California AB1677 regulates public utility rates by limiting return on equity for electrical and gas corporations.

California AB1677 adds provisions to the Public Utilities Code to regulate the return on equity for electrical and gas corporations. The bill mandates that the Public Utilities Commission require a study on the relationship between capital structure and return on equity, ensuring it is optimized from the ratepayer perspective. It also limits the return on equity to not exceed the rate on long-term federal debt by more than 400 basis points. The legislation aims to prevent excessive profits that could lead to higher rates for consumers.

California AB1677 regulates public utility rates by limiting return on equity for electrical and gas corporations.

California AB1677 adds provisions to the Public Utilities Code to regulate the return on equity for electrical and gas corporations. The bill mandates that the Public Utilities Commission require a study on the relationship between capital structure and return on equity, ensuring it is optimized from the ratepayer perspective. It also limits the return on equity to not exceed the rate on long-term federal debt by more than 400 basis points. The legislation aims to prevent excessive profits that could lead to higher rates for consumers.