CaliforniaCommission must review federal tax changes affecting utility rates
The commission must review federal laws’ effects on certain utilities’ expected tax costs and adjust their rates when those costs change materially.
What it does
The commission must review how federal laws affect covered utilities’ expected tax costs and adjust rates when those costs change materially. It may spread the impact over time based on each utility’s circumstances.
Argument forUtilities could have rates adjusted when federal tax changes materially affect expected tax costs, helping keep approved rates aligned with those costs.
Argument againstUtilities and customers could face rate changes when federal tax rules change, while the commission’s flexible timing may spread those changes over time.
More detail
The commission must review how federal laws affect utilities’ expected federal tax costs and liabilities, then adjust rates if those changes have a material effect. The rule covers public utilities whose rates the commission sets, when their revenue requirements used the tax rates in place at the time those rates were set. This applies only to utilities whose rates the commission sets and only when their revenue requirements were based on tax rates in effect when those rates were set. The commission may choose suitable ways to track tax changes and may spread rate impacts over time based on each utility’s circumstances. The commission must evaluate federal legislation that becomes law. Rate adjustments apply when the commission finds a material effect on projected federal tax expenses or liabilities authorized in a utility’s rates.
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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 27Chaptered by Secretary of State - Chapter 625, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 3Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 26Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6588.).Major
- Vote recorded AB 2589 Irwin Concurrence in Senate Amendments. Result: pass.Lower
- Aug 25In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB2589 Irwin et al. By Wiener. Result: pass.Upper
- Aug 25Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).Passed Senate
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 29Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 25From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (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 10Referred to Com. on E., U & C.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 5334.)Passed Assembly
- Vote recorded AB 2589 Irwin Assembly Third Reading. Result: pass.Lower
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 15. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 9From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (April 8). Re-referred to Com. on APPR.Minor
- Apr 9Coauthors revised.
- Apr 8
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Mar 9Referred to Com. on U. & E.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced
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