AB 2338: Electrical corporations and gas corporations: rates: inflation-constrained rate case scenario: standard of review.
The bill would require public utilities, such as electrical and gas corporations, to submit an inflation-constrained rate case scenario as part of every general rate case application. This scenario would limit cumulative annual expenditures to the projected federal social security beneficiary cost-of-living adjustment. The Public Utilities Commission would compare this scenario with the primary rate case plan and authorize expenditures above the limit if the corporation provides clear evidence of the need for higher expenditures to ensure safe and reliable operation. The commission would apply heightened scrutiny to requests that may increase systemwide expenditures beyond the projected cost-of-living adjustment.
| May. 14, 2026 | In committee: Held under submission. |
| May. 06, 2026 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr. 23, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 3.) (April 22). Re-referred to Com. on APPR. |
| Mar. 25, 2026 | Re-referred to Com. on U. & E. |
| Mar. 24, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
| Amended IN Assembly March 24, 2026 |
| Introduced by Assembly Member Ransom |
February 19, 2026 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law requires local publicly owned electric utilities serving end-use customers, among other things, to prudently plan for and procure resources that are adequate to meet its planning reserve margin and peak demand and operating reserves, sufficient to provide reliable service to its customers and to, at a minimum, meet the most recent minimum planning reserve and reliability criteria approved by the Board of Trustees of the Western Systems Coordinating Council or the Western Electricity Coordinating Council. Existing law requires those utilities to provide the State Energy Resources Conservation and Development Commission, upon request, with information the commission determines is necessary to evaluate the progress made by them in meeting the above requirements.
This bill would make nonsubstantive changes to the provision regarding the provision of information to the commission.
The people of the State of California do enact as follows:
SECTION 1.
Section 739.18 is added to the Public Utilities Code, to read:739.18.
(a) (1) The commission shall require every electrical corporation or gas corporation, as part of every general rate case application, to do both of the following: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.Upon request, a local publicly owned electric utility serving end-use customers shall provide the Energy Commission with information the Energy Commission determines is necessary to evaluate the progress made by the local publicly owned electric utility in meeting the requirements of Section 9620.