An act to add Section 762.6 to the Public Utilities Code, relating to electricity.
AB 1975 would require the California Public Utilities Commission (PUC) to create a methodology for a new “distribution grid utilization metric” that measures how much electrical load is being carried relative to rated distribution capacity. By December 31, 2027, the PUC would have to develop this methodology, and large electrical corporations would then be required to report quarterly, in a publicly available format, their utilization results for distribution circuits, substations, and their service territories. The bill also directs the PUC to establish and periodically update minimum utilization standards for each large electrical corporation, with the goal of increasing utilization over time.
The bill further authorizes the PUC to require utilities to propose grid utilization programs by July 31, 2028, and to adopt programs, rate designs, or other incentives that encourage better use of existing distribution infrastructure. It also allows the PUC to create performance-based incentives or disincentives tied to meeting the utilization standard, so long as they are cost-effective and provide a net benefit to retail customers. The bill’s stated policy goal is to reduce the need for costly distribution system expansion, improve energy affordability, and support electrification without compromising safety or reliability.
AB 1975 would add Section 762.6 to the Public Utilities Code and expand the PUC’s oversight of electrical corporations by creating a new reporting and planning framework focused on distribution grid utilization. It would affect large electrical corporations by imposing quarterly reporting obligations, requiring them to develop utilization programs, and exposing them to potential performance-based incentives or disincentives. The bill also creates a state-mandated local program because violations of PUC requirements can be treated as crimes under existing law, though the bill states no reimbursement is required.
The available vote history suggests broad committee support at the first policy stage: the bill passed the April 22, 2026 committee vote 16-0. However, the bill was later held under submission in committee on April 27, 2026, indicating that while the concept appears generally favorable, it may have raised fiscal, technical, or implementation concerns that prevented it from advancing immediately. No committee transcript was provided, so the record shows support but not detailed debate.
The main areas of potential contention are implementation and regulatory design. The bill requires the PUC to define the metric, geographic scope, time periods, and standards, which leaves significant discretion to the commission and could be debated by utilities, regulators, and consumer advocates. Another likely point of dispute is whether utilization targets and incentives could unintentionally affect reliability, customer rates, or electrification goals, since the bill requires the PUC to ensure the standard does not inhibit electrification and only approve cost-effective programs with net customer benefits. Utilities may also be concerned about the reporting burden and the possibility of penalties or mandated program changes.