CaliforniaPublic utilities: electrical and gas corporations: return on equity.
What it does
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law prohibits a public utility from changing a rate or altering a classification, contract, practice, or rule that would result in a new rate, except upon a showing before the commission and a finding by the commission that the new rate is justified and the public utility notifying its customers of the rate change.
More detail
This bill would require the commission to require an electrical corporation or gas corporation proposing to change a rate, or to alter a classification, contract, practice, or rule so as to result in a new rate based directly or indirectly on its request for return on invested capital, to include in its proposal certain studies, as provided. The bill would prohibit the commission from establishing an authorized return on equity for an electrical corporation or gas corporation that exceeds the rate on long-term debt issued by the federal government by more than 400 basis points.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above provisions would be part of the act and a violation of a commission action implementing the bill's requirements would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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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
- Mar 23In committee: Hearing postponed by committee.Latest
- Mar 23Re-referred to Com. on U. & E.Minor
- Mar 19From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.Major
- Mar 11Re-referred to Com. on U. & E.Minor
- Mar 10From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.Major
- Mar 9Referred to Com. on U. & E.Minor
- Feb 3From printer. May be heard in committee March 5.
- Feb 2Read first time. To print.Introduced