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<ns0:Id>20250AB__171599INT</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-04</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Schiavo</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Schiavo</ns0:Name>
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<ns0:Title> An act to amend Section 454 of, to add Section 311.8 to, and to add and repeal Sections 593 and 913.7 of, the Public Utilities Code, relating to public utilities.</ns0:Title>
<ns0:RelatingClause>public utilities</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public utilities: reporting.</ns0:Subject>
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<html:p>
(1)
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Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires electrical corporations and gas corporations to submit various information to the commission, and requires the commission to annually report to the Legislature on, among other things, all sources and amounts of funding and actual and proposed expenditures, including any costs to ratepayers, related to entities or programs established by the commission, as specified.
</html:p>
<html:p>This bill would require each electrical corporation or gas corporation to report certain information for any taxpayer funding, as defined, greater than or equal to $1,000,000 that the utility has applied for or received, as specified. The bill would require the commission, for each
application in which a electrical corporation or gas corporation is seeking ratepayer funding, to require the electrical corporation or gas corporation to report all relevant taxpayer funding greater than or equal to $1,000,000 that the electrical corporation or gas corporation is pursuing or has secured, and, if the commission determines that a electrical corporation or gas corporation is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the electrical corporation or gas corporation, as specified. The bill would require the commission to require each electrical corporation or gas corporation to promptly deliver to ratepayers the financial benefits of taxpayer funding received, as provided.</html:p>
<html:p>The bill would require the commission to provide an annual report to the Legislature with a summary of the information on taxpayer funding reported by each electrical corporation or gas corporation, including the number
of grants or loans, the source of those grants or loans, the total dollar amount received, the projects funded by the grants or loans, and the total demonstrated ratepayer savings, as specified.</html:p>
<html:p>The bill would repeal these provisions on January 1, 2037.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Existing law requires, whenever any electrical, gas, heat, telephone, water, or sewer system corporation files an application to change any rate, the corporation to furnish to its customers affected by the proposed rate change notice of its application to the commission for approval of the new rate, with delineated exceptions, including when the rate change is proposed by the corporation pursuant to an advice letter submitted to the commission, as provided.
</html:p>
<html:p>This bill would require the commission to issue universal guidelines for a searchable database of public utility advice letters, as provided, and
require each public utility to maintain on its internet website a database meeting those guidelines. The bill would require the commission to require public utilities to provide, in any customer notice of a rate change, a link to the advice letter associated with the rate change.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
</html:p>
<html:p>Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 311.8 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>311.8.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The commission shall require each public utility to maintain on its internet website a searchable database of public utility advice letters.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commission shall issue universal guidelines for a database required pursuant to subdivision (a), including all of the following:
</html:p>
<html:p>
(1)
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A common indexing scheme across utilities.
</html:p>
<html:p>
(2)
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A requirement that the database is searchable by advice letter title, advice letter number, date filed, date approved, associated docket numbers, and keywords.
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<html:p>
(3)
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A requirement that each advice letter record includes a link to
all public responses, protests, and resolutions.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 454 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>454.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Except as provided in Section 455, a public utility shall not change any rate or alter any classification, contract, practice, or rule as to result in any new rate, except upon a showing before the commission and a finding by the commission that the new rate is justified.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Whenever
any electrical, gas, heat, telephone, water, or sewer system corporation files an application to change any rate, other than a change reflecting and passing through to customers only new costs to the corporation which do not result in changes in revenue allocation, for the services or commodities furnished by it, the corporation shall furnish to its customers affected by the proposed rate change notice of its application to the commission for approval of the new rate.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
This notice requirement does not apply to any rate change
proposed by a corporation pursuant to an advice letter submitted to the commission in accordance with commission procedures for this means of submission.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The procedures for advice letters may include provision for notice to customers or subscribers on a case-by-case basis, as determined by the commission.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The commission shall require public utilities to provide,
in any customer notice of a rate change, a link to the advice letter associated with the rate change.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The corporation may include the notice with the regular bill for charges transmitted to the customers within 45 days if the corporation operates on a 30-day billing cycle, or within 75 days if the corporation operates on a 60-day billing cycle.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If more than one
application to change any rate is filed within a single billing cycle, the corporation may combine the notices into a single notice if the applications are separately identified.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The notice shall state the amount of the proposed rate change expressed in both dollar and percentage terms for the entire rate change as well as for each customer classification, a brief statement of the reasons the change is required or sought, and the mailing, and if available, the email address of the commission to which any customer inquiries may be directed regarding how to participate in, or receive further notices regarding the date, time, or place of, any hearing on the application, and
the mailing address of the corporation to which any customer inquiries relative to the proposed rate change may be directed.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For a water corporation with more than 2,000 service connections, the notice required by subdivision
(b) shall include estimated rate impacts on the various customer classes of the corporation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission may require the water corporation to inform customers in a separate letter or through a bill insert, at the water corporation’s discretion, of the outcome of the general rate case, within 60 days if the water
corporation operates on a 30-day billing cycle, or within 90 days if the water corporation operates on a 60-day billing cycle, of the commission’s final decision, including the approved rates and the approved capital projects that will subsequently be executed by way of an advice letter.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commission may adopt rules it considers reasonable and proper for each class of public utility providing for the nature of the showing required to be made in support of proposed rate changes, the form and manner of the presentation of the showing, with or
without a hearing, and the procedure to be followed in the consideration of the proposed rate change.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Rules applicable to common carriers may provide for all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The
publication and filing of any proposed rate change together with a written showing in support of the proposed rate change.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Giving notice of the filing and showing support of the proposed rate change
to the
public.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Granting an opportunity for protests to the proposed rate change, and to the consideration of, and action on, the showing and any protests filed to the proposed rate change by the commission, with or without hearing.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), a proposed rate change shall not become effective until it has been approved by the commission.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The commission shall permit individual public utility customers and
subscribers affected by a proposed rate change, and organizations formed to represent their interests, to testify at any hearing on the proposed rate change, except that the presiding officer need not allow repetitive or irrelevant testimony and may conduct the hearing in an efficient manner.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 593 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_07D3B9C6-35F4-4683-995A-6FA58FB75E44">
<ns0:Num>593.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, both of the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Taxpayer funding” means any funds received from public entities in the form of grants, loans, or bonds that were appropriated by the Congress of the United States and provided under the Infrastructure Investment and Jobs Act (Public Law 117-58), the Inflation Reduction Act of 2022 (Public Law 117-169), or the CHIPS Act of 2022 (Public Law 117-167), or any future similar funding program established by the federal government, or the state, to provide loans and grants to a utility.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Utility” means an electrical corporation or gas corporation.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Unless unchanged from the previous report, each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any taxpayer funding greater than or equal to one million dollars ($1,000,000) that the utility has applied for, or received, since the previous quarterly report:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The name of the grant, loan, or bond funding source.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The dollar amount applied for or received.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A spending plan that includes all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The project, element of operations, or other expenses for which these funds will be used.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A description of each item identified in
clause (i), including project timelines.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Whether each item identified in clause (i) is new or existing.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
If the application is pending, the expected date of decision.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
If the application is denied,
the date that decision was announced.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A list of all applications planned or pending at the commission for which ratepayer funds are being sought for projects funded, in whole or in part, by taxpayer funding.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Only for taxpayer funding received, a calculation of all measurable value to, or savings expected to benefit, ratepayers from receipt of the taxpayer funding, including, but not limited to, estimates of all of the following, in a form and manner to be prescribed by the commission:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Decreases in forecasts of expenses, capital, interest, and taxes.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Changes in revenue requirements.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Changes in average customer bills.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the commission determines that a utility is not in compliance with the quarterly reporting requirement of paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant taxpayer funding greater than or equal to one million dollars ($1,000,000) that the utility is pursuing or has secured.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the commission determines that a utility did not comply with paragraph (1), the
commission may impose a penalty against the utility.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding Section 728, the commission shall require a utility to promptly deliver to ratepayers the financial benefits of taxpayer funding received, as calculated in subparagraph (F) of paragraph (1) of subdivision (b), including the cost savings for activities previously approved by the commission.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utility’s revenue requirements and rate applications to account for ratepayer savings.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section does not assume or imply that an application for, or receipt of, taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2037, and as of that date is repealed.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 913.7 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>913.7.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The commission shall provide an annual report to the Legislature with a summary of the information on taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the total dollar amount received, the projects funded by the grants or loans, and the total demonstrated ratepayer savings.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission may integrate the report required by paragraph (1) into any other report the commission is required to annually provide to the Legislature.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source
and pursuant to federal law.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2037, and as of that date is repealed.
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<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
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B of the California Constitution.
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