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.