AB 1975

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. This bill would require the commission, on or before December 31, 2027, to develop a methodology for calculating a distribution grid utilization metric, as specified. The bill would require each large electrical corporation, in a manner, frequency, and geographic scope determined by the commission, to submit a publicly available report to the commission with the results of the large electrical corporation’s distribution grid utilization metric calculations, as specified. The bill would require the commission to establish and periodically update, as appropriate, a distribution grid utilization standard for each large electrical corporation and to ensure the distribution grid utilization standard encourages, and does not inhibit, electrification. The bill would authorize the commission to direct each large electrical corporation to implement programs, rate designs, or other incentives, or to establish financial performance-based incentives or disincentives correlated with achieving the distribution grid utilization standard, as specified. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the above-described provisions would be part of the act and a violation of a commission action implementing the bill’s requirements would be a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.