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 authorizes the commission to investigate a single rate, classification, rule, contract, practice, or the entire schedule of rates, classifications, rules, contracts, and practices, of any public utility, and to establish new rates, classifications, rules, contracts, practices, or schedules.

This bill would require the commission, on or before January 1, 2028, in a new or existing proceeding, to provide for a classification of retail electricity consumers that are large energy use facilities, as defined, that is separate and distinct from classifications of service for other commercial or industrial retail electricity consumers and has its own rate schedule. The bill would require any rate schedule adopted by the commission for large energy use facilities to meet specified requirements, and would require the commission, in deciding whether to approve an electrical corporation’s proposed rate schedule, to ensure the rates meet certain requirements, as provided. The bill would specify that, until January 1, 2028, an electrical corporation and a large energy use facility are not required to use the above-described classification of service if the commission has not approved the electrical corporation’s rate schedule for that classification of service.

This bill would require the commission to require an electrical corporation that is providing electricity service to a large energy use facility to enter into a contract with the large energy use facility that covers the provision of transmission, generation, or distribution of electricity service, as applicable, and would require any contract entered into between an electrical corporation and a large energy use facility pursuant to these provisions to meet certain requirements. The bill would specify that these provisions apply to a large energy use facility that receives electricity service from an electrical corporation on or after January 1, 2027.

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.