Panel approves bill to require optional dynamic-rate tariffs when smart‑meter upgrades are deployed

Assemblymember Schultz presented AB 17 87 as a bill to give customers the option to enroll in dynamic pricing once IOU smart‑meter infrastructure and billing systems have been upgraded and approved by the CPUC (an implementation trigger set no earlier than 01/01/2027 in the bill text). The author said dynamic rates reward customers who shift usage away from peak periods and can reduce reliance on expensive wholesale peak purchases.

Tiffany Phan of the California Efficiency and Demand Management Council testified in support, saying the bill includes consumer protections to prevent undue cost shifts and would provide a tool to manage grid demand. Rebecca Lee of NRG Energy said dynamic rates let retail customers see wholesale price signals and described frequent negative-price hours as an opportunity for customers to reduce costs.

Opponents—PG&E and SDG&E witnesses—said they support exploring dynamic pricing but warned the bill could impose a one‑size‑fits‑all approach or disrupt ongoing CPUC pilots and proceedings. "We do have an opposed position on this bill... we are concerned that AB 17 87 creates a 1 size fits all heavy handed approach to implement real time pricing," said Valerie Turello for PG&E, noting PG&E’s pilot and CPUC‑authorized funding for evaluations.

The committee moved AB 17 87 to Appropriations as amended; a final recorded vote was 13–0.

What happens next: The measure will go to the Appropriations Committee; the author committed to continue discussions with IOUs and stakeholders to address remaining operational and regulatory questions.