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CaliforniaAB 8252025-2026 Regular SessionHouseWALLET

Energy: cost framework: residential rates.

Sponsored By: Josh Becker (Democratic), Cottie Petrie-Norris (Democratic), Robert Rivas (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Guardrails for joining regional power markets

Starting January 1, 2028, the ISO can run regional markets only after a public board vote with at least 90 days’ notice and written responses 20 days before the vote. The CPUC must issue a formal decision before utilities join. The regional group must be nonprofit, respect state authority, hold open meetings, fund consumer advocates, share market data, track greenhouse gases, and allow penalty‑free withdrawal. The ISO must keep systems so participants can leave and get separate services. One year after a regional market starts, the ISO reports each year on withdrawal readiness, and the CPUC and Energy Commission post their review.

ISO can provide optional regional services

The ISO may contract to run market operations, dispatch, transmission planning, and reliability services for a regional group. The regional group may offer extra services, like co‑optimizing ancillary services or running a resource adequacy program. All such services are optional for California utilities and must align with CPUC authority.

Keep California reliability and renewable rules

The ISO keeps the same balancing‑authority footprint it had on December 31, 2024, with narrow exceptions. The law preserves California’s Renewables Portfolio Standard and the CPUC’s control over resource adequacy, planning, and procurement. Regulators must not expand what counts for RPS portfolio content beyond rules in place on December 31, 2025.

Stronger oversight of the grid operator

The law installs an independent, five-member board for the ISO, California’s grid operator. The ISO must publish a detailed public report each year by February 1. The board chair and CEO must brief the Legislature every year. The ISO must study job impacts, hold public workshops, and finish the study by December 31, 2026.

Old market statutes repealed

The law repeals several old electricity‑market statutes. This cleans up the code to fit the new governance and regional‑market approach. It does not set new charges or benefits for households.

Sponsors & Cosponsors

Sponsors

  • Josh Becker

    Democratic • Senate

  • Cottie Petrie-Norris

    Democratic • House

  • Robert Rivas

    Democratic • House

Cosponsors

  • Chris Rogers

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 251 • No: 12

House vote • 9/13/2025

Item 1000 — Assembly AFLOOR

Yes: 74 • No: 1

Senate vote • 9/13/2025

Item 1 — Senate SFLOOR

Yes: 34 • No: 0

legislature vote • 9/11/2025

Vote in CS71

Yes: 12 • No: 0

legislature vote • 8/29/2025

Vote in CS61

Yes: 5 • No: 2

legislature vote • 8/18/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 7/15/2025

Vote in CS71

Yes: 12 • No: 1

legislature vote • 7/14/2025

Vote in CS42

Yes: 8 • No: 3

House vote • 6/5/2025

Item 31 — Assembly AFLOOR

Yes: 57 • No: 5

legislature vote • 6/3/2025

Vote in CX23

Yes: 13 • No: 0

legislature vote • 5/23/2025

Vote in CX25

Yes: 11 • No: 0

legislature vote • 4/30/2025

Vote in CX23

Yes: 18 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 116, Statutes of 2025.

    9/19/2025Senate

  2. Approved by the Governor.

    9/19/2025legislature

  3. Enrolled and presented to the Governor at 1:30 p.m.

    9/13/2025legislature

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 1. Page 3490.).

    9/13/2025House

  5. Assembly Rule 63 suspended. (Page 3490.)

    9/13/2025House

  6. Joint Rules 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)

    9/13/2025House

  7. In Assembly. Concurrence in Senate amendments pending.

    9/13/2025House

  8. Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 0. Page 3050.).

    9/13/2025Senate

  9. Senate Rule 29 suspended. (Page 2961.)

    9/12/2025Senate

  10. Joint Rule 10.5 suspended. (Ayes 29. Noes 8. Page 2958.)

    9/12/2025Senate

  11. Read second time. Ordered to third reading.

    9/12/2025Senate

  12. Assembly suspended Joint Rule 62(a). (Page 3312.)

    9/11/2025Senate

  13. From committee: Do pass. (Ayes 12. Noes 0.) (September 11).

    9/11/2025Senate

  14. Re-referred to Com. on E., U & C.

    9/10/2025Senate

  15. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(C).

    9/10/2025Senate

  16. Read third time and amended. Ordered to second reading.

    9/10/2025Senate

  17. Joint Rules 61 and 62(a) suspended. (Ayes 30. Noes 8. Page 2760.)

    9/10/2025Senate

  18. Read second time. Ordered to third reading.

    8/29/2025Senate

  19. From committee: Do pass. (Ayes 5. Noes 2.) (August 29).

    8/29/2025Senate

  20. In committee: Referred to suspense file.

    8/18/2025Senate

  21. From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 1.) (July 15). Re-referred to Com. on APPR.

    7/16/2025Senate

  22. From committee: Do pass and re-refer to Com. on E., U & C. (Ayes 8. Noes 3.) (July 14). Re-referred to Com. on E., U & C.

    7/14/2025Senate

  23. Re-referred to Coms. on B. P. & E.D. and E., U & C.

    7/9/2025Senate

  24. Withdrawn from committee.

    7/9/2025Senate

  25. Referred to Coms. on E., U & C. and B. P. & E.D.

    6/18/2025Senate

Bill Text

  • Chaptered

    9/19/2025

    HTML

  • Enrolled

    9/13/2025

    HTML

  • Amended Senate

    9/10/2025

    HTML

  • Amended Assembly

    6/2/2025

    HTML

  • Amended Assembly

    5/29/2025

    HTML

  • Amended Assembly

    5/23/2025

    HTML

  • Amended Assembly

    4/21/2025

    HTML

  • Introduced

    2/19/2025

    HTML

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