SB 943: Public utilities: electricity: retail transmission rates: industrial transition usage.

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.

This bill would require each electrical corporation to obtain the commission’s approval for the terms of its retail transmission rates, as specified.

This bill would authorize the commission to direct an electrical corporation with more than 100,000 service connections in California, when billing a large commercial or industrial customer for separately metered new load to provide industrial heat, to apply an adjustment factor to the per kilowatthour rate for each volumetrically determined surcharge on energy use to limit the surcharge ratio, as defined, to no more than 25% or an alternative maximum ratio determined by the commission to be just and reasonable and in furtherance of facilitating electrification of industrial energy use. The bill would prohibit an eligible industrial transition customer that pays a reduced surcharge from receiving an incentive funded by that surcharge in an amount that exceeds the amount of the surcharge paid by the eligible industrial transition customer. The bill would require the commission, on or before January 1, 2032, and every 5 years thereafter, to evaluate and report to the Legislature on the adjustment factor, 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 provision would be part of the act and a violation of a commission action implementing that provision would be a crime, this bill would impose a state-mandated local program.

Existing law establishes the Independent System Operator as a nonprofit, public benefit corporation and requires the Independent System Operator, among other duties, to ensure the efficient use and reliable operation of the electrical transmission grid consistent with the achievement of planning and operating reserve criteria, as provided.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“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 27, 2026From committee with author's amendments. Read second time and amended. Re-referred to Com. on U. & E.
6. May 26, 2026Referred to Com. on U. & E.
7. May 20, 2026In Assembly. Read first time. Held at Desk.
8. May 19, 2026Read third time. Passed. (Ayes 33. Noes 3. Page 4363.) Ordered to the Assembly.
9. May 14, 2026Read second time. Ordered to third reading.
10. May 14, 2026From committee: Do pass. (Ayes 5. Noes 0. Page 4258.) (May 14).
11. May 8, 2026Set for hearing May 14.
12. April 13, 2026April 13 hearing: Placed on APPR. suspense file.