California Law Regarding Shutting a Person's Electricity Off
The California Public Utility Commission sets the rules under which electric utilities are allowed to shut off electricity of households that fail to pay their electric bills. The CPUC's regulatory authority was established under the California Public Utilities Code.
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Background
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There are three major, investor-owned utilities that provide electricity in California: Pacific Gas and Electric Company (PG&E), Southern California Edison, and San Diego Gas and Electric Company (SDG&E). The California Public Utilities Commission has full control to set electric rates and regulate the utilities' operations, including overseeing the rights of consumers.
Significance
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In December 2009, the CPUC took action to place a temporary moratorium on electricity disconnections statewide after reports that PG&E and Southern California Edison were shutting off power to 15,000 customers per month due to failure to pay bills. Disconnections dropped from 4.6 percent of all residential customers in September 2009 to 3.8 percent in May 2010.
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Rules
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In July 2010, the commission changed the rules under which utility companies can cut off electricity to people who fail to pay their bills. Among the rules changes adopted by CPUC were that utilities could not require cash deposits from people who are behind on their electric bills, and that utilities must allow customers to set up a payment plan giving them at least three months to catch up on their bills.
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References
- Los Angeles Times: PUC moves to loosen rules on shut-offs; Marc Lifsher; July 2010.
- California Public Utilities Commission: Regulatory Responsibilities of the California Public Utilities Commission; April 2010.
- San Francisco Chronicle: Utility shut-offs soar for poor PG&E customers; David R. Baker; November 2009.
- Photo Credit power line image by Adkok from Fotolia.com
