SECTIONS 10001-10014 - California Statutes

PUBLIC UTILITIES CODE

SECTION 10001-10014

10001. "Public utility" as used in this article, means the supply
of a municipal corporation alone or together with its inhabitants, or
any portion thereof, with water, light, heat, power, sewage
collection, treatment, or disposal for sanitary or drainage purposes,
transportation of persons or property, means of communication, or
means of promoting the public convenience.

10002. Any municipal corporation may acquire, construct, own,
operate, or lease any public utility.

10003. The power to acquire and operate a public utility includes
the power to complete, reconstruct, extend, change, enlarge, and
repair a public utility acquired, constructed, owned, or operated by
a municipality.

10004. For the purpose set forth in Sections 10002 and 10003 a
municipal corporation may acquire, own, control, sell, or exchange
lands, easements, licenses, and rights of every nature within or
without its corporate limits, and may operate a public utility within
or without the corporate limits when necessary to supply the
municipality, or its inhabitants or any portion thereof, with the
service desired.

10004.5. (a) Except as provided for in subdivision (b), any
judicial action or proceeding against a municipal corporation that
provides electric utility service, to attack, review, set aside,
void, or annul an ordinance, resolution, or motion fixing or changing
a rate or charge for an electric commodity or an electric service
furnished by a municipal corporation and adopted on or after July 1,
2000, shall be commenced within 120 days of the effective date of
that ordinance, resolution, or motion.
(b) This section does not apply to any judicial action or
proceeding filed pursuant to Chapter 13.7 (commencing with Section
54999) of Part 1 of Division 2 of Title 5 of the Government Code to
protest or challenge a rate or charge or to seek the refund of a
capital facilities fee if the notice and disclosure requirements of
Section 54999.35 of the Government Code have not been followed.

10005. Whenever, in the operation of a utility, a municipality
develops an excess of water, light, heat, or power, over and above
the amount which is necessary for the use of the municipality and its
inhabitants, or such portion thereof as the legislative body of the
municipality determines is to be supplied therewith, the municipality
may sell, lease, or distribute the excess outside of its corporate
limits.

10006. No lease of a public utility is valid for a period of more
than 15 years, and all such leases shall be let to the highest bidder
at public auction.

10007. (a) Every public utility furnishing light, heat, or power
shall expend no funds for advertising when such advertising
encourages increased consumption of such services or commodities.
(b) Nothing in this section shall prohibit a public utility
furnishing light, heat, or power from expending funds for advertising
which encourages the more efficient operation of the public utility
or for advertising which encourages the more efficient use of light,
heat, or power, the conservation of energy or natural resources, or
presents accurate information on the economical purchase,
maintenance, or use of any appliance or device using light, heat, or
power.

10009. (a) This section applies if there is a landlord-tenant
relationship between the residential occupants and the owner,
manager, or operator of the dwelling.
(b) If a public utility furnishes individually metered residential
light, heat, water, or power to residential occupants in a detached
single-family dwelling, a multiunit residential structure, mobilehome
park, or a permanent residential structure in a labor camp, as
defined in Section 17008 of the Health and Safety Code, and the
owner, manager, or operator of the dwelling, structure, or park is
the customer of record, the public utility shall make every good
faith effort to inform the residential occupants, by means of written
notice, when the account is in arrears, that service will be
terminated in 10 days. The written notice shall further inform the
residential occupants that they have the right to become customers of
the public utility without being required to pay the amount due on
the delinquent account. The notice shall be in English and in the
languages listed in Section 1632 of the Civil Code.
(c) The public utility is not required to make service available
to the residential occupants unless each residential occupant agrees
to the terms and conditions of service, and meets the requirements of
law and the public utility's rules. However, if one or more of the
residential occupants are willing and able to assume responsibility
for the subsequent charges to the account to the satisfaction of the
public utility, or if there is a physical means, legally available to
the public utility, of selectively terminating service to those
residential occupants who have not met the requirements of the public
utility's rules, the public utility shall make service available to
the residential occupants who have met those requirements.
(d) If prior service for a period of time is a condition for
establishing credit with the public utility, residence and proof of
prompt payment of rent or other obligation acceptable to the public
utility for that period of time is a satisfactory equivalent.
(e) Any residential occupant who becomes a customer of the public
utility pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the public utility for those services during the preceding
payment period.

10009.1. (a) If a public utility furnishes light, heat, water, or
power to residential occupants through a master meter in a multiunit
residential structure, mobilehome park, or permanent residential
structures in a labor camp, as defined in Section 17008 of the Health
and Safety Code, and the owner, manager, or operator of the
structure or park is listed by the public utility as the customer of
record, the public utility shall make every good faith effort to
inform the residential occupants, by means of a written notice posted
on the door of each residential unit at least 15 days prior to
termination, when the account is in arrears, that service will be
terminated on a date specified in the notice. If it is not reasonable
or practicable to post the notice on the door of each residential
unit, the public utility shall post two copies of the notice in each
accessible common area and at each point of access to the structure
or structures. The notice shall further inform the residential
occupants that they have the right to become utility customers, to
whom the service will then be billed, without being required to pay
the amount due on the delinquent account. The notice also shall
specify, in plain language, what the residential occupants are
required to do in order to prevent the termination of, or to
reestablish service; the estimated monthly cost of service; the
title, address, and telephone number of a representative of the
public utility who can assist the residential occupants in continuing
service; and the address and telephone number of a qualified legal
services project, as defined in Section 6213 of the Business and
Professions Code, which has been recommended by the local county bar
association. The notice shall be in English and the languages listed
in Section 1632 of the Civil Code.
(b) The public utility is not required to make service available
to the residential occupants unless each residential occupant or a
representative of the residential occupants agrees to the terms and
conditions of service, and meets the requirements of law and the
public utility's rules. However, if one or more of the residential
occupants or the representative of the residential occupants are
willing and able to assume responsibility for subsequent charges to
the account to the satisfaction of the public utility, or if there is
a physical means, legally available to the public utility, of
selectively terminating service to those residential occupants who
have not met the requirements of the public utility's rules or for
whom the representative of the residential occupants is not
responsible, the public utility shall make service available to the
residential occupants who have met those requirements or on whose
behalf those requirements have been met.
(c) If prior service for a period of time or other demonstration
of credit worthiness is a condition for establishing credit with the
public utility, residence and proof of prompt payment of rent or
other credit obligation during that period of time acceptable to the
public utility is a satisfactory equivalent.
(d) Any residential occupant who becomes a customer of the public
utility pursuant to this section whose periodic payments, such as
rental payments, include charges for residential light, heat, water,
or power, where these charges are not separately stated, may deduct
from the periodic payment each payment period all reasonable charges
paid to the public utility for those services during the preceding
payment period.
(e) If a public utility furnishes residential service subject to
subdivision (a), the public utility may not terminate that service in
any of the following situations:
(1) During the pendency of an investigation by the public utility
of a customer dispute or complaint.
(2) If the customer has been granted an extension of the period
for payment of a bill.
(3) For an indebtedness owed by the customer to any other public
agency or when the obligation represented by the delinquent account
or other indebtedness was incurred with any public agency other than
the public utility.
(4) If a delinquent account relates to another property owned,
managed, or operated by the customer.
(5) If a public health or building officer certifies that
termination would result in a significant threat to the health or
safety of the residential occupants or the public.
(f) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit is
occupied, the residential occupant or the representative of the
residential occupants may commence an action for the recovery of all
of the following:
(1) Reasonable costs and expenses incurred by the residential
occupant or the representative of the residential occupants related
to restoration of service.
(2) Actual damages related to the termination of service.
(3) Reasonable attorney's fees of the residential occupants, the
representative of the residential occupants, or each of them,
incurred in the enforcement of this section, including, but not
limited to, enforcement of a lien.
(g) Notwithstanding any other provision of law, and in addition to
any other remedy provided by law, if the owner, manager, or
operator, by any act or omission, directs, permits, or fails to
prevent a termination of service while any residential unit receiving
that service is occupied, the corporation may commence an action for
the recovery of all of the following:
(1) Delinquent charges accruing prior to the expiration of the
notice prescribed by subdivision (a).
(2) Reasonable costs incurred by the corporation related to the
restoration of service.
(3) Reasonable attorney's fees of the corporation incurred in the
enforcement of this section or in the collection of delinquent
charges, including, but not limited to, enforcement of a lien.
If the court finds that the owner, manager, or operator has paid
the amount in arrears prior to termination, the court shall allow no
recovery of any charges, costs, damages, expenses, or fees under this
subdivision from the owner, manager, or operator.
An abstract of any money judgment entered pursuant to subdivision
(f) or (g) of this section shall be recorded pursuant to Section
697.310 of the Code of Civil Procedure.
(h) No termination of service subject to this section may be
effected without compliance with this section, and any service
wrongfully terminated shall be restored without charge to the
residential occupants or customer for the restoration of the service.
In the event of a wrongful termination by the public utility, the
public utility shall, in addition, be liable to the residential
occupants or customer for actual damages resulting from the
termination and for the costs of enforcement of this section,
including, but not limited to, reasonable attorney's fees, if the
residential occupants or the representative of the residential
occupants make a good faith effort to have the service continued
without interruption.
(i) The public utility shall adopt rules and regulations necessary
to implement this section and shall liberally construe this section
to accomplish its purpose of ensuring that service to residential
occupants is not terminated due to nonpayment by the customer unless
the public utility has made every reasonable effort to continue
service to the residential occupants. The rules and regulations shall
include, but are not limited to, guidelines for assistance to actual
users in the enforcement of this section and requirements for the
notice prescribed by subdivision (a), including, but not limited to,
clear wording, large and boldface type, and comprehensive
instructions to ensure full notice to the actual user.
(j) Nothing in this section broadens or restricts any authority of
a local agency that existed prior to January 1, 1989, to adopt an
ordinance protecting a residential occupant from the involuntary
termination of residential public utility service.
(k) This section preempts any statute or ordinance permitting
punitive damages against any owner, manager, or operator on account
of an involuntary termination of residential public utility service
or permitting the recovery of costs associated with the formation,
maintenance, and termination of a tenants' association.
(l) For purposes of this section, "representative of the
residential occupants" does not include a tenants' association.

10009.6. (a) The decision of a public utility to require a new
residential applicant to deposit a sum of money with the public
utility prior to establishing an account and furnishing service shall
be based solely upon the creditworthiness of the applicant as
determined by the public utility.
(b) No municipal corporation owning or operating a public utility
furnishing services for residential use to a tenant under an account
established by the tenant shall seek to recover any charges or
penalties for the furnishing of services to, or for the tenant's
residential use from, any subsequent tenant or the property owner due
to nonpayment of charges by a previous tenant. For this purpose, the
term "subsequent tenant" shall not include any adult person who
lived at the residence during the period that the charges or
penalties accrued. The municipal corporation may collect a deposit
from the tenant service applicant prior to establishing an account
for the tenant. The municipal corporation may not require that
service to subsequent tenants be furnished on the account of the
landlord or property owner unless the property owner voluntarily
agrees to that requirement, nor may the municipal corporation refuse
to furnish services to a tenant in the tenant's name based upon the
nonpayment of charges by a previous tenant.
(c) A public utility subject to this section may not demand or
receive security in an amount that exceeds twice the estimated
average periodic bill or three times the estimated average monthly
bill.
(d) In the event of tenant nonpayment of all or a portion of the
bill, the deposit shall be applied to the final bill issued when
service is terminated.
(e) This section shall not apply to master-metered apartment
buildings.

10010. (a) No public utility furnishing light, water, power, or
heat may terminate residential service for nonpayment of a delinquent
account unless the public utility first gives notice of the
delinquency and impending termination, as provided in Section
10010.1.
(b) No public utility shall terminate residential service for
nonpayment in any of the following situations:
(1) During the pendency of an investigation by the public utility
of a customer dispute or complaint.
(2) When a customer has been granted an extension of the period
for payment of a bill.
(3) On the certification of a licensed physician and surgeon that
to do so will be life threatening to the customer and the customer is
financially unable to pay for service within the normal payment
period and is willing to enter into an amortization agreement with
the public utility pursuant to subdivision (e) with respect to all
charges that the customer is unable to pay prior to delinquency.
(c) Any residential customer who has initiated a complaint or
requested an investigation within five days of receiving the disputed
bill, or who has, within 13 days of mailing of the notice required
by subdivision (a), made a request for extension of the payment
period of a bill asserted to be beyond the means of the customer to
pay in full during the normal period for payment, shall be given an
opportunity for review of the complaint, investigation, or request by
a review manager of the public utility. The review shall include
consideration of whether the customer shall be permitted to amortize
the unpaid balance of the account over a reasonable period of time,
not to exceed 12 months. No termination of service shall be effected
for any customer complying with the amortization agreement, if the
customer also keeps the account current as charges accrue in each
subsequent billing period.
(d) Any customer whose complaint or request for an investigation
pursuant to subdivision (c) has resulted in an adverse determination
by the public utility may appeal the determination to the governing
body of the municipal corporation. Any subsequent appeal of the
dispute or complaint to the governing body is not subject to this
section.
(e) Any customer meeting the requirements of paragraph (3) of
subdivision (b) shall, upon request, be permitted to amortize, over a
period not to exceed 12 months, the unpaid balance of any bill
asserted to be beyond the means of the customer to pay within the
normal period for payment.

10010.1. (a) No public utility furnishing light, heat, water, or
power may terminate residential service on account of nonpayment of a
delinquent account unless the public utility first gives notice of
the delinquency and impending termination, at least 10 days prior to
the proposed termination, by means of a notice mailed, postage
prepaid, to the customer to whom the service is billed, not earlier
than 19 days from the date of mailing the public utility's bill for
services, and the 10-day period shall not commence until five days
after the mailing of the notice.
(b) Every public utility shall make a reasonable attempt to
contact an adult person residing at the premises of the customer by
telephone or personal contact, at least 24 hours prior to any
termination of service, except that, whenever telephone or personal
contact cannot be accomplished, the public utility shall give, by
mail, in person, or by posting in a conspicuous location at the
premises, a notice of termination of service, at least 48 hours prior
to termination.
(c) Every public utility shall make available to its residential
customers who are 65 years of age or older, or who are dependent
adults as defined in paragraph (1) of subdivision (b) of Section
15610 of the Welfare and Institutions Code, a third-party
notification service, whereby the public utility will attempt to
notify a person designated by the customer to receive notification
when the customer's account is past due and subject to termination.
The notification shall include information on what is required to
prevent termination of service. The residential customer shall make a
request for third-party notification on a form provided by the
public utility, and shall include the written consent of the
designated third party. The third-party notification does not
obligate the third party to pay the overdue charges, nor shall it
prevent or delay termination of service.
(d) Every notice of termination of service pursuant to subdivision
(a) shall include all of the following information:
(1) The name and address of the customer whose account is
delinquent.
(2) The amount of the delinquency.
(3) The date by which payment or arrangements for payment is
required in order to avoid termination.
(4) The procedure by which the customer may initiate a complaint
or request an investigation concerning service or charges, except
that, if the bill for service contains a description of that
procedure, the notice pursuant to subdivision (a) is not required to
contain that information.
(5) The procedure by which the customer may request amortization
of the unpaid charges.
(6) The procedure for the customer to obtain information on the
availability of financial assistance, including private, local,
state, or federal sources, if applicable.
(7) The telephone number of a representative of the public utility
who can provide additional information or institute arrangements for
payment.
Every notice of termination of service pursuant to subdivision (b)
shall include the items of information in paragraphs (1), (2), (3),
(6), and (7).
All written notices shall be in a clear and legible format.
(e) If a residential customer fails to comply with an amortization
agreement, the public utility shall not terminate service without
giving notice to the customer at least 48 hours prior to termination
of the conditions the customer is required to meet to avoid
termination, but the notice does not entitle the customer to further
investigation by the public utility.
(f) No termination of service may be effected without compliance
with this section. Any service wrongfully terminated shall be
restored without charge for the restoration of service, and a
notation thereof shall be mailed to the customer at his or her
billing address.

10011. No electrical, gas, heat, or water public utility shall, by
reason of delinquency in payment for any electric, gas, heat, or
water services, cause cessation of any such services on any Saturday,
Sunday, legal holiday, or at any time during which the business
offices of the public utility are not open to the public.

10011.5. Whenever a business transaction of a public utility, as
defined in Section 10001, furnishing electricity, gas, water service
where the utility has 10,000 or more service connections, or
telephone service is such that a personal appearance by a person is
required by the utility and the person is unable to appear at the
utility's place of business during the utility's usual business
hours, then the utility shall provide a reasonable and convenient
alternative to the person such as an appointment outside the utility'
s usual business hours or allowing the person to conduct the
transaction by telephone, mail, or both.

10012. Every public utility shall comply with Section 8029.5.

10013. (a) Subsequent to signing a contingent franchise, license,
or service agreement with a local agency, a privatizer shall apply to
the commission for a determination that the proposed privatization
project is not a public utility within the meaning of Section 216 and
is therefore exempt from commission regulation. When a privatizer
files an application with the commission, the privatizer shall
include the information the commission requires to make a
determination in accordance with subdivisions (b), (c), (d), and (e).
(b) (1) Not later than 60 calendar days after the privatizer
submits its application to the commission, the commission shall
determine in writing whether the application is complete and shall
immediately transmit the determination to the privatizer.
(2) If the application is determined not to be complete, the
commission shall specify in writing those parts of the application
which are incomplete and shall indicate the manner in which it can be
made complete, including a list and thorough description of the
specific information needed to complete the application. The
applicant shall submit materials to the commission in response to the
list and description. Upon resubmittal of the application, a new
60-calendar-day period shall begin, during which the commission shall
determine the completeness of the application.
(3) If the application is deemed complete, the commission may
determine not later than 90 calendar days after the application is
deemed complete that the privatization project is not a public
utility within the meaning of Section 216 and is therefore exempt
from commission regulation, if the commission finds that the
application clearly complies with the criteria in subdivisions (d)
and (e). If the commission does not make this finding, then it shall
proceed under the schedule established in subdivision (c).
(4) If the commission fails to make a written determination as to
the completeness of the application within 60 calendar days after
receipt of the original or resubmitted application, the application
shall be deemed complete for purposes of this section.
(c) Within 180 calendar days after the application is deemed
complete, the commission shall determine whether the privatization
project is a public utility within the meaning of Section 216 using
the criteria in subdivisions (d) and (e). The commission may hold a
hearing on the matter if the commission finds it to be necessary. No
franchise, license, or service agreement between a privatizer and a
local agency shall be entered into until the commission has either
exempted the project or the 180-calendar-day period has expired,
whichever comes first. Nothing in this section precludes a privatizer
and the commission from mutually agreeing to a further extension of
any time limit provided in this section.
(d) The commission may determine that a privatization project is
not a public utility within the meaning of Section 216, and is
therefore exempt from commission regulation if it finds that the
franchise, license, or service agreement both demonstrates that the
local agency retains sufficient jurisdiction to protect the public
interest and adequately addresses all aspects of the provision of
service which would otherwise be subject to commission regulation. In
making its determination, the commission shall determine whether the
local agency has complied with Section 54253 of the Government Code.
The decision of the commission shall be final and conclusive in the
absence of any subsequent changes.
(e) In making a determination pursuant to subdivision (c), the
commission shall review the franchise, license, or service agreement
to ensure that the agreement grants the local agency, at a minimum,
all of the following:
(1) Exclusive authority to establish all rates and rate changes
charged to the public.
(2) Approval over any proposal of the privatizer to provide new,
additional, or alternative service to any other public or private
entity or to change the service fee paid to the privatizer by the
local agency.
(3) Approval over the original design and construction of the
project, including any changes in design, alterations, or additions
to the project.
(4) Approval over any changes in ownership of the party or parties
subject to the franchise, license, or service agreement.
(5) Authority to impose fines and penalties for noncompliance with
any provision of the executed franchise, license, or service
agreement, or for failure to provide the service within the time
period agreed to in the franchise, license, or service agreement.
(6) Authority to ensure that the facility is adequately
maintained.
(7) Adequate opportunity to monitor compliance with the agreement
and to ensure the project will be operated to meet any applicable
federal or state water quality standards or other applicable laws.
(8) Adequate opportunity to amend the agreement in the event of
unforeseen circumstances or contingencies, such as flood, earthquake,
fire, or other natural disasters or federal tax law changes.
(f) The commission may adopt whatever procedures it deems
necessary to carry out the provisions of subdivisions (a), (b), (c),
(d), and (e). The commission shall adopt regulations for reviewing
any proposed changes to a contingent franchise, license, or service
agreement to determine if the proposed changes could render the
project a public utility within the meaning of Section 216. The
commission shall charge each privatizer submitting an application
pursuant to this section a fee which will be sufficient to defray the
costs incurred in processing the application and rendering a
decision upon it.
(g) As used in this section, "privatization project" means any
waste water or sewerage project that is owned and operated by a
privatizer pursuant to a franchise, license, or service agreement
with a local agency, or any agency of that local agency, pursuant to
which services are supplied for the benefit of the local agency, its
residents, or both, or any agency of the state. "Project" includes,
but is not limited to, financing, designing, constructing, repairing,
replacing, maintaining, and operating collector systems, pumping
stations, treatment plants, and lateral interceptors, and outfall
sewers. "Local agency" means any city, county, city and county,
special district, or county service area. "Privatizer" means any
corporation, partnership, or natural person, excluding municipal
corporations, which owns and operates a wastewater or sewerage
project pursuant to a franchise, license, or service agreement with a
local agency. "Privatization project," as used in this section,
includes the Santa Ana Watershed Project Authority's Arlington Basin
Groundwater Desalter Project, which will treat groundwater
contaminated by wastewater.

10014. The commission may enter into a contract with a local agency
to provide any technical assistance needed to comply with Section
10013, if the contract includes provisions for the commission to be
reimbursed for its estimated reasonable costs.