CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 825Introduced by Assembly Member Petrie-NorrisFebruary 19, 2025 An act to amend Section 369.5 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 825, as introduced, Petrie-Norris. Energy: cost framework: residential rates.Existing law requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 369.5 of the Public Utilities Code is amended to read:369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2) The total annual energy costs borne by residential households.(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4) Changes in the total annual energy costs for residential households over time.(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6) The annual growth rate of energy costs for residential households by energy source.(7) Projections of possible future total energy costs for residential households for the next 10 years.(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(2)(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 825Introduced by Assembly Member Petrie-NorrisFebruary 19, 2025 An act to amend Section 369.5 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 825, as introduced, Petrie-Norris. Energy: cost framework: residential rates.Existing law requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 825
Introduced by Assembly Member Petrie-NorrisFebruary 19, 2025
Introduced by Assembly Member Petrie-Norris
February 19, 2025
An act to amend Section 369.5 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 825, as introduced, Petrie-Norris. Energy: cost framework: residential rates.
Existing law requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.
Existing law requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.
This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 369.5 of the Public Utilities Code is amended to read:369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2) The total annual energy costs borne by residential households.(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4) Changes in the total annual energy costs for residential households over time.(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6) The annual growth rate of energy costs for residential households by energy source.(7) Projections of possible future total energy costs for residential households for the next 10 years.(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(2)(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 369.5 of the Public Utilities Code is amended to read:369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2) The total annual energy costs borne by residential households.(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4) Changes in the total annual energy costs for residential households over time.(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6) The annual growth rate of energy costs for residential households by energy source.(7) Projections of possible future total energy costs for residential households for the next 10 years.(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(2)(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
SECTION 1. Section 369.5 of the Public Utilities Code is amended to read:
### SECTION 1.
369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2) The total annual energy costs borne by residential households.(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4) Changes in the total annual energy costs for residential households over time.(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6) The annual growth rate of energy costs for residential households by energy source.(7) Projections of possible future total energy costs for residential households for the next 10 years.(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(2)(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2) The total annual energy costs borne by residential households.(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4) Changes in the total annual energy costs for residential households over time.(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6) The annual growth rate of energy costs for residential households by energy source.(7) Projections of possible future total energy costs for residential households for the next 10 years.(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(2)(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2) The total annual energy costs borne by residential households.(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4) Changes in the total annual energy costs for residential households over time.(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6) The annual growth rate of energy costs for residential households by energy source.(7) Projections of possible future total energy costs for residential households for the next 10 years.(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(2)(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
369.5. (a) On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:
(1) A methodology for identifying, categorizing, and quantifying major residential household energy sources.
(2) The total annual energy costs borne by residential households.
(3) Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.
(4) Changes in the total annual energy costs for residential households over time.
(5) The relative contributions of different energy sources to the total annual energy costs borne by residential households.
(6) The annual growth rate of energy costs for residential households by energy source.
(7) Projections of possible future total energy costs for residential households for the next 10 years.
(8) Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.
(9) An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.
(b) The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).
(c) (1) On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).
(2) Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.
(2)
(3) Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.