SB 1233: Public utilities: rates. - California

06/03/26 - Amended Assembly → 06/15/26 - Amended Assembly · 4 edits · Jun 15, 2026

MODERATE

The June 15 amendment to SB 1233 makes two substantive policy changes: it grants the Public Utilities Commission new rulemaking authority to implement the rate proposal disclosure requirements in Section 454.05, and it expands the annual utility cost report in Section 913.1 to cover 'memorandum accounts' in addition to 'balancing accounts.' These changes give CPUC more flexibility in how it enforces the new transparency rules and broaden the scope of financial data that must be publicly reported.

ENFORCEMENT

New subdivision (d) added to Section 454.05 authorizing the commission to adopt rules, regulations, or orders to implement, interpret, or clarify the section's requirements, including rules governing the form, content, and timing of information that utilities must submit in rate proposals.

SCOPE

Section 913.1(a)(2) expanded throughout to include 'memorandum accounts' alongside 'balancing accounts' in the annual report's financial comparisons. Items (A) through (F) now reference expenses and capital spending tracked in 'balancing accounts or memorandum accounts,' and items (C) and (F) require separate analysis distinguishing between the two account types.

Section 913.1(a)(2) introductory language now includes the phrase 'as determined by the commission' after 'across all operations of the corporation,' giving CPUC discretion to define how functional categories are determined for reporting purposes.

TECHNICAL

Typo corrections in the legislative digest ('to to' changed to 'to') and reformatting of line numbers and indentation throughout the bill text.

04/27/26 - Amended Senate → 06/03/26 - Amended Assembly · 5 edits · Jun 3, 2026

MODERATE

The Assembly amendment significantly expands SB 1233 by adding a new Section 2 that amends Public Utilities Code Section 913.1 to require detailed five-year financial comparisons for each utility corporation in the commission's annual report, plus public access to all underlying source data. It also narrows the wildfire risk reduction findings requirement in Section 454.05 to apply only to electrical corporations, removing gas corporations from that provision.

SCOPE

New Section 2 amends Public Utilities Code Section 913.1, expanding the bill's scope beyond just adding Section 454.05. The bill now both adds a new section and amends an existing one.

Section 454.05(b) wildfire risk reduction findings are now limited to electrical corporations only, removing gas corporations from that requirement. Previously the provision applied to both electrical and gas corporations.

REQUIREMENT

The annual report under Section 913.1 must now include, for each electrical and gas corporation, five-year comparisons by functional category of operations covering: authorized revenue requirements vs. recorded spending for forecast ratemaking expenses, balancing account expenses, capital spending forecasts, and balancing account capital spending.

ELIGIBILITY

The commission is required to compel electrical corporations with 1,000,000 or more retail customers in California and gas corporations with 500,000 or more retail customers to study and report on measures to limit costs and rate increases.

ENFORCEMENT

The commission must post the annual report on its website and make all source data used to produce the report available to the public in electronic format, creating a new transparency obligation.

06/15/26 - Amended Assembly → SB1233 · 2 edits

MINOR

The changes between these two versions of SB 1233 are entirely formatting and presentation updates, not substantive policy changes. The bill text was reformatted from a print-style layout with line numbers and page headers to a web-based format with navigation menus and restructured headings. The actual legal provisions (Sections 454.05, 913.1, and the reimbursement provision) remain identical in content.

TECHNICAL

The bill text was reformatted from a print-style document (with line numbers, page numbers like '94', and centered headers) to a web-based layout with navigation elements (skip to content, home, accessibility, FAQ, etc.) and restructured section headings.

The legislative counsel's digest was reformatted into a new structure with labeled fields (Vote, Appropriation, Fiscal Committee, Local Program) instead of the previous paragraph format at the end of the digest.

04/09/26 - Amended Senate → 04/27/26 - Amended Senate · 4 edits · Apr 27, 2026

MODERATE

The April 27 amendment significantly narrows the factors the Public Utilities Commission must consider when approving rate changes based on return on invested capital. The previous version required findings on three broad categories: disasters caused by utility infrastructure, civil judgments or criminal convictions related to operations, and conduct imposing unreasonable or imprudent costs on ratepayers. The amendment replaces all three with a single, narrower requirement focused solely on wildfire risk reduction efforts.

Scope change

The bill's scope was narrowed. Previously it required the commission to weigh three distinct categories of utility conduct (disasters, legal liability, and imprudent costs) before approving rate changes. Now it only requires findings on wildfire risk reduction efforts, removing the broader accountability mechanisms for other types of harm or misconduct.

REQUIREMENT

Removed the requirement that the commission make findings related to any disaster (such as wildfires) caused by or associated with the utility's operation of its infrastructure.

Removed the requirement that the commission make findings related to any past or current civil judgments or criminal convictions tied to the utility's operation of its infrastructure.

Removed the requirement that the commission make findings related to conduct by the utility or its corporate officers that imposed unreasonable or imprudent costs on ratepayers.

SCOPE

Narrowed subdivision (b) from a multi-factor analysis covering disasters, legal judgments, and imprudent cost-shifting to a single focused consideration: wildfire risk reduction efforts taken by the electrical or gas corporation.

03/25/26 - Amended Senate → 04/09/26 - Amended Senate · 3 edits · Apr 9, 2026

MINOR

SB 1233 was narrowed by removing the amendment to Public Utilities Code Section 451 (which had made nonsubstantive changes to existing rate and service requirements), leaving only the new Section 454.05 on return-on-invested-capital rate proposals. A new consideration requiring the commission to account for wildfire risk reduction efforts was added to the findings required when approving such rate changes. Fiscal notes were corrected to reflect that the bill does impose a state-mandated local program and requires fiscal committee review.

SCOPE

The amendment to Public Utilities Code Section 451 was entirely removed from the bill. That section had restated existing requirements that utility charges be just and reasonable, that utilities maintain adequate service, and that utility rules be just and reasonable. The digest previously noted these were nonsubstantive changes.

REQUIREMENT

Subdivision (b) of new Section 454.05 now requires the commission to take into account and make specific findings related to wildfire risk reduction efforts taken by the electrical or gas corporation when approving a rate change based on return on invested capital.

FISCAL

The fiscal note was corrected: 'Fiscal committee' changed from 'no' to 'yes' and 'State-mandated local program' changed from 'no' to 'yes,' acknowledging that the bill does impose a state-mandated local program because violations of commission actions implementing the bill would be crimes.

02/19/26 - Introduced → 03/25/26 - Amended Senate · 9 edits · Mar 25, 2026

MAJOR

The amended version adds an entirely new Section 454.05 to the Public Utilities Code that imposes disclosure and findings requirements on electrical and gas corporations when they propose rate changes based on return on invested capital. The original introduced version only made nonsubstantive cleanup edits to Section 451, but the amendment transforms the bill into a substantive regulatory measure requiring utilities to show how much cash they can self-fund from internally generated sources and how their capital structure affects revenue requirements, while also requiring the commission to consider disasters (such as wildfires), legal judgments, and imprudent conduct when approving such rate changes.

REQUIREMENT

New Section 454.05 requires electrical and gas corporations proposing rate changes based on return on invested capital to include information showing internally generated cash available for self-funding (including deferred taxes, depreciation, and amortization) and the extent of need for external investment.

New Section 454.05 requires such corporations to also show the relationship between capital structure and return on equity that minimizes overall revenue requirement, including taxes.

The commission must take into account and make specific findings related to any disaster (such as wildfires) caused by or associated with the corporation's infrastructure operation when approving a rate change under this section.

The commission must consider any past or current civil judgments or criminal convictions related to the corporation's infrastructure operation.

The commission must consider any conduct by the corporation or its officers that imposed unreasonable or imprudent costs on ratepayers.

ENFORCEMENT

The commission must make findings consistent with Section 1705 on the matters in subdivision (a) to support an order approving a rate change, creating a documented record requirement.

SCOPE

The bill's scope expanded from nonsubstantive cleanup of Section 451 to adding substantive new regulatory requirements for electrical and gas corporations seeking rate increases based on return on invested capital.

FISCAL

Fiscal notes changed: the bill now imposes a state-mandated local program (previously no) and requires fiscal committee review (previously no), because violations of commission actions implementing the new requirements would constitute crimes.

A reimbursement provision was added stating no reimbursement is required under Article XIII B of the California Constitution because any local agency costs would stem only from the creation or change of a crime.

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