AB 1787: Electrical corporations: rates: smart meter infrastructure: dynamic rate option.

Official summary

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

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. Existing law requires each electrical corporation to identify a separate rate component to fund certain programs that enhance system reliability and provide in-state benefits. Existing law requires that the rate component be a nonbypassable element of the local distribution service.

This bill would require the commission to require a large electrical corporation, if the commission approves the large electrical corporation’s request to upgrade its smart meter infrastructure relative to infrastructure in place on January 1, 2026, to offer eligible customer segments at least one dynamic rate option no later than 18 months after the upgraded smart meter infrastructure is anticipated to be placed into service, as specified. The bill would require the commission to ensure, in reviewing a request of a large electrical corporation to recover costs associated with upgrading its smart meter infrastructure, that specified conditions are met. The bill would also require the commission to ensure, among other things, the large electrical corporation makes the same time-varying distribution rates available to both bundled customers and unbundled customers located in the same geographic area, as specified.

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

Because the above provisions would be part of the act and a violation of a commission action implementing this bill’s requirements would be a crime, the 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.

Sponsors

Sponsors by party (alphabetical): Democratic 5

“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. August 13, 2026In committee: Held under submission.
2. August 3, 2026In committee: Referred to APPR. suspense file.
3. July 2, 2026Read second time and amended. Re-referred to Com. on APPR.
4. July 2, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 4.) (June 30).
5. June 22, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
6. June 16, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U & C.
7. June 3, 2026Referred to Com. on E., U & C.
8. May 27, 2026In Senate. Read first time. To Com. on RLS. for assignment.
9. May 26, 2026Read third time. Passed. Ordered to the Senate. (Ayes 57. Noes 6. Page 5298.)
10. May 19, 2026Read third time and amended. Ordered to third reading. (Page 5152.)
11. May 18, 2026Read second time. Ordered to third reading.
12. May 14, 2026From committee: Do pass. (Ayes 11. Noes 0.) (May 14).