Public Utilities Commission: rates: cost of capital proceeding: authorized return on equity.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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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 the California Public Utilities Commission (PUC) to provide more detailed information when determining the return on equity for electrical and gas corporations. Specifically, it mandates that the PUC disclose the financial models used, the assumptions behind those models, and how those models influenced the return on equity decision. The bill also requires the PUC to update its cost of capital determinations and to include an analysis of California corporation credit ratings in its annual report to the Legislature, ensuring greater transparency and accountability in rate setting.
Key provisions
- Requires the PUC to disclose financial models, inputs, and assumptions used in determining the authorized return on equity.
- Mandates the PUC to identify material departures from prior methodologies in cost of capital proceedings.
- Requires the PUC to analyze the relationship between credit quality and the authorized return on equity.
- Requires the PUC to update its cost of capital determinations through a rulemaking proceeding.
- Demands the inclusion of California corporation credit rating trends in the annual report to the Legislature.
- Establishes a timeline of January 1, 2028, for the implementation of these requirements.
- Requires the PUC to consider long-term plans for financial models to accommodate demand growth.
- Addresses the selection of financial models to align with new investments and customer demand.
Who is affected
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1 on record
Primary sponsor
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