Section 740.4 Of Article 2. Rates From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 2.
740.4
. (a) The commission shall authorize public utilities to
engage in programs to encourage economic development.
(b) Reasonable expenses for economic development programs, as
specified in this section, shall be allowed, to the extent of
ratepayer benefit, when setting rates to be charged by public
utilities electing to initiate these programs.
(c) Economic development activities may include, but not be
limited to, the following:
(1) Community marketing and development.
(2) Technical assistance to support technology transfer.
(3) Market research.
(4) Site inventories.
(5) Industrial and commercial expansion and relocation assistance.
(6) Business retention and recruitment.
(7) Management assistance.
(d) This section shall not be interpreted to permit the funding of
economic development activities that benefit any affiliated
companies or parent holding companies beyond that which is authorized
by law as of January 1, 1992.
(e) (1) This section does not authorize the commission to
establish discriminatory rates for the purpose of attracting or
benefiting specific industries or business entities, except that
incentives may be provided for the benefit of industries or business
entities whose facilities are located within the boundaries of
enterprise zones, economic incentive areas, recycling market
development zones, or federal rural enterprise communities in
accordance with the provisions of Chapter 12.8 (commencing with
Section 7070) and Article 1 (commencing with Section 7080) of Chapter
12.9 of Division 7 of Title 1 of the Government Code, and Article 2
(commencing with Section 42145) of Chapter 3 of Part 3 of the Public
Resources Code.
(2) The commission may apply the incentives authorized by this
subdivision that benefit industries or business entities whose
facilities are located within the boundaries of economic enterprise
zones or incentive areas to attract a federal Department of Defense
Finance and Accounting Service Center at the existing site of Norton
Air Force Base in San Bernardino County. This paragraph shall become
inoperative if the federal Department of Defense Finance and
Accounting Service Center is not located upon the premises known as
Norton Air Force Base in San Bernardino County and shall also become
inoperative on February 1, 1994, if that facility has not been
awarded to that site before that date.
(f) The commission may provide incentives pursuant to subdivision
(e) to industries or business entities whose facilities are located
within the boundaries of an enterprise zone that engage in activities
in connection with the conversion of Fort Ord to other uses.
(g) The commission may authorize rate discounts to industries or
business entities whose facilities are located or will be located
within the boundaries of enterprise zones, recycling market
development zones, or economic incentive areas pursuant to paragraph
(1) of subdivision (e). These discounts may be applied in either of
the following ways:
(1) Utilities may apply reduced monthly rates to qualifying
customers' monthly utility bills.
(2) Utilities may, at the election of qualifying customers, assign
the discounts to a private or public entity that returns
consideration of like value to those customers, provided the
customers agree to maintain their facilities in an enterprise zone, a
recycling market development zone, or an economic incentive area for
a minimum of five years from the date of commencement of the
discount.
(h) It is the intent of the Legislature that the Public Utilities
Commission, in implementing this chapter, shall allow rate recovery
of expenses and rate discounts supporting economic development
programs within the geographic area served by any public utility to
the extent the utility incurring or proposing to incur those expenses
and rate discounts demonstrates that the ratepayers of the public
utility will derive a benefit from those programs. Further, it is the
intent of the Legislature that expenses for economic development
programs incurred prior to the effective date of this chapter, which
have not been previously authorized to be recovered in rates, shall
not be subject to rate recovery.