2017 northern California wildfires.
By allowing PG&E to issue recovery bonds based on financing orders from the PUC, AB 33 strategically alters the financial landscape for public utilities in California. It aims to facilitate the recovery of significant costs incurred by electrical corporations due to natural disasters, thereby aiding in the stabilization of energy rates for consumers. This legislative change is expected to minimize the reliance on traditional state funding methods, as energy utilities can capture revenue through nonbypassable charges linked to the recovery process.
Assembly Bill 33 focuses on the regulatory framework surrounding electric vehicle service equipment and the recovery of costs related to the wildfires in northern California in 2017. The bill empowers the Public Utilities Commission (PUC) to authorize Pacific Gas and Electric Company (PG&E) to issue financing orders to recover costs incurred beyond insurance proceeds, specifically related to the wildfires. Through a structured approach to cost recovery, the bill supports the statewide objective of expanding transportation electrification while ensuring consumer protection against unreasonable rate hikes.
The sentiment around AB 33 seems to be cautiously supportive, as stakeholders recognize the need for a robust infrastructure to support electric vehicle adoption. However, there are concerns regarding the potential financial burden on consumers due to the introduction of fixed recovery charges. Advocates argue that the benefits of improved electric vehicle service and disaster cost recovery justify the proposed changes, whereas critics fear the implications for local utility rates and overall economic equity.
One notable point of contention within the discussions surrounding AB 33 revolves around the accountability of PG&E amid its historical failures in managing wildfire risks. While the bill seeks to establish a framework for cost recovery, concerns regarding the effectiveness of safety measures and financial responsibility on the part of utilities are prevalent. This highlights a broader dialogue on corporate accountability and the consumer protection mechanisms in place to prevent excessive charging on customer bills resulting from disaster-related costs.