Electrical service: provider of last resort.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Under existing law, a public utility has a duty to serve, including furnishing and maintaining adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons and the public. This bill would provide that the electrical corporation is the provider of last resort, as defined, in its service territory unless provided otherwise in a service territory boundary agreement approved by the commission pursuant to existing law or unless the commission designates a load-serving entity, as defined, other than the electrical corporation to serve as the provider of last resort for all or a portion of that service territory pursuant to a joint application of the electrical corporation and the load-serving entity. The bill would establish requirements for the application and for a load-serving entity other than the electrical corporation to serve as the provider of last resort. The bill would require the commission to ensure that each provider of last resort receives reasonable cost recovery for being designated and serving as the provider of last resort. The bill would require the commission to supervise and regulate each provider of last resort, as necessary, as a public utility for the services it provides as a provider of last resort to ensure the provision of electrical service to customers without disruption, and would provide that each provider of last resort is a public utility subject to the jurisdiction, control, and regulation of the commission, as specified. The bill would require the commission to develop a process that facilitates a joint application from load-serving entities that are not electrical corporations to request to transfer the responsibilities of the provider of last resort, in instances when one load-serving entity that is not an electrical corporation has already been designated as a provider of last resort. 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 because a violation of a commission action implementing its 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.