Committee advances bill requiring utilities to disclose taxpayer-funded loans, report expected savings to ratepayers

The Assembly Committee on Utilities and Energy voted to advance AB 10 20, a measure that would require investor‑owned utilities (IOUs) to disclose taxpayer-funded loans and grants to the California Public Utilities Commission and submit detailed spending plans showing how any financial benefits will be passed to ratepayers.

The bill’s author told the committee that rising electricity costs and increasing use of public financing by utilities — including a recent $15 billion Department of Energy loan to PG&E cited in testimony — make tighter oversight necessary to ensure public funds benefit ratepayers rather than shareholders.

Adria Tinnan of the Utility Reform Network (TURN), a sponsor, said the proposed quarterly reporting structure is intended to prevent “double dipping,” where taxpayer-funded loans or grants would reduce an IOU’s borrowing cost but the savings would not be reflected in rates. Tinnan told the committee the current advice-letter process is insufficiently centralized to guarantee passage of savings to customers.

Utilities said they agree with the transparency goal but questioned whether the bill adds anything to existing PUC processes. Brandon Eubach of PG&E said they have proactively filed cost-of-capital proposals and other filings to ensure benefits flow to customers and that further statutory reporting may be duplicative. Wildfire survivor advocates urged the committee to ensure funds are prioritized for victims of utility-caused wildfires before being used to reduce rates.

Committee members asked clarifying questions about categorical grants and whether the bill prescribes a penalty for noncompliance; the author said the PUC already has enforcement authority. The committee voted to advance the measure to the Appropriations Committee. The motion passed on a roll call recorded in committee as passed (yes: 14; no:1).