AB 2054: Energy: employment, gifts, and rates.

Session Year: 2023-2024
House: Assembly

Current Status:

Failed

(2024-08-15: In committee: Held under submission.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

(1)Existing law establishes the State Energy Resources Conservation and Development Commission (Energy Commission) consisting of 5 members appointed by the Governor subject to confirmation by the Senate. Existing law prohibits members of the Energy Commission from being employed by an electric utility or applicant or, within 2 years after the member ceases to be a member of the Energy Commission, by a person who engages in the sale or manufacture of a major component of a facility. A violation of this provision is punishable as a felony.This bill would prohibit a member of the Energy Commission from being employed by an entity subject to regulation by the Energy Commission for a period of one year after ceasing to be a member of the Energy Commission. The bill would prohibit a member of the Energy Commission from accepting a gift from an entity subject to regulation by the Energy Commission. By expanding the application of an existing crime, this bill would impose a state-mandated local program.(2)

(1)The California Constitution establishes the Public Utilities Commission (PUC), with jurisdiction over all public utilities, and provides for the composition and appointment of the PUC. Existing law prohibits an executive of a public utility from serving as a commissioner on the PUC within 2 years after leaving the employment of the utility.

This bill would prohibit a PUC commissioner from being employed by an entity subject to regulation by the PUC for a period of one year after the end of the commissioners term of office. The bill would prohibit a PUC commissioner from accepting a gift from an entity subject to regulation by the PUC.

(3)

(2)Existing law establishes within the PUC the independent Public Advocates Office of the Public Utilities Commission to represent and advocate on behalf of the interests of public utility customers and subscribers within the commissions jurisdiction. Existing law requires the director of the Public Advocates Office to be appointed by, and serve at the pleasure of, the Governor, subject to confirmation by the Senate.

This bill would prohibit the director of the Public Advocates Office from being employed by an entity subject to regulation by the PUC for a period of one year after the end of the directors term of office. The bill would prohibit the director from accepting a gift from an entity subject to regulation by the PUC.

(4)

(3)Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable.

This bill would, in any instance where the PUC authorizes a forecast for a category of costs in a ratesetting proceeding and authorizes the recording of costs in an existing or new balancing account for potential rate recovery above the authorized forecast, authorize the PUC to further review any costs above the authorized forecast to be allocated between ratepayers and shareholders. forecast. The bill would require all proposed electrical corporation spending for wildfire expenses mitigation capital costs that is are eligible for rate recovery to include a cost-benefit analysis of the proposed expenses and at least one credible alternative, as specified.

(4)Existing law requires the PUC to annually provide the Legislature with an update on the status of its review of public utilities balancing accounts as part of a specified annual report or by posting it on its internet website, as provided.

This bill would require the PUC to include specified information as part of that annual update, including, among other things, the number of balancing accounts that have recorded costs above their forecast by public utility, the number of balancing accounts the PUC has reviewed in the past year, and the dollar amount, by public utility, of costs that have been approved and denied.

(5)Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because certain provisions of this bill would be part of the act and a violation of a PUC action implementing the 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.

Discussed in Hearing