Investor-Owned Utilities Accountability Act.

California State Senators Wahab and Hurtado, along with Assembly Members Garcia and Ortega, have put forward legislation requiring the state to evaluate transitioning investor-owned utilities to public or nonprofit entities while implementing new utility accountability measures.

The bill directs the California Energy Commission to select an academic research institute to conduct a comprehensive analysis of converting Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric to public entities, nonprofit public benefit corporations, or mutual benefit corporations. The study, capped at $5 million and due by January 2029, must examine legal frameworks, financial implications, governance structures, and ratepayer impacts of different ownership models.

The legislation establishes new operational requirements for investor-owned utilities, including mandatory triennial audits of electrical equipment to identify end-of-life infrastructure. Utilities must also post quarterly data about service disconnections, reconnections, payment agreements, and customer arrears on their websites. The bill prohibits utilities from recovering executive compensation costs from ratepayers and requires them to submit new compensation structures tied to safety and affordability metrics by April 2026.

For infrastructure projects, the Public Utilities Commission must develop a "best value" procurement model comparing costs and benefits of potential suppliers. The model applies only to equipment and materials procurement, not to labor covered by collective bargaining agreements. Utilities may use sole-source contracting only in specific circumstances such as supply shortages or emergency needs.