Bill > AB1117

This bill requires the California Public Utilities Commission (CPUC) to develop optional dynamic rate tariffs for electrical corporations, which are pricing plans that change based on real-time grid and market conditions. The bill mandates that by July 1, 2028, large electrical corporations must offer at least one optional dynamic rate tariff for medium and large commercial and industrial customers, and by July 1, 2030, offer similar tariffs for residential and small commercial customers. These dynamic rate tariffs must include time-varying rates for distribution, generation, and non-bypassable charges that reflect current grid constraints and wholesale market conditions. The bill aims to encourage demand flexibility, potentially lowering electricity costs by incentivizing customers to use electricity during lower-cost periods. Importantly, participation is voluntary, and the bill ensures that customers who do not want to participate can remain on traditional flat or time-of-use rates. The legislation also requires that customers on these dynamic rates have real-time access to their smart meter data and that the CPUC develop protections for vulnerable residential customers. The bill seeks to maximize the value of existing smart meter infrastructure investments and promote more efficient electricity usage without creating cost shifts between different types of ratepayers.

Budget and Finance, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1117