Electrical corporations: rates.

Assembly Member Ta's proposal to modify California's utility rate-setting process would require electrical corporations to obtain customer approval through elections for rate increases exceeding inflation. The measure creates an exception for increases directly tied to safety enhancements, modernization efforts, or rising commodity and fuel costs.

Under the proposed framework, utilities seeking above-inflation rate increases must distribute ballots to all customers along with information about the proposed changes. The Public Utilities Commission retains authority to establish additional election procedures and would set interim rates, capped at inflation, during the approval process. Electrical corporations may submit multiple rate proposals until achieving majority customer support, with shareholders bearing all election-related costs.

The measure adds to the Public Utilities Commission's existing rate-setting authority, which currently allows the commission to establish "just and reasonable" rates for electrical corporations. By incorporating these new requirements into the Public Utilities Act, violations would constitute criminal offenses under existing enforcement provisions. While the bill creates a state-mandated local program through these enforcement mechanisms, it specifies that no state reimbursement to local agencies is required.