Investor-Owned Utilities Accountability Act.

Senator Wahab's comprehensive energy reform legislation would require California to evaluate transitioning from investor-owned utilities (IOUs) to a new public or nonprofit model while implementing immediate consumer protections and safety requirements. The Energy Commission would oversee an independent study examining IOUs' historical impacts on communities and comparing alternative ownership structures, with findings due by 2028 and a potential implementation plan by 2029.

The bill prohibits utilities from disconnecting service for nonpayment from households with vulnerable residents or incomes below 200% of the federal poverty line. It requires utilities to offer income-based payment plans and automatically reconnect previously disconnected eligible households by 2026. Utilities must conduct triennial audits of their infrastructure and replace end-of-life equipment in high fire-threat areas within five years, without passing costs to ratepayers.

Rate increases for residential customers would be capped at the Consumer Price Index, and utilities' contributions to the state's Wildfire Fund would increase from 5% to 95% of total costs. The legislation mandates new executive compensation structures tied to safety metrics and requires utilities to demonstrate "best value" procurement practices for infrastructure projects through an independent evaluation of contractor qualifications and pricing.

The Energy Commission must establish an advisory council representing diverse stakeholders to guide the transition study, including tribal utilities, consumer advocates, environmental justice organizations, and labor unions. If the study recommends transitioning away from IOUs, the commission would develop a detailed implementation plan addressing governance structures, acquisition costs, and regulatory frameworks for the successor entity.