AB-1117
Energy & Environment

Electricity: rates: optional dynamic rate tariffs.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Requires utilities to offer optional dynamic electricity rates that vary based on grid conditions by 2030.
  • Mandates real-time usage data access for customers with smart meters who opt into dynamic rates.
  • Establishes dynamic rates for large commercial customers by 2028 and residential customers by 2030.
  • Requires protections for vulnerable customers and prevents cost shifts between customer groups.

Summary

Assembly Member Schultz's proposal to modernize California's electricity rate structures directs the Public Utilities Commission to develop optional dynamic rate tariffs for customers of large electrical corporations. The measure establishes a phased implementation, requiring tariff options for medium and large commercial customers by July 2028, followed by residential and small commercial customers by July 2030.

Each dynamic rate tariff must include time-varying distribution rates reflecting grid constraints, time-varying generation rates based on wholesale market conditions for bundled customers, and nonbypassable charges. The commission may also authorize time-varying transmission rates when consistent with federal regulations. Customers with smart meters who opt into these tariffs receive direct access to their real-time usage data, enabling informed consumption decisions.

The legislation contains specific provisions to prevent cost shifts between customer groups. Any over-collection of revenue requirements from participating bundled customers must be returned to those customers, while participating customers bear the burden of any under-collection. Similar protections apply to unbundled customers regarding transmission and distribution charges. The commission must evaluate potential cost impacts on non-participating customers through periodic reviews and incorporate the effects of dynamic rate adoption when determining revenue requirements.

Key Dates

Next Step
Referred to the Senate Standing Committee on Appropriations
Next Step
Senate Committee
Referred to the Senate Standing Committee on Appropriations
Hearing has not been scheduled yet
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Energy, Utilities and Communications Hearing
Senate Committee
Senate Energy, Utilities and Communications Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Vote on Assembly Floor
Assembly Floor
Vote on Assembly Floor
AB 1117 Schultz Assembly Third Reading
Assembly Appropriations Hearing
Assembly Committee
Assembly Appropriations Hearing
Do pass
Assembly Utilities And Energy Hearing
Assembly Committee
Assembly Utilities And Energy Hearing
Do pass as amended and be re-referred to the Committee on [Appropriations]
Introduced
Assembly Floor
Introduced
Read first time. To print.

Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Jacqui IrwinD
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Henry SternD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Megan DahleR
Senator
Committee Member
Not Contacted
Not Contacted
0 of 11 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Jacqui IrwinD
Assemblymember
Bill Author
Profile
Henry SternD
Senator
Bill Author
Profile
Tim GraysonD
Senator
Committee Member
Profile
Megan DahleR
Senator
Committee Member
Profile
Kelly SeyartoR
Senator
Committee Member
Profile
Aisha WahabD
Senator
Committee Member
Profile
Chris RogersD
Assemblymember
Bill Author
Profile
Nick SchultzD
Assemblymember
Bill Author
Profile
Christopher CabaldonD
Senator
Committee Member
Profile
Laura RichardsonD
Senator
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Nick Schultz
Nick SchultzD
California State Assembly Member
Co-Authors
Jacqui Irwin
Jacqui IrwinD
California State Assembly Member
Chris Rogers
Chris RogersD
California State Assembly Member
Henry Stern
Henry SternD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/2/2025)

Latest Voting History

August 18, 2025
PASS
Senate Committee
Senate Appropriations Hearing
AyesNoesNVRTotalResult
7007PASS

Key Takeaways

  • Requires utilities to offer optional dynamic electricity rates that vary based on grid conditions by 2030.
  • Mandates real-time usage data access for customers with smart meters who opt into dynamic rates.
  • Establishes dynamic rates for large commercial customers by 2028 and residential customers by 2030.
  • Requires protections for vulnerable customers and prevents cost shifts between customer groups.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Nick Schultz
Nick SchultzD
California State Assembly Member
Co-Authors
Jacqui Irwin
Jacqui IrwinD
California State Assembly Member
Chris Rogers
Chris RogersD
California State Assembly Member
Henry Stern
Henry SternD
California State Senator

Summary

Assembly Member Schultz's proposal to modernize California's electricity rate structures directs the Public Utilities Commission to develop optional dynamic rate tariffs for customers of large electrical corporations. The measure establishes a phased implementation, requiring tariff options for medium and large commercial customers by July 2028, followed by residential and small commercial customers by July 2030.

Each dynamic rate tariff must include time-varying distribution rates reflecting grid constraints, time-varying generation rates based on wholesale market conditions for bundled customers, and nonbypassable charges. The commission may also authorize time-varying transmission rates when consistent with federal regulations. Customers with smart meters who opt into these tariffs receive direct access to their real-time usage data, enabling informed consumption decisions.

The legislation contains specific provisions to prevent cost shifts between customer groups. Any over-collection of revenue requirements from participating bundled customers must be returned to those customers, while participating customers bear the burden of any under-collection. Similar protections apply to unbundled customers regarding transmission and distribution charges. The commission must evaluate potential cost impacts on non-participating customers through periodic reviews and incorporate the effects of dynamic rate adoption when determining revenue requirements.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/2/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Appropriations
Next Step
Senate Committee
Referred to the Senate Standing Committee on Appropriations
Hearing has not been scheduled yet
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Energy, Utilities and Communications Hearing
Senate Committee
Senate Energy, Utilities and Communications Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Vote on Assembly Floor
Assembly Floor
Vote on Assembly Floor
AB 1117 Schultz Assembly Third Reading
Assembly Appropriations Hearing
Assembly Committee
Assembly Appropriations Hearing
Do pass
Assembly Utilities And Energy Hearing
Assembly Committee
Assembly Utilities And Energy Hearing
Do pass as amended and be re-referred to the Committee on [Appropriations]
Introduced
Assembly Floor
Introduced
Read first time. To print.

Latest Voting History

August 18, 2025
PASS
Senate Committee
Senate Appropriations Hearing
AyesNoesNVRTotalResult
7007PASS

Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Jacqui IrwinD
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Henry SternD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Megan DahleR
Senator
Committee Member
Not Contacted
Not Contacted
0 of 11 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Jacqui IrwinD
Assemblymember
Bill Author
Profile
Henry SternD
Senator
Bill Author
Profile
Tim GraysonD
Senator
Committee Member
Profile
Megan DahleR
Senator
Committee Member
Profile
Kelly SeyartoR
Senator
Committee Member
Profile
Aisha WahabD
Senator
Committee Member
Profile
Chris RogersD
Assemblymember
Bill Author
Profile
Nick SchultzD
Assemblymember
Bill Author
Profile
Christopher CabaldonD
Senator
Committee Member
Profile
Laura RichardsonD
Senator
Committee Member