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HomePublic Utilities CodeDiv. 1Pt. 1Ch. 2.3Art. 6§ 371 Electricity Cost Allocation Rules

§ 371 Electricity Cost Allocation Rules

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 371 Electricity Cost Allocation Rules

Key Takeaways

  • •Extra costs for electricity are added to your bill based on how much electricity you use.
  • •If your electricity use changes because of normal things like weather, moving, or making your equipment better, the extra costs can change too.
  • •You still have to follow health and safety rules, even if your electricity use changes.
  • •Making your equipment work better or using new technology can help lower these extra costs.

Example

A factory installs new machines that use less electricity.

The factory's electricity bill will go down because they are using less electricity, and the extra costs will also be lower.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 371 Electricity Cost Allocation Rules

(a) Except as provided in Sections 372 and 374, the uneconomic costs provided in Sections 367, 368, 375, and 376 shall be applied to each customer based on the amount of electricity purchased by the customer from an electrical corporation or alternate supplier of electricity, subject to changes in usage occurring in the normal course of business. (b) Changes in usage occurring in the normal course of business are those resulting from changes in business cycles, termination of operations, departure from the utility service territory, weather, reduced production, modifications to production equipment or operations, changes in production or manufacturing processes, fuel switching, including installation of fuel cells pending a contrary determination by the Energy Commission, enhancement or increased efficiency of equipment or performance of existing self-cogeneration equipment, replacement of existing cogeneration equipment with new power generation equipment of similar size as described in paragraph (1) of subdivision (a) of Section 372, installation of demand-side management equipment or facilities, energy conservation efforts, or other similar factors. (c) This section does not exempt or alter the obligation of a customer to comply with Chapter 5 (commencing with Section 119075) of Part 15 of Division 104 of the Health and Safety Code. This section does not limit the ability of residential customers to alter their pattern of electricity purchases by activities on the customer side of the meter. (d) Enhancement or increased efficiency of equipment, as described in subdivision (b), shall include industrial process heat recovery technology that meets the requirements of Section 451.7. (Amended by Stats. 2024, Ch. 700, Sec. 2. (AB 2109) Effective January 1, 2025.)

Last verified: January 23, 2026

Key Terms

equipmentelectricityterminationcorporationobligationperformancecommissionhealth

Related Statutes

  • § 365 Commission Energy Market Oversight
  • § 369.5 Residential Energy Cost Tracking
  • § 362 Electric System Reliability
  • § 366 Customer Load Aggregation Rules
  • § 366.3 Customer Cost Protection Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 371.
View Official Source