Assemblyman James Gallagher

SACRAMENTO, CA (MPG) - A state Assembly committee has approved legislation from Assemblyman James Gallagher, R-East Nicolaus, that seeks to lower electricity rates and address compensation gaps for wildfire victims.

The Assembly Committee on Utilities and Energy voted unanimously to advance Assembly Bill 2700, according to a statement from Gallagher’s office.

The bill directs the California Public Utilities Commission to develop strategies to reduce electricity rates by at least 30 percent by Jan. 1, 2028. It also requires the commission to review restitution shortfalls for victims of utility-caused wildfires that occurred before July 12, 2019, and propose ways to provide full compensation without shifting costs to ratepayers.

“California families are being crushed by some of the highest electricity rates in the nation, and too many wildfire victims are still waiting for the fair compensation they deserve,” Gallagher said. “AB 2700 provides accountability that delivers both lower utility bills and real justice for victims.”

According to the release, California electricity rates have increased by nearly 40 percent since 2019. The bill would require the commission to examine programs that affect utility costs, including public-purpose programs and wildfire mitigation plans submitted by electrical corporations. The review would include audits of spending and recommendations to reduce rates tied to what the bill describes as unreasonable costs.

The legislation also calls for an evaluation of existing programs to determine cost effectiveness and whether they provide benefits to ratepayers.

In addition, AB 2700 requires a report on verified restitution gaps tied to wildfire incidents before July 2019. The report must include recommendations for compensation mechanisms that would not be recovered through customer rates.

State lawmakers created the California Wildfire Fund in 2019 to reimburse utilities for eligible wildfire claims. Gallagher’s office said victims of earlier fires were not covered by that fund.

“Today’s unanimous committee action sends a strong message: California must prioritize affordable energy as a basic necessity and ensure wildfire victims receive the justice they were promised without shifting additional burdens onto struggling ratepayers,” Gallagher said.

The bill now moves forward in the legislative process.