Committee advances bill to bar IOUs from using ratepayer funds to oppose municipalization and clarify Public Advocates Office authority

The Senate Committee on Energy, Utilities and Communications advanced SB 327, a measure intended to increase accountability for investor‑owned utilities by restricting use of ratepayer dollars for political activities opposing municipalization and by clarifying the Public Advocates Office’s authority to review IOU accounting.

Senator Scott (Sam) McNerney (identified in the transcript as the bill sponsor) told the committee the measure was amended to address misuse of ratepayer funds and to give the Public Advocates Office the authority to inspect IOU accounting records. "This bill prohibits utilities from abusing ratepayer dollars to work against the establishment or expansion of municipal utility districts," he said, urging an "I vote."

Adria Tinnen of TURN testified in support, saying the bill ensures activities opposing municipalization are paid for by shareholders rather than ratepayers and that the bill "does not expand PAO authority" to impose fines or penalties. Christina Mohabir of California Environmental Voters also supported the bill, arguing that ratepayer funds must be used efficiently for essential programs such as clean energy and infrastructure.

Opposition witnesses from utilities offered concerns about drafting and implementation. Brandon Ebech of Pacific Gas and Electric said PG&E had no issue with the policy in principle and noted company rates were down from two years prior; he indicated the company funds municipalization‑related opposition with shareholder funds. Israel Salas, representing San Diego Gas & Electric and Southern California Gas Company, disputed a supporter’s statement that SoCalGas had recovered lobbying costs from ratepayers and warned the bill could blur lines between the CPUC’s regulatory role and the Public Advocates Office’s advocacy role.

The committee read amendments that deleted a proposed new section, clarified the Public Utilities Code references, and explicitly included efforts to oppose municipalization among prohibited political activities. Senator McNerney closed, calling the measure "common sense" and asking for an I vote.

A motion was made to pass SB 327 as amended to the Senate Appropriations Committee. The roll call recorded multiple ayes and nays; the clerk announced the bill out of committee with a 10‑3 vote.

Next steps: SB 327 was reported to the Senate Appropriations Committee for further action; authors and stakeholders agreed to continue discussing technical drafting and implementation details.