Electrical corporations and gas corporations: rates: inflation-constrained rate case scenario: standard of review.

CA AB2338 aims to modify how electrical and gas corporations set their rates by introducing a new standard of review that considers inflation. This means that when these companies propose rate changes, they will have to justify them based on inflation-related factors. The goal is to ensure that rate increases are fair and justified for consumers.

Supporters of CA AB2338 argue that this bill will protect consumers from excessive rate hikes by ensuring that any proposed increases are directly tied to inflation. They believe it promotes transparency and accountability in how utility companies operate, ultimately benefiting everyday Californians who rely on these essential services.

Critics of CA AB2338 may contend that the new regulations could hinder the ability of electrical and gas corporations to respond to changing market conditions and invest in necessary infrastructure. They might argue that the bill could lead to reduced service quality or increased operational challenges for these companies, ultimately affecting consumers negatively.

Source: LegiScan roll call vote data.