CA SB699

Requires the Public Utilities Commission to commence a new proceeding or phase by July 1, 2015, to consider adopting rules addressing physical security risks to electrical corporations' distribution systems.

Mandates electrical corporations to report annually on their compliance with adopted security standards or rules, with reports made available to the public except for information withheld for security reasons.

Authorizes the commission to impose sanctions including rate reductions or monetary fines if electrical corporations fail to meet security standards, with collected funds offsetting the California Alternative Rates for Energy Program.

Directs the commission to consider cost, geography, weather, applicable codes, physical security risks, industry practices, and engineering judgment when setting security standards.

Specifies that no state reimbursement is required because the bill creates new violations of the Public Utilities Act without imposing costs on local agencies or school districts.