Bill Commons

CA AB 2065

enacted

Rates: prohibited cost recovery.

California · 2025-2026 Regular Session · lower

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Quick answers

Did CA AB 2065 pass?

Yes. CA AB 2065 has been enacted into law. Latest recorded action (2026-09-30): Chaptered by Secretary of State - Chapter 919, Statutes of 2026.

What is CA AB 2065 about?

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, gas corporations, water corporations, and sewer system corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law prohibits a utility from recording to an above-the-line account, as defined, or otherwise recovering from ratepayers specified costs. This bill would require the commission to find that an electrical corporation, gas corporation, water corporation, or sewer system corporation has engaged in prohibited cost recovery if the corporation records a cost to a regulator-approved financial account and the cost is categorically excluded from ratepayer recovery by statute, commission decision, or commission rule or has already been authorized for recovery through another ratemaking mechanism. The bill would require the commission, upon making a determination that such a corporation has recorded prohibited costs to a ratepayer-funded account in violation of commission rule, tariff, or statute, to disallow recovery of the cost from ratepayers and to impose a financial penalty for prohibited cost recovery equal to the amount of the prohibited cost recovery or 3 times that amount, except as specified. The bill would require each such corporation to submit an annual report to the commission identifying all instances in the prior year in which prohibited cost recovery was identified, the actions that were taken in response to the identification, and any actions that were taken by the corporation to prevent future occurrences. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Who sponsors CA AB 2065?

Petrie-Norris is the primary sponsor of CA AB 2065, joined by 4 cosponsors.

Description

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, gas corporations, water corporations, and sewer system corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law prohibits a utility from recording to an above-the-line account, as defined, or otherwise recovering from ratepayers specified costs. This bill would require the commission to find that an electrical corporation, gas corporation, water corporation, or sewer system corporation has engaged in prohibited cost recovery if the corporation records a cost to a regulator-approved financial account and the cost is categorically excluded from ratepayer recovery by statute, commission decision, or commission rule or has already been authorized for recovery through another ratemaking mechanism. The bill would require the commission, upon making a determination that such a corporation has recorded prohibited costs to a ratepayer-funded account in violation of commission rule, tariff, or statute, to disallow recovery of the cost from ratepayers and to impose a financial penalty for prohibited cost recovery equal to the amount of the prohibited cost recovery or 3 times that amount, except as specified. The bill would require each such corporation to submit an annual report to the commission identifying all instances in the prior year in which prohibited cost recovery was identified, the actions that were taken in response to the identification, and any actions that were taken by the corporation to prevent future occurrences. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Introduced
2026-06-09
Latest action
2026-09-30 — Chaptered by Secretary of State - Chapter 919, Statutes of 2026.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Petrie-Norrisauthor
  • Bermancoauthor
  • Harabediancoauthor
  • McNerneycoauthor
  • Rubiocoauthor

Committees

Not provided by source.

Action timeline

Newest first

  1. 2026-09-30

    Chaptered by Secretary of State - Chapter 919, Statutes of 2026.

    became-law

  2. 2026-09-30

    Approved by the Governor.

    executive-signature

  3. 2026-09-15

    Enrolled and presented to the Governor at 3 p.m.

    executive-receipt

  4. 2026-08-31

    Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 8.).

    passage,reading-1,reading-3

  5. 2026-08-31

    Senate amendments concurred in. To Engrossing and Enrolling.

    amendment-passage,committee-passage,committee-passage-favorable

  6. 2026-08-31

    In Assembly. Concurrence in Senate amendments pending.

  7. 2026-08-31

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 11.).

    amendment-passage,committee-passage,committee-passage-favorable

  8. 2026-08-31

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 11. Page 7006.).

    amendment-passage,committee-passage,committee-passage-favorable

  9. 2026-08-27

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  10. 2026-08-26

    Read third time and amended. Ordered to second reading.

    amendment-passage,reading-1,reading-2,reading-3

  11. 2026-08-11

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  12. 2026-08-10

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

    committee-passage,reading-1,reading-2

  13. 2026-07-29

    In committee: Hearing postponed by committee.

  14. 2026-06-30

    Read second time and amended. Re-referred to Com. on APPR.

    amendment-passage,reading-1,reading-2,referral-committee

  15. 2026-06-29

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 2.) (June 24).

    amendment-introduction,amendment-passage,committee-passage,referral-committee

  16. 2026-06-09

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U & C.

    amendment-introduction,amendment-passage,committee-passage,reading-1,reading-2,referral-committee

  17. 2026-06-03

    Referred to Com. on E., U & C.

    referral-committee

  18. 2026-05-21

    In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1,referral-committee

  19. 2026-05-21

    Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 0. Page 5229.)

    passage,reading-1,reading-3

  20. 2026-05-14

    Read second time. Ordered to Consent Calendar.

    reading-1,reading-2

  21. 2026-05-13

    From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 13).

    committee-passage,committee-passage-favorable

  22. 2026-04-23

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 22). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  23. 2026-03-09

    Referred to Com. on U. & E.

    referral-committee

  24. 2026-02-19

    From printer. May be heard in committee March 21.

  25. 2026-02-18

    Read first time. To print.

    reading-1

Versions

  • 02/18/26 - Introduced — 2026-02-18Compare
  • 06/09/26 - Amended Senate — 2026-06-09Compare
  • 06/30/26 - Amended Senate — 2026-06-30Compare
  • 08/26/26 - Amended Senate — 2026-08-26Compare
  • 09/04/26 - Enrolled — 2026-09-04Compare
  • 09/30/26 - Chaptered — 2026-09-30Compare
  • (document, no version)Compare
  • AB2065Compare

Documents

Votes

  • Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar

    2026-04-22 · pass · 18-0

    Member-level votes (18)
    • Boerner: yes
    • Kalra: yes
    • Calderon: yes
    • Davies: yes
    • Hart: yes
    • Irwin: yes
    • Ta: yes
    • Schiavo: yes
    • Chen: yes
    • Papan: yes
    • Rogers: yes
    • Wallis: yes
    • Zbur: yes
    • Patterson: yes
    • Harabedian: yes
    • Schultz: yes
    • Mark González: yes
    • Petrie-Norris: yes
  • Do pass. To Consent Calendar.

    2026-05-13 · pass · 15-0

    Member-level votes (15)
    • Pacheco: yes
    • Krell: yes
    • Mark González: yes
    • Ellis: yes
    • Sharp-Collins: yes
    • Hoover: yes
    • Tangipa: yes
    • Wicks: yes
    • Bauer-Kahan: yes
    • Ta: yes
    • Caloza: yes
    • Calderon: yes
    • Fong: yes
    • Solache: yes
    • Pellerin: yes
  • AB 2065 Petrie-Norris Consent Calendar Second Day

    2026-05-21 · pass · 68-0

    Member-level votes (80)
    • Ta: yes
    • Stefani: yes
    • Mark González: yes
    • Soria: yes
    • Dixon: yes
    • Ortega: yes
    • Sharp-Collins: yes
    • Ávila Farías: yes
    • Berman: yes
    • Schiavo: yes
    • Rogers: yes
    • Papan: yes
    • Petrie-Norris: yes
    • Caloza: yes
    • Ahrens: yes
    • Ellis: yes
    • Haney: yes
    • Solache: yes
    • Nguyen: yes
    • Patel: yes
    • Tangipa: yes
    • Bonta: yes
    • Aguiar-Curry: yes
    • Calderon: yes
    • Patterson: yes
    • Quirk-Silva: yes
    • Kalra: yes
    • Davies: yes
    • Lee: yes
    • Wallis: yes
    • Alanis: yes
    • Michelle Rodriguez: yes
    • Boerner: yes
    • Krell: yes
    • Ransom: yes
    • Bryan: yes
    • Castillo: yes
    • Rivas: yes
    • Pacheco: yes
    • Bains: yes
    • Harabedian: yes
    • Zbur: yes
    • Valencia: yes
    • Carrillo: yes
    • Fong: yes
    • Addis: yes
    • Connolly: yes
    • Gipson: yes
    • Elhawary: yes
    • Pellerin: yes
    • Ward: yes
    • Jeff Gonzalez: yes
    • McKinnor: yes
    • Hadwick: yes
    • Bennett: yes
    • Hart: yes
    • DeMaio: yes
    • Gallagher: yes
    • Jackson: yes
    • Johnson: yes
    • Flora: yes
    • Macedo: yes
    • Muratsuchi: yes
    • Blanca Rubio: yes
    • Sanchez: yes
    • Irwin: yes
    • Alvarez: yes
    • Bauer-Kahan: yes
    • Celeste Rodriguez: other
    • Lowenthal: other
    • Ramos: other
    • Wilson: other
    • Wicks: other
    • Garcia: other
    • Lackey: other
    • Arambula: other
    • Schultz: other
    • Hoover: other
    • Gabriel: other
    • Chen: other
  • Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

    2026-06-24 · pass · 14-2

    Member-level votes (17)
    • Becker: yes
    • Arreguín: yes
    • Gonzalez: yes
    • Reyes: yes
    • Stern: yes
    • Caballero: yes
    • Archuleta: yes
    • Wahab: yes
    • Richardson: yes
    • Dahle: yes
    • Rubio: yes
    • McNerney: yes
    • Allen: yes
    • Hurtado: yes
    • Strickland: no
    • Ochoa Bogh: no
    • Grove: other

Related bills

No related bills recorded for this bill.

Official source

Attribution

Data from openstates_api_sync, retrieved 2026-10-01T18:16:37.777218Z

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