Governor Gavin Newsom signed into law several bills that address increased electricity costs. The bills include SB 1142, which requires utility companies to restore electricity or natural gas for customers with unpaid bill when they enter into a payment plans, and AB 3264, which requires the California Public Utilities Commission (CPUC) to assess total annual energy costs for households to develop an energy affordability framework. The two bills were a significant change from earlier plan to reduce electricity costs, including through one-time credits.
SB 1142
SB 1142 requires an electrical or natural gas corporation to restore service by a specific deadline to a residential customer whose service was previously terminated for nonpayment of delinquent amounts when the customer enters an amortization agreement or any other arrearage payment plan determined by the CPUC. The CPUC must also determine by July 1, 2025 whether to direct utilities to take into account a customer’s ability to pay before terminating or reconnecting services.
AB 3264
This bill requires the CPUC, in consultation with the California Energy Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The bill authorizes the CPUC to use the framework for evaluating any request by a utility to track new spending eligible for recovery or to adjust a revenue requirement.
The bill also requires the CPUC to submit a report to the Legislature containing the framework and certain information. The bill requires large utilities to publish on their internet websites and provide to the CPUC a visual representation of certain cost categories included in residential electric or gas rates for the succeeding calendar year. The first report is due by January 1, 2026, and each year thereafter.