AB 2666: Public utilities: rate of return.

Existing law authorizes the Public Utilities Commission to fix the rates and charges for every public utility, including electrical and gas corporations, and requires those rates and charges to be just and reasonable.

This bill would require the commission, following the approval of each general rate case, to review which costs, if any, differed from the general rate case forecasts for each electrical corporation or gas corporation, and to adjust the authorized revenue requirement in the subsequent general rate case, as appropriate, based on the actual past costs the corporation records. The bill would require the commission to establish guidelines for electrical corporations and gas corporations to calculate and report annually their actual rates of return to the commission. The bill would require the commission to adopt processes to adequately track those corporations actual rates of return relative to their forecasted rates of return and to require those corporations to identify the cost categories where projected costs differed from actual costs.

Under existing law, a violation of the Public Utilities Act or a violation of 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 its 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.