SB 24 would also bar IOUs from using ratepayers dollars to lobby against local efforts to create a municipal utility.
Press Release

Senate Greenlights McNerney’s Bill to Protect CA Ratepayers from Utilities’ Abuses

The California state Senate today greenlighted Sen. Jerry McNerney, SB 24, Protecting Ratepayers from Utilities’ Abuses. 

SB 24 would close legal loopholes and strengthen state law to prevent investor-owned utilities (IOUs), like SoCalGas, PG&E, and others, from using ratepayer funds to pay for political lobbying and campaigns and political advertising. 

SB 24 would also bar IOUs from using ratepayer dollars to lobby against local efforts to create a municipal utility. 

“As utility bills soar and IOUs pocket billions in record profits, it’s unconscionable that those same utilities would use their customers’ money to finance expensive lobbying and political campaigns,” said Sen. McNerney, who is a member of the Senate Energy, Utilities and Communications Committee. “With the passage of SB 24 today, the California Senate sent a clear message to utilities: Stop wasting ratepayer funds on politics and lobbying activities that should be paid by shareholders.”

SB 24 won approval in the Senate on a 27-10 vote, and now goes to the Assembly for consideration. 

SB 24 would strengthen existing law that bars IOUs from ratepayer dollars on lobbying, political campaigns, and promotional advertising. Under current state law, IOUs must use shareholder funds for such activities. But current California law includes loopholes and lax enforcement that have enabled IOUs to blur the lines between ratepayer and shareholder spending.

SB 24 will close loopholes and strengthen enforcement on prohibitions of using ratepayer funds for:

  • Lobbying, political campaign contributions, and promotional advertising
  • Litigation regarding existing or proposed regulations
  • Fines or penalties issued against a utility
  • Board member travel, food, and insurance.

The above would not to apply to IOU workers represented by labor organizations.

SB 24 would also explicitly ban the use of ratepayer funds on lobbying or other political activities against efforts by cities and counties to create their own municipal utilities.

 

Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.