Public utilities: reporting

The law increases oversight of utility use of federal and state taxpayer funding and seeks to prevent customers from paying utility costs already covered by public money.

What the law does ​

• Requires electric and gas utilities to file quarterly reports on taxpayer funding of $1 million or more that they seek or receive, including funding source, amount, spending plan, application status, and expected customer savings.
• Requires utilities seeking ratepayer funding to disclose relevant taxpayer funding of $1 million or more that they are pursuing or have secured.
• Requires the California Public Utilities Commission to ensure ratepayers receive the financial benefits of taxpayer funding, including through adjustments to utility revenue requirements and rate applications.
• Authorizes the commission to enforce reporting requirements and penalize utilities that fail to disclose relevant funding in ratepayer-funding applications.
• Requires the commission to report annually to the Legislature starting January 1, 2028, on utility grants and loans, funded projects, and demonstrated ratepayer savings.
• Repeals these requirements on January 1, 2037.

Who it affects ​

• Electrical corporations and gas corporations receiving or seeking covered public grants, loans, or bonds.
• Ratepayers whose utility bills may reflect savings from taxpayer-funded utility activities.
• The California Public Utilities Commission.

Breakdown ​

Utility Taxpayer Funding Reporting ​

The bill requires electric and gas utilities to report major taxpayer-funded grants and loans they seek or receive. It also requires the Public Utilities Commission to make sure those funds benefit ratepayers, report the information to the Legislature each year, and may allow penalties for utilities that fail to report required funding. These requirements end on January 1, 2037.

Key takeaways

• Electric and gas utilities must include specified information in quarterly reports about taxpayer funding of at least $1 million that they have applied for or received.
• When a utility seeks ratepayer funding from the commission, it must report relevant taxpayer funding of at least $1 million that it is pursuing or has secured.
• The commission may penalize a utility that does not comply with the taxpayer-funding reporting requirement.
• The commission must require utilities to pass the financial benefits of taxpayer funding they receive on to ratepayers.
• Beginning by January 1, 2028, the commission must annually report to the Legislature on the grants and loans reported by utilities, funded projects, funding sources and amounts, and demonstrated savings for ratepayers.
• The reporting and ratepayer-benefit provisions are repealed on January 1, 2037.

Criminal Enforcement and Reimbursement ​

The bill makes its requirements part of the Public Utilities Act, so violating a Public Utilities Commission action that carries out those requirements can be a crime. Although this creates a state-mandated local program, the bill says the state does not have to reimburse local agencies or school districts for related costs for the reason specified in the bill.

Key takeaways

• Violating a commission action that implements the bill's requirements can be prosecuted as a crime.
• The bill's enforcement provisions create a state-mandated local program.
• The bill states that local agencies and school districts will not receive state reimbursement for costs imposed by this act.