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Committee advances AB 99 to restrict utility rate increases above inflation; debate centers on exceptions and trade-offs
Summary
Assemblymember Ta's AB 99, intended to cap investor-owned utility rate increases above inflation except for defined safety and modernization exceptions, passed the committee as amended amid sharp debate between consumer advocates, labor and utilities over affordability, wildfire liability and impacts on mandated climate programs.
Assemblymember Ta presented Assembly Bill 99 to the Utilities and Energy Committee, asking members to restrict investor-owned utilities from seeking general rate increases above the rate of inflation except where an exception is certified by the California Public Utilities Commission.
"The ultimate goal of AB 99 is to protect consumers from excessive energy costs," Assemblymember Ta said, outlining carve-outs for safety enhancement, modernization and higher commodity or fuel costs. Ta said the bill includes a reporting and verification process for exceptions and that the office would work with stakeholders to refine the bill.
Support testimony included Jim Bohan of the California Senior Legislature, who told the committee higher rates are driving hardship for seniors on fixed incomes. Will Abrams, a wildfire survivor, urged lawmakers to ensure utilities fully compensate victims and to use any rate limits to prevent utilities from shifting wildfire liabilities to ratepayers before victims are paid in full.
Opposition testimony came from a range of groups including the California Chamber of Commerce, trade unions and major utilities. Scott Wetsch of the California Coalition of Utility Employees warned the bill could limit utilities' ability to pay labor costs if rate caps are set strictly. The California Chamber's John Kendrick argued AB 99 risks underfunding legislative mandates, wildfire mitigation, grid modernization and low-income programs. Utility representatives from SDG&E, Southern California Edison and Pacific Gas & Electric said the bill could constrain necessary safety and reliability investments and urged more targeted solutions.
Committee members debated the bill's scope and trade-offs. Several members said affordability is a top priority but questioned whether an across-the-board inflation cap is the right tool; others said the bill should continue to be refined. The committee approved AB 99 as amended and ordered it to the Appropriations Committee. The roll call in committee recorded a final tally of 12 ayes and 1 no.
