SECTIONS 2791-2799 - California Statutes

PUBLIC UTILITIES CODE

SECTION 2791-2799

2791. (a) The owner of a master-metered mobilehome park or
manufactured housing community that provides gas or electric service
to residents may transfer ownership and operational responsibility to
the gas or electric corporation providing service in the area in
which the park or community is located pursuant to this chapter, or
as the park or community owner and the serving gas or electric
corporation mutually agree.
(b) Costs, including both costs related to transfer procedures and
costs related to construction, related to the transfer of ownership
process, whether or not resulting in a transfer of ownership to the
serving gas or electric corporation, shall not be passed through to
the park or community residents. Costs related to the transfer of
ownership process, whether or not resulting in a transfer of
ownership to the serving gas or electric corporation, shall not be
passed through to the gas or electric corporation, except as
otherwise provided in this chapter.
(c) Residents of mobilehome parks and manufactured housing
communities constructed after January 1, 1997, shall be individually
metered and served by gas and electric distribution facilities owned,
operated, and maintained by the gas or electric corporation
providing the service in the area where the new park or community is
located consistent with the commission's orders regarding unbundling,
aggregation, master-metering, and selection of suppliers by
residential customers. Each gas and electric corporation shall
cooperate with the owner of any park or community constructed after
January 1, 1997, to ensure timely and expeditious installation of the
gas and electric distribution system and to eliminate any delay in
the design, construction, permitting, and operation of the gas and
electric system in the park or community.

2792. (a) Upon receipt of a written notice of intent to transfer
from the mobilehome park or manufactured housing community owner, the
gas or electric corporation shall within 90 days do all of the
following:
(1) Meet with the park or community owner to describe the
procedures involved in a transfer of ownership and operation
responsibility.
(2) Perform a preliminary review of the gas or electric system, or
both, in the park or community.
(3) Inspect documentation provided by the park or community owner
of the construction, operation, and condition of the gas or electric
system, or both.
(4) Advise the park or community owner concerning the general
condition of the plant and equipment, along with a preliminary
opinion concerning the extent of construction work or other activity
necessary to comply with Section 2794.
(5) Offer a preliminary nonbinding estimate of the cost of
transfer.
(6) Offer the park or community owner a preliminary nonbinding
cost estimate to perform an engineering evaluation and estimate the
construction work and equipment replacement to be performed by the
gas or electric corporation at the owner's expense.
(b) The gas or electric corporation shall develop the cost
estimate for the engineering evaluation in good faith using the same
methodology as is used for similar projects. The preliminary cost
estimate shall be effective for a minimum of 90 days. The gas or
electric corporation shall give the owner timely notice of any
increase in the estimated cost of the engineering evaluation.
(c) During 1997, gas and electric corporations shall make a good
faith effort to respond within 90 days to the notice provided in
subdivision (a).
(d) The gas or electric corporation may charge a fee for the
initial inspection not to exceed one hundred fifty dollars ($150).

2793. (a) Upon receipt from the park or community owner of a
deposit representing the gas or electric corporation's estimated cost
of the engineering evaluation, the gas or electric corporation
shall, within 90 days, do all of the following:
(1) Develop an engineering plan for bringing the gas or electric
system to the standard described in Section 2794, incorporating all
relevant documentation including plans, drawings, engineering
studies, and other existing documentation provided by the park or
community owner, and considering incorporation of all portions of the
gas or electric system found to be used, useful, and compatible.
(2) Develop an appraisal of the value to the gas or electric
corporation of the physical plant and equipment found to be used,
useful, and compatible that comprise the gas or electric system, or
both, to be transferred, including an estimate of the remaining
useful life of the gas or electric system. The value to the gas or
electric corporation shall take into consideration the expenditures
by the park or community owner to comply with the criteria
established in Section 2794.
(3) Present a proposal, in sufficient detail to serve as a bid
document for the transfer of ownership of the system to the gas or
electric corporation.
(b) The proposal may be based on either of the following
approaches or as the park or community owner and the gas or electric
corporation mutually agree:
(1) The park or community owner is responsible for all
construction and equipment replacement activity, if any, at the park
or community owner's expense less any credits or allowances, if any,
including credits or allowances based on incremental increases in the
gas or electric corporation's revenues associated with the park or
community owner's investment in the gas or electric system. The
construction and equipment replacement and the credits and allowances
shall be based on the principles established in the gas or electric
corporation's line and service extension rules, if applicable.
(2) The gas or electric corporation shall pay the park or
community owner for the appraised value to the gas or electric
corporation of any gas or electric distribution facilities found to
be used, useful, and compatible. If any new facilities are necessary,
the park or community owner shall be responsible for the costs of
the excavation, installation of substructures, conduit and meter
panels, and surface repairs. Except as provided in paragraph (4) of
subdivision (c), the gas or electric corporation shall be responsible
for the costs of any additional construction and equipment
replacement, including cabling and transformers.
(c) The proposal shall include the following:
(1) A description of construction and equipment replacement
activity, if any, to be accomplished at the park or community owner's
expense.
(2) Requirements for any additional provisions or rights for the
construction or maintenance of public utility facilities on park or
community premises, including easements and rights-of-way acceptable
to the gas or electric corporation.
(3) Any specific requirements or costs, or both, with respect to
the presence of used and useful materials or equipment that are
nonstandard, including, but not limited to, inventory requirements,
specialized equipment requirements, or specialized personnel or
training.
(4) Any specific requirements or costs, or both, with respect to
the presence of exceptional construction conditions or operation and
maintenance conditions.
(d) If the actual cost of the engineering evaluation is greater
than the gas or electric corporation estimate, the park or community
owner shall pay the gas or electric corporation the difference within
30 days of receipt of notice. If the actual cost of the engineering
evaluation is less than the deposit, the gas or electric corporation
shall pay the park or community owner the difference within 30 days.
The content of the proposal shall become the property of the park or
community owner.
(e) Within 90 days of receipt of the proposal for transfer of
ownership, a park or community owner may do any of the following:
(1) Present objections to the gas or electric corporation in
writing for resolution and may require mediation of the commission if
the parties are unable to resolve the objection.
(2) Decline to proceed, without prejudice to the right to present
a new notice at any future date.
(3) Accept the proposal and contract with the gas or electric
corporation for completion of the construction work and equipment
replacement, if any, or the acquisition of the gas or electric
system, or both.
(4) Accept the proposal and contract with an approved third party
for completion of the construction work and equipment replacement, if
any, in accordance with the applicable gas or electric corporation
applicant installation rules.
(f) Any new facilities provided by the gas or electric corporation
to extend distribution or service facilities from the existing gas
or electric corporation system within the park to previously
undeveloped locations shall be provided in accordance with line
extension rules and service extension rules contained in gas or
electric corporation tariffs filed with the commission, including any
and all free extensions, allowances, and advances subject to refund.
(g) Upon completion of construction work and equipment
replacement, if any, receipt of appropriate inspection approval from
the gas or electric corporation and authorities having jurisdiction
for the inspections, and completion of all financial transactions
among the parties, the park or community owner shall transfer and the
gas or electric corporation shall acquire ownership and operational
responsibility for the gas or electric system.
(h) Upon receipt of the proposal described in paragraph (3) of
subdivision (a), the park or community owner shall notify the park
residents concerning the pendency of a transfer process request and
the provisions of the transfer process law.

2794. (a) A gas or electric system shall be considered acceptable
for transfer if it is in compliance with the following criteria:
(1) It is capable of providing the end users a safe and reliable
source of gas or electric service.
(2) It meets the commission's general orders, is compatible, and,
in the case of new construction, meets the gas or electric
corporation's design and construction standards insofar as they are
related to safety and reliability. The parties may waive these
requirements by mutual agreement and, where necessary, with
commission approval. The deviations as are agreed upon may be
reflected in the purchase price.
(3) It is capable of serving the customary expected load in the
park or community determined in accordance with a site-specific
study, studies of comparable parks or communities, industry
standards, and the gas or electric corporation's rules as approved by
the commission.
(b) As used in this section, "customary expected load" means the
anticipated level of service demanded by the dwelling units in the
park or community. The park or community owner shall not be
responsible for betterments or improvements to the gas or electric
corporation's distribution system facilities or operations that do
not benefit the park or community.
(c) Satisfaction of the criteria shall not require any particular
system architecture or replacement of used and useful equipment,
plant, or facilities, except as needed to comply with subdivision
(a). Equipment, facilities, or plant that are part of the existing
gas or electric system shall be considered compatible unless their
presence in the system would cause substantial increase in the
frequency or duration of outages in the case of failure or emergency,
or they have no remaining useful life. Pursuant to subdivision (c)
of Section 2793, equipment, facilities, or plant that require special
training for the gas or electric corporation's employees, or require
the gas or electric corporation to maintain inventories of
nonstandard equipment may be considered compatible, but their
presence may be reflected in the appraised value or the cost imposed
on the park or community owner.

2795. The park or community owner and the gas or electric
corporation shall develop a cost for the transfer of the gas or
electric system that reflects the factors in Section 2793, indemnity
and liability issues, and any other factors as the parties may
mutually agree upon, and to which the gas or electric corporation's
ratepayers are indifferent. The parties may agree on a schedule for
phasing in facilities to meet expected load increases and
betterments, and the costs associated with those activities.

2796. (a) During the pendency of a transfer request, the owner of
the park or community shall be responsible for the continued
maintenance to preserve the integrity of the park or community gas or
electric system and safe and reliable operation of the park or
community system in accordance with applicable laws.
(b) During the pendency of a transfer request the owner of the
park or community shall be liable for injury and damage resulting
from operation of the submetered gas and electric system. After
transfer the gas or electric corporation shall assume responsibility
for operation of the gas or electric system and provision of service
to residents of the park or community and shall assume liability for
any future injury or damage resulting from operation of the gas or
electric system except with respect to defects known to the park or
community owner and not disclosed to the gas or electric corporation
during the transfer of ownership process.

2797. The commission shall permit the gas or electric corporation
to recover in its revenue requirement and rates all costs to acquire,
improve, upgrade, operate, and maintain transferred mobilehome park
or manufactured housing community gas or electric systems.

2798. The commission shall adopt a standard form of agreement for
transfer of gas and electric distribution facilities in mobilehome
parks and manufactured housing communities that shall be the basis
for expedited approval of the transfers. The contract shall be based
on this chapter, the regulations of the commission, and on gas or
electric corporation rules and regulations, as approved by the
commission.

2799. (a) The mobilehome park or manufactured housing community
owner may, by written notice, stop the transfer process at any time.
Within 60 days of delivery to the park or community owner of an
itemized bill, the owner shall reimburse the gas or electric
corporation for all costs incurred through the date notice is
provided.
(b) At any time during the transfer of ownership process, either
party may apply to the commission for informal mediation and
resolution of any issue, finding, determination, or delay in the
conversion process.
(c) If the initiation of the transfer process does not result in a
transfer of the park or community owner's gas or electric system to
the gas or electric corporation, all information, data, reports,
studies, and proposals shall be retained by the gas or electric
corporation for a period of five years or offered to the park or
community owner. Prior to disposal of the records, the gas or
electric corporation shall offer them to the park or community owner,
except that the gas or electric corporation shall not be required to
provide proprietary information to the park or community owner.