SB 905: Electricity.

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 public utilities and requires that those rates and charges be just and reasonable.

This bill would require the commission, for each electrical corporation, to consider assigning a reduced return on equity, as a reduction applied each year to the then current authorized rate of return on equity, for specified types of capital costs included in the electrical corporation’s rate base, as specified.

This bill would require the commission to initiate a rulemaking proceeding to evaluate opportunities for alternative methods of financing capital investments in electrical distribution, electrical generation, and electrical transmission that reduce costs for ratepayers, as specified. As part of the rulemaking, the bill would require the commission to establish categories of alternative financing mechanisms for each electrical corporation to evaluate and report on with respect to opportunities for alternative financing of electrical distribution, electrical generation, and electrical transmission costs, as specified. The bill would require the commission, on or before December 31, 2028, to submit a report to the Legislature outlining any findings and recommendations resulting from the rulemaking, as specified.

This bill would require the commission to require each large electrical corporation to make data available to the public that quantifies the potential for increased utilization of segments of its electrical distribution grid, 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 those provisions would be a crime, this bill would impose a state-mandated local program.

Sponsors

Sponsors by party (alphabetical): Democratic 3

“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. September 30, 2026Chaptered by Secretary of State. Chapter 986, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 8, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 30, 2026Assembly amendments concurred in. (Ayes 29. Noes 10.) Ordered to engrossing and enrolling.
5. August 30, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 30, 2026Read third time. Passed. (Ayes 50. Noes 19. Page 6847.) Ordered to the Senate.
7. August 18, 2026Read second time. Ordered to third reading.
8. August 17, 2026Read second time and amended. Ordered to second reading.
9. August 17, 2026From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 13).
10. August 17, 2026Assembly Rule 63 suspended.
11. August 5, 2026August 5 set for first hearing. Placed on suspense file.
12. June 29, 2026Read second time and amended. Re-referred to Com. on APPR.