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Bill > AB1787


CA AB1787

CA AB1787
Electricity: rates: optional dynamic rate tariff.


summary

Introduced
02/10/2026
In Committee
02/23/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to add Section 729.3 to the Public Utilities Code, relating to electricity.

AI Summary

This bill requires large electrical corporations, defined as those with over 100,000 service connections, to offer at least one optional dynamic rate tariff to customers once their smart meter infrastructure and related systems, upgraded on or after January 1, 2027, are operational and their costs are approved for recovery in rates. These dynamic rates will vary based on real-time grid conditions and wholesale market prices, aiming to lower electricity costs by encouraging customers to shift usage away from peak demand periods. The bill also mandates that the Public Utilities Commission (PUC) cannot approve cost recovery for smart meter upgrades unless customers paying for these upgrades have access to at least one dynamic rate option and can still choose a flat or time-of-use rate, and that customers have access to their own energy usage data from smart meters, either directly or through authorized third-party providers, to help them manage their electricity consumption. Furthermore, the PUC must ensure that time-varying delivery rates are the same for bundled and unbundled customers in the same area and will periodically evaluate and mitigate any cost shifts between participating and non-participating customers to ensure fairness.

Committee Categories

Transportation and Infrastructure

Sponsors (4)

Last Action

Referred to Com. on U. & E. (on 02/23/2026)

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