Bill > SB500

This bill authorizes the California Public Utilities Commission (PUC) to evaluate performance metrics and financial incentives for electrical corporations aimed at improving electrical service while minimizing ratepayer costs. The bill allows the PUC to identify mechanisms that better align electrical corporations' operations and investments with delivering safe and reliable electrical service and achieving public policy goals. Specifically, the commission is encouraged to prioritize metrics that reduce corporations' tendency to make infrastructure investments that increase their rate base, and instead motivate them to find more cost-effective solutions. These solutions could include using existing infrastructure more efficiently, employing demand flexibility programs, utilizing grid-enhancing technologies, and choosing the most economical safety improvements like covered conductors or fast-trip technologies. The bill requires the PUC to study existing incentive mechanisms to understand their effectiveness and potential unintended consequences, and by January 1, 2028, the commission may begin tracking performance metrics and consider whether financial incentives linked to these metrics could help minimize ratepayer costs. The bill also clarifies that no additional state reimbursement is required for its implementation.

Budget and Finance, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB500