California AB 2463: California Small Business Development Technical Assistance Expansion Act of 2018.

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 Bill Text - AB-2463 Public Utilities Commission: rates: returns on equity.

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 |Add To My Favorites |Track Bill | Version: 04/13/26 - Amended Assembly
 03/26/26 - Amended Assembly
 02/20/26 - Introduced

 AB-2463 Public Utilities Commission: rates: returns on equity.(2025-2026)

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 Date Published: 04/13/2026 02:00 PM

AB2463:v97#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 April 13, 2026

 Amended
 IN 
 Assembly
 March 26, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 2463

Introduced by Assembly Member Petrie-Norris

February 20, 2026

An act to add Sections 753 and 910.10 to the Public Utilities Code, relating to the Public Utilities Commission.

LEGISLATIVE COUNSEL'S DIGEST

AB 2463, as amended, Petrie-Norris.
 Public Utilities Commission: rates: returns on equity.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.

This bill would require the commission, in any decision issued on or after January 1, 2028, determining an authorized return on equity, as defined, for an electrical corporation or gas corporation, to include specified information reflecting the commission’s independent analytical basis for making that determination, including, among other things, an identification of each financial model the commission relied upon in determining the authorized return
 on equity and an analysis of the relationship between the credit quality of the electrical corporation or gas corporation and the authorized return on equity. If, in any cost of capital proceeding, as defined, the commission adopts a methodology for determining the authorized return on equity that differs in any material respect from the methodology disclosed in the most recent prior decision in which the commission determined an authorized return on equity for the same electrical corporation or gas corporation, the bill would require the commission to identify each material departure from the prior methodology and provide a reasoned explanation for each material departure.

The bill would also require the commission to initiate a rulemaking proceeding to update its determinations of the cost of capital to conform with the requirements of the bill. The bill would require the proceeding to consider a long-term plan related to these requirements, as specified.

Existing law requires the commission to develop, publish, and annually update a report containing specified information, including the commission’s annual work plan and a summary of deenergization event trends, as specified. Existing law requires the commission to post the report in a conspicuous area of its internet website.

 This bill would require the commission to include the analysis of the trends in the California corporation credit ratings described above in that annual report to the Legislature. Legislature, as provided.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because a violation of a commission action implementing this bill’s 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 Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares all of the following:

(a) The authorized rate of return, including the authorized return on equity and capital structure, as determined by the Public Utilities Commission for electrical corporations and gas corporations is a central determinant of the revenue requirement and underlying rates charged to California ratepayers and represents billions of dollars in annual revenue requirements. These requests are known as “cost of capital.” The authorized rate of return, including the return on equity, applies to all