SACRAMENTO, CA (MPG) – Assemblyman James Gallagher, R-Yuba City, introduced Assembly Bill 2700, legislation that would require state regulators to develop recommendations to cut electricity rates by at least 30% and address unpaid claims for wildfire victims.
AB 2700 directs the California Public Utilities Commission to produce recommendations by Jan. 1, 2028, aimed at lowering power costs while identifying ways to make victims of utility-caused wildfires whole. The proposal comes as electricity rates in California have risen sharply in recent years.
“California families are being crushed by some of the highest electricity rates in the nation, and too many wildfire victims are still waiting for the fair compensation they deserve,” Gallagher said.
Since 2019, electricity rates in California have increased by nearly 40%, according to Gallagher. The state now has the second-highest rates in the country. The bill would require regulators to review programs that add to utility bills and determine whether they provide measurable benefits to ratepayers.
Under the measure, the commission would also audit wildfire mitigation costs reported by utility companies and recommend rate reductions if spending is found to be unreasonable. It would further evaluate existing programs for cost effectiveness and recommend eliminating or reforming those that do not deliver value.
In addition to rate relief, the bill addresses compensation gaps for wildfire victims. It calls for an assessment of verified restitution shortfalls tied to fires caused by utilities before July 12, 2019. That includes victims associated with the Fire Victim Trust, created after major wildfires in 2017 and 2018 and Pacific Gas and Electric Co.’s bankruptcy.
State lawmakers established the California Wildfire Fund in 2019 to cover future claims tied to utility-caused fires. However, victims of earlier fires were not eligible for that fund and, according to Gallagher, many remain undercompensated.
Gallagher said the bill aims to ensure restitution efforts do not shift additional costs onto ratepayers.
AB 2700 is scheduled for a hearing in the Assembly Committee on Utilities and Energy on April 8.