Public Utilities Commission: memorandum and balancing accounts.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
In Floor Process
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill aims to prioritize forecast-based ratemaking for electrical and gas corporations in California. It establishes that this method should be the primary way utilities determine their revenue needs and recover costs. The bill limits the use of memorandum and balancing accounts, which utilities have previously used to track and recover costs beyond authorized forecasts, and requires these accounts to have expiration dates. It seeks to align utility incentives with affordability and ratepayer protection by encouraging cost containment and efficiency through forward-looking planning.
Key provisions
- Prioritizes forecast-based ratemaking as the primary method for establishing revenue requirements.
- Limits the authorization of memorandum and balancing accounts to exceptional circumstances.
- Requires memorandum and balancing accounts to include an expiration date.
- Requires the commission to review and consider assigning expiration dates to existing accounts.
- May establish exceptions to forecast-based ratemaking for specific cost categories.
- Requires a written finding for the creation of a memorandum account.
- May implement cost-sharing mechanisms or lower rates of return for costs recovered through accounts.
- Retains the commission’s authority to ensure just and reasonable rates.
Who is affected
- Electrical corporations
- Gas corporations
- Public Utilities Commission
- Ratepayers
Bill text
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Sponsors
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4 on record
Primary sponsor
Cosponsors
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