California Lawmaker Proposes Bills to Curb Utility Profits and Enhance Wildfire Spending Oversight

San Diego, CA – California residents facing some of the nation’s highest electricity rates may soon see relief if new legislation proposed by Assemblymember Tasha Boerner (D-Encinitas) gains traction. The bills, introduced on March 11, 2026, aim to limit utility profits and increase accountability for how companies spend funds allocated for wildfire prevention.

Capping Utility Profits

Assembly Bill 1677 seeks to limit the profit margins of investor-owned utilities. Currently, California utilities are permitted to earn around a 10% profit on their investments, a figure Boerner argues is excessive compared to the average cost of capital for most companies. The proposed bill would tie profit caps to the long-term U.S. Treasury bond rate, plus four percent. With the current bond rate at 4.7%, this would effectively limit utility profits to 8.7% .

“Our projections are anywhere from $250 million to $1 billion in savings per year for regular Californians,” Boerner stated .

Increased Oversight of Wildfire Mitigation Spending

The second bill, Assembly Bill 1774, addresses concerns about the transparency and effectiveness of wildfire mitigation spending. A 2021 audit of San Diego Gas & Electric (SDG&E) revealed that $240 million allocated for wildfire prevention between 2019 and 2020 lacked clear documentation demonstrating how the funds were utilized .

Despite the lack of documentation, the Public Utilities Commission (CPUC) allowed SDG&E to retain the funds and authorized further spending without requiring a reconciliation of the previously unspent amount. AB 1774 would mandate independent audits of utilities’ wildfire mitigation spending, ensuring funds are demonstrably spent before additional ratepayer money is allocated .

“It would mean that for any wildfire mitigation, they actually have to show that they spent the money before it’s recovered by California ratepayers,” Boerner explained .

Utility Response

SDG&E responded to the proposed legislation, stating that the referenced 2021 audit did not find misuse of funds, but rather analyzed incomparable data sets leading to a flawed conclusion. The company maintains that its wildfire safety investments are subject to regulatory oversight and independent review, and it remains committed to transparency .

Legislative Outlook

The bills are scheduled to be reviewed by the Utilities and Energy Committee in early April. If approved by both the Assembly and Senate, they could reach Governor Newsom’s desk by the complete of the summer and potentially take effect next year .

Rising Energy Costs in California

These legislative efforts come as California residents grapple with significantly increasing energy costs. According to the Public Advocates Office, the average residential electricity rate in San Diego Gas & Electric’s service territory nearly doubled in the past decade, rising 98% . Pacific Gas & Electric and Southern California Edison customers have also experienced substantial rate increases of 76% and 101%, respectively, over the same period .

As of the end of 2025, average residential rates were 45.7 cents per kilowatt-hour for SDG&E, 35 cents for PG&E, and 34.5 cents per kilowatt-hour for SCE .