Electrical corporations: rates.

Assembly Member Ta's proposal to limit electrical utility rate increases to annual inflation marks a notable shift in California's utility rate regulation, establishing new constraints on how electrical corporations can adjust their pricing structures.

The measure would prevent electrical corporations from proposing systemwide rate increases that exceed the California Consumer Price Index during general rate case cycles. However, the Public Utilities Commission would retain authority to approve higher increases specifically tied to safety enhancements, infrastructure modernization, or rising commodity and fuel costs. This maintains the commission's existing oversight role while creating a standardized benchmark for rate adjustments.

Under current law, the Public Utilities Commission reviews and approves utility rates through a complex process focused on ensuring charges are "just and reasonable." The new provisions would add a quantitative ceiling linked to broader economic indicators, while preserving flexibility for necessary infrastructure investments. Any violations of these rate restrictions would be subject to existing enforcement mechanisms under the Public Utilities Act.

The measure includes provisions clarifying that local agencies and school districts would not require state reimbursement for any costs associated with implementation, as the changes relate solely to modifications of criminal statutes and regulatory compliance requirements. The rate limitations would take effect within electrical corporations' established rate case cycles following enactment.