Larry Klein
Mayor
Richard Mehlinger
Vice Mayor
Alysa Cisneros
Councilmember
Murali Srinivasan
Councilmember
Linda Sell
Councilmember
Charlsie Chang
Councilmember
Eileen Le
Councilmember
August 27, 2026
T
he Honorable Gavin Newsom
Governor, State of California
1021 O Street, Suite 9000
Sacramento, CA 95814
R
E: AB 1761 (Rogers): Improving Energy Bill Transparency – REQUEST FOR
SIGNATURE
D
ear Governor Newsom:
O
n behalf of the City of Sunnyvale, we respectfully request your signature on AB 1761, which would improve transparency in how the Power Charge Indifference Adjustment (PCIA) is calculated and help ensure that California energy customers pay their fair share, and not more. The PCIA is a charge assessed on customers that receive generation service from entities other than investor -owned utilities, including customers served by Community Choice Aggregators (CCAs). Even though CCAs and their customers pay the PCIA, customers have not consistently had access to the data or the methodologies used to establish the charges they pay.
E
nergy affordability is an increasingly important concern for California families and businesses. When accounting for the cost of living, California has the highest poverty rate in the nation, with approximately 7 million Californians living in poverty. At a time when so many households are struggling to make ends meet, increases in the cost of essential services such as electricity can place significant additional economic pressure on families.
T
his concern is particularly important because Californians already use less energy than residents of virtually every other state. According to 2024 U.S. Energy Information Administration data, California ranks 50th among the states in residential energy consumption per capita, at just 29.1 million Btu, compared with the national average of
54.2 million Btu. California also ranks 49th in total energy consumption per capita, at 174.2 million Btu compared with a national average of 278.1 million Btu. Yet, whi le Californians are among the nation's most energy- efficient consumers, California households continue to face some of the highest electricity costs in the country. Industry Attachment 4
The Honorable Gavin Newsom, Governor
August 27, 2026
estimates cited in California Energy Commission proceedings have placed average household electricity costs at approximately $1,700 annually 1 , underscoring the importance of ensuring that customers understand how the charges on their electricity bills are calculated.
This lack of transparency can have real consequences for ratepayers. The absence of consistent disclosure requirements and variations in charges to the lack of disclosure has resulted in disputes between CCAs and investor -owned utilities over access to data and financial errors that followed. Mistakes in utility calculations due to incorrect assumptions made without access to correct data have resulted in substantial additional costs for CCA customers, including $73 million in errors identified in a 2019 PG &E proceeding and a more recent accounting error that may have cost CCA customers $217 million.
Greater transparency will allow CCAs and other stakeholders to better understand proposed regulatory changes, evaluate their impacts on ratepayers, and provide more meaningful input into CPUC proceedings. It can also improve the accuracy and stability of rate forecasts, reduce unnecessary disputes over information, and encourage greater scrutiny of PCIA calculations.
This issue is particularly relevant to Sunnyvale. Silicon Valley Clean Energy (SVCE), the community -owned electricity provider serving Sunnyvale and other communities throughout Santa Clara County, has emphasized the importance of transparency in PCIA proceedings. SVCE has noted that access to the data underlying CPUC proposals is necessary for stakeholders to understand potential ratepayer impacts and provide informed feedback that can lead to better regulatory outcomes.
The City’s support for AB 1761 is also consistent with existing City policy. Council Policy 7.4.14, Environmental Management, Section 3.5.1 (Energy), which supports efforts to provide affordable, reliable, diverse, safe, and environmentally acceptable power to Sunnyvale residents and businesses. In addition, the City’s Long- Term Advocacy Positions on Energy support SVCE in developing policies and programs that promote fair energy distribution and pricing and increa sed electrical grid reliability, as well as legislation that improves Pacific Gas & Electric Company fiscal and customer
1 Southern California Gas Company, Technical Comments on AB 3232, California Energy Commission, Oct. 9, 2020, TN 235199.
Attachment 4
The Honorable Gavin Newsom, Governor
August 27, 2026
bill transparency, fair rate design and affordability, and local accountability. AB 1761 advances these longstanding City priorities by increasing transparency and accountability in energy charges and helping to ensure that ratepayers are charged fairly and accurately.
California's families and businesses should not be asked to bear unnecessary or improperly calculated energy costs, particularly when many are already struggling with the state's high cost of living. AB 1761 is a practical, consumer-focused measure that will strengthen accountability, improve regulatory efficiency, and help protect ratepayers from unexpected costs.
For these reasons, the City of Sunnyvale respectfully urges you to sign AB 1761 into law. Please do not hesitate to contact me or Ramana Chinnakotla, Director of Environmental Services, at [email protected] if you have any questions.
Sincerely,
Larry Klein
Mayor
cc: Senator Dr. Aisha Wahab
Assembly Member Patrick Ahrens
City Council
Tim Kirby, City Manager
Sarah Johnson-Rios, Assistant City Manager
Ramana Chinnakotla, Director of Environmental Services
Bena Chang, SVCE, Director of Government and Legislative Affairs
Attachment 4