Electrical corporations: rates.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. This bill would prohibit an electrical corporation from proposing a rate increase above the rate of inflation, as specified, except with the approval of the commission. The bill would authorize the commission to approve a rate increase above the rate of inflation if the commission determines that those costs are directly related to safety enhancements and modernization, or higher commodity or fuel costs. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the above-described requirements would be a part of the act, and because a violation of an action of the commission implementing the above-described prohibition would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.