CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 745Introduced by Assembly Member IrwinFebruary 18, 2025 An act to add Section 761.7 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 745, as introduced, Irwin. Electricity: transmission projects: review and approval.The Public Utilities Act, except as provided, prohibits an electrical corporation from beginning construction of a line, plant, or system, or of any extension of the line, plant, or system, without having first obtained from the Public Utilities Commission a certificate that the present or future public convenience and necessity require or will require its construction. The act specifies that a certificate is not required for the extension, expansion, upgrade, or other modification of an existing electrical transmission facility, including transmission lines and substations.Under its existing regulatory authority over electrical corporations, the commission has adopted a resolution establishing the Transmission Review Process to review electrical corporations capital transmission projects beginning January 1, 2024.This bill would, consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, require the commission to review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing transmission lines, initiated by an electrical corporation.Under existing law, a violation of the act, or of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be part of the act, and 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: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Consumer Utility Bill of Rights.SEC. 2. The Legislature finds and declares all of the following:(a) In 2024, at $186, the average utility bill in California is nearly 30 percent higher than the average utility bill in the United States.(b) Californians living in single-family homes have monthly utility bills that range from $152 to $415, inclusive, per month, depending on the electrical corporation providing service to them.(c) According to the Public Advocates Office of the Public Utilities Commission, in 2024, nearly one in five households were behind on their utility bills.(d) The average utility rate has increased substantially, an average of 40 percent over three years. In two of the three large electrical corporations service territories, the increase was 51 percent over the three-year period.(e) According to the Public Advocates Office of the Public Utilities Commission, the top two direct contributors to the increase were wildfire mitigation and transmission and distribution investments.(f) The 2024 calendar year marks the highest recorded residential consumer rates for two of the three large electrical corporations.(g) The rate increases by the three large electrical corporations have exceeded the increases in inflation by at least 60 percent and by as much as 130 percent.(h) Across the three large electrical corporations, transmission and distribution costs increased by 27 percent from 2021 to 2022, and 7.3 percent from 2022 to 2023.(i) In one large electrical corporations service territory, the transmission and distribution investment costs compose of 44 percent of the customer bill, according to the large electrical corporations own internet website. Only the costs of energy supply, at 50 percent of the bill, exceeded this expense to customers.(j) According to the Public Utilities Commission, over 64 percent of the transmission and distribution expenditures, accounting for $4,400,000,000, expended by the large electrical corporations between 2020 and 2022 are self-approved and have not been formally reviewed for cost or need by the commission, the Independent System Operator, or a third party during the projects planning and approval.(k) The average commission-regulated return on equity across all electrical corporations amounts to 10.23 percent. This amounts to a commission-sanctioned profit of 10.23 percent annually. By comparison, the Consumer Price Index, which reflects the increase in consumer costs for all goods, in 2024 was 2.7 percent.SEC. 3. Section 761.7 is added to the Public Utilities Code, to read:761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 745Introduced by Assembly Member IrwinFebruary 18, 2025 An act to add Section 761.7 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 745, as introduced, Irwin. Electricity: transmission projects: review and approval.The Public Utilities Act, except as provided, prohibits an electrical corporation from beginning construction of a line, plant, or system, or of any extension of the line, plant, or system, without having first obtained from the Public Utilities Commission a certificate that the present or future public convenience and necessity require or will require its construction. The act specifies that a certificate is not required for the extension, expansion, upgrade, or other modification of an existing electrical transmission facility, including transmission lines and substations.Under its existing regulatory authority over electrical corporations, the commission has adopted a resolution establishing the Transmission Review Process to review electrical corporations capital transmission projects beginning January 1, 2024.This bill would, consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, require the commission to review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing transmission lines, initiated by an electrical corporation.Under existing law, a violation of the act, or of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be part of the act, and 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: YES
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 745
Introduced by Assembly Member IrwinFebruary 18, 2025
Introduced by Assembly Member Irwin
February 18, 2025
An act to add Section 761.7 to the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 745, as introduced, Irwin. Electricity: transmission projects: review and approval.
The Public Utilities Act, except as provided, prohibits an electrical corporation from beginning construction of a line, plant, or system, or of any extension of the line, plant, or system, without having first obtained from the Public Utilities Commission a certificate that the present or future public convenience and necessity require or will require its construction. The act specifies that a certificate is not required for the extension, expansion, upgrade, or other modification of an existing electrical transmission facility, including transmission lines and substations.Under its existing regulatory authority over electrical corporations, the commission has adopted a resolution establishing the Transmission Review Process to review electrical corporations capital transmission projects beginning January 1, 2024.This bill would, consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, require the commission to review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing transmission lines, initiated by an electrical corporation.Under existing law, a violation of the act, or of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be part of the act, and 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.
The Public Utilities Act, except as provided, prohibits an electrical corporation from beginning construction of a line, plant, or system, or of any extension of the line, plant, or system, without having first obtained from the Public Utilities Commission a certificate that the present or future public convenience and necessity require or will require its construction. The act specifies that a certificate is not required for the extension, expansion, upgrade, or other modification of an existing electrical transmission facility, including transmission lines and substations.
Under its existing regulatory authority over electrical corporations, the commission has adopted a resolution establishing the Transmission Review Process to review electrical corporations capital transmission projects beginning January 1, 2024.
This bill would, consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, require the commission to review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing transmission lines, initiated by an electrical corporation.
Under existing law, a violation of the act, or of an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be part of the act, and 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
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Consumer Utility Bill of Rights.SEC. 2. The Legislature finds and declares all of the following:(a) In 2024, at $186, the average utility bill in California is nearly 30 percent higher than the average utility bill in the United States.(b) Californians living in single-family homes have monthly utility bills that range from $152 to $415, inclusive, per month, depending on the electrical corporation providing service to them.(c) According to the Public Advocates Office of the Public Utilities Commission, in 2024, nearly one in five households were behind on their utility bills.(d) The average utility rate has increased substantially, an average of 40 percent over three years. In two of the three large electrical corporations service territories, the increase was 51 percent over the three-year period.(e) According to the Public Advocates Office of the Public Utilities Commission, the top two direct contributors to the increase were wildfire mitigation and transmission and distribution investments.(f) The 2024 calendar year marks the highest recorded residential consumer rates for two of the three large electrical corporations.(g) The rate increases by the three large electrical corporations have exceeded the increases in inflation by at least 60 percent and by as much as 130 percent.(h) Across the three large electrical corporations, transmission and distribution costs increased by 27 percent from 2021 to 2022, and 7.3 percent from 2022 to 2023.(i) In one large electrical corporations service territory, the transmission and distribution investment costs compose of 44 percent of the customer bill, according to the large electrical corporations own internet website. Only the costs of energy supply, at 50 percent of the bill, exceeded this expense to customers.(j) According to the Public Utilities Commission, over 64 percent of the transmission and distribution expenditures, accounting for $4,400,000,000, expended by the large electrical corporations between 2020 and 2022 are self-approved and have not been formally reviewed for cost or need by the commission, the Independent System Operator, or a third party during the projects planning and approval.(k) The average commission-regulated return on equity across all electrical corporations amounts to 10.23 percent. This amounts to a commission-sanctioned profit of 10.23 percent annually. By comparison, the Consumer Price Index, which reflects the increase in consumer costs for all goods, in 2024 was 2.7 percent.SEC. 3. Section 761.7 is added to the Public Utilities Code, to read:761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Consumer Utility Bill of Rights.
SECTION 1. This act shall be known, and may be cited, as the Consumer Utility Bill of Rights.
SECTION 1. This act shall be known, and may be cited, as the Consumer Utility Bill of Rights.
### SECTION 1.
SEC. 2. The Legislature finds and declares all of the following:(a) In 2024, at $186, the average utility bill in California is nearly 30 percent higher than the average utility bill in the United States.(b) Californians living in single-family homes have monthly utility bills that range from $152 to $415, inclusive, per month, depending on the electrical corporation providing service to them.(c) According to the Public Advocates Office of the Public Utilities Commission, in 2024, nearly one in five households were behind on their utility bills.(d) The average utility rate has increased substantially, an average of 40 percent over three years. In two of the three large electrical corporations service territories, the increase was 51 percent over the three-year period.(e) According to the Public Advocates Office of the Public Utilities Commission, the top two direct contributors to the increase were wildfire mitigation and transmission and distribution investments.(f) The 2024 calendar year marks the highest recorded residential consumer rates for two of the three large electrical corporations.(g) The rate increases by the three large electrical corporations have exceeded the increases in inflation by at least 60 percent and by as much as 130 percent.(h) Across the three large electrical corporations, transmission and distribution costs increased by 27 percent from 2021 to 2022, and 7.3 percent from 2022 to 2023.(i) In one large electrical corporations service territory, the transmission and distribution investment costs compose of 44 percent of the customer bill, according to the large electrical corporations own internet website. Only the costs of energy supply, at 50 percent of the bill, exceeded this expense to customers.(j) According to the Public Utilities Commission, over 64 percent of the transmission and distribution expenditures, accounting for $4,400,000,000, expended by the large electrical corporations between 2020 and 2022 are self-approved and have not been formally reviewed for cost or need by the commission, the Independent System Operator, or a third party during the projects planning and approval.(k) The average commission-regulated return on equity across all electrical corporations amounts to 10.23 percent. This amounts to a commission-sanctioned profit of 10.23 percent annually. By comparison, the Consumer Price Index, which reflects the increase in consumer costs for all goods, in 2024 was 2.7 percent.
SEC. 2. The Legislature finds and declares all of the following:(a) In 2024, at $186, the average utility bill in California is nearly 30 percent higher than the average utility bill in the United States.(b) Californians living in single-family homes have monthly utility bills that range from $152 to $415, inclusive, per month, depending on the electrical corporation providing service to them.(c) According to the Public Advocates Office of the Public Utilities Commission, in 2024, nearly one in five households were behind on their utility bills.(d) The average utility rate has increased substantially, an average of 40 percent over three years. In two of the three large electrical corporations service territories, the increase was 51 percent over the three-year period.(e) According to the Public Advocates Office of the Public Utilities Commission, the top two direct contributors to the increase were wildfire mitigation and transmission and distribution investments.(f) The 2024 calendar year marks the highest recorded residential consumer rates for two of the three large electrical corporations.(g) The rate increases by the three large electrical corporations have exceeded the increases in inflation by at least 60 percent and by as much as 130 percent.(h) Across the three large electrical corporations, transmission and distribution costs increased by 27 percent from 2021 to 2022, and 7.3 percent from 2022 to 2023.(i) In one large electrical corporations service territory, the transmission and distribution investment costs compose of 44 percent of the customer bill, according to the large electrical corporations own internet website. Only the costs of energy supply, at 50 percent of the bill, exceeded this expense to customers.(j) According to the Public Utilities Commission, over 64 percent of the transmission and distribution expenditures, accounting for $4,400,000,000, expended by the large electrical corporations between 2020 and 2022 are self-approved and have not been formally reviewed for cost or need by the commission, the Independent System Operator, or a third party during the projects planning and approval.(k) The average commission-regulated return on equity across all electrical corporations amounts to 10.23 percent. This amounts to a commission-sanctioned profit of 10.23 percent annually. By comparison, the Consumer Price Index, which reflects the increase in consumer costs for all goods, in 2024 was 2.7 percent.
SEC. 2. The Legislature finds and declares all of the following:
### SEC. 2.
(a) In 2024, at $186, the average utility bill in California is nearly 30 percent higher than the average utility bill in the United States.
(b) Californians living in single-family homes have monthly utility bills that range from $152 to $415, inclusive, per month, depending on the electrical corporation providing service to them.
(c) According to the Public Advocates Office of the Public Utilities Commission, in 2024, nearly one in five households were behind on their utility bills.
(d) The average utility rate has increased substantially, an average of 40 percent over three years. In two of the three large electrical corporations service territories, the increase was 51 percent over the three-year period.
(e) According to the Public Advocates Office of the Public Utilities Commission, the top two direct contributors to the increase were wildfire mitigation and transmission and distribution investments.
(f) The 2024 calendar year marks the highest recorded residential consumer rates for two of the three large electrical corporations.
(g) The rate increases by the three large electrical corporations have exceeded the increases in inflation by at least 60 percent and by as much as 130 percent.
(h) Across the three large electrical corporations, transmission and distribution costs increased by 27 percent from 2021 to 2022, and 7.3 percent from 2022 to 2023.
(i) In one large electrical corporations service territory, the transmission and distribution investment costs compose of 44 percent of the customer bill, according to the large electrical corporations own internet website. Only the costs of energy supply, at 50 percent of the bill, exceeded this expense to customers.
(j) According to the Public Utilities Commission, over 64 percent of the transmission and distribution expenditures, accounting for $4,400,000,000, expended by the large electrical corporations between 2020 and 2022 are self-approved and have not been formally reviewed for cost or need by the commission, the Independent System Operator, or a third party during the projects planning and approval.
(k) The average commission-regulated return on equity across all electrical corporations amounts to 10.23 percent. This amounts to a commission-sanctioned profit of 10.23 percent annually. By comparison, the Consumer Price Index, which reflects the increase in consumer costs for all goods, in 2024 was 2.7 percent.
SEC. 3. Section 761.7 is added to the Public Utilities Code, to read:761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.
SEC. 3. Section 761.7 is added to the Public Utilities Code, to read:
### SEC. 3.
761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.
761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.
761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.
761.7. Consistent with the commissions authority to review and approve new transmission line projects undertaken pursuant to the Independent System Operator planning process, the commission shall review and approve transmission line projects, including the extension, expansion, upgrade, or other modification of existing electrical transmission lines, initiated by an electrical corporation.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 4.