California Utility Restructuring Legislation
Legislation Cite and Date
AB 1890 (9/96)
Low-Income Provisions
"Programs provided to low-income electricity customers, including, but not limited to, targeted energy-efficiency services and the California Alternative Rates for Energy Program (CARE) shall be funded at not less than 1996 authorized levels based on an assessment of customer need. The commission shall allocate funds necessary to meet the low-income objectives in this section." This provision applies to the four largest IOUs; other utilities, whether investor-owned or publicly-owned, must assess a “public goods charge” of at least 2.85 % of their 1994 revenues on programs to include: "services provided for low-income electricity customers, including but not limited to, targeted energy efficiency service and rate discounts."
Low-Income Rate Assistance
California Alternate Rates for Energy (CARE) a mandatory discount on electricity and gas, continued at no less than pre-restructuring funding level of $125 million for the four largest investor-owned utilities "Consideration of higher levels, as appropriate, in the future" are not precluded. The CARE discount was raised from 15 to 20 percent in June 2001 and eligibility expanded to households up to 200 percent of federal poverty guidelines in 2005. Municipals and smaller utilities also operate discount programs.
Low-Income Energy Efficiency
The Low-Income Energy Efficiency Program provides basic weatherization, some utilities provide appliance replacement or energy education.
Annual Funding (2007)
Rate Assistance: $813 million (four largest utilities); smaller utilities - at least $40 million
Conservation: $127 million (four largest utilities)
Funding Mechanism
Public purpose surcharge on all regulated utilities, all customer classes contribute.
Administration
Under SB 1393, passed in October 1999, utility administration will continue indefinitely.
Pre-Restructuring Funding
Rate Assistance: $125 million
Conservation: $56 million
Page Last Updated: March 11, 2008
