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Bill Would Require Dynamic Utility Rate Tariffs For Large C&I Customers
AB1117 was reported with amendments from Senate Energy, Utilities, and Communications Committee, and given second reading in the Senate, amended, and re-referred to Energy, Utilities, and Communications Committee.
Subsequently on July 17, 2025, the bill was reported favorably with amendments from Senate Energy, Utilities, and Communications Committee, given second reading in the Senate, amended, and re-referred to Senate Appropriations Committee.
As amended, the bill would require CPUC to develop optional dynamic rate tariffs for the large electric utilities, by July 1, 2028, for each customer segment of medium and large C&I customers and by July 1, 2030, for residential and small C&I customers. Each tariff must include transmission, distribution, and generation rates that reflect dynamic grid constraints and standard nonbypassable charges and other costs associated with legacy generation investments. The tariffs must be available to both bundled and unbundled customers, with returns or costs of over/under collection of revenues from either redounding to that group. CPUC must ensure LSE’s provide adequate bill comparison information for customers to assess potential price risks and that dynamic pricing tariff customers have real-time access to their electricity usage data directly from their smart meters.
