information is misleading.