Electricity: ratepayer-funded programs: reports.

Senator Dahle's proposal to mandate comprehensive reviews of California's electrical ratepayer-funded programs responds to findings that the state's residential electricity rates have risen 47% between 2019 and 2023, nearly triple the rate of inflation. The legislation requires both the State Energy Resources Conservation and Development Commission and the Public Utilities Commission to submit detailed reports to the Legislature by July 1, 2025, examining programs under their oversight.

These reports must analyze whether existing ratepayer-funded initiatives provide benefits that justify their costs and identify any programs unnecessarily increasing electricity rates. The commissions must recommend statutory or regulatory changes, including potential modification or elimination of underperforming programs. The legislation also directs the commissions to evaluate whether certain programs could be funded through alternative sources and assess opportunities to return unused ratepayer funds through bill credits.

The bill's findings note that California maintains the second-highest residential electricity rates nationwide after Hawaii, with rates approximately double the national average. These mandated reviews align with Governor Newsom's Executive Order N-5-24, which directed both commissions to examine ratepayer-funded programs and report findings to the executive branch. The legislative requirements would remain in effect until July 2029, with full repeal scheduled for January 2030.