AB-2700 • 2026

Electricity: rate reduction: report.

Taxes

Passed Legislature

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

Sponsor: Gallagher
Last action: 2026-04-09
Official status: From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 8). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific information about how rate reductions will be achieved or enforced, leaving these aspects open to interpretation.

Electricity Rates: Report on Reduction

This law requires the Public Utilities Commission to create a report with recommendations to lower electricity rates by at least 30% and address wildfire-related issues.

What This Bill Does

Requires the Public Utilities Commission to make a report about lowering electricity rates for customers.
The report must suggest reducing electricity costs by at least 30% by January 1, 2028.
Includes reviewing programs that help public purposes and checking how much electrical companies spend on wildfire safety plans.
Also looks into money owed to people hurt by wildfires before July 12, 2019.
Suggests ways for electricity companies to fix any shortfalls in paying back victims of wildfires.

Who It Names or Affects

Electricity customers who pay rates set by the Public Utilities Commission.
Public Utilities Commission which must make this report.
Electrical corporations that need to follow the recommendations and address wildfire-related issues.

Terms To Know

Public Utilities Commission: A government agency that regulates public utilities like electricity companies to ensure fair rates and services for customers.
Ratepayers: People or businesses who pay for utility services, such as electricity.

Limits and Unknowns

The bill does not specify how the rate reductions will be achieved.
It is unclear if and when the recommendations in the report will actually lower rates.
There are no details on what happens if electrical corporations do not address wildfire-related shortfalls.

Bill History

2026-04-09 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 8). Re-referred to Com. on APPR.
2026-04-09 California Legislative Information
Coauthors revised.
2026-03-24 California Legislative Information
Re-referred to Com. on U. & E.
2026-03-23 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
2026-03-11 California Legislative Information
Re-referred to Com. on U. & E.
2026-03-10 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
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 2700, as amended, Gallagher.
Electricity: rate reduction: report.
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 to generate a report outlining recommendations to decrease the kilowatt-per-hour rate for electricity charged to ratepayers by not less than 30% by January 1, 2028. The bill would require the commission, in making those rate-reduction recommendations, to take certain actions, including to review, and evaluate the cost effectiveness of, certain public purposes programs and to audit electrical corporation wildfire mitigation plan costs, as specified.
The bill would require the commission to also include in its report an assessment of verified restitution shortfalls for victims of wildfires caused by electrical corporations occurring before July 12, 2019. The bill would further require the commission to recommend mechanisms for electrical corporations to address those shortfalls, as provided.

Current Bill Text

Read the full stored bill text

Download Bill PDF