SB 1138: Load-serving entities: resource adequacy requirements.

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 requires the commission, in consultation with the Independent System Operator, to establish resource adequacy requirements for all load-serving entities, as provided. Existing law defines load-serving entity, for that purpose, as an electrical corporation, electric service provider, or community choice aggregator. Existing law requires each load-serving entity to be subject to the same requirements for resource adequacy, the renewables portfolio standard program, and the integrated resource planning process that apply to electrical corporations, as provided.

This bill would require the commission to authorize a load-serving entity to elect to demonstrate compliance with resource adequacy requirements by selling to, or otherwise making transactions with, another load-serving entity, and would require those transactions to not represent more than 25% of a load-serving entity’s compliance obligations and be of a short-term duration. The bill would require the commission to authorize those transactions to be denominated in the same unit of time used to denominate resource adequacy compliance requirements. The bill would authorize the commission to suspend or adjust that authority of a load-serving entity to sell to, or otherwise make transactions with, another load-serving entity, 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 provisions would be a part of the act, and because a violation of a commission action implementing the above prohibition 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, 2026August 13 hearing: Held in committee and under submission.
2. August 5, 2026August 5 set for first hearing. Placed on suspense file.
3. June 15, 2026Read second time and amended. Re-referred to Com. on APPR.
4. June 11, 2026From committee: Do pass as amended and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 18. Noes 0.) (June 10).
5. May 26, 2026Referred to Com. on U. & E.
6. May 20, 2026In Assembly. Read first time. Held at Desk.
7. May 19, 2026Read third time. Passed. (Ayes 31. Noes 0. Page 4347.) Ordered to the Assembly.
8. May 14, 2026Read second time. Ordered to third reading.
9. May 14, 2026From committee: Do pass. (Ayes 5. Noes 0. Page 4266.) (May 14).
10. May 8, 2026Set for hearing May 14.
11. April 27, 2026April 27 hearing: Placed on APPR. suspense file.
12. April 17, 2026Set for hearing April 27.