Public utilities: rates: changes to federal law.

Taxes

Passed Legislature

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

Sponsor: Irwin
Last action: 2026-04-09
Official status: From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (April 8). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

The bill does not specify how often the PUC must review federal laws, leaving this detail open-ended.

Public Utilities: Adjusting Rates for Federal Tax Changes

This bill requires the Public Utilities Commission to review how new federal laws affect public utilities' tax expenses and adjust rates if necessary.

What This Bill Does

Requires the Public Utilities Commission (PUC) to evaluate the full effect of all federal legislation that becomes law on the expenses and tax liabilities incurred by public utilities for payment of federal taxes.
If a new federal law changes what public utilities pay in taxes, the PUC can adjust their rates accordingly.

Who It Names or Affects

The Public Utilities Commission
Public utilities that pay federal taxes

Terms To Know

Public Utilities Commission (PUC): A government agency that regulates public utilities to make sure they follow rules and charge fair prices.
Federal Legislation: Laws passed by the U.S. Congress.

Limits and Unknowns

The bill does not specify how often the PUC must review federal laws.
It is unclear what happens if the PUC finds no significant changes in tax expenses and liabilities for public utilities.
The exact process for adjusting rates is not detailed.

Bill History

2026-04-09 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (April 8). Re-referred to Com. on APPR.
2026-04-09 California Legislative Information
Coauthors revised.
2026-03-09 California Legislative Information
Referred to Com. on U. & E.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2589, as introduced, Irwin.
Public utilities: rates: changes to federal law.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities. 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. Existing law requires the commission to evaluate the full effect of the enactment of federal House Resolution 1 (Public Law 115-97) upon the expenses and tax liabilities incurred by public utilities for payment of federal taxes, and, if the commission determines that the projected expenses and tax liabilities for federal taxes that the commission has authorized in the rates for a public utility are materially affected by its enactment, to adjust the rates of the public utility to reflect the changes in projected expenses and tax liabilities in light of the changes in federal law.
This bill
would require the commission to evaluate the full effect of all federal legislation that becomes law, including the recent federal House Resolution 1 (Public Law 119-21), upon the expenses and tax liabilities incurred by public utilities for payment of federal taxes and, if the commission determines that the projected expenses and tax liabilities for federal taxes that the commission has authorized in the rates for a public utility are materially affected by the enactment, to adjust the rates of the public utility to reflect the changes in projected expenses and tax liabilities in light of the changes in federal law, as specified.

Current Bill Text

Read the full stored bill text

Download Bill PDF