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Panel advances AB 1117 to make dynamic electricity pricing an opt‑in option for customers
Summary
AB 1117 would require investor‑owned utilities to develop optional dynamic rate tariffs so customers can shift usage to low‑price hours; the committee passed the bill as amended to Appropriations after debate and commitments to work with utilities on technical implementation.
Assemblymember Schultz presented AB 1117, which would require investor‑owned utilities to offer optional dynamic electricity tariffs to customers who elect them. The sponsor said dynamic pricing encourages customers to shift consumption away from high‑priced hours, lowers individual bills for participating customers and reduces system costs for all by avoiding peak‑period procurement.
Supporters included the California Large Energy Consumers Association (CLICA), NRG Energy, the California Solar and Storage Association, the Sierra Club and other environmental and consumer groups. Witnesses described existing pilots and direct‑access offerings that use day‑ahead price indices to create dynamic tariffs and said experience shows participating customers can lower bills and provide system benefits.
Investor‑owned utilities (PG&E, SCE, SDG&E) testified in opposition on process grounds, saying the policy is complex and that the CPUC should continue its regulatory work to design programs, address cost‑shift risks, and determine which customer segments and technologies are appropriate. Utility witnesses said they will continue working with the author on technical fixes; they did not oppose the policy concept per se.
Committee discussion focused on implementation timelines, protections against cost shifting to non‑participating customers, and evidence from pilots. Several members praised the bill for forcing the regulatory conversation and for its potential to lower grid upgrade costs by shifting EV charging and other flexible loads to low‑cost hours.
Vote and next steps: The committee approved AB 1117, as amended, and transmitted it to the Appropriations Committee. The author and utilities said they will continue to work on regulatory implementation details in the CPUC rulemaking process.
