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Assemblymember Bauer Kahan Unveils AB 2054 to Prevent Utility Influence on Ratemaking Decisions

AB 2054 imposes a 10-year cooling-off period for commissioners at the CPUC and the CEC before they can work at a regulated entity.

For immediate release:

Sacramento, CA — Today, Assemblymember Bauer Kahan introduced Assembly Bill 2054 to address the concerning trend of commissioners at the Public Utilities Commission (CPUC) and the Energy Commission (CEC) moving to high-paying positions within state-regulated utilities after their terms, jeopardizing the integrity of the regulatory process.

“With California's electricity rates consistently the highest in the nation, it is crucial to safeguard against potential conflicts of interest and undue industry influence on regulatory bodies,” said Assemblymember Bauer Kahan (D, Orinda).

Assembly Bill 2054 imposes a decisive 10-year cooling-off period for commissioners at the CPUC and the CEC, curbing the revolving door between regulators and industry. This measure aims to insulate regulators from conflicts of interest and reduce the undue influence of regulated industries.

Assemblymember Bauer Kahan stated, "AB 2054 is a crucial step towards restoring faith in our regulatory process and ensuring that commissioners act solely in the public interest. California ratepayers deserve a regulatory system free from undue industry influence."

The proposed cooling-off period not only protects the independence of rate-regulators but also alleviates the pressure to approve unnecessary rate increases. AB 2054 sends a powerful message that the era of unchecked utility spending and cozy relationships between regulators and industry must end.