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HomePublic Utilities CodeDiv. 1.7Pt. 1Ch. 1§ 3401 Energy Utility Safety Standards

§ 3401 Energy Utility Safety Standards

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 3401 Energy Utility Safety Standards

Key Takeaways

  • •California needs safe and reliable energy for homes and businesses to work well.
  • •If Pacific Gas and Electric Company (PG&E) doesn’t fix its problems after bankruptcy, another company called Golden State Energy can take over.
  • •Golden State Energy is a nonprofit and will focus on helping customers, not making money for shareholders.
  • •If PG&E fails, Golden State Energy will make sure victims of past problems (like fires) get paid fairly.

Example

Imagine PG&E keeps having problems, like causing fires, and doesn’t fix them even after going through bankruptcy.

If PG&E doesn’t improve, Golden State Energy will step in to run the energy service safely and make sure people hurt by past mistakes get the money they deserve.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 3401 Energy Utility Safety Standards

(a) The Legislature finds and declares all of the following: (1) The safe, efficient, and reliable generation, procurement, transmission, distribution, and storage of energy for residents and businesses in California is essential for living and doing business in California. The economic strength and productivity of California and its residents require the availability of energy with which to operate their businesses and live safely in their homes. (2) Californians residing, working, or doing business within Pacific Gas and Electric Company’s service territory deserve to be served by a utility that prioritizes operational safety and efficiency, is prudently managed and soundly financed, and has a capital structure that enables it to make critical safety investments. (3) The Legislature recognizes that Pacific Gas and Electric Company may meet the requirements of Chapter 79 of the Statutes of 2019 and emerge from bankruptcy as a transformed utility that is positioned to provide Californians with access to safe, reliable, and affordable service. (4) The purpose of this division is to ensure that if Pacific Gas and Electric Company fails to emerge from bankruptcy as a transformed utility, then Golden State Energy is duly empowered to serve in that critical role. (b) It is the intent of the Legislature that Golden State Energy act pursuant to this division only in the event that a transformed utility does not emerge from the bankruptcy or the transformed utility fails to meet its duty to provide safe, reliable, and affordable energy services. (c) A failure of Pacific Gas and Electric Company to exit bankruptcy will result in a risk to or delay of fair compensation to the victims that have already been waiting years to put their lives back together. It is therefore the intent of the Legislature that, should Pacific Gas and Electric Company not exit its bankruptcy, Golden State Energy be positioned to take over the utility and compensate victims. (d) It is the intent of the Legislature that the commission regulate Golden State Energy as an electrical and gas corporation, except that the commission should recognize its status as a nonprofit public benefit corporation, which does not have shareholders and operates for its customers and for the benefit of the people of California. Due to this difference, it is necessary to establish some alternative procedures for Golden State Energy. (Added by Stats. 2020, Ch. 27, Sec. 12. (SB 350) Effective January 1, 2021.)

Last verified: January 23, 2026

Key Terms

electric companyutilitygolden state energypacific gasdutylegislaturebankruptcysafety

Related Statutes

  • § 3402 Golden State Energy Operations
  • § 21002 Aviation Development And Safety
  • § 3300 California Electricity Financing Authority
  • § 6001.5 Pipeline Franchise Preemption
  • § 7671 Hazardous Rail Transport Safety

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 3401.
View Official Source