Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, October 28, 2026
10:00 am
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
LA County Hall of Administration
Sybil Brand Conference Room, Room
372500 West Temple Street
Los Angeles, CA 90012
Lynwood City Hall
Annex Building, Conference Room
11330 Bullis Road
Lynwood, CA 90262
Redondo Beach City Hall
Planning Conference Room
415 Diamond Street, Door 2
Redondo Beach, CA 90277
Santa Monica City Hall
Room CH-230
1685 Main Street
Santa Monica, CA 90401
West Hollywood City Hall
3rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called.
Agenda Page 1
Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
NAVIGATING OUR AGENDA PACKETS
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ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the August 19, 2026, Legislative & Regulatory Committee Meeting
REGULAR AGENDA
2. Provide Input on CPA’s Draft 2027 Legislative & Regulatory Policy Platform and Recommend Approval to the CPA Board of Directors
3. Receive Presentation on Power Charge Indifference Adjustment Reform Proceeding Update
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON NOVEMBER 18, 2026
Public Records: Public records that relate to any item on the open session agenda for a regular Board Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Board. Those documents are available for inspection at CPA Offices, 801 S. Grand Ave, Suite 400, Los Angeles, CA 90017 or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Legislative & Regulatory Committee
Subject: Approve Minutes from the August 19, 2026, Legislative & Regulatory Committee Meeting
Date: October 28, 2026
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, August 19, 2026, 1:30 p.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
LA County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
Redondo Beach City Hall
Planning Conference Room
415 Diamond Street, Door 2
Redondo Beach, CA 90277
Santa Monica City Hall
Room CH-201
1685 Main Street
Santa Monica, CA 90401
Lynwood City Hall
Annex Building, Conference Room
11330 Bullis Road
Lynwood, CA 90262
CALL TO ORDER & ROLL CALL
Chair Hicks called the meeting to order at 1:36 p.m. and Annie Mendoza, Deputy Clerk of the Board, conducted roll call.
ROLL CALL
Carson Cedric Hicks Committee Chair Remote
Los Angeles County Rita Kampalath Alternate Remote
Lynwood Juan Muñoz-Guevara Committee Member Remote
Redondo Beach Brad Waller Committee Member Remote
Santa Monica Gleam Davis Committee Member Remote
West Hollywood John Erickson Committee Member Absent
All votes are unanimous, unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the January 28, 2026, Legislative & Regulatory Committee Meeting
Legislative & Regulatory Committee Item 1
Agenda Page 4
Motion: Committee Member Muñoz-Guevara, Lynwood
Second: Committee Member Waller, Redondo Beach
Vote: The consent agenda was approved.
REGULAR AGENDA
2. Receive Presentation on Potential Changes to the Climate Credit Calculation and Provide Feedback
CC Song, Senior Director, Regulatory Affairs, presented potential changes to the Climate Credit calculation and asked for feedback from the Committee. The Climate Credit is provided to customers twice a year to offset increased electricity costs, and comes from revenue generated by the IOUs selling off their free allocations of greenhouse gas emission allowances. In May 2026, the CPUC adopted a decision to shift Climate Credit distribution from April and October to August and September. Ms. Song described the CPUC’s proposed changes, which includes keeping the status quo of the flat rate credit. She solicited feedback with respect to the CPUC’s proposals or alternative ideas from the Committee. The deadline for parties to submit their proposals to the CPUC is September 17, 2026, and a final decision is expected in the first quarter of 2027.
Committee Member Waller commented that the flat rate option doesn’t reward households for using more electricity. He also stated that he supports changes that will help low-income customers with energy conservation. Committee Member Davis supported the flat rate because a customer receiving different credits based on where they live may complain if another customer receives a bigger credit. She did not support creating climate zones because a wealthy customer living in a hot zone would receive a larger credit than a low-income customer living in a cool zone. However, she would support lowering the base credit overall, then using the savings to help low-income customers.
Committee Member Kampalath said her team reviewed the CPUC options and considered affordability and fairness. She supported helping CARE customers and would consider the use of climate zones. She asked whether other options, including hybrids of the current concepts, would be proposed. Staff responded that other parties will be submitting ideas and that after September 17, 2026, CPA would analyze further proposals.
Committee Member Muñoz-Guevara stated that the flat rate would be the easiest to communicate to customers. Because his community includes customers in the CARE and FERA programs, he supported providing them with relief in the distribution of the credit. Chair Hicks expressed support for the flat rate and stated that he looks forward to any new ideas or hybrid concepts that present themselves after September 17, 2026. He also asked how the credit would be applied to people who have solar systems on their homes. Staff responded that a legislative bill that would have denied climate credits to solar customers failed.
Ted Bardacke, Chief Executive Officer, stated that the issue can be revisited in October and November as staff gears up for the next legislative issue, but that for now, he is hearing consensus support for the status quo flat rate as well as relief for low-income residents. He also acknowledged Committee Member Kampalath’s interest in how climate zones may improve the climate credit calculation, especially if the CPUC is open to the zones concept.
Legislative & Regulatory Committee Item 1
Agenda Page 5
3. Oral Update on Legislative Activities
Gina Goodhill, Senior Director, Government Affairs, presented two bills sponsored by the California Community Choice Association (CalCCA): SB 1138, which related to Resource Adequacy (RA) and the flexibility to buy and sell resources, and AB 1761, which focused on transparency on how the PCIA is calculated. The first was unsuccessful, and the second is still moving through the Legislature. Ms.
Goodhill reported on four bills related to fire relief and fire hardening, all of which are advancing. Three bills are connected to each other. AB 1964 requires a home hardening survey, AB 1934 is a hardening program implementation plan, and AB 1960 creates home hardening grants, administered by CAL FIRE, to encourage community level hardening. The fourth bill is SB 894, which would establish the California Wildfire Resilience Loan Program. This set of bills would help CPA with its own home hardening programs.
Another bill that CPA supports and is still viable is AB 2313, which would encourage customers in single-family homes to electrify rather than have a gas service line replaced. Mr. Bardacke added that wildfire liability reform has been in the news lately. The issue is whether wildfire costs are paid by ratepayers, insurance companies, or the general funds of local governments. Currently, local governments can be reimbursed by utilities. He also mentioned that Xavier Becerra, candidate for Governor, announced a Power Hour initiative that would give Californians, possibly only low-income residents, two hours of free electricity a day. CPA is launching a similar program on October 1, 2026.
Committee Member Davis commented that transmission lines are being blamed for the Eaton Fire and asked if there is legislation related to improving the safety of utility infrastructure. Mr. Bardacke responded that wildfire liability reform is being discussed and that some liability rules are already on the books.
Committee Member Waller asked if AB 1761 needs support from CPA member agencies, and staff responded that they anticipate the bill passing on the floor, but that the Governor’s position is unknown. Also, the IOUs are not opposing the bill.
Ms. Goodhill said there was a template letter in support that would be distributed.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Chair Hicks adjourned the meeting at 2:31 p.m.
Legislative & Regulatory Committee Item 1
Agenda Page 6
Staff Report – Agenda Item 2
To: Legislative & Regulatory Committee
From: Ezana Emmanuel, Legislative and Government Affairs Manager Reviewed by: Gina Goodhill, Senior Director, Government Affairs Francis Choi, Assistant General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Draft 2027 Legislative Platform Policy
Date: October 28, 2026
RECOMMENDATION
Provide input on CPA’s draft 2027 Legislative & Regulatory Policy Platform and recommend approval to the CPA Board of Directors
BACKGROUND/DISCUSSION
Governor Gavin Newsom concluded his final bill-signing marathon on September 30, 2026, which ended with 1,040 bills signed during the 2026 legislative session. However, many high-profile decisions around electric rates, wildfire costs, and overall energy affordability remain unresolved, and are likely to remain central discussions in California energy policy for years to come.
Budget: The 2026-27 State Budget largely preserves California's clean energy and climate ambitions while adapting to fiscal constraints. Funding sources are increasingly shifting away from the General Fund toward bonds and dedicated climate revenues such as the Greenhouse Gas Reduction Fund (GGRF) funded by the Cap-and-Invest program.
The GGRF now firmly establishes a $921 million allocation directly to local projects, subject to annual availability of Cap-and-Invest auction funds.
Agenda Page 7
Legislative & Regulatory Committee Item 2
At the local level, Clean Power Alliance has utilized GGRF funds through the California Energy Commission (CEC) to install, operate, and maintain solar-plus-battery systems for 300 single-family homes across its service territory, and for its Power Share program which give eligible customers 100% renewable energy with a 20% discount on their electricity bill.
The 2026-27 budget also appropriates an initial $2.1 billion from the $10 billion "Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act," which was approved by voters through Proposition 4 in 2024. As the name indicates, the bond primarily funds upgraded infrastructure for clean water, enhancing regional flood protection and assisting local watershed resiliency efforts. Additionally, $25 million was allocated specifically for statewide wildfire mitigation efforts including loan rebates for home hardening and matching funds for fuel reduction and creating defensible spaces.
Legislation: Both CPA and its trade association, CalCCA, sponsored legislation that helped advance key energy discussions, although the bills did not ultimately advance into law. Following Board feedback, CPA sponsored legislation that would provide CCAs the authority to finance and own eligible transmission projects. By utilizing CCAs‘ status as a public agency with access to tax-exempt financing, CCAs can bring down the cost of transmission lines by an estimated 20% per line, savings that would be passed onto ratepayers. CPA’s sponsored legislation, AB 2396, authored by Assembly Member Jaqui Irwin, advanced through the Assembly Energy Committee with a 14-0 bi-partisan vote but did not pass out of the Assembly Appropriation Committee. While the Legislature may have some appetite to pilot utilizing local governments to finance a select number and type of transmission projects, as reflected in AB 192 (Petrie-Norris), as of now CCAs would not be included in the pilot.
Sponsored legislation by CalCCA also ultimately failed to be signed into law. SB 1138 (Padilla) would have allowed load serving entities to buy and sell resource adequacy (RA) on an hourly basis, to prevent over purchases of RA obligations and prevent unnecessary spending. AB 1761 (Rogers) was designed to increase transparency in how IOUs Agenda Page 8
Legislative & Regulatory Committee Item 2
calculate the Power Charge Indifference Adjustment (PCIA) and would have required the IOUs and the CPUC to share these calculations with CCAs. SB 1138 did not pass out of the Assembly Appropriations Committee, and while AB 1761 passed out of the Legislature, it was vetoed by Governor Newsom on September 20, 2026.
While CalCCA is considering re-running both bills again, there is a larger discussion about how to best handle PCIA reform moving forward, as the CCAs faced setbacks in both the legislative and regulatory arena this year. On September 17, 2026, the CPUC voted to approve a decision that would undermine the market value of Renewable Portfolio Standard (RPS) resources, and as a result will increase the PCIA. Looking ahead, there are additional tracks in the PCIA proceeding at the CPUC that could make short-term and long-term changes to the PCIA, with the potential of fundamentally altering the current structure. It also remains to be seen how a new Governor and likely appointments at the CPUC could impact PCA reform.
Wildfire and home hardening achieved greater success in the 2026 legislative year. CPA actively supported bills to support wildfire victims through financial support and home hardening: AB 1934, AB 1964, and AB 1960 from Assembly Member Bennet and SB 1079 from Senator Allen. AB 1934 and AB 1964 establish a new statewide framework to develop a voluntary home hardening certification program, using ignition-resistant materials to protect properties from flying embers, and AB 1960 unlocks specialized funding under the Wildfire Prevention Grants Program, allowing high-risk neighborhoods to access up to 20% of grant pools if at least half of their residents' secure home hardening certifications. SB 1079 establishes the Fire Innovation Unit within CAL FIRE. Operating as a technological hub, this new division focuses on research, rapid testing, and deployment of early-detection cameras, drone monitoring, and predictive modeling software to suppress modern megafires before they spread. Additionally, CPA actively supported AB 2313 from Assembly Member Berman. This bill, which was co-sponsored by Earthjustice and the Natural Resources Defense Council (NRDC), will bypass the multi-billion-dollar projected costs of maintaining aging fossil-fuel infrastructure by Agenda Page 9
Legislative & Regulatory Committee Item 2
financially supporting residential customers looking to purchase electric appliances. All five bills were signed by Governor Newsom and will become law.
The Legislature also considered measures intended to expand access to solar energy for renters and customers who cannot install rooftop systems. Policymakers increasingly recognize that achieving California's clean energy goals requires solutions that serve all communities, not just property owners with suitable rooftops. This was reflected through SB 868 (Wiener), known as the Plug-In Solar Act, which legalizes small plug-in balcony solar kits up to 1,200 watts without requiring complex utility interconnection agreements.
This new legislation cuts red tape for renters and apartment dwellers looking to lower their monthly energy bills by plugging portable panels directly into standard wall outlets. While the Governor signed this bill into law, fully compliant, safety-certified hardware is not expected to hit the California market until at least early 2027, and the current utility exemption carries a sunset provision ending on January 1, 2030.
Most notably, the legislative session was dominated and defined by high-stakes battles over wildfire liability, emerging AI infrastructure, and grid reliability. Chief among these was the high-profile collapse of wildfire liability reform; despite a last-minute push by the administration for a compromise framework via Senate Bill 492 that would have significantly reduced utility companies’ liability, lawmakers failed to reach an agreement on shifting catastrophic costs. This unresolved liability gridlock stood in stark contrast to the state's aggressive maneuvers to accommodate surging artificial intelligence demand.
The legislature successfully passed a series of data center regulations, specifically, AB 2383, which mandates comprehensive, specialized tariffs for transmission-level facilities to ensure massive AI operations share the burden of local grid modernization, environmental programs, and wildfire mitigation costs.
Additionally, a coalition-led effort to extend operations at the Diablo Canyon Nuclear Power Plant failed to materialize into actual policy. Despite months of anticipation for a defined legislative bill, Governor Newsom stated that he would not consider legislation to Agenda Page 10
Legislative & Regulatory Committee Item 2
extend the plant’s lifespan past 2030 during his final months in office, effectively putting this on the agenda of the next governor who takes office in 2027. 2026 marks the final year of Governor Newsom’s eight years of leadership. As we prepare for the 2027 legislative session, we anticipate continued focus on affordability, reliability, electrification, and energy market reform. CPA will remain actively engaged to ensure that state policies support our ability to deliver clean, reliable, and affordable electricity while advancing local priorities and customer benefits.
2027 Draft Platform Discussion
The CPA Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
This Policy Platform outlines the primary advocacy directives and lobbying parameters for the upcoming legislative cycle and provides direction to CPA staff on legislative priorities, introduced legislative proposals and regulatory matters. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
The platform helps ensure that staff and board leadership advance unified, predictable positions in Sacramento that protect organizational autonomy, stabilize community rates, and safely accelerate California's decarbonization goals. Moreover, CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform; bills that are likely to attract high-profile supporters and detractors, including bills that would modify the California Environmental Quality Act (CEQA), bills Agenda Page 11
Legislative & Regulatory Committee Item 2
that would directly raise taxes, or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
The 2027 Proposed Policy Platform represents a substantial restructuring and consolidation of Clean Power Alliance’s 2026 Policy Platform. The 2026 document organized CPA’s advocacy around five principles and five policy areas, with individual priorities for resource adequacy, renewable procurement, integrated resource planning, customer programs, data access, billing transparency, and equity. The 2027 proposal reorganizes these priorities into three broader pillars that reflect CPA’s externally facing organizational goals:
1. Maintain CPA Autonomy and Fair Market Access
2. Promote Clean Energy and Lower GHG Emissions
3. Equity and Affordability
Agenda Page 12
Legislative & Regulatory Committee Item 2
Primary Changes to the Policy Platform
Dimension 2026 Platform 2027 Proposed
Platform Significance
Organization
Five policy areas,
preceded by five
guiding principles
Three overarching
policy pillars
Moves from a detailed
issue-by-issue structure to
a more consolidated
advocacy framework.
Autonomy
Embedded in
“Affordability and
Local Control”
First pillar: “Advance
CPA Autonomy and
Equal Treatment”
Elevates autonomy and
market access as a lead
priority.
Energy
Procurement
Separate provisions
for resource
adequacy, RPS
resources, IRP,
transmission, grid
access, R&D and
reliability
Six broader clean-energy provisions
Combines distinct technical
issues under a unified
clean energy and reliability
strategy.
Customer
Programs
A dedicated section
with four subsections
Included primarily
under clean energy
and lower GHG
emissions
Makes customer programs
part of the broader
decarbonization strategy
rather than a standalone
policy area.
Data Access
A dedicated section
with three
subsections
Data access and
SCE data fees are
incorporated into the
autonomy and
market-access pillar
Makes data access and
fee concerns part of a
broader strategy rather
than a standalone policy
area.
Equity
A dedicated
Diversity, Equity,
Inclusion section
Keeps Equity and
Affordability as a
standalone pillar
Maintains a prominent role
for affordability and equity,
with explicit attention to
disproportionate burdens
on lower-income
customers.
Agenda Page 13
Legislative & Regulatory Committee Item 2
2027 Proposed Policy Platform
I. Advance CPA Autonomy and Equal Treatment
A. CPA will pursue administrative and legislative initiatives that protect the authority of locally governed CCA boards over procurement, finances, rates, programs, governance, expansion, and resource planning.
B. CPA will pursue administrative and legislative initiatives that protect the competitive position between CCAs, investor-owned utilities, and other load-serving entities.
C. CPA will pursue administrative and legislative initiatives that support the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability and protect against power outages and extreme heat.
D. CPA will pursue administrative and legislative initiatives that ensure customers of CCA’s receive equitable treatment in state energy programs and incentives.
E. CPA will pursue administrative and legislative initiatives to ensure that non-bypassable charges for CPA customers, including any income-based charges, are assessed fairly compared to bundled customers.
F. CPA will pursue administrative and legislative initiatives that reduce unnecessary upward pressure on electricity rates and ensure that clean energy policies and investments provide value to customers.
G. CPA will pursue administrative and legislative initiatives that enable CPA to obtain timely and accurate access to its customers’ data.
H. CPA will pursue administrative and legislative initiatives that ensure that the fees due to Southern California Edison for data access and management are assessed fairly.
Agenda Page 14
Legislative & Regulatory Committee Item 2
II. Advance Clean Energy and Lower GHG Emissions
A. CPA will pursue administrative and legislative initiatives that support the development and deployment of new renewable and zero-carbon resources.
B. CPA will pursue administrative and legislative initiatives that support a diverse portfolio of generation, storage, demand response, transmission, and other resources capable of maintaining reliable service and round-the-clock decarbonization.
C. CPA will pursue administrative and legislative initiatives that support the acceleration of transmission, distribution, storage, and other infrastructure necessary to integrate new clean energy resources.
D. CPA will pursue administrative and legislative initiatives that support energy infrastructure development through innovative and alternative financing.
E. CPA will pursue administrative and legislative initiatives that support efforts to lower barriers of entry and reduce timelines for interconnection, service connections, and the development of renewable energy projects.
F. CPA will pursue administrative and legislative initiatives that support current and future CPA customer programs that promote the use of clean energy and energy efficiency to support cost reduction, grid reliability, and lower greenhouse gas emissions.
III. Advance Equity and Affordability
A. CPA will pursue administrative and legislative initiatives that ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes.
B. CPA will pursue administrative and legislative initiatives that ensure that the transition to a clean energy economy does not disproportionately burden low income customers and customers in disadvantaged communities.
Agenda Page 15
Legislative & Regulatory Committee Item 2
C. CPA will pursue administrative and legislative initiatives that provide equitable access to clean energy programs and incentives to support environmental and social justice communities.
D. CPA will pursue administrative and legislative initiatives that support supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled veteran-owned, and lesbian, gay, bisexual, and/or transgender owned business enterprises.
E. CPA will pursue administrative and legislative initiatives that promote local workforce development.
ATTACHMENTS
1. 2026 Policy Platform
2. 2026 CPA Tracked Legislation
Agenda Page 16
2026 Policy Platform
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
2. Pursing power resource planning and procurement that promotes the growth in renewable energy capacity at the local, state, and regional level and reduces fossil fuel dependency, with the goal of combating climate change.
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers and the use of that clean energy in an efficient and managed way to support cost reduction and grid reliability.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Policy Platform
1. Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges for CPA customers, including any income-graduated fixed charges, are assessed fairly compared to bundled customers and that CPA’s customers are not unnecessarily burdened by non-bypassable charges.
b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health is not disparately impacted by new regulations. c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies.
d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, governance, and customer program development activities.
e. Infrastructure Financing: CPA will pursue administrative and legislative initiatives that support alternative approaches to financing energy infrastructure that reduce costs for all customers.
2. Power Resources Planning and Procurement
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts. b. Renewable and Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) and carbon-free Agenda Page 17
resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations. c. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
d. Transmission: CPA will pursue administrative and legislative initiatives that will expedite new transmission infrastructure needed to meet California’s climate goals, as well as initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements. e. Access to the Electrical Grid: CPA will pursue administrative and legislative initiatives that support reducing timelines in interconnection and service extensions for new construction, critical services, renewable energy, building decarbonization, and other projects in CPA’s service territory. f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be procured to meet the reliability and decarbonization goals set by the State and its Board of Directors. g. Grid Reliability: CPA will pursue administrative and legislative initiatives that support the expansion of a regional Western energy grid that improves reliability; accelerates decarbonization; improves transmission planning; reduces costs for ratepayer and load serving entities; maintains California’s ability to set, meet and implement its own climate goals; and protects clean energy jobs within the State.
3. Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA and its customers to develop and participate in programs that promote the use of clean energy in an efficient and managed way to support cost reduction, grid reliability, and lower greenhouse gas emissions.
b. Building and vehicle decarbonization: CPA will pursue administrative and legislative initiatives that support the ability of CPA to promote statewide building and vehicle decarbonization, primarily through electrification.
c. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability, and adaptability that could protect against power outages and extreme heat.
d. Research and Development: CPA will pursue administrative and legislative initiatives that support the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4. Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs. a. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
Agenda Page 18
b. Billing Transparency: CPA will pursue administrative and legislative initiatives that increase customer understanding of electricity bill components and display electricity charges in a clear and consistent manner for both bundled and unbundled customers.
5. Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that support the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or c. Energy Equity: CPA will pursue administrative and legislative initiatives that support increased access to clean energy technologies, workforce development initiatives that support the clean energy industry, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
Agenda Page 19
2026 CPA Tracked Legislation
Measure Author Topic Status Summary Position
AB 1761 Rogers, D
Electricity:
calculation
methodology:
nonbypassable
charges: data
disclosure.
09/20/2026 - Vetoed by
Governor.
This bill would require the Public Utilities Commission to make available, and require parties to disclose, the data used to support certain decisions and proposals involving
nonbypassable charges, while protecting personally
identifying information and certain market-sensitive data.
Support
AB 1934 Bennett, D
State Fire
Marshal: home
hardening
certification
program
implementation
plan.
09/29/2026 - Approved
by the Governor.
Chaptered by Secretary
of State - Chapter 763,
Statutes of 2026.
The bill would require the State Fire Marshal’s Wildfire Mitigation Advisory Committee to create an implementation plan for a voluntary home hardening certification program by January 1, 2028, and would require the State Fire Marshal to establish the program by January 1, 2029.
Support
AB 1960 Bennett, D
Wildfire
Prevention
Grants
Program:
wildfire
mitigation
validation.
09/29/2026 - Approved
by the Governor.
Chaptered by Secretary
of State - Chapter 764,
Statutes of 2026.
The bill would create a voluntary wildfire mitigation
validation program that officially recognizes communities making progress on community-scale wildfire preparedness and mitigation.
Support
AB 1964 Bennett, D
State Fire
Marshal: home
hardening.
09/29/2026 - Approved
by the Governor.
Chaptered by Secretary
of State - Chapter 765,
Statutes of 2026.
The bill would require the Office of the State Fire Marshal to develop home hardening standards by January 1, 2028, and to prepare and publish a report by July 1, 2030 on homes in moderate, high, and very high fire hazard severity zones.
Support
AB 2111 Papan, D
Electricity:
transmission
planning and
transmission
facilities.
09/20/2026 - Approved
by the Governor.
Chaptered by Secretary
of State - Chapter 382,
Statutes of 2026.
The bill would require the Public Utilities Commission, the Energy Commission, and the Independent System Operator
to update their transmission and resource-planning
memorandum by January 1, 2028, and would revise related planning standards to be more risk-prudent, longer term, and aligned with federal requirements.
Support
AB 2266 Schultz, D
Electricity:
load-serving
entities.
09/20/2026 - Approved
by the Governor.
Chaptered by Secretary
of State - Chapter 389,
Statutes of 2026.
The bill would require the Public Utilities Commission to consider consolidating certain load-serving entity
procurement plans and, where feasible, to combine related reliability compliance reporting, with any decision that consolidation is not feasible requiring an explanation.
Support
AB 2313 Berman, D
Gas
corporations:
gas distribution
service line
replacements:
alternatives.
09/30/2026 - Approved
by the Governor.
Chaptered by Secretary
of State - Chapter 934,
Statutes of 2026.
The Home Energy Choice Act would require the Public
Utilities Commission to create a Gas Distribution Service Line Replacement Alternatives Program by January 1, 2028, giving certain residential gas customers monetary incentives to avoid gas line replacement by ending gas service and using alternatives instead.
Support
AB 2369 Rogers, D
Electricity:
energy storage:
energy-only
resources.
09/27/2026 - Vetoed by
Governor.
The bill would direct the Public Utilities Commission to better account for energy-only resources in procurement, transmission planning, and interconnection decisions to support clean energy goals and resource diversity.
Support
Agenda Page 20
Measure Author Topic Status Summary Position
AB 2396 Irwin, D
Community
choice
aggregators:
eligible
transmission
projects.
05/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(8). (Last
location was APPR.
SUSPENSE FILE on
5/6/2026)
Currently, community choice aggregators (CCAs) can
aggregate local electricity demand but must register with the Public Utilities Commission (PUC) and enter operating
agreements with utilities. The Governor’s Energy Unit must run a Transmission Infrastructure Accelerator to finance and speed eligible transmission projects to save ratepayers. This bill would let CCAs sponsor, develop, finance, construct, operate, lease, purchase, and own eligible transmission projects even if the lines do not serve the CCA’s own customers.
Because PUC orders are criminally enforceable, implementing actions under the bill could create a state-mandated local program, but the bill states the state need not reimburse local agencies for any resulting mandated costs.
Support
SB 894 Allen, D
Wildfire
resiliency:
financial
assistance.
09/29/2026 -
Approved by the
Governor. Chaptered
by Secretary of State.
Chapter 770, Statutes
of 2026.
This bill would create the California Wildfire Resilience Loan Program and require the California Alternative Energy and Advanced Transportation Financing Authority to administer it, if funded by the Legislature, to support projects that reduce wildfire risks and losses.
Support
SB 1138 Padilla, D
Load-serving
entities:
resource
adequacy
requirements.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/5/2026)
This bill would require the Public Utilities Commission to allow load-serving entities to meet up to 25 percent of their resource adequacy obligations through short-term transactions with other load-serving entities, subject to commission rules and possible suspension or adjustment.
Support
____
AB 706 Aguiar-Curry, D
Forest Organic
Residue,
Energy, and
Safety
Transformation
(FOREST) and
Wildfire
Prevention
Fund Act.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State -
Chapter 869, Statutes
of 2026.
The bill would create the FOREST program to use Timber
Fund or Greenhouse Gas Reduction Fund money, if
appropriated, to support biomass power generation and
wildfire risk reduction in California.
AB 710 Irwin, D
Electrical
corporations:
resiliency
planning:
microgrid
projects.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/3/2026)
The bill would require large electrical corporations to collaborate with local and tribal governments and community choice aggregators on resiliency planning and to provide needed grid data for that purpose, including information relevant to potential microgrid projects.
AB 1704 González, Mark, D
Greenhouse
gases:
embodied
carbon building
materials.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/10/2026)
The bill would require the State Air Resources Board to first determine whether lower-embodied-carbon building materials are cost effective during their first two years of use before implementing existing building-sector emissions requirements.
AB 1715 Schiavo, D Public utilities:
reporting.
09/20/2026 -
Approved by the
Governor. Chaptered
by Secretary of State -
Chapter 372, Statutes
of 2026.
This bill would require electrical and gas corporations to report quarterly on certain taxpayer funding of $1 million or more, disclose related funding when seeking ratepayer funding, and pass financial benefits from such funding on to ratepayers.
AB 1787 Schultz, D
Electrical
corporations:
rates: smart
meter
infrastructure:
dynamic rate
option.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/3/2026)
The bill would require the Public Utilities Commission to ensure that a large electrical corporation upgrading its smart meter infrastructure offers at least one dynamic rate option to eligible customers and makes time-varying distribution rates available on equal terms to bundled and unbundled customers in the same area.
Agenda Page 21
Measure Author Topic Status Summary Position
AB 1813 Ward, D
Electricity:
customer
renewable
energy
subscription
program.
09/30/2026 - Vetoed
by Governor.
The bill revises California’s customer renewable energy subscription program to expand low-income participation, set limits on generator size and total program capacity, and create a process for identifying load-modifying community renewable energy resources.
AB 1820 Schiavo, D
Electric vehicle
charging
stations: permit
fees.
09/20/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 348,
Statutes of 2026.
The bill would limit local permit fees for electric vehicle charging stations, capping them at estimated reasonable cost and setting specific maximums for certain Level 2 stations in multifamily housing, while allowing higher fees only with written findings and substantial evidence.
AB 1975 Schultz, D
Electrical
corporations:
distribution grid
utilization
metric.
05/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(8). (Last
location was APPR.
SUSPENSE FILE
on 5/13/2026)
The bill directs the Public Utilities Commission (PUC) which already regulates public utilities and sets just and reasonable rates—to develop by December 31, 2027 a methodology for a "distribution grid utilization" metric (a measure of how the electric distribution system is used). Under PUC rules, each large electrical corporation must regularly submit public reports with those metric calculations, and the PUC must set and update a utilization standard for each large utility that encourages, rather than discourages, electrification. The PUC may require utilities to adopt programs, rate designs, or financial
incentives/disincentives tied to meeting the standard.
AB 2065 Petrie-Norris, D
Rates:
prohibited cost
recovery.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 919,
Statutes of 2026.
The bill would require the Public Utilities Commission to find prohibited cost recovery when a regulated utility places certain nonrecoverable costs into approved financial accounts, and it would require disallowance of those costs and the imposition of financial penalties.
AB 2124 Pacheco, D
Electricity and
natural gas:
legislation
imposing
mandated
programs and
requirements:
third-party
review.
09/18/2026 - Vetoed
by Governor.
The bill would require the California Council on Science and Technology to create, if funded, a program by March 1, 2027 to analyze requested legislation affecting electric or gas utility ratepayers and to assess whether it would increase utility rates.
AB 2182 Irwin, D
Energy
efficiency:
financing
options: custom
agricultural and
industrial
efficiency
projects.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14).
(Last location was
APPR. SUSPENSE
FILE on 8/3/2026)
This bill would change how custom agricultural and industrial energy efficiency projects are reviewed and incentivized, replacing the Public Utilities Commission’s ex ante review process with revised rules in the next mid-cycle review.
AB 2234 Papan, D
California
Environmental
Quality Act:
geothermal
exploratory
projects.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 927,
Statutes of 2026.
The bill would expand the definition of a geothermal exploratory project under CEQA to include equipment and activities needed to establish interconnectivity between wells and reservoirs.
AB 2383 Zbur, D Electricity: data
centers.
09/21/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 435,
Statutes of 2026.
The bill would require electrical corporations to file separate transmission and distribution tariffs and generation tariffs for participating customers, and it would require community choice aggregators and electric service providers to adopt generation tariffs for data centers by January 1, 2028.
Agenda Page 22
Measure Author Topic Status Summary Position
AB 2463 Petrie-Norris, D
Public Utilities
Commission:
rates: cost of
capital
proceeding:
authorized
return on
equity.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 943,
Statutes of 2026.
This bill would require the Public Utilities Commission to provide a more detailed explanation when setting the authorized return on equity for electrical and gas corporations in cost of capital proceedings issued on or after December 31, 2030.
AB 2464 Wicks, D
Energy: firm
zero-carbon
resources.
07/01/2026 - Failed
Deadline pursuant to
Rule 61(b)(13). (Last
location was E. U., &
C. on 6/10/2026)
The bill requires the California Energy Commission, working with the Public Utilities Commission, to deliver to the Legislature by January 1, 2028 a statewide assessment of the role and necessity of firm zero-carbon resources for meeting the state’s clean-energy and reliability goals (including the 100% zero-carbon by 2045 policy). The report must evaluate potential technologies and integration strategies, provide procurement and planning recommendations to deploy and support firm zero-carbon resources, project current and future renewable and firm zero-carbon generation capacity, analyze reliability under varying system conditions, and estimate the cost and emissions implications.
AB 2493 Petrie-Norris, D
Electrical
corporations:
interconnection:
Public Utilities
Commission:
transmission
development
monitor.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 944,
Statutes of 2026.
This bill would require large electrical corporations and certain transmission owners to submit project schedules to a new transmission development monitor, which would be created within the Public Utilities Commission by October 1, 2027, and would oversee progress, compliance, and remedial actions for transmission and interconnection projects.
AB 2516 Petrie-Norris, D
California Grid
Manufacturing
Initiative.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/3/2026)
The bill would create the California Grid Manufacturing Initiative to reduce delays and costs for critical electricity grid components by promoting in-state manufacturing, joint
procurement, and state financial assistance.
AB 2612 Schultz, D
Building
standards:
qualified plug-in photovoltaic
systems.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/3/2026)
The bill would require the California Building Standards Commission to develop and adopt building energy standards that allow qualified plug-in photovoltaic systems to function as energy sources in the electrical circuits of certain newly constructed buildings.
AB 2647 Calderon, D
Energy: nuclear
powerplants:
assessment.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State
- Chapter 830,
Statutes of 2026.
The bill would require the Energy Commission to prepare, by January 1, 2028, a comprehensive assessment of advanced nuclear technologies and the potential for new in-state nuclear powerplants to support critical infrastructure and help meet California’s 100% clean electricity goal.
AB 2748 Quirk-Silva, D
Building
standards:
affordable
housing
developments:
electric vehicle
charging.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/3/2026)
The bill would require certain affordable housing developments with permit applications filed between January 1, 2025, and December 31, 2028, to include specified low-power Level 2 or higher electric vehicle charging receptacles, and it would repeal those requirements on January 1, 2030.
SB 222 Wiener, D
Residential heat
pump water
heater or heat
pump HVAC
systems.
09/28/2026 -
Approved by the
Governor. Chaptered
by Secretary of State.
Chapter 738, Statutes
of 2026.
This bill would expand state requirements for permitting, inspection, and installation of residential heat pump water heaters and heat pump HVAC systems, while also limiting local and association rules that block or restrict their use.
Agenda Page 23
Measure Author Topic Status Summary Position
SB 327 McNerney, D
Public utilities:
review of
accounts:
electrical and
gas
corporations:
rates: political
influence
activities.
09/27/2026 - Approved
by the Governor.
Chaptered by Secretary
of State. Chapter 645,
Statutes of 2026.
The bill would prohibit electrical and gas corporations from recovering ratepayer costs for activities opposing
municipalization of utility service and would expand the Public Advocate’s authority to obtain information and
review utility records.
SB 742 Pérez, D
Electricity:
electrical
infrastructure:
permanently
abandoned
transmission
facilities:
emergency
response:
liaisons.
09/29/2026 - Approved
by the Governor.
Chaptered by Secretary
of State. Chapter 769,
Statutes of 2026.
This bill would require the Public Utilities Commission to direct electrical corporations to remove permanently
abandoned transmission facilities and to include their
removal plans in wildfire mitigation plans, while also
creating new coordination duties with emergency response agencies for certain utilities.
SB 868 Wiener, D
Electricity:
portable solar
generation
devices.
23 Chaptered by
Secretary of State.
Chapter 985, Statutes of
2026.
The bill would temporarily exempt portable solar generation devices from many utility interconnection requirements
through January 1, 2030, while limiting what electrical corporations and local publicly owned utilities may require of customers using such devices.
SB 886 Padilla, D
California
Technology
Innovation and
Ratepayer
Protection Act.
09/21/2026 - Approved
by the Governor.
Chaptered by Secretary
of State. Chapter 438,
Statutes of 2026.
This bill would require the Public Utilities Commission to create or update electric tariffs and rules by January 1, 2028 for participating customers, with special provisions for data centers and transmission-level interconnection.
SB 904 Seyarto, R
Recovery from
a state of
emergency.
09/29/2026 - Approved
by the Governor.
Chaptered by Secretary
of State. Chapter 771,
Statutes of 2026.
This bill would require state housing and emergency
officials to review and recommend ways to speed wildfire recovery by suspending or revising permitting and building requirements, while also requiring electronic submission of recovery-related applications during future wildfire
emergencies.
SB 905 Becker, D Electricity.
09/30/2026 - Approved
by the Governor.
Chaptered by Secretary
of State. Chapter 986,
Statutes of 2026.
This bill would direct the Public Utilities Commission to evaluate ways to lower electrical utility costs, including reduced returns on equity for certain capital investments and alternative financing methods for distribution, generation, and transmission projects.
Agenda Page 24
Measure Author Topic Status Summary Position
SB 924 Hurtado, D
Low-income
energy
assistance.
07/01/2026 - Failed
Deadline pursuant to
Rule 61(b)(13). (Last
location was U. & E.
on 6/1/2026)
The bill amends existing law governing the Public Utilities Commission (PUC), which already can require electric and gas utilities to provide home weatherization for low-income customers when a significant need exists, by adding specific program design and oversight requirements. The PUC must consider cost-effectiveness at the program level and require utilities to prioritize integrated health, safety, and indoor air quality measures that enable whole-home improvements,
coordinate delivery across fuel and housing types, and allow tenant-level benefits for rental upgrades while preserving design flexibility. The PUC may also consider non-energy benefits when setting priorities, must ensure program costs do not create undue ratepayer burdens, and must require utilities to report measurable household affordability outcomes. The bill mandates meaningful public and stakeholder input and
alignment of diverse contracting requirements with submitted plans and guidelines, revises the statutory definition of “weatherization,” and notes that violating a PUC order remains a crime; it declares this a state-mandated local program but specifies no state reimbursement is required.
SB 943 Becker, D
Public utilities:
electricity:
retail
transmission
rates: industrial
transition
usage.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/5/2026)
The bill would expand Public Utilities Commission authority over electrical corporations by requiring approval of retail transmission rate terms, allowing adjustments to certain industrial surcharges to support electrification, and directing review of high-voltage transmission access charges.
SB 1158 Stern, D
Energy:
reliability
planning
assessment.
09/30/2026 -
Approved by the
Governor. Chaptered
by Secretary of State.
Chapter 1012,
Statutes of 2026.
The bill would expand the required contents of the joint Reliability Planning Assessment to include utility transmission upgrades, electrical grid infrastructure capacity, and PUC approvals for certain utility and independent projects.
SB 1233 Allen, D Public utilities:
rates.
08/14/2026 - Failed
Deadline pursuant to
Rule 61(b)(14). (Last
location was APPR.
SUSPENSE FILE on
8/5/2026)
This bill would require electrical and gas utilities seeking rate changes to provide specified information, and it would require the Public Utilities Commission to consider wildfire risk reduction efforts when approving electrical rate changes.
SB 1329 McNerney, D
Real property
tax: valuation:
active solar
energy system.
08/31/2026 - Failed
Deadline pursuant to
Rule 61(b)(17). (Last
location was APPR.
on 6/30/2026)
The bill would establish valuation rules for active solar energy systems for property tax purposes and would require assessors to exclude certain benefits, including renewable energy credits, when using the income method.
SB 1350 McNerney, D
Energy:
renewable
electrical
generation
facilities:
definition.
06/29/2026 -
Approved by the
Governor. Chaptered
by Secretary of State.
Chapter 35, Statutes
of 2026.
The bill expands California’s definition of a renewable electrical generation facility to include certain hydrogen-to-electricity turbine systems that use qualifying renewable hydrogen and meet specified restrictions.
Agenda Page 25
Staff Report – Agenda Item 3
To: Legislative & Regulatory Committee
From: CC Song, Senior Director, Regulatory Affairs
Reviewed by: Matthew Langer, Chief Operating Officer
Francis Choi, Assistant General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Power Charge Indifference Adjustment (PCIA) Reform Proceeding Update
Date: October 28, 2026
Staff will provide a presentation on the item.
ATTACHMENT
1. PCIA Reform Proceeding Update Presentation
Agenda Page 26
Power Charge Indifference Adjustment
(PCIA) Reform Proceeding Update
Legislative and Regulatory Committee
October 28, 2026
Agenda Page 27
Background and Summary
2 The PCIA and ERRA Reform proceeding was formally issued in February 2025 in response to several issues that IOUs and CCAs have raised across ERRA proceedings. The proceeding has both short-term and long-term impacts on the PCIA.
Track 1 of the proceeding was dedicated to addressing the volatility of the Resource Adequacy (RA) Market Price Benchmark (MPB). In June 2025, the Commission issued a decision that changed the calculation methodology for the MPB, which increased the PCIA.
In February 2026, the Commission began Track 2 to settle a dispute between the IOUs and CCAs over the valuation of pre-2019 banked Renewable Energy Credits (RECs). The decision, approved on September 17, 2026, values pre-2019 banked RECs at $0, resulting in a further increase to the PCIA.
In August, the Commission also issued a ruling to set the scope for 3 additional tracks (3A, 3B, and 4) in the PCIA proceeding, which could introduce further short-term and long-term changes to the PCIA.
Staff is presenting these updates to inform the Legislative and Regulatory Committee of the recent changes and possible changes to come. Staff may seek future assistance from Committee members in advocating on specific proposals that could have either positive or adverse impact on CPA customers.
Agenda Page 28
PCIA Refresher
The purpose of the PCIA is to recover “stranded costs” from unbundled customers by charging them the net costs of generation contracts procured on their behalf by the IOU when they were still bundled customers. This ensures that bundled customers are “indifferent.”
The current PCIA framework was determined by a 2018 CPUC decision, which adopted a Market Price Benchmarks (MPB) methodology to determine the IOUs’ PCIA portfolio value.
There are separate MPBs for brown power, RA, and renewable energy (RPS).
MPBs are updated every year based on market data to be utilized in the Energy Resource Recovery Account (ERRA) proceeding, which sets the PCIA each year.
Agenda Page 29
3 Market Price Trends
Market prices for RA, RPS, and brown power have continued trending downward since 2025
o Brown power and RA prices have fallen as more capacity, particularly battery storage, has come online in the last several years.
o Similarly, RPS prices have fallen as large quantities of new solar and wind have begun deliveries.
4 $0
$20
$40
$60
$80
$100
2020 2021 2022 2023 2024 2025 2026 2027
Forecast
$/MWh
Historical ERRA Market Price Benchmarks
Brown Power
RPS
System RA
Agenda Page 30
Rate Impact of Market Prices
Lower market prices decrease the value of the IOU’s PCIA portfolio, thus increasing the amount the IOU needs to collect from departed customers. Conversely, higher market prices increase the value of the, reducing the amount the IOU needs to collect from departed customers.
At the same time, lower market prices decrease generation costs and rates for bundled customers, while higher market prices increase IOU generation costs and rates for bundled customers As a result of market shifts over the last several years the PCIA has swung from positive (a bill charge) to negative (a bill credit) and back again for a majority of CPA customers 5 Note: Includes Competitive Transition Charge and Generation Municipal Surcharges. -4.0
-3.0
-2.0
-1.0
0.0 1.0
2.0 3.0
4.0 5.0
6.0 2020 2021 2022 2023 2024 2025 2026 2027
cents/kWh
SCE Residential PCIA
2018 Vintage
2023 Vintage
2025 Vintage
Charge
Credit
Agenda Page 31
The expected PCIA rate increase would cause CPA customer bills to go up starting in January 2027.
A decrease in the SCE generation rate would have no impact on CPA customer bills, though in combination with the PCIA rate increase, it would worsen CPA’s competitive position.
Future changes in PCIA proceedings and market dynamics in October and November could improve or worsen the PCIA situation.
In December, the Board will discuss an interim rate change in response to the increasing PCIA, as was forecasted would be necessary during the rate-setting process in Spring 2026
6 Customer Impact
Agenda Page 32
Administrative
and Legal
Challenges
Agenda Page 33
CalCCA Challenges to CPUC Actions
8 Over the last several years, the CalCCA has taken a number of actions to challenge CPUC actions related to the PCIA that it viewed as contrary to law or proper procedure.
CalCCA will continue to pursue these actions and potentially new ones as needed to protect our customers interests and enforce the law.
Recent actions include:
o Appealing CPUC’s action in court to apply PCIA rates retroactively to rates set in December 2024 using the new RA MPB methodology adopted in June 2025.
o Appealing CPUC’s action in court to subsidize IOU customers by valuing pre-2019 RECs at $0 in the ERRA Forecast decisions across all IOU territories in December 2025. o Requesting a rehearing from the CPUC on its September 2026 decision to value pre-2019 RECs at $0, which underestimates the compliance value of RECs that CCAs customers had paid for while they were still bundled customers. If the hearing request is denied, CalCCA will have the ability to challenge this decision in court.
Agenda Page 34
Upcoming PCIA
Rulemaking
Activities
Agenda Page 35
PCIA and ERRA Reform Proceeding
Track 3 Update
10 In August 2026, the Commission issued a ruling to set the scope for 3 additional tracks in the PCIA and ERRA Reform proceeding. These tracks are intended to introduce further short-term and long-term changes to the PCIA to mitigate rate volatility, ensure indifference between bundled and departed customers, and improve efficiency and consistency between IOUs’ ERRA applications.
Track 3A: Refine existing PCIA structures by considering changes to MPBs o Proposal submission, workshop, and comments will take place between Q1-Q2 2027, and a proposed decision is expected in Q3 2027.
Track 3B: Consider larger structural changes to the PCIA o A schedule will be released in Q4 2026. Proposal submission, workshop, and comments will take place between Q1-Q3 2027. A proposed decision could be expected in Q3-Q4 2027 or Q1 2028.
Track 4: Introduce further refinements
o The timing of this track will depend on the completion of Tracks 3A and 3B, likely beginning in late 2027 or early 2028.
Agenda Page 36
Track 3A Issues: Refinements to
Existing PCIA
11 The Commission will consider making adjustments to existing MPBs, including:
o RPS MPB: Consider the inclusion of long-term contracts, aligning it with the changes to the RA MPB, or other changes.
o Brown Power MPB: Consider changes to reduce rate volatility. o GHG-free MPB: Consider further development of GHG-free MPB methodology or modifying the GHG-free allocations. IOUs have thus far allocated their GHG-free resources for free, but as their needs for these resources increase after 2030, they will become more valuable, and their treatment could significantly impact the PCIA.
The Commission will also consider providing additional guidance on re-vintaging of existing resources under certain circumstances.
o Re-vintaging resources could occur when a contract expires and the IOU decides to renew/extend the contract, or when an upgrade or expansion occurs for a utility-owned generation resource. When a resource is re-vintaged, the resource is taken out from its original vintage and a new vintage is assigned. o This impacts the number of resources that departed customers are responsible for as a resource is dropped from the older vintage.
Agenda Page 37
Track 3B and Track 4 Issues
12 Track 3B would explore alternative PCIA structural frameworks and determine if the alternatives would improve upon the existing framework. The Commission may consider:
o Proposals that reduce excess or uneconomic PCIA resources. o Proposals that reduce PCIA volatility.
o Processes that alter the current PCIA/ERRA timeline to increase efficiency and transparency.
Track 4 would explore further refinements to the adopted PCIA framework after Track 3B:
o Changes to the RA resource valuation to account for Slice-of-Day changes in the RA program. o ERRA-related process refinement, including frequency of ERRA applications, trigger application reforms. o Other options to mitigate PCIA volatility.
Agenda Page 38
Summary and Next Steps
13 Staff is actively engaged in the 2027 ERRA Forecast proceeding.
Staff is working closely with CalCCA staff to refine proposals requested in Track 3A, including RPS and GHG-free MPBs, and re-vintaging of existing resources. Track 3B concepts are also being developed.
CalCCA may pursue additional legislative action in the 2027-28 session in support of its Track 3 agenda.
Staff may reach out in the future to request your assistance in advocacy on specific proposals, either regulatory or legislative, that could have either positive or adverse impact on CPA customers.
Agenda Page 39