Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__178797AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-10</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-02</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1787</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Schultz</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Assembly Members Irwin, Petrie-Norris, and Rogers)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Senator Stern)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Schultz</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Irwin</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Petrie-Norris</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Rogers</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Stern</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add Section 729.3 to the Public Utilities Code, relating to electricity. </ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Electrical corporations: rates: optional dynamic rate tariff. </ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical 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 requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits. Existing law requires that the rate component be a nonbypassable element of the local distribution service.</html:p>
<html:p>This bill would require the commission to require a large electrical corporation, if the commission approves the large electrical corporation’s request to upgrade its
smart meter infrastructure and related information management and billing systems relative to infrastructure in place on January 1, 2026, to offer all its customers at least one optional dynamic rate tariff
no later than when the upgraded smart meter infrastructure is anticipated to be placed into service, as specified. The bill would require the commission to ensure,
in reviewing
a request of a large electrical corporation to recover costs associated with upgrading its smart meter infrastructure and related information management and billing systems, that specified conditions are met. The bill would require the commission to ensure, among other things, the large electrical corporation makes the same time-varying distribution rates available to both bundled customers and unbundled
customers located in the same geographic area, as specified.</html:p>
<html:p>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.</html:p>
<html:p>Because the above provisions would be part of the act and a violation of a commission action implementing this 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>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_A01BD598-3082-4DF5-A522-C178C5F72D58">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature hereby finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Lowering electricity bills is critical to maintaining the competitiveness of California businesses and alleviating overall cost pressures on individual households.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The electrical grid supporting California’s economy is subject to dynamically shifting conditions due to factors such as weather-driven electricity demand, variable generation output, and line capacity constraints.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Dynamic grid conditions often result in widely fluctuating wholesale electricity prices. The volatility of wholesale prices affects the overall cost of electricity that is ultimately borne by the state’s ratepayers.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Enabling greater demand flexibility through dynamic retail pricing, based on the conditions of the grid and the wholesale market,
may minimize electricity costs for participating customers equipped with the necessary tools and information to follow grid conditions. Regulators developing demand flexible rate options should appropriately balance customer participation with adequate protections and safeguards.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is the intent of the Legislature to do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Ensure that any customer of an electrical corporation who must pay for the costs associated with a smart meter has access to at least one optional dynamic rate tariff.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Ensure that customers who do not want or cannot participate in dynamic retail pricing have the right to continue to receive their standard service.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Ensure participation in dynamic retail pricing does not create cost shifts between participating and nonparticipating customers.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Ensure customers have real-time access to the electricity usage data from their smart meters to maximize the ability of participating customers to adjust their electricity usage in response to dynamic prices if they choose to take service under a dynamic rate tariff.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_9F2E2022-F370-419B-928C-2214A8DF048A">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'729.3'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 729.3 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_184B8B49-94EC-46D9-B25C-3337C8999C5A">
<ns0:Num>729.3.</ns0:Num>
<ns0:LawSectionVersion id="id_7738B841-CBFC-4CBF-A071-986DE542BE7D">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the commission approves a large electrical corporation’s request to upgrade its smart meter infrastructure and related information management and billing systems relative to infrastructure in place on January 1, 2026, the commission shall require the large electrical corporation to offer all its customers at least one optional dynamic rate tariff no later than when the upgraded smart meter infrastructure is anticipated to be placed into service.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The optional dynamic rate tariff, at a minimum, shall include all of the following components:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A time-varying distribution rate that reflects dynamic distribution grid constraints in the distribution service area, if determined by the commission to be feasible, cost effective, and equitable for all customers.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A time-varying generation rate for bundled customers that reflects day-ahead hourly wholesale market conditions.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Nonbypassable charges.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commission shall consult with the Federal Energy Regulatory Commission to ensure implementation of an optional dynamic rate
tariff is consistent with the Federal Energy Regulatory Commission’s transmission ratemaking authority.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In reviewing a request of a large electrical corporation to recover costs associated with upgrading its smart meter infrastructure and related information management and billing systems, the commission shall ensure all of the following conditions are met:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
If the smart meter technology includes wireless communications with near real-time data transmission functionality, the large electrical corporation shall provide a customer
their own near real-time energy usage data directly from the meter.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The large electrical corporation shall provide accurate and timely customer usage data to a customer’s load-serving entity if
authorized by the customer.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The large electrical corporation shall provide to each customer access to the customer’s energy usage data through a method that is secure, automated, and provides data in a standardized machine-readable format. The large electrical corporation shall also allow the customer to authorize a qualified third-party service provider to access the data on behalf of the customer for the purpose of managing the customer’s onsite energy demand.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The commission shall establish rules for the customer data management pursuant to this paragraph to ensure fairness among onsite energy management service providers, including the large electrical corporation’s own administrators, to develop cybersecurity and privacy standards applicable to all providers, and to ensure compliance with Sections 8380 and 8381.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
To protect customers, maintain the principle of cost causation, and prevent cost shifts between bundled customers and unbundled customers, and between participating and nonparticipating
customers, the commission shall ensure all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Adequate electricity bill comparison information is provided by load-serving entities to residential and small business customers interested in taking service under an optional dynamic rate tariff to ensure participating residential and small business customers are aware of and informed on the potential price risks associated with taking service under a dynamic rate tariff.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Rules or conditions are established for participation by vulnerable residential customers to ensure adequate protection for those customers, including, but not limited to, those customers served through rates established pursuant to subdivision (c) of Section 739, and Section 739.1 and 739.12.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Rules or mechanism to ensure nonparticipating customers do not pay for the wholesale energy resources associated with designing the generation portion of the optional dynamic rate tariff.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The large electrical corporation shall make the same time-varying
distribution rates available to both bundled customers and unbundled customers located in the same geographic area as delineated, and determined feasible, by the commission.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
To address the risks to nonparticipating customers, the commission shall evaluate and mitigate any cost shifting from the optional dynamic rate tariff in proceedings, at least every four years, which may include the large electrical corporation’s general rate case. The commission shall adjust or modify any dynamic rate tariff found in its evaluation to create cost shifting from nonparticipating to participating customers in order to ensure no cost shifting occurs.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
To support accurate analysis and effective evaluation of any potential cost shifting from an optional dynamic rate tariff, the commission shall
review information pertaining to customer adoption of the optional dynamic rate tariff, at least every four years, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The total number or percentage of participants across applicable customer segments, including bundled and unbundled customer segments.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The volume of energy sales for participating customers and nonparticipating customers on a time-differentiated basis.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Total
cost and revenue requirement changes, the large electrical corporation’s cost reductions associated with load shifts, and the estimated rate impacts on participating and nonparticipating customers.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Any asymmetrical effect on vulnerable residential customers, including, but not limited to, those customers served through rates established pursuant to subdivision (c) of Section 739, Section 739.1, or Section 739.2.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Any additional information required by the commission to protect against potential cost shifts from the optional dynamic rate
tariff.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A load-serving entity is responsible for setting the generation rate
portion of an optional dynamic rate tariff for a participating customer.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section does not authorize the commission to regulate the rates or terms and conditions of service offered by a community choice aggregator, consistent with Section 366.2, or an electric service provider, consistent with Section 394.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For purposes of this section, all of the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Eligible customer-generator” has the same meaning as defined in Section 2827.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Large electrical corporation” means an electrical corporation with more than 100,000 service connections in California.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Load-serving entity” has the same meaning as defined in Section 380.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Smart meter” means a device that can measure energy consumption and other attributes related to an electrical current and is capable of transmitting the measurements to an information system owned by an electrical corporation or to an onsite device owned by a customer.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_85FCA4F4-AABC-4FBA-963F-61D755B3CAC7">
<ns0:Num>SEC. 3.</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
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>