20250AB__194596AMD INTRODUCED 2026-02-13 AMENDED_ASSEMBLY 2026-03-16 AMENDED_ASSEMBLY 2026-04-16 AMENDED_SENATE 2026-06-25 2025 AB AMD Introduced by Assembly Member Hadwick (Principal coauthor: Senator Dahle) (Coauthor: Assembly Member Gallagher) LEAD_AUTHOR ASSEMBLY Hadwick PRINCIPAL_COAUTHOR SENATE Dahle COAUTHOR ASSEMBLY Gallagher

An act to amend

Section 12823.1 of, and to add

Section 12823.2 to, the Public Utilities Code, relating to municipal utility districts. municipal utility districts Municipal utility districts: termination of service. The Municipal Utility District Act establishes the formation of a municipal utility district for the provision of light, heat, water, or power within the district’s jurisdiction. The act prohibits a district furnishing light, heat, water, or power from terminating residential service on account of nonpayment of a delinquent account unless the district provides a notice of delinquency and an opportunity to cure, as provided.

This bill would authorize districts to offer customers the option of electronically receiving the required notice of delinquency, as specified. The bill would authorize districts furnishing service to fewer than 100,000 customers to offer residential customers a prepay option, as defined, for electrical service if certain conditions are met, including, among other things, that the district provides the customer with information on returning to standard billing and issues automated low-balance alerts to the customer before suspending the customer’s electrical service, as provided.

The bill would specify that the requirement to provide a notice of delinquency does not apply to customers participating in the prepay option. MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 12823.1 of the Public Utilities Code is amended to read: 12823.1. (

a) A district furnishing light, heat, water, or power shall not terminate residential service on account of nonpayment of a delinquent account unless the district first gives notice of the delinquency and impending termination, at least days before the proposed termination, by means of a notice mailed, postage prepaid, to the customer to whom the service is billed not earlier than days from the date of mailing the district’s bill for services, and the 10-day period shall not commence until days after the mailing of the notice. (

b) Every district shall make a reasonable attempt to contact an adult person residing at the premises of the customer by telephone or personal contact, at least hours before any termination of service, except that, whenever telephone or personal contact cannot be accomplished, the district shall give, by mail, in person, or by posting in a conspicuous location at the premises, a notice of termination of service, at least hours prior to termination. (

c) Every district shall make available to its residential customers who are years of age or older, or who are dependent adults as defined in

Section 15610.23 of the Welfare and Institutions Code, a third-party notification service, whereby the district will attempt to notify a person designated by the customer to receive notification when the customer’s account is past due and subject to termination. The notification shall include information on what is required to prevent termination of service. The residential customer shall make a request for third-party notification on a form provided by the district, and shall include the written consent of the designated third party. The third-party notification does not obligate the third party to pay the overdue charges, nor shall it prevent or delay termination of service. (d)

(1) Every notice of termination of service pursuant to subdivision (

a) shall include all of the following information: (

A) The name and address of the customer whose account is delinquent. (

B) The amount of the delinquency. (

C) The date by which payment or arrangements for payment is required to avoid termination. (

D) The procedure by which the customer may initiate a complaint or request an investigation concerning service or charges, except that, if the bill for service contains a description of that procedure, the notice pursuant to subdivision (

a) is not required to contain that information. (

E) The procedure by which the customer may request amortization of the unpaid charges. (

F) The procedure for the customer to obtain information on the availability of financial assistance, including private, local, state, or federal sources, if applicable. (

G) The telephone number of a representative of the district who can provide additional information or institute arrangements for payment.

(2) Every notice of termination of service pursuant to subdivision (

b) shall include the items of information specified in paragraph (1).

(3) All written notices shall be in a clear and legible format. (

e) If a residential customer fails to comply with an amortization agreement, the district shall not terminate service without giving notice to the customer at least hours before termination of the conditions the customer is required to meet to avoid termination, but the notice does not entitle the customer to further investigation by the district. (

f) A termination of service shall not be effected without compliance with this section. Any service wrongfully terminated shall be restored without charge for the restoration of service, and a notation of the restoration shall be mailed to the customer at the customer’s billing address. (

g) A district may offer customers the option of receiving notices required by this section, except for notices pursuant to subdivision (b), solely by email, text message, app-based notification, or other electronic method as specified by the customer. (

h) This

section does not apply to a customer participating in a prepay program pursuant to

Section 12823.2.

SEC.

Section 12823.2 is added to the Public Utilities Code , to read: 12823.2. (

a) A district furnishing electrical service to fewer than 100,000 customers may offer residential customers a prepay option for electrical service if all of the following conditions are met: (1) (

A) For a customer that is a new residential applicant applying for electrical service on or after January 1, 2027, the customer has paid the deposit under a decision of a district described in

Section 12822.6. (

B) A customer that has a current deposit held by the district shall be eligible to participate in the prepay option. (1)</xhtml:p>"?>

(2) The customer affirmatively opts into the district-approved prepay option with informed written consent. (2)</xhtml:p>"?>

(3) The district provides the customer with all information related to the mechanisms and policies to return to standard billing and provides information on any differences in consumer protection rules between the prepay option and standard billing. (3)</xhtml:p>"?>

(4) The district provides access to usage and account balance information. (4)</xhtml:p>"?>

(5) The district issues automated low-balance alerts to the customer before service suspension at least days before the forecasted service suspension and again hours before the forecasted service suspension, based on the district’s best estimates of the customer’s electrical service usage. (5)</xhtml:p>"?>

(6) The customer retains the right to exit the prepay option and return to standard billing pursuant to a policy adopted by the board. (6)<xhtml:span class="EnSpace"/>Before the prepay option takes effect, and if the customer has eligibility for an arrearage payment plan offered by the district, the district offers the customer an opportunity to participate in an arrearage payment plan.</xhtml:p>"?>

(7) Before converting a customer whose account is in arrears to a prepay option, the district shall offer the customer the opportunity to participate in an arrearage payment plan. A customer who elects to participate in and complies with the arrearage payment plan shall not be converted to prepay service while the customer remains in compliance with the plan. (7)</xhtml:p>"?>

(8) The prepay option requires the district to refund to the customer any unexpended balance from the customer’s account within business days after the customer has terminated electrical service and the district has withdrawn payment for the customer’s final bill. (8)</xhtml:p>"?> (9) (

A) The district deposits into a separate fund all revenue collected from customers that have opted into the prepay option. (

B) Except as provided in paragraph (8), any amounts that have been deposited into the separate fund that are associated with electrical service that has not been provided shall not be transferred or expended from the separate fund. (9)</xhtml:p>"?>

(10) The district adopts a policy to minimize service disruptions to customers who elect to participate in the prepay option and who are years of age or older, customers who are medically vulnerable, and customers who are dependent adults, as defined in

Section 15610.23 of the Welfare and Institutions Code. (

b) Section 12823.1 does not apply to the termination of electrical service for nonpayment of a delinquent account for a customer participating in a prepay option pursuant to subdivision (a). (

c) For purposes of this section, “prepay option” means a payment option offered by a district to its customers pursuant to subdivision (

a) that enables the customers to make a payment for a specified amount of electrical service before that service is rendered.