Investor-Owned Utilities Accountability Act.

Senator Wahab's Investor-Owned Utilities Accountability Act directs the California Energy Commission to evaluate potential transitions of investor-owned utilities to public or nonprofit entities. The legislation requires the Commission to select a research institute to conduct a comprehensive analysis comparing different ownership models, with findings due by January 2029.

The analysis will examine legal, economic, and operational aspects of converting utilities to public entities, nonprofit public benefit corporations, or mutual benefit corporations. The selected institute must submit an interim report by December 2026 addressing threshold legal issues and transition pathways. The study's $5 million budget will fund assessment of impacts on ratepayer costs, workforce protection, infrastructure reliability, and climate resilience.

The bill also establishes new transparency requirements around utility service disconnections. Starting March 2026, investor-owned utilities must annually publish data on service terminations and reconnections due to nonpayment, with publicly-owned utilities following suit in 2027. The legislation modifies executive compensation rules for utilities, requiring consideration of ratepayer affordability alongside safety metrics when issuing safety certifications. Compensation documentation must now include specific dollar amounts.

The Energy Commission must present the completed analysis at a public meeting by September 2029. Throughout the study process, the Commission will incorporate input from disadvantaged communities, labor representatives, and other stakeholders to evaluate ownership models that serve California's public interest goals.