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8660 - Public Utilities Commission

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Budget Trends and Highlights (2023-2026)

Position Growth

  • Overall Growth: 10.3% increase in positions from 2023-24 (1,592.0) to 2025-26 (1,739.0)[20]
  • Recent Expansion: The 2025-26 budget authorizes 59.5 new positions (3.5% increase) compared to 2024-25[20]
  • Major Staffing Initiatives:
    • 12 positions for Public Utilities Rate of Return implementation (AB 2666)[20]
    • 7 positions for Neighborhood Decarbonization Zones (SB 1221)[20]
    • 5 positions for SB 4 of 2021 implementation (Broadband infrastructure)[20]
    • 5 positions for SB 28 of 2021 implementation (Rural Broadband/Last Mile)[20]
    • 5 positions for SB 846 of 2022 implementation (Diablo Canyon extension)[20]

Budget Fluctuations

  • Peak Funding: FY 2024-25 saw the highest total budget at $5.32 billion, largely due to federal broadband funding[20]
  • Funding Variability: Year-to-year comparisons vary significantly due to one-time funding and timing of major program expenditures[20]
  • Local Assistance Decrease: Local assistance funding decreased from $1.89 billion in 2024-25 to $1.31 billion in 2025-26[20]

Program Funding Distribution (2025-26)

  • Regulation of Utilities: $899.3 million (47.4% of total budget)[20]
  • Universal Service Telecommunications Programs: $836.7 million (44.1%)[20]
  • Regulation of Transportation: $104.8 million (5.5%)[20]
  • Public Advocate's Office: $57.9 million (3.0%)[20]

Major Funding Codes and Sources

The Public Utilities Commission receives funding from various sources, each designated by specific budget codes in the state budget:

Program Codes

  • 6680 - Regulation of Utilities: Programs focused on oversight of electric, natural gas, water, and telecommunications utilities
  • 6685 - Universal Service Telecommunications Programs: Administration of programs that ensure telecommunications access and affordability
  • 6690 - Regulation of Transportation: Rail safety, crossing safety, and passenger carrier regulation
  • 6695 - Public Advocate's Office: Independent advocacy representing ratepayer interests

Funding Source Codes

  • 0001 - General Fund: State's primary operating fund
  • 0042 - State Highway Account: Supports transportation safety programs
  • 0461 - Transportation Reimbursement Account: Fees from regulated transportation entities
  • 0462 - Utilities Reimbursement Account: Fees from regulated utilities
  • 0471 - Universal Lifeline Telephone Service Trust: Supports subsidized telephone service for low-income residents
  • 0483 - Deaf and Disabled Telecommunications Program: Funds telecommunications access for disabled users
  • 0493 - California Teleconnect Fund: Provides discounts to schools, libraries, and other qualifying institutions
  • 3015 - Gas Consumption Surcharge Fund: Supports natural gas programs
  • 3141 - California Advanced Services Fund: Supports broadband deployment in unserved areas
  • 3228 - Greenhouse Gas Reduction Fund: Cap-and-trade auction proceeds for climate initiatives

Major Projects and Initiatives

Electric System Reliability and Power Grid Modernization

  1. Integrated Resource Planning (IRP): Long-term planning to ensure sufficient resources for reliability while meeting state climate goals[1][2].

  2. Transmission Planning and Expansion: Coordination with the California Independent System Operator (CAISO) to expand transmission capacity for renewable energy integration[3][4].

  3. Microgrids and Resilience: Implementation of programs to support microgrids and enhance grid resilience, especially in high fire-threat areas[5].

  4. Electrical Transmission Grid Study: New initiative created by AB 3264 to evaluate transmission needs and strategies for meeting the state's clean energy goals[20].

Broadband Expansion and Digital Equity

  1. California Advanced Services Fund (CASF): $148.9 million allocated in FY 2025-26 to expand broadband infrastructure in unserved and underserved areas[20].

  2. Federal Funding Implementation: Coordination of federal broadband deployment funding, including implementation of SB 4 and SB 28 of 2021[6][7].

  3. Digital Divide Programs: Administration of the California Teleconnect Fund ($108.4 million in FY 2025-26) to provide discounted telecommunications services to schools, libraries, hospitals, and community organizations[20].

  4. Tribal Technical Assistance: Targeted support for broadband deployment in tribal lands through the CASF Tribal Technical Assistance program[8].

Clean Energy Transition

  1. Renewable Portfolio Standard: Oversight of utility compliance with the state's mandate for 60% renewable electricity by 2030 and 100% clean energy by 2045[9].

  2. Transportation Electrification: Programs to accelerate electric vehicle adoption, including rate design and infrastructure deployment[10].

  3. Building Decarbonization: Implementation of initiatives to reduce natural gas use in buildings, including SB 1221's Neighborhood Decarbonization Zones program[11][20].

  4. Energy Storage: Mandates and incentives for utility-scale and distributed energy storage systems to support renewable integration[12].

Universal Service Telecommunications Programs

The CPUC administers several programs to ensure access to telecommunications services:

  1. California LifeLine Program: $442.3 million allocated in FY 2025-26 to provide discounted telephone services to low-income households[20].

  2. Deaf and Disabled Telecommunications Program: $65.1 million to ensure telecommunications access for people with disabilities[20].

  3. California High-Cost Funds A & B: Combined $72.0 million to subsidize telephone service in rural and high-cost areas[20].

  4. Digital Divide Account: Special initiative to address digital equity and inclusion[20].

Major Regulations and Proceedings

Climate and Decarbonization

  1. Integrated Resource Planning: Biennial planning process that requires load-serving entities to submit plans for meeting greenhouse gas reduction targets and reliability requirements[1][2].

  2. Net Energy Metering 3.0: Reformed the state's rooftop solar compensation structure to balance continued growth of distributed generation with equitable cost distribution[13].

  3. Transportation Electrification Framework: Comprehensive strategy for utility investments in electric vehicle infrastructure and rate design[10].

  4. Building Decarbonization: Proceedings related to reducing greenhouse gas emissions from buildings, including incentives for electrification and pilot programs for neighborhood-scale approaches[11][20].

Rate Design and Affordability

  1. General Rate Cases: Comprehensive reviews of utility operations conducted every four years to establish just and reasonable rates[14].

  2. Affordability Framework: Development of metrics and methodologies to assess the affordability of essential utility services[15].

  3. Rate Reform: Proceedings to redesign rates to better align with system costs, promote conservation, and ensure equitable cost allocation[15].

  4. Family Electric Rate Assistance Program: Implementation of SB 1130 to provide additional support for middle-income households[20].

Safety and Reliability

  1. Wildfire Safety: Enforcement of utility wildfire mitigation plans and Public Safety Power Shutoff protocols to reduce fire risk[16].

  2. Natural Gas Safety: Regulation of natural gas storage, pipeline safety, and leak detection and repair programs[17].

  3. Rail Safety: Implementation of federally certified safety inspection programs for railroads and rail transit systems[18].

  4. System Reliability and Outages: Enhanced monitoring of utility reliability metrics and outage response under AB 2368[20].

Administrative Structure

The CPUC is governed by five commissioners appointed by the Governor and confirmed by the Senate for six-year terms. The agency is organized into several divisions:

  1. Energy Division: Regulates electric and natural gas utilities
  2. Communications Division: Oversees telecommunications companies and programs
  3. Water Division: Regulates investor-owned water utilities
  4. Consumer Protection and Enforcement Division: Ensures compliance and consumer protection
  5. Safety and Enforcement Division: Enforces safety regulations across regulated industries
  6. Administrative Law Judge Division: Conducts proceedings and hearings
  7. Public Advocate's Office: Independent division that advocates for ratepayers
  8. News and Outreach Office: Public information and engagement

In FY 2025-26, the Commission will have a total workforce of 1,739 positions, allocated across its programs as follows:

  • 886.4 positions for Regulation of Utilities
  • 56.2 positions for Universal Service Telecommunications Programs
  • 193.3 positions for Regulation of Transportation
  • 185.0 positions for the Public Advocate's Office
  • 418.1 positions for Administration[20]

Legislative Impacts and Implementation

The CPUC's 2025-26 budget includes funding to implement several significant recent bills:

  1. AB 2666 (2024): Revamps utility rate of return methodologies, with 12 new positions allocated for implementation[20].

  2. SB 1221 (2024): Establishes Neighborhood Decarbonization Zones to accelerate building electrification at the community scale, with 7 new positions[20].

  3. AB 3264 (2024): Requires a comprehensive study of electrical transmission grid needs, with 3 new positions[20].

  4. SB 846 (2022): Extension of the Diablo Canyon Power Plant operations, requiring 5 dedicated positions[20].

  5. AB 2368 (2024): Enhances oversight of system reliability and outage response, with 4 new positions[20].

  6. SB 1130 (2024): Expands the Family Electric Rate Assistance Program to reach more middle-income households[20].

  7. AB 14/SB 4 (2021): Broadband infrastructure legislation requiring continued implementation support[20].

Sources