Victory for mobilehome park residents and owners

The California Public Utilities Commission (CPUC) authorized the continuance for the next 10 years of the program that converts ownership of privately-held utility systems in mobilehome parks to that of investor-owned energy utilities, including Pacific Gas & Electric, Southern California Edison, San Diego Gas and Electric and Southern California Gas. Of the 400,000 mobilehome spaces in California, over 300,000 are currently served by “master metered” systems that are owned and maintained by the park owner.

Most of these systems were built more than 40 years ago, although many have been replaced periodically. This program aims to transfer all of these systems to standard utility service. Due to the age of these systems, some engineered to only last a dozen years initially because these parks were intended as “transitional” land uses, concerns about safety have been paramount. This program will bring these systems up to the standards of other California ratepayers.

Along with improved safety, residents will gain greater access to energy efficiency and other energy management programs that they already fund at the utilities, and smoother billing. Residents also will have access to time of use rates that has been precluded by the intervening master meter. Park owners will avoid the increasing complexity of billing, system maintenance and safety inspections and filings, and future costs of system replacement. In addition, park owners have been inadequately compensated through utility rates for maintaining those systems, and have resistance in recovering related costs through rents.

I have been working with one of my clients, Western Manufactured Housing Communities Association (WMA) since 1997 to achieve this goal. The momentum finally shifted in 2014 when we convinced the utilities that making these investments could be profitable. First athree-year pilot program was authorized, and this recent decision builds on that.

 

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