CA AB2589

Requires the California Public Utilities Commission to evaluate the impact of all federal legislation, including Public Law 119-21 (federal House Resolution 1), on public utility expenses and federal tax liabilities

Mandates the commission to adjust utility rates when federal tax law changes materially affect the projected expenses and tax liabilities previously authorized in utility rates

Applies only to public utilities where the commission has authority to fix rates and where revenue requirements were based on tax rates in effect when rates were originally set

Preserves commission discretion to determine the full effect of federal tax changes on each utility's cost of service and to use appropriate mechanisms to track and allocate impacts over time

Does not limit commission authority to adjust incentives provided through state-supervised programs, including telecommunications universal service programs