AB 1774: Electrical corporations: wildfire mitigation plans: expenditures.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law requires an electrical corporation to submit to the Office of Energy Infrastructure Safety a wildfire mitigation plan at least once every 4 years for review. Existing law requires the office to approve or deny each wildfire mitigation plan within 9 months of its submission. Existing law requires the Public Utilities Commission to assess a penalty on an electrical corporation that fails to substantially comply with its wildfire mitigation plan.

Existing law prohibits a large electrical corporation from including in its equity rate base its share for the first $5,000,000,000 expended in aggregate by large electrical corporations on fire risk mitigation capital expenditure, as provided, and authorizes those expenditures to be financed through a financing order, as described. Existing law requires the commission, in addition to the $5,000,000,000, to prohibit a large electrical corporation from including in its equity rate base its share of the first $6,000,000,000 expended in aggregate by large electrical corporations on fire risk mitigation capital expenditures approved by the commission on or after January 1, 2026, and authorizes the electrical corporation’s share of the fire risk mitigation capital expenditures and the debt financing cost of these fire risk mitigation capital expenditures to be financed through a financing order, as provided.

This bill would require the commission, on or before June 30, 2027, to complete a one-time independent audit of all wildfire mitigation expenditures incurred by each electrical corporation between January 1, 2021, and January 1, 2027, as provided. The bill would require that the audit be conducted by an independent third-party auditor. The bill would require the commission, in the next appropriate proceeding following the audit, to consider the findings of the audit in determining the terms and conditions under which an electrical corporation’s requested cost recovery may be authorized, as provided. The bill would require the commission to establish a schedule for conducting future independent audits of each electrical corporation’s wildfire mitigation expenditures incurred during the preceding 4 calendar years. The bill would require the commission, pursuant to that schedule, to conduct an independent audit of an electrical corporation’s prior wildfire mitigation expenditures before any proceeding in which the electrical corporation seeks to recover, collect, or expend ratepayer funds for wildfire mitigation programs, including, but not limited to, expenditures authorized pursuant to an approved wildfire mitigation plan.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because 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.

Sponsors

Sponsors by party (alphabetical): Democratic 3 · Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026In committee: Held under submission.
2. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
3. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
4. April 14, 2026Re-referred to Com. on APPR.
5. April 13, 2026Read second time and amended.
6. April 9, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 8).
7. March 23, 2026Re-referred to Com. on U. & E.
8. March 19, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
9. March 11, 2026Re-referred to Com. on U. & E.
10. March 10, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
11. March 9, 2026Referred to Com. on U. & E.
12. February 10, 2026From printer. May be heard in committee March 12.