FOR IMMEDIATE RELEASE

Date: June 3, 2025

AB 942 Passes Assembly by Wide Margin

AB 942 would save Californians $3.6 billion on their electricity bills over the next two decades

SACRAMENTO – Californians are one step closer to more affordable electricity bills. Tonight, the California Assembly passed Assemblymember Lisa Calderon’s AB 942, a measure that will reduce 10 million Calfiornians’ electricity bills by $423 million next year and $3.6 billion over the next two decades.

“Affordability is the most important issue for Californians right now, and AB 942 will deliver billions in savings on their electricity bills,” said Elizabeth Martinez, Board Member at the CA Hispanic & LA Latino Chambers of Commerce and VP at Meruelo Enterprises. “We’re pleased that it passed the Assembly by a wide margin and look forward to working with the Senate.”

Fix the Cost Shift, a coalition representing nearly 2 million workers and businesses across California, had submitted a letter of support and held a press conference advocating for this critical legislation.

The outdated NEM system, which was first created in 1995, shifted $8.5 billion in extra costs to non-solar customers last year alone to pay for fixed energy grid costs that solar customers avoid paying. These subsidies benefit 1.6 million rooftop solar customers while over 10 million non-solar customers — many of whom are lower-income Californians — pay the difference.

This economic report shows how AB 942 would achieve billions in savings for Californians on their electricity bills:

  • When a property is sold, the new owner switches to the Net Billing Tariff (NBT) system that new rooftop solar customers are already subject to — resulting in an estimated rate relief of $203 million in 2026 and $2.5 billion from 2026 to 2043 for electric customers who don’t have rooftop solar.

  • Reallocating the California Climate Credit from solar customers to non-solar customers would result in an estimated rate relief of $220 million in 2026 and $1.1 billion from 2026 to 2030 for electric customers who don’t have rooftop solar.

Taken together, AB 942 would deliver $423 million in savings next year alone and $3.6 billion over the next two decades for Californians’ electricity bills.

For more information about Fix the Cost Shift and our coalition, visit FixtheCostShift.org or contact info@fixthecostshift.org.