Section 394.25 Of Article 12. Consumer Protection From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 12.
394.25
. (a) The commission may enforce the provisions of Sections
2102, 2103, 2104, 2105, 2107, 2108, and 2114 against electric service
providers as if those electric service providers were public
utilities as defined in these code sections. Notwithstanding the
above, nothing in this section grants the commission jurisdiction to
regulate electric service providers other than as specifically set
forth in this part. Electric service providers shall continue to be
subject to the provisions of Sections 2111 and 2112. Upon a finding
by the commission's executive director that there is evidence to
support a finding that the electric service provider has committed an
act constituting grounds for suspension or revocation of
registration as set forth in subdivision (b) of Section 394.25, the
commission shall notify the electric service provider in writing and
notice an expedited hearing on the suspension or revocation of the
electric service provider's registration to be held within 30 days of
the notification to the electric service provider of the executive
director's finding of evidence to support suspension or revocation of
registration. The commission shall, within 45 days after holding the
hearing, issue a decision on the suspension or revocation of
registration, which shall be based on findings of fact and
conclusions of law based on the evidence presented at the hearing.
The decision shall include the findings of fact and the conclusions
of law relied upon.
(b) An electric service provider may have its registration
suspended or revoked, immediately or prospectively, in whole or in
part, for any of the following acts:
(1) Making material misrepresentations in the course of soliciting
customers, entering into service agreements with those customers, or
administering those service agreements.
(2) Dishonesty, fraud, or deceit with the intent to substantially
benefit the electric service provider or its employees, agents, or
representatives, or to disadvantage retail electricity customers.
(3) Where the commission finds that there is evidence that the
electric service provider is not financially or operationally capable
of providing the offered electric service.
(4) The misrepresentation of a material fact by an applicant in
obtaining a registration pursuant to Section 394.
(c) Pursuant to its authority to revoke or suspend registration,
the commission may suspend a registration for a specified period or
revoke the registration, or in lieu of suspension or revocation,
impose a moratorium on adding or soliciting additional customers. Any
suspension or revocation of a registration shall require the
electric service provider to cease serving customers within the
boundaries of investor-owned electrical corporations, and the
affected customers shall be served by the electrical corporation
until the time when they may select service from another service
provider. Customers shall not be liable for the payment of any early
termination fees or other penalties to any electric service provider
under the service agreement if the serving electric service provider'
s registration is suspended or revoked.
(d) The commission shall require any electric service provider
whose registration is revoked pursuant to paragraph (4) of
subdivision (b) to refund all of the customer credit funds that the
electric service provider received from the State Energy Resources
Conservation and Development Commission pursuant to subdivision (a)
of Section 25744 of the Public Resources Code. The repayment of these
funds shall be in addition to all other penalties and fines
appropriately assessed the electric service provider for committing
those acts under other provisions of law. All customer credit funds
refunded under this subdivision shall be deposited in the Renewable
Resource Trust Fund for redistribution by the State Energy Resources
Conservation and Development Commission pursuant to Chapter 8.6
(commencing with Section 25740) of Division 15 of the Public
Resources Code. This subdivision may not be construed to apply
retroactively.
(e) If a customer of an electric service provider or a community
choice aggregator is involuntarily returned to service provided by an
electrical corporation, any reentry fee imposed on that customer
that the commission deems is necessary to avoid imposing costs on
other customers of the electrical corporation shall be the obligation
of the electric service provider or a community choice aggregator,
except in the case of a customer returned due to default in payment
or other contractual obligations or because the customer's contract
has expired. As a condition of its registration, an electric service
provider or a community choice aggregator shall post a bond or
demonstrate insurance sufficient to cover those reentry fees. In the
event that an electric service provider becomes insolvent and is
unable to discharge its obligation to pay reentry fees, the fees
shall be allocated to the returning customers.