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AB-1975 • 2026

Electrical corporations: grid utilization metric.

Electrical corporations: grid utilization metric.

Crime Education Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Schultz
Last action
2026-04-23
Official status
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 22).
Effective date
Not listed

Plain English Breakdown

The bill summary and digest text do not provide details on how financial rewards or penalties are established, nor do they specify what happens if large electrical corporations fail to comply with reporting requirements.

Electric Companies: Grid Utilization Metric

The bill requires the Public Utilities Commission to establish and enforce rules about how much electricity large electric companies use compared to their total capacity, with annual minimum values that increase yearly.

What This Bill Does

  • Requires the Public Utilities Commission to set up a grid utilization metric by December 31, 2027.
  • Makes large electrical corporations report this measurement every quarter starting from January 2028.
  • Sets annual minimum values for the grid utilization metric that must be met and increases yearly.
  • Establishes financial incentives or penalties based on meeting these minimum values.
  • Requires each large electrical corporation to propose programs by July 31, 2028, to achieve the grid utilization metric minimum value.

Who It Names or Affects

  • Large electrical corporations
  • The Public Utilities Commission

Terms To Know

Grid Utilization Metric
A measurement of how much electricity is being used compared to the total amount that can be produced.
Rated Capacity
The maximum amount of electricity a system can produce under normal conditions.

Limits and Unknowns

  • Does not specify who will pay for the new requirements.
  • Requires electric companies to report data, but does not say what happens if they do not comply.

Bill History

  1. 2026-04-23 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 22).

  2. 2026-03-04 California Legislative Information

    Re-referred to Com. on U. & E.

  3. 2026-03-03 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.

  4. 2026-03-02 California Legislative Information

    Referred to Com. on U. & E.

  5. 2026-02-14 California Legislative Information

    From printer. May be heard in committee March 16.

  6. 2026-02-13 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 1975, as amended, Schultz.
Public utilities: location of structures.
Electrical corporations: grid utilization metric.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical 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, on or before December 31, 2027, to establish a grid utilization metric that calculates electrical load as a percentage of rated capacity, as specified. The bill would require each large electrical corporation, each calendar quarter, to submit a publicly available report to the commission with the results of the large electrical corporation’s grid utilization metric calculations, as specified. The bill would require the commission to
annually establish a minimum value for the grid utilization metric within each large electrical corporation’s distribution grid, and would require that the grid utilization metric minimum value increase annually, as provided. The bill would require the commission to establish financial performance-based incentives or disincentives correlated with achieving the grid utilization metric minimum value, as specified, and would require each large electrical corporation, on or before July 31, 2028, to propose grid utilization programs to achieve the grid utilization metric minimum value, as specified.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above-described provisions would be part of the act and a violation of a commission action implementing the bill’s requirements would be a crime, this 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.
The Public Utilities Act vests the Public Utilities Commission with regulatory authority over public utilities, including electrical and gas corporations. Existing law authorizes the commission, after a hearing, to make and serve an order directing additions, extensions, repairs, improvements, or other changes to be made to an existing plant, equipment, apparatus, facilities, or other physical property of a public utility, if it makes certain findings. Existing law requires that the commission, as a basis for making any such order relating to the location of structures, give consideration to, and include in its order, findings on community values, recreation and park areas, historical and aesthetic values, and, except as specified, influence on the environment.
This bill would require that the commission, as a basis for making an order relating to
the location of structures, also give consideration to, and include in its order, findings on anticipated maintenance costs.
Under existing law, a violation of any 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.

Current Bill Text

Read the full stored bill text
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