The Overview

When California’s big power and gas companies land government grants or low-cost public loans, a new state law says the savings must go to the customers who pay the bills. Gov. Gavin Newsom (D) signed Assembly Bill 1715 on Sunday, Sept. 20, and it takes effect Friday, Jan. 1, 2027. ​

The law covers investor-owned utilities such as Pacific Gas and Electric (PG&E), which announced a $15 billion federal Energy Department loan in December 2024. PG&E estimated the loan would save customers about $1 billion over its life, according to a state Senate committee analysis.

What the Law Does

Utilities must list every taxpayer grant or loan of $1 million or more they have applied for or received in the quarterly reports they already file with the California Public Utilities Commission (CPUC), the state agency that sets utility rates. When a utility asks the commission to let it charge customers for a project, it must also disclose any taxpayer money it is chasing or has already secured.

The CPUC must then make each utility pass the financial benefits of that money on to its customers, and it can penalize a utility that skips the required reports. Starting Saturday, Jan. 1, 2028, the commission must tell the Legislature each year how many grants and loans each utility got, where they came from, how much they were worth, what they paid for and how much customers saved. The rules expire Jan. 1, 2037.

Legislative Status

Assemblymember Pilar Schiavo (D-Chatsworth) wrote the bill, and The Utility Reform Network, a consumer advocacy group, sponsored it. Schiavo argued that rates will keep climbing to pay for wildfire safety and grid upgrades, and that cheaper public financing only helps if the savings reach ratepayers.

The Assembly passed the bill 67-8 on May 26 and the Senate passed it 33-5 on Aug. 28. The Assembly agreed to the Senate’s changes 66-9 on Aug. 30, according to the FastDemocracy vote record.

The Coalition of California Utility Employees opposed the bill, arguing its penalty is undefined and could hit utilities even for funding they never received. The union also called the original requirement to promptly pass along savings unrealistic. San Diego Gas & Electric and Southern California Gas Co. opposed an earlier version, saying quarterly forecasts of grants that often change would be hard to produce accurately.

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