(1) Existing law, the Eminent Domain Law, authorizes a public entity to exercise the power of eminent domain to acquire property for a public use if the use for which the property is sought to be taken is a more necessary public use than the use to which the property is appropriated, as specified. Existing law specifies that if property has been appropriated to public use by any person other than a public entity, the use of the property by a public entity for the same or any other public use is a more necessary use than the current use. Existing law also specifies that if property that has been appropriated to a public use is electrical, gas, or water public utility property, as defined, that the public entity intends to put to the same use, the presumption of a more necessary use is a rebuttable presumption affecting the burden of proof, except as specified.

This bill would exempt from that rebuttable presumption property that has been appropriated to a public use that is electrical or gas public utility property within the Pacific Gas and Electric Company service area.

(2) Existing law authorizes a public entity to exercise the power of eminent domain only if it has adopted a resolution of necessity, as specified. Under existing law, a resolution of necessity adopted by the governing body of a public entity conclusively establishes that, among other matters, the public interest and necessity require the project. Existing law specifies that, if a taking is by a local public entity and the property is electrical, gas, or water public utility property, the resolution of necessity creates a rebuttable presumption that those matters are true.

This bill would provide that, if a taking is by a local public entity within the Pacific Gas and Electric Company service area and the property is electrical or gas public utility property, the resolution of necessity instead conclusively establishes those matters.

(3) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law prohibits public utilities, other than certain common carriers, from selling, leasing, assigning, mortgaging, or otherwise disposing of, or encumbering, its assets that are necessary or useful in the performance of its duties to the public, unless the public utility has secured an order or approval from the commission to do so, as provided. Existing law requires, for any voluntary or involuntary change in ownership of assets from an electrical corporation or gas corporation to ownership by a public entity, the commission to determine, as part of its review under these provisions, whether the transaction is fair and reasonable to affected public utility employees.

This bill would instead require the commission, in its review of a voluntary or involuntary change in ownership of assets from an electrical or gas corporation to a public entity, to limit its review to determining whether the transaction is fair and reasonable to affected public utility employees. The bill would require the review to occur after a change in ownership agreement is made for a voluntary change in ownership, or after the completion of the condemnation proceeding for an involuntary change in ownership.

(4) Existing law provides procedures for the acquisition under eminent domain proceedings, or otherwise, of lands, property, and rights of a public utility by a political subdivision, and requires the commission to fix the just compensation to be paid by the political subdivision for the lands, property, and rights, as provided.

This bill would require the owner of a public utility, within 90 days of a political subdivision submitting an amount for just compensation or a plan for the separation of the public utility’s assets, to also submit an amount for just compensation or provide a response to the separation plan, as provided. The bill would authorize the commission, if it finds that the total just compensation should include costs for the physical separation of the public utility’s assets, to establish a process for the reimbursement of those costs and to determine the reasonableness of those expenses. The bill would require the commission to make and file its findings regarding just compensation with respect to the public utility within 18 months of the date the petition is filed.

This bill would prohibit a public utility from recovering from ratepayers any litigation costs associated with a political subdivision’s efforts to acquire utility property, as provided.

(5) This bill would make legislative findings and declarations as to the necessity of a special statute for public entities within the Pacific Gas and Electric Company service area.

(6) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.