AB 1017
Energy: electrical and gas corporations: general rate cases.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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- Passed Assembly
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Bill overview
This bill requires electrical and gas corporations in California to provide the Public Utilities Commission with detailed information as part of their general rate cases. Specifically, it mandates reporting on authorized and actual rates of return and equity over the past 10 years, as well as data on distribution capacity projects and any changes to those projects since the last rate case. The bill also aims to clarify that no reimbursement is required under the California Constitution for costs incurred by local agencies or school districts due to the bill’s provisions.
Key provisions
- Utilities must report authorized and actual rates of return and return on equity for the past 10 years.
- Utilities must provide data on distribution capacity projects, including forecasts and actual completion.
- Utilities must detail changes to distribution capacity projects since the prior rate case.
- Utilities must report on capital costs exceeding previous authorizations.
- The bill requires reporting on labor and non-labor costs, and capital and expenses for work categories.
- Utilities must provide the number of units installed, repaired, or replaced during the past 10 years for asset repairs.
Who is affected
- Electrical Corporations
- Gas Corporations
- Public Utilities Commission
- Local Agencies
- School Districts
Notable changes
- Requires detailed reporting on rates of return and equity over the past 10 years.
Arguments in favor
Reasons to support this legislation.
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AB1017:v96#DOCUMENT
Bill Start
Assembly Bill No. 1017
CHAPTER 177
An act to add Section 740.23 to the Public Utilities Code, relating to energy.
[ Approved by Governor October 01, 2025. Filed with Secretary of State October 01, 2025. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 1017, Boerner. Energy: electrical and gas corporations: general rate cases.
Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires the rates and charges to be just and reasonable. Existing law requires the commission, following the approval of a general rate case of an electrical corporation or gas corporation, to review which costs, if any, differed from the general rate case forecasts and to adjust the revenue requirements in the subsequent general rate case based on the actual past costs in the corporation records.
This bill would require an electrical corporation or gas corporation, as a part of its general rate case, to provide to the commission certain information, including, among other things, the authorized and actual rate of return and return on equity for the past 10 years and projects related to the corporation’s distribution capacity that include the forecast submitted in the prior general rate case of the corporation.
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.
Because the provisions of this bill would be a part of the act, and because a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 740.23 is added to the Public Utilities Code, to read:
740.23.
(a) For purposes of this section, “utility” means an electrical corporation or a gas corporation.
(b) As a part of its general rate case, a utility shall report to the commission all of the following:
(1) For any work category, the amount authorized for the test year in the last general rate case and the amount authorized based on escalation for the last year of the prior general rate case.
(2) For any work category, the actual recorded amounts during the past 10 years split between labor and nonlabor costs and between capital and expenses.
(3) For any asset repair, installation, or replacement work, the number of units installed, repaired, or replaced during the past 10 years.
(4) The authorized and actual rate of return and return on equity for the past 10 years.
(5) For distribution capacity, all of the following:
(A) The projects included in the forecast submitted in the prior general rate case.
(B) The projects actually conducted so far in the prior general rate case or planned to be started during the prior general rate case cycle.
(C) Which projects included in the forecast submitted in the prior general rate case are included in the forecast for the pending general rate case.
(D) Which projects included in the prior general rate case have been canceled or indefinitely delayed and the reasons for the cancellation or delay.
(6) A breakdown by program of any capital costs included in the pending general rate case that exceed previously authorized levels or that have not been previously found to be reasonable.
SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII 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 B of the California Constitution.