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<ns0:Id>20250SB__123398AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-25</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>1233</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Allen</ns0:AuthorText>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
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<ns0:Title> An act to add Section 454.05 to the Public Utilities Code, relating to public utilities.</ns0:Title>
<ns0:RelatingClause>public utilities</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public utilities: rates.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law authorizes the Public Utilities 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. </html:p>
<html:p>This bill would require an electrical corporation or gas corporation proposing to change a rate or to alter a classification, contract, practice, or rule that would result in a new rate, based directly or indirectly on its request for return on invested capital, to include in its proposal certain information, as provided. The bill would require the commission, in approving the rate change, to take into account, and make specific findings related to, certain considerations.</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 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:VoteRequired>MAJORITY</ns0:VoteRequired>
<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:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_B06DD6C8-CE6F-4303-8980-60480BEB9131">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'454.05.'%5D)" ns3:type="simple">Section 454.05 is added to the Public Utilities Code, to read:</ns0:ActionLine>
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<ns0:Num>454.05.</ns0:Num>
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(a)
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If an electrical corporation or gas corporation proposes to change a rate, or to alter a classification, contract, practice, or rule that would result in a new rate, based directly or indirectly on its request for return on invested capital, the electrical corporation or gas corporation shall include both of the following in its proposal:
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(1)
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Information showing the amount of internally generated cash available to self-fund investment needed to provide safe and reliable public utility services, including deferred taxes, depreciation, and amortization, and the extent of the need to acquire external investment.
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(2)
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Information showing the relationship between capital structure and return on
equity that minimizes the overall revenue requirement, including taxes.
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<html:p>
(b)
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In approving a rate change proposed pursuant to this section, the commission shall take into account, and make specific findings related to, all of the following considerations:
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(1)
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Any disaster, such as wildfires caused by, or associated with, the electrical corporation’s or gas corporation’s operation of its infrastructure.
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(2)
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Any past or current civil judgments or criminal convictions that are related to the electrical corporation’s or gas corporation’s operation of its infrastructure.
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(3)
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Any conduct by the electrical corporation or gas corporation or its corporate officers that has imposed unreasonable or imprudent costs on ratepayers.
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(c)
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The commission shall make findings consistent with Section 1705 on the matters in subdivision (a) to support an order approving a rate change pursuant to this section.
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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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