The Assembly Utilities and Energy Committee advanced SB 905 on a 7-1 vote Tuesday, keeping alive a proposal that would tie part of investor-owned utility executive pay to rate outcomes.
According to the committee hearing summary, the bill by Sen. Josh Becker would require 20% of annual compensation for vice presidents and above to depend on rate outcomes, while also adding performance metrics and directing the California Public Utilities Commission to examine alternative financing options. The same summary said the measure also includes other affordability and accountability changes aimed at investor-owned utilities.
The hearing centered on utility affordability, executive accountability and financing costs, with supporters framing the bill as a response to steep rate increases and utility spending. Opponents from utilities and business groups warned the proposal could create regulatory uncertainty, raise borrowing costs and reduce investment.
Assemblymember Patterson voted no on the bill, according to the committee summary.
