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CA AB1677

Bill

Official Source

Status

Introduced

2/2/2026

Primary Sponsor

Tasha Boerner Horvath

Click for details

Origin

State Assembly

2025-2026 Regular Session

AI Summary

  • Caps the authorized return on equity (ROE) for electrical and gas corporations at no more than 400 basis points above the federal government's long-term debt rate
  • Requires utilities proposing rate changes based on return on invested capital to submit studies showing internally generated cash available for self-funding investments and the optimal capital structure from the ratepayer perspective
  • Mandates the Public Utilities Commission make findings on these studies before authorizing new rates
  • Declares legislative intent to reduce utility rates by 25 percent through future legislation
  • Establishes that excessive ROE harms ratepayers through compounding costs including surplus profits, unnecessary investment incentives, and associated taxes

Legislative Description

Public utilities: electrical and gas corporations: return on equity.

Last Action

Re-referred to Com. on U. & E.

3/11/2026

Committee Referrals

Utilities and Energy3/9/2026

Full Bill Text

No bill text available