Electrical corporations and gas corporations: rates.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Pending Referral
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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 clarifies the Public Utilities Commission’s authority to review and regulate the rates charged by electrical and gas corporations in California. Specifically, it strengthens the commission’s ability to disallow expenses related to errors or omissions during the planning, construction, or operation of a corporation’s plant, particularly those exceeding $50 million. The bill also addresses situations where a corporation fails to maintain adequate records for cost evaluation, and provides definitions for key terms like ‘planning,’ ‘construction,’ and ‘operation’ to ensure consistent application of the regulations.
Key provisions
- The commission can disallow expenses exceeding $50 million resulting from unreasonable errors or omissions in plant planning, construction, or operation.
- The commission can disallow expenses if a corporation fails to maintain sufficient records for cost evaluation.
- The bill defines ‘planning,’ ‘construction,’ and ‘operation’ for clarity in the context of rate regulation.
- The bill clarifies that the commission’s authority is not limited to expenses related to undepreciated capital costs.
- The commission is permitted to establish rates based on other factors beyond a simple rate of return on capital costs.
- The bill clarifies that the commission can disallow expenses even if the error or omission was not foreseeable.
- The bill does not prohibit the commission from finding other unreasonable or imprudent expenses.
Who is affected
Bill text
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Sponsors
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1 on record
Primary sponsor
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