CaliforniaRegulators would block barred utility costs from customer bills
California regulators would block certain improper costs from electric, gas, water, and sewer customers' bills and penalize some violations.
What it does
When a utility books a barred cost to a customer-funded account against a rule, rate terms, or law, regulators would block the charge. They would fine the utility unless it found and fixed the problem on its own.
Regulators would find improper cost recovery when a utility books a cost to a regulator-approved account that customers cannot be charged for or that the utility can recover another way.
Electric, gas, water, and sewer utilities would report each case of improper cost recovery found the year before, how they handled it, and any steps they took to prevent repeats.
Argument forBlocking costs that rules exclude or allow utilities to recover another way could keep customers from paying charges they should not bear.
Argument againstUtilities could face fines for accidental accounting errors if someone else raises the issue before they find and fix it themselves.
More detail
The California Public Utilities Commission would block customer recovery of prohibited costs and fine utilities unless they found and fixed the problem on their own. This covers electric, gas, water, and sewer utilities. The cost must be booked to a customer-funded account in violation of a commission rule, approved rate terms, or law. No fine applies if the utility finds and fixes the problem on its own before someone else raises it. Otherwise, the fine equals the amount of the prohibited cost recovery, or three times that amount for repeat or sustained cases. The threefold fine applies if the same utility had at least two separate cases in the preceding five years or a sustained practice across multiple reporting periods.
The commission would find improper cost recovery when a utility books a covered cost to a regulator-approved financial account. This covers electric, gas, water, and sewer utilities. A law or commission decision or rule must bar charging customers for the cost, or another way to recover it must already be approved.
Each covered utility would send the commission a yearly report on improper cost recovery. Electric, gas, water, and sewer utilities must report cases identified under this section. The report must describe how each case was handled and any steps the utility took to prevent repeats. Each report covers cases identified in the prior year.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State - Chapter 919, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 15Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 11. Page 7006.).Major
- Vote recorded AB 2065 Petrie-Norris Concurrence in Senate Amendments. Result: pass.Lower
- Vote recorded 3rd Reading AB2065 Petrie-Norris By Pérez. Result: pass.Upper
- Aug 31In Assembly. Concurrence in Senate amendments pending.
- Aug 31Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 8.).Passed Senate
- Aug 27Read second time. Ordered to third reading.Minor
- Aug 26Read third time and amended. Ordered to second reading.Major
- Aug 11Read second time. Ordered to third reading.Minor
- Aug 10From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jul 29In committee: Hearing postponed by committee.
- Jun 30Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 29From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 2.) (June 24).Major
- Jun 24
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 9From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U & C.Major
- Jun 3Referred to Com. on E., U & C.Minor
- May 21In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2065 Petrie-Norris Consent Calendar Second Day. Result: pass.Lower
- May 21Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 0. Page 5229.)Passed Assembly
- May 14Read second time. Ordered to Consent Calendar.Minor
- May 13From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 13).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Apr 23From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 22). Re-referred to Com. on APPR.Minor
- Apr 22
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Mar 9Referred to Com. on U. & E.Minor
- Feb 19From printer. May be heard in committee March 21.
- Feb 18Read first time. To print.Introduced
Consumer ProtectionGovernment & Ethics