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AB 1167

Electrical corporations and gas corporations: rate recovery: political activities and promotional advertising.

2025-2026 Regular Session Introduced by Dawn Addis and 9 co-sponsors

California law prohibits utilities from charging customers for political activities and promotional advertising, requiring these costs be paid from shareholder profits instead.

Chaptered by Secretary of State - Chapter 634, Statutes of 2025.
#electricalcorporationsandgascorporations #politicalactivitiesandpromotionaladvertising #raterecovery
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WeVote Research Nonpartisan
Bill Summary · AB 1167

Legislative bill overview

AB 1167 prohibits electrical and gas corporations in California from recovering costs related to political activities and promotional advertising through customer rates. The bill restricts what utilities can pass on to ratepayers, requiring these expenses to be paid from shareholder profits rather than customer bills.

Why is this important

Utilities traditionally recover most operational costs—including lobbying, political contributions, and marketing—through rate-setting mechanisms approved by regulators. This bill directly affects how much customers pay and where corporate funds are allocated, potentially reducing utility influence in politics while increasing shareholder pressure to justify these expenditures.

Potential points of contention

  • Utility operations impact: Utilities argue these activities (including safety campaigns and community outreach) are legitimate operational costs; restricting recovery could reduce funding for public communications or force difficult budget choices
  • Rate-setting complexity: Regulators must now distinguish between recoverable and non-recoverable costs, creating administrative burden and potential disputes over what constitutes "promotional" versus informational advertising
  • Political motivation: Critics view this as targeting utilities' ability to advocate on policy issues, while supporters see it as preventing ratepayers from funding corporate political agendas they may oppose

Compiled from official sources — confirm details with the bill’s official record.

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