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<ns0:Id>20250AB__249399INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Petrie-Norris</ns0:AuthorText>
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<ns0:Name>Petrie-Norris</ns0:Name>
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<ns0:Title> An act to add Section 769.4 to the Public Utilities Code, relating to electricity. </ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Electrical corporations: interconnection: transmission: auditor.</ns0:Subject>
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<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission, if it determines that the rules, practices, equipment, appliances, facilities, or service of a public utility, or the methods of manufacture, distribution, transmission, storage, or supply used by the public utility, are unjust, unreasonable, unsafe, improper, inadequate, or insufficient, to determine and fix the rules, practices, equipment, appliances, facilities, service, or methods to be observed, furnished, constructed, enforced, or employed. </html:p>
<html:p>This bill would require the commission to require each electrical corporation to retain an independent third-party auditor to review certain transmission- and interconnection-related submissions made by the electrical corporation, the
electrical corporation’s progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, and the electrical corporation’s compliance with any remedial actions ordered by the commission, as specified. The bill would require the third-party auditor to report to the commission on an annual basis, as provided. Within 90 days of receiving the auditor’s report, the bill would require the commission to issue a resolution directing an electrical corporation to take remedial actions necessary to address any deficiencies identified by the auditor, 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
above-described provisions 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: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 769.4 is added to the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Num>769.4.</ns0:Num>
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(a)
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The commission shall require each electrical corporation to retain an independent third-party auditor approved by the commission to review the electrical corporation’s submissions pursuant to commission Resolution E-5252 and subdivision (g) of Section 913.4, the electrical corporation’s progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, and the electrical corporation’s compliance with any remedial actions ordered by the commission pursuant to subdivision (b).
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(1)
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The commission shall consult with the Public Advocate’s Office of the Public Utilities Commission on the selection of the auditor and shall ensure that the auditor does
not have a conflict of interest due to other work, contracts, or business relationships with the electrical corporation.
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(2)
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The auditor shall report to the commission on an annual basis. The reports of the auditor shall be posted on the commission’s internet website and incorporated into the commission’s annual reporting requirements pursuant to subdivision (g) of Section 913.4.
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(b)
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Within 90 days of receiving the auditor’s report pursuant to subdivision (a), the commission shall issue a resolution directing an electrical corporation to take remedial actions necessary to address any deficiencies identified by the auditor. Remedial actions may include, but are not limited to, the following:
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<html:p>
(1)
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(A)
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Reallocating staff or capital resources to complete high-priority upgrades.
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<html:p>
(B)
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For purposes of this paragraph, “high-priority upgrades” mean transmission, distribution, or interconnection facilities affecting the interconnection or deliverability of at least 100 megawatts of generating capacity.
</html:p>
<html:p>
(2)
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Facilitating advanced procurement of equipment or equipment sharing with other electrical corporations to address delays caused by supply chain constraints.
</html:p>
<html:p>
(3)
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Interim deliverability or temporary generator interconnection solutions.
</html:p>
<html:p>
(4)
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Enabling generators to procure equipment on behalf of the electrical corporation.
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<html:p>
(5)
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(A)
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Enabling self-build options by generators or transmission solutions developed by another electrical corporation.
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(B)
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For purposes of this paragraph, “self-build options” include, but are not limited to, the permitting, design, procurement, construction, or commissioning of transmission, distribution, or interconnection facilities by an entity other than the electrical corporation.
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(6)
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Expediting engineering, design, permitting, and other preconstruction work for high-priority upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator.
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(c)
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The electrical corporation’s record of compliance with remedial actions ordered by the commission pursuant to this section shall be admissible evidence and considered by the commission in any decision approving a rate or cost of capital application filed pursuant to Section 451.
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<ns0:Num>SEC. 2.</ns0:Num>
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No reimbursement is required by this act pursuant to Section 6 of Article XIII
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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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