Public utilities: electrical and gas corporations: financial distress: reporting.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill requires electrical and gas corporations in California to report their financial condition to the legislature if their credit rating reaches a certain level or if the Public Utilities Commission (PUC) makes a decision affecting their cost of capital. If a corporation receives public assistance to avoid financial distress, the PUC must require shareholders to contribute at least 25% of the assistance through equity capital and impose strict terms on executive compensation and dividend payments. The bill also mandates quarterly public reports on compliance and requires the PUC to continuously monitor the corporation's adherence to these terms, with potential enforcement actions available. Finally, it establishes a process for determining when public assistance is appropriate and necessary.
Key provisions
- Requires electrical and gas corporations to submit financial condition reports to the legislature when credit ratings reach a ‘near-distress’ level.
- Mandates shareholder contributions of at least 25% of public assistance through equity capital.
- Limits executive compensation and prohibits share buybacks for utilities receiving public assistance.
- Requires quarterly public reports detailing compliance with terms and conditions of public assistance.
- Requires the PUC to make findings regarding the necessity of public assistance and the protection of ratepayers.
- Establishes a process for ongoing PUC monitoring and enforcement actions.
- Defines key terms such as ‘cost-of-capital decision’ and ‘near-distress rating’.
- Specifies information required in financial condition reports, including executive compensation and insurance coverage.
Bill text
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Sponsors
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1 on record
Primary sponsor
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