Last Updated on March 15, 2026 by The HD Post Staff
CALIFORNIA – Assemblymember Tasha Boerner (D-San Diego) introduced two bills targeting rising electricity costs in California: utility profits and accountability for wildfire mitigation spending.
A 2021 audit of San Diego Gas & Electric’s wildfire mitigation spending found problems verifying some expenditures. Auditors said the utility could not clearly account for about $240 million in authorized spending for 2019–2020.
Advocates say the California Public Utilities Commission later allowed those costs to remain in electricity rates without reconciling the questioned funds.
Boerner said the bills aim to address electricity costs and improve accountability for utility spending.
“Investor-owned utilities in California are granted among the highest returns on investments anywhere in America and, not surprisingly, Californians are paying some of the highest utility rates in the nation,” said Boerner.
New bill would allow cap at 4% above Treasury bond rate
AB 1677 limits how much investor-owned utilities can profit from investments set by the Public Utilities Commission in a cost-of-capital proceeding.
California utilities have been allowed to earn about a 10% return despite much lower average capital costs. AB 1677 would cap profits at 4% above the long-term Treasury bond rate, about 4.7%.
According to Boerner, if AB 1677 were law today, utility profits would be capped at 8.7%, saving ratepayers billions annually.
In December 2025, the commission voted 4–1 to keep utility profit margins near 10%.
Authorized returns are now 9.98% for PG&E, down from 10.28%; 9.93% for San Diego Gas & Electric, down from 10.23%; 9.78% for Southern California Gas, down from 10.08%; and 10.03% for Southern California Edison, down from 10.33%.
AB 1774 requires independent audits of utility wildfire mitigation spending before new funds can be approved through rate hikes.
Returns meant to help attract capital
The California Public Utilities Commission said the authorized returns are meant to balance investor risk with customer protection.
The returns are also intended to help utilities attract capital for infrastructure and wildfire prevention projects.
 introduced two bills targeting rising electricity costs in California: utility profits and accountability for wildfire mitigation spending.){kind=link}