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<ns0:Id>20250AB__197598AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-13</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-03</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Schultz</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Schultz</ns0:Name>
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<ns0:Title>An act to add Section 762.6 to the Public Utilities Code, relating to electricity.</ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Electrical corporations: grid utilization metric.</ns0:Subject>
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<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.</html:p>
<html:p>This bill would require the commission, on or before December 31, 2027, to establish a grid utilization metric that calculates electrical load as a percentage of rated capacity, as specified. The bill would require each large electrical corporation, each calendar quarter, to submit a publicly available report to the commission with the results of the large electrical corporation’s grid utilization metric calculations, as specified. The bill would require the commission to
annually establish a minimum value for the grid utilization metric within each large electrical corporation’s distribution grid, and would require that the grid utilization metric minimum value increase annually, as provided. The bill would require the commission to establish financial performance-based incentives or disincentives correlated with achieving the grid utilization metric minimum value, as specified, and would require each large electrical corporation, on or before July 31, 2028, to propose grid utilization programs to achieve the grid utilization metric minimum value, as specified.</html:p>
<html:p>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 above-described 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.</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:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
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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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<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Utility spending on electrical grid expansion directly impacts energy affordability.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Electricity consumption is projected to increase dramatically in the next decade and beyond.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In most hours of the year, electrical distribution circuits transmit much less electricity than their rated capacity.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If increases in electricity consumption occur at times when electrical distribution circuits are not operating near their rated capacity, distribution system expansion can be avoided despite the increased consumption.
</html:p>
<html:p>
(e)
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Increasing electrical grid utilization reduces the average cost of the distribution rate, reducing electricity rates.
</html:p>
<html:p>
(f)
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It is in the interest of the state to promote energy affordability by minimizing distribution system costs while maintaining electrical system safety and reliability.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 762.6 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>762.6.</ns0:Num>
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<html:p>
(a)
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On or before December 31, 2027, the commission shall, in a new or existing public proceeding, establish a grid utilization metric that calculates electrical load as a percentage of rated capacity. The grid utilization metric shall do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Be measured separately based on peak load and average load.
</html:p>
<html:p>
(2)
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Be designed so that it can be calculated on individual distribution circuits and averaged across multiple distribution circuits.
</html:p>
<html:p>
(b)
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Each large electrical corporation shall, each calendar quarter, submit a publicly available report to the commission with the results of the large electrical
corporation’s grid utilization metric calculations on individual distribution circuits, individual substations, and the entire service territory of the large electrical corporation.
</html:p>
<html:p>
(c)
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The commission shall annually establish a minimum value for the grid utilization metric within each large electrical corporation’s distribution grid. The commission shall develop a process to ensure the imposition of the grid utilization metric minimum value encourages, and does not inhibit, electrification. The grid utilization metric minimum value shall increase annually at the commission’s discretion. The increase may be measured by distribution planning area or other segmentation, at the commission’s discretion.
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<html:p>
(d)
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The commission shall establish financial performance-based incentives or disincentives correlated with achieving the grid utilization metric minimum value established in
subdivision (c), if the incentive or disincentive results in a net benefit for retail customers. The commission shall leverage the performance-based incentive or disincentive to encourage large electrical corporations to propose the most cost-effective solutions for providing safe and reliable electrical service.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
On or before July 31, 2028, each large electrical corporation shall propose grid utilization programs to achieve the grid utilization metric minimum value established in subdivision (c). In evaluating grid utilization programs, the commission shall consider all of the following and shall only approve a grid utilization program that is feasible and cost effective:
</html:p>
<html:p>
(1)
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Any costs or benefits to utility customers, including rate impacts.
</html:p>
<html:p>
(2)
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Reliability of electrical service and the electrical grid
system.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Maximizing the use of existing electrical distribution grid infrastructure.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Maximizing the use of demand flexibility technologies to increase electrical load capacity and electrical grid services.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The commission shall establish a method of quantifying ratepayer savings through increased grid utilization.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For purposes of this section, “large electrical corporation” has the same meaning as defined in Section 2827.
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<ns0:Num>SEC. 3.</ns0:Num>
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<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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