Electrical or gas corporations: deferment of payments: hardship.

Senator Menjivar's utility payment deferral legislation establishes new protections for California residents facing financial hardships by requiring electrical and gas corporations to provide three-month payment deferrals under specific circumstances. The measure creates a pathway for customers enrolled in the California Alternative Rates for Energy program or Family Electric Rate Assistance program to temporarily postpone utility payments when experiencing qualifying hardships, including family deaths, job losses, medical emergencies, or impacts from state-declared natural disasters.

Under the proposed framework, eligible customers receive a three-month deferment on all utility payments without accruing interest or additional fees. At the conclusion of the deferment period, customers must enroll in their utility provider's arrearage management program or, if ineligible, participate in an available payment plan to address accumulated debt. The legislation limits customers to one deferment period every 18 months.

The Public Utilities Commission maintains authority to implement rules governing the deferment program, while violations of the provisions constitute criminal offenses under the Public Utilities Act. The measure builds upon existing disconnection protections in state law, which currently prevent service termination for medical baseline customers who demonstrate financial hardship and agree to payment arrangements.