AB 1167: Electrical corporations and gas corporations: rate recovery: political activities and promotional advertising.

Existing law authorizes the Public Utilities Commission to fix the rates and charges for public utilities, including electrical corporations and gas corporations, and requires those rates and charges to be just and reasonable. Under existing law, a regulated public utility is prohibited from using ratepayer funds for advocacy-related activities that are political or do not otherwise benefit ratepayers.

This bill would prohibit, except as provided, each electrical corporation or gas corporation from recording to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers, or otherwise recovering from ratepayers, various expenses, including those associated with political influence activities or promotional advertising, as specified. The bill would require each electrical corporation or gas corporation to clearly and conspicuously disclose in all of its public messages whether the costs of the public messages are paid for by the corporations shareholders or ratepayers. The bill would require each electrical corporation or gas corporation, on or before May 31, 2026, and annually thereafter, to report, as part of a specified statement to the commission, certain related information. The bill would require the commission to make the reports publicly available, as provided.

This bill would require the commission to assess a civil penalty, based on the severity of the violation, against an electrical corporation or gas corporation that violates the prohibition described above, or that neglects to comply with any part or provision of any order, decision, decree, rule, direction, demand, or requirement of the commission related to implementing that prohibition, as provided.

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 part of the act and a violation of a commission action implementing this bills 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.