California SB 886 Technology Innovation and Ratepayer Protection Act (2026)

SB 886 (Padilla, McNerney), 2025-26 Reg. Sess.; adds Article 14.7 (commencing with § 945) to Ch. 4, Pt. 1, Div. 1 of the Public Utilities Code — 'California Technology Innovation and Ratepayer Protection Act'. Ch. 438, Stats. 2026; approved and chaptered Sept. 21, 2026. Senate concurrence in Assembly amendments Aug. 31, 2026 (Ayes 28, Noes 10). DIGEST: (a) on or before Jan. 1, 2028 the CPUC shall establish new tariffs or update electric rules for interconnection of participating customer facilities and retail, transmission, distribution and generation service to participating customers; (b) CPUC must at minimum evaluate risks/benefits to nonparticipating customers, ensure tariffs prevent stranded costs for or cost shifts to nonparticipating customers, and for unbundled customers show generation-component charges as a separate line item; (c) CPUC must establish a tariff for participating customers seeking retail service at the transmission level; (d) participating customers may join a new CPUC-authorized demand response program; (e) an electrical corporation may submit an 'exceptional case filing' to approve a contract with a data center seeking transmission-level interconnection for service after Jan. 1, 2027 but before the tariff is approved. Violations of implementing CPUC actions are crimes under the Public Utilities Act. VERIFIED TEXT (billNavClient): transmission-level interconnection tariff (§ 945.3) refunds of initial contributions 'shall not exceed 75 percent of the annual net transmission revenue'; early termination fee for a participating customer that 'departs the electrical system within 10 years of the initial interconnection of the facility or fails to achieve adequate load ramp up', fee 'should not be less than the revenue gap' vs. projected demand; § 945.3 applies only to data centers entering a new transmission-level interconnection agreement on or after 2027-01-01; § 945.7 demand response with no net cost to nonparticipating customers; § 945.9 exceptional case filings. Foley reports a labor certification requirement within § 945.3 (not independently checked in bill text). EFFECTIVE DATE 2027-01-01 per Foley ('primarily take effect on January 1, 2027'), not stated on leginfo; non-urgency statute.