AB 2266 (2025) — Electricity: load-serving entities.

AMENDED IN SENATE AUGUST 21, 2026

AMENDED IN SENATE AUGUST 13, 2026

AMENDED IN SENATE JUNE 22, 2026

AMENDED IN ASSEMBLY APRIL 13, 2026

AMENDED IN ASSEMBLY MARCH 16, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

ASSEMBLY BILLNo. 2266

Introduced by Assembly Member Schultz

February 19, 2026

An act to add Section 380.9 to the Public Utilities Code, relating to electricity.

Vote: majority Appropriation: no Fiscal committee: yes Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law requires the Public Utilities Commission to set resource adequacy and resource procurement obligations for load-serving entities, which include electrical corporations, electric service providers, and community choice aggregators. Existing law requires various compliance reporting for load-serving entities.

This bill would require the commission, on and after January 1, 2030, when setting certain resource adequacy procurement requirements and evaluating the compliance status for load-serving entities, to use the same capacity valuation methodology, as defined, to ensure consistent and predictable compliance standards, as specified. The bill would authorize the commission to use different capacity valuation methodologies when setting the planning reserve margin and evaluating certain short-term, mid-term, and long-term reliability needs. The bill would require the commission, on or before January 1, 2030, to ~~complete~~ consider a process to consolidate certain plans submitted by load-serving entities into a single procurement plan, and would require the commission, when feasible, to consolidate certain compliance reporting for reliability requirements, as specified. The bill would require the commission, if it determines that the consolidation is not feasible, to set forth its reasons in a specified decision or ruling.

Existing law establishes the Independent System Operator as a nonprofit, public benefit corporation and requires the Independent System Operator, among other duties, to ensure the efficient use and reliable operation of the electrical transmission grid consistent with the achievement of planning and operating reserve criteria, as provided.

This bill would require the commission, if the Independent System Operator exercises its backstop procurement authority to ensure sufficient resources to operate the electrical grid, to include in a specified annual report an explanation of why the need for the backstop procurement arose, as provided.

Under existing law, a violation of ~~the Public Utilities Act or~~ any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because ~~the provisions of this bill would be a part of the act and~~ a violation of a commission action implementing ~~certain~~ the provisions of the bill would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1.

~~(a)~~It is the intent of the Legislature to ~~do all of the following:~~

(1) Ensure alignment of resource valuation methods across electricity supply procurement programs to improve efficiency in regulatory implementation processes to meet the short-term, mid-term, and long-term reliability needs of the state.

~~(2) Improve~~ improve information and transparency by consolidating compliance reporting requirements to facilitate improved stakeholder participation and regulatory decisionmaking.

~~(3)~~Minimize the state’s reliance on backstop procurement mechanisms through continuously improving interagency coordination to position the state for effective participation in a regional energy market.

(b) It is not the intent of the Legislature to prescribe any specific technical method or compliance structure, but to ensure consistency and close alignment between multiple programs affecting ratepayer cost.

SEC. 2.

Section 380.9 is added to the Public Utilities Code, immediately following Section 380.5, to read:

380.9.

(a) On and after January 1, 2030, the commission shall, when setting resource adequacy procurement requirements and evaluating a load-serving entity’s compliance status pursuant to Sections 380 and 454.52, use the same capacity valuation methodology to ensure consistent and predictable compliance standards. The commission may use different capacity valuation methodologies when setting the planning reserve margin and evaluating short-term, mid-term, and long-term reliability needs pursuant to Sections 380 and 454.52.

(b)

(a) On or before January 1, 2030, the commission shall ~~complete~~ consider a process to consolidate plans submitted by load-serving entities to the commission pursuant to Sections 399.15 and 454.52 into a single procurement plan. The commission shall, when feasible, consolidate compliance reporting for reliability requirements established pursuant to Sections 380 and 454.52. If the commission determines that consolidation under this subdivision is not feasible, the commission shall set forth its reasons in the decision or ruling addressing load-serving entities' procurement or compliance reporting obligations pursuant to Sections 399.15 and 454.52.

~~(c)~~

(b) Any compliance reporting requirements or template issued by the commission to ensure compliance with Sections 380, 399.15, and 454.52 shall be finalized for a minimum of 30 business days before a compliance report submission by a load-serving entity.

(d) If the Independent System Operator exercises its backstop procurement authority to ensure sufficient resources to operate the electrical grid in a calendar year, the commission shall include in its public report pursuant to Section 380 for that calendar year an explanation of whether the backstop procurement need arose due to any noncompliance by load-serving entities or due to differences in methodology between the commission and the Independent System Operator in assessing the reliability contribution of different resource types.

(e)

~~(1) “Capacity valuation methodology” means the analytical framework used to quantify the reliability contribution that different resource types provide to the grid.~~

~~(2) “Load-serving entity”~~ “load-serving entity” has the same meaning as defined in Section 380.

SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.