Bill Text: CA AB2666 | 2023-2024 | Regular Session | Amended
Bill Title: Public utilities: rate of return.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-30 - Re-referred to Com. on APPR. [AB2666 Detail]
Download: California-2023-AB2666-Amended.html
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Amended
IN
Assembly
April 29, 2024 |
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Amended
IN
Assembly
March 21, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2666
| Introduced by Assembly Member Boerner |
February 14, 2024 |
An act to add Section 451.6 451.8 to the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2666, as amended, Boerner.
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. Existing law requires the commission, whenever it orders rate refunds to be distributed, to require the public utility to pay refunds, as provided.
This bill would require the commission, if it determines that an electrical corporation or a gas corporation has received revenues from its ratepayers that are in excess of its approved rate of return for a prior year, to require the electrical corporation or gas corporation to refund those excessive revenues from the prior year to its ratepayers.
commission, following each general rate case test year, to review which costs, if any, each electrical corporation or gas corporation was able to reduce to achieve profits and to adjust the authorized revenue requirement in the attrition years or 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 controls 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 exceeded 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
If the commission determines that an electrical corporation or a gas corporation has received revenues from its ratepayers that are in excess of its approved rate of return in a prior year, the commission shall require the electrical corporation or gas corporation to refund those excessive revenues from the prior year to its ratepayers.
SECTION 1.
Section 451.8 is added to the Public Utilities Code, to read:451.8.
(a) Following each general rate case test year, the commission shall review which costs, if any, each electrical corporation or gas corporation was able to reduce to achieve profits. The commission shall adjust the authorized revenue requirement in the attrition years or in the subsequent general rate case, as appropriate, based on the actual past costs the corporation records.(b) (1) The commission shall establish guidelines for electrical corporations and gas corporations to calculate and report their actual rates of return to the commission.
(2) The commission shall require electrical corporations and gas corporations to report their actual rates of
return to the commission annually.
(3) The commission shall adopt controls to adequately track an electrical corporation’s or gas corporation’s actual rate of return relative to its forecasted rate of return and shall require the corporation to identify the cost categories where projected costs exceeded actual costs.
(c) This section does not restrict, limit, or otherwise affect the commission’s obligation to ensure that rates are sufficient to enable an electrical corporation or gas corporation to recover a just and reasonable amount of revenue, pursuant to Section 451, including a reasonable return.
