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AB 2266

Electricity: load-serving entities.

2025-2026 Regular Session Introduced by Nick Schultz

AB 2266 mandates a uniform capacity valuation for reliability, consolidates LSE reporting/planning where feasible, and requires annual ISO backstop procurement explanations to impr

Read second time and amended. Re-referred to Com. on APPR.
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WeVote Research Nonpartisan
Bill Summary · AB 2266

Summary of AB 2266 (2025-2026) – Electricity: Load-Serving Entities

Purpose and intent

AB 2266 seeks to modify how California oversees load-serving entities (LSEs) and the assessment of resource adequacy and procurement. The bill aims to standardize capacity valuation for reliability assessments, streamline and consolidate compliance reporting and planning processes, and enhance transparency around backstop procurement decisions made by the Independent System Operator (ISO). Overall, it intends to improve reliability planning, reporting consistency, and accountability for LSEs and grid operators.

Key provisions and changes

  • Uniform capacity valuation for reliability assessments (effective January 1, 2030)

    • When the California Public Utilities Commission (CPUC) sets resource adequacy and procurement obligations for LSEs (which include electrical corporations, electric service providers, and community choice aggregators), it must use the same capacity valuation method to assess the reliability contribution of each resource type.
    • The method is defined within the bill or as specified by the CPUC and applies to evaluating how different resources contribute to reliability.

  • Consolidation of compliance reporting and procurement planning (deadline: on or before January 1, 2030)

    • The CPUC must initiate a process to consolidate certain compliance reporting for plans submitted by LSEs into a single procurement plan, where feasible.
    • When feasible, the CPUC should consolidate certain compliance reporting related to reliability requirements.

  • Backstop procurement reporting (ISO-related)

    • If the Independent System Operator (ISO) exercises its backstop procurement authority to ensure sufficient resources to operate the grid, the CPUC must include in a specified annual report an explanation of why the backstop procurement was necessary. This provides transparency about the drivers behind backstop actions.

  • Legal and enforcement context

    • The bill notes that violations of the Public Utilities Act or any order, rule, or requirement of the CPUC would be crimes, and as a part of this act, the bill could impose a state-mandated local program. It also addresses state reimbursement requirements for mandated costs.

Who/what would be affected

  • Public Utilities Commission (CPUC):

    • Must adopt a uniform capacity valuation method for reliability assessments starting in 2030.
    • Must oversee and implement consolidation of compliance reporting and procurement planning where feasible.
    • Must report on backstop procurement explanations in an annual ISO-related report.

  • Load-Serving Entities (LSEs):

    • Electrical corporations, electric service providers, and community choice aggregators subject to CPUC resource adequacy and procurement obligations would be affected by the new valuation method and the potential consolidation of reporting and planning processes.

  • Independent System Operator (ISO):

    • While the ISO remains the non-profit operator of the grid, its use of backstop procurement and related reporting would trigger additional CPUC reporting requirements to explain the necessity of backstop actions.

Procedural and timeline aspects

  • Effective date for core changes: January 1, 2030

    • The CPUC must implement the uniform capacity valuation method for reliability contributions starting from this date.

  • Consolidation process deadline: On or before January 1, 2030

    • The CPUC is required to initiate and complete, where feasible, the consolidation of certain compliance reporting into a single procurement plan and related reliability reporting.

  • Legislative status and actions:

    • The bill has progressed through multiple committee readings, amendments, and has been read in both houses with amendments as of June 2026. The latest noted status indicates re-referral to the Assembly Appropriations Committee for further consideration.

Notable details

  • The bill explicitly ties certain violations to criminal consequences under the Public Utilities Act and notes potential local cost mandates, with reimbursement provisions described by statute.
  • Co-sponsor: Nick Schultz

Potential impacts to watch

  • The transition to a single, uniform capacity valuation method could affect how resources (e.g., solar, wind, storage, demand response) are valued for reliability and procurement decisions.
  • Consolidated reporting may reduce administrative burdens for LSEs while increasing CPUC oversight efficiency.
  • Annual backstop procurement explanations could improve accountability and transparency regarding grid reliability actions, particularly during resource shortages or extreme conditions.

If you’d like, I can provide a section-by-section mapping of the bill’s language to these summary points or compare AB 2266’s changes to current law for deeper context.

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

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