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SB 636

Electrical or gas corporations: deferment of payments: hardship.

2025-2026 Regular Session Introduced by Caroline Menjivar

SB 636 allows California utility customers in financial hardship to defer electricity and gas bills without penalties or service disconnection through a PUC-administered program.

May 23 hearing: Held in committee and under submission.
#electricalorgascorporations #defermentofpayments #hardship
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Bill Summary · SB 636

Legislative bill overview

SB 636 allows California electrical and gas utility customers experiencing financial hardship to defer bill payments without penalty or service disconnection. The bill establishes a framework for temporary payment deferment programs administered by the state's Public Utilities Commission for residential and small commercial customers.

Why is this important

Utility shutoffs disproportionately affect low-income households and can create serious health and safety risks, particularly during extreme weather. This legislation addresses a gap in consumer protections by providing a structured alternative to disconnection during periods of financial difficulty, potentially affecting millions of Californians who struggle with energy costs.

Potential points of contention

  • Cost allocation: Utilities may argue that deferred payments create revenue uncertainty and could increase rates for other customers or require regulatory rate adjustments
  • Implementation complexity: Determining eligibility for hardship status, managing accumulated debt, and ensuring program sustainability raise administrative questions
  • Debt resolution: The bill doesn't specify how deferred amounts are ultimately collected, potentially leaving customers with large accumulated balances that become unmanageable
  • Industry opposition: Utility companies typically resist payment deferment programs as they affect cash flow and receivables forecasting

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

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