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California 20252026

AB 2065

Rates: prohibited cost recovery.

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Source: Open States / PluralUpdated 2026-09-12 13:12:55 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
Rates, prohibitedcostrecovery
Introduced / first action
2026-02-18 00:00:00

Alternate titles

  • Rates: inappropriate cost recovery.
  • Transmission Infrastructure Accelerator: private-public partnership plan.

Source-supplied abstracts

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, gas corporations, water corporations, and sewer system 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 prohibits a utility from recording to an above-the-line account, as defined, or otherwise recovering from ratepayers specified costs. This bill would require the commission to find that an electrical corporation, gas corporation, water corporation, or sewer system corporation has engaged in prohibited cost recovery if the corporation records a cost to a regulator-approved financial account and the cost is categorically excluded from ratepayer recovery by statute, commission decision, or commission rule or has already been authorized for recovery through another ratemaking mechanism. The bill would require the commission, upon making a determination that such a corporation has recorded prohibited costs to a ratepayer-funded account in violation of commission rule, tariff, or statute, to disallow recovery of the cost from ratepayers and to impose a financial penalty for prohibited cost recovery equal to the amount of the prohibited cost recovery or 3 times that amount, except as specified. The bill would require each such corporation to submit an annual report to the commission identifying all instances in the prior year in which prohibited cost recovery was identified, the actions that were taken in response to the identification, and any actions that were taken by the corporation to prevent future occurrences. 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 provisions of this bill would be a part of the act and because a violation of a commission action implementing the 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

Source-supplied history

Actions

  1. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 11.).

    amendment-passage, committee-passage, committee-passage-favorable

  2. In Assembly. Concurrence in Senate amendments pending.

  3. Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 8.).

    passage, reading-1, reading-3

  4. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  5. Read third time and amended. Ordered to second reading.

    amendment-passage, reading-1, reading-2, reading-3

  6. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  7. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

    committee-passage, reading-1, reading-2

  8. In committee: Hearing postponed by committee.

  9. Read second time and amended. Re-referred to Com. on APPR.

    amendment-passage, reading-1, reading-2, referral-committee

  10. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 2.) (June 24).

    amendment-introduction, amendment-passage, committee-passage, referral-committee

  11. From 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.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  12. Referred to Com. on E., U & C.

    referral-committee

  13. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  14. Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 0. Page 5229.)

    passage, reading-1, reading-3

  15. Read second time. Ordered to Consent Calendar.

    reading-1, reading-2

  16. From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 13).

    committee-passage, committee-passage-favorable

  17. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 22). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  18. Referred to Com. on U. & E.

    referral-committee

  19. From printer. May be heard in committee March 21.

  20. Read first time. To print.

    reading-1

When supplied by the API

Related measures

No resolvable related measure is supplied.