Public utilities: review of accounts: electrical and gas corporations: rates: political influence activities and promotional advertising.

Senator McNerney's utility oversight legislation prohibits electrical and gas corporations from charging ratepayers for political influence activities, promotional advertising, and efforts to oppose municipal utility formation. The measure requires utilities to maintain strict separation between shareholder and ratepayer-funded expenses by prohibiting certain costs from being recorded in accounts recoverable through rates.

The bill mandates that utilities clearly disclose whether shareholders or ratepayers fund their public communications and submit annual reports detailing employee compensation, vendor contracts, and expenses related to commission proceedings. These reports must identify which business units engage in political or promotional activities and document how costs are allocated between ratepayer and shareholder accounts.

To enhance regulatory oversight, the legislation grants the Public Advocate's Office the same authority as the California Public Utilities Commission to examine utility records and accounts. The commission must assess civil penalties for violations, with each day an expense remains improperly recorded constituting a separate infraction. The measure preserves utilities' ability to recover costs for labor relations activities and responses to official information requests.