Electrical and gas corporations: political expenditures.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations, as defined. The federal Public Utility Regulatory Policies Act of 1978 requires every state regulatory authority with respect to each electric utility, as defined, for which it has ratemaking authority, to determine whether to adopt certain federal standards if consistent with otherwise applicable state law. The federal standards prohibit an electric utility from recovering from any person other than the shareholders or other owners of the utility, any direct or indirect expenditure by the electric utility for promotional or political advertising, as defined. This bill would prohibit an electrical and gas corporation that serves more than 3,000,000 customers from spending funds received from ratepayers as authorized revenues on political and public affairs, as defined, related to state or local governments. The bill would require each electrical and gas corporation that serves more than 3,000,000 customers to annually report to the commission all political and public affairs spending for the preceding year and would require the commission to ensure that all political and public affairs spending identified in the annual report is not included in rates paid by the ratepayers of the electrical and gas corporation. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and require action by the commission to implement its requirements, the 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.