California legislation · 2025-2026 Regular Session
California AB2463: Public Utilities Commission: rates: cost of capital proceeding: authorized return on equity.
Status: Chaptered, September 30, 2026
What the bill says
An act to add Sections 753 and 910.10 to the Public Utilities Code, relating to the Public Utilities Commission. the Public Utilities Commission Public Utilities Commission: rates: cost of capital proceeding: authorized return on equity. Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas 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…
From the chaptered text, September 30, 2026:
An act to add Sections 753 and 910.10 to the Public Utilities Code, relating to the Public Utilities Commission. the Public Utilities Commission Public Utilities Commission: rates: cost of capital proceeding: authorized return on equity. Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas 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, in any proceeding in which the commission considers and determines the authorized return on equity for an electrical corporation or gas corporation, to be known as a cost of capital proceeding, that results in a decision issued on or after December 31, 2030, to include its own assessment of the proposals submitted by the parties and specified information, including, among other things, an identification of each financial model the commission relied upon in determining the authorized return on equity and an analysis of the relationship between the credit quality of the electrical corporation or gas corporation and the authorized return on equity. If, in any cost of capital proceeding, the commission adopts a methodology for determining the authorized return on equity that differs in any material respect from the methodology disclosed in the most …