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AB 1295

Public utilities: bills and notices: consolidation and transparency.

2025-2026 Regular Session Introduced by Joe Patterson

Requires utilities to display quarterly on-bill state-related costs (statutes, regs, CPUC programs) and tasks CPUC to consolidate notices and improve billing transparency by 2026.

In committee: Held under submission.
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Bill Summary · AB 1295

AB 1295 — Public utilities: bills and notices: consolidation and transparency

Author: Patterson | Introduced: Feb 21, 2025 | Status: In committee — Held under submission (as of May 23, 2025)

Purpose / Intent

AB 1295 aims to increase transparency in electric and gas customer billing by (1) requiring utilities to disclose costs attributable to state requirements or programs directly on customer bills, and (2) directing the California Public Utilities Commission (CPUC) to evaluate existing billing and notice requirements and identify ways to consolidate notices and improve how charges are presented to customers.

Key provisions

  • Adds Public Utilities Code Section 739.14:
    • Requires each public utility to provide customers information on additional costs attributable to state requirements or programs (including those imposed by statute, regulation, the CPUC, or the State Energy Resources Conservation and Development Commission/Energy Commission).
    • Requires this information to be provided quarterly on the customer billing statement in a visible area and in a similar size and font as other billing information.
  • Adds Public Utilities Code Section 739.17:
    • Requires the CPUC, by June 1, 2026, to:
    • Evaluate all customer billing and noticing requirements existing on January 1, 2026, that apply to gas or electric utilities.
    • Identify and consider potential avenues to consolidate notices and enhance billing transparency — for example, clearly showing the source and value of each charge (commodities, taxes, public purpose programs, community choice aggregator charges) and using cost‑effective communications channels (email, online portal, mobile app).
    • Authorizes the CPUC to seek input from utilities and other stakeholders to inform the evaluation.

Who is affected

  • Electrical corporations and gas corporations (and other public utilities subject to CPUC jurisdiction) — changes to bill layout, communications, and potentially IT systems.
  • Customers (residential/commercial) — will receive clearer, quarterly disclosure of state‑related costs and may see consolidated notices or alternative communications channels.
  • CPUC and regulated utilities — responsible for implementing the evaluation and any resulting orders or guidance.

Compliance, legal, and fiscal notes

  • Failure to comply with the Public Utilities Act or a CPUC order can constitute a crime; because obligations would be codified in the Public Utilities Code and enforced via CPUC action, the measure is treated as creating/expanding a state‑mandated local program for criminal enforcement purposes.
  • The bill states no state reimbursement is required under Article XIII B (it asserts costs, if any, arise from criminal law changes).
  • No appropriation is included. The bill was referred to Assembly Appropriations (suspense file) and has a fiscal committee referral.

Legislative status / timeline highlights

  • Introduced Feb 21, 2025; multiple committee referrals and amendments in April–May 2025.
  • April 30, 2025: Do pass and re‑refer to Appropriations (Ayes 18, Noes 0).
  • May 23, 2025: Held under submission in committee.

Potential impacts (practical)

  • Improved customer understanding of how state programs and requirements affect utility bills.
  • Administrative and implementation costs for utilities to add quarterly disclosures and potentially modernize communications channels.
  • Possible consolidation or simplification of multiple mandatory notices for customers if CPUC adopts recommended changes.

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

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