Senate Passes Becker Utility Accountability and Affordability Bill

Today, the California State Senate passed SB 905 by Senator Josh Becker (D-Menlo Park), legislation focused on strengthening utility accountability and addressing the underlying drivers of rising electricity costs for Californians. 

SB 905, authored by Senator Josh Becker (Menlo Park), advances a series of major reforms aimed at improving oversight of investor-owned utilities, controlling long-term ratepayer costs, and ensuring utilities are rewarded for performance, efficiency, and affordability.

“Californians are getting crushed by electricity bills while utility profits continue to soar,” said Senator Becker. “SB 905 is about restoring accountability and incentivizing utilities to better control costs and delivering results, not just spending more money and passing the bill on to ratepayers.”

The bill includes provisions that:

  1. Tie utility executive compensation to rates.
  2. Strengthen utility accountability and performance standards.
  3. Reduce excessive utility profits on certain lower-risk investments.
  4. Improve use of existing grid infrastructure before pursuing costly new investments.
  5. Explore lower-cost financing approaches to reduce long-term costs for customers.

SB 905 remains one of the Legislature’s most significant affordability and accountability measures addressing California’s electricity system and is part of a broader effort to ensure the state’s clean energy transition remains reliable and affordable for consumers.

SB 905 is part of the California Electricity Affordability Pathway, which is a package of legislation aimed at lowering electricity bills for Californians by holding utilities more accountable for rate increases, enabling smarter grid planning, expanding energy storage, and continuing investments in proven demand-side reliability tools.

“California utility customers are dealing with a crisis of affordability due to unprecedented increases in electricity rates driven by excessive utility spending and outsized profits,” said Matthew Freedman, Staff Attorney for The Utility Reform Network. “SB 905 would force greater performance accountability by the utilities, reign in excessive profiteering, and prioritize lowest-cost strategies for improving and operating the electrical grid."

"The climate crisis is driving the affordability crisis, and Californians need to see real utility bill relief," said Gracyna Mohabir, Clean Air & Energy Regulatory Advocate at California Environmental Voters. "This bill takes smart, necessary steps to improve accountability and keep electricity costs under control. Protecting Californians' ability to keep the lights on demands pragmatic solutions to keep costs efficient and low."

SB 905 is sponsored by The Utility Reform Network (TURN) and is supported by 350 Humboldt, California Environmental Voters, California Solar & Storage Association, Climate Action California, Climate Action Campaign, Climate Future California, Deploy Action, and Sonoma Clean Power.