California SB 410: Deadlines, Costs, and Utility Penalties

California SB 410, the Powering Up Californians Act, requires investor-owned electrical utilities to connect new and upgrading customers to the grid within deadlines set by the California Public Utilities Commission, spreads some of the cost of grid upgrades across all ratepayers instead of charging it to the applicant, and gives customers a direct way to report delays to the state. The CPUC adopted the specific timelines in September 2024 through Decision D.24-09-020, and a formal penalty framework for noncompliant utilities is due by January 1, 2027.

Who the Law Applies To

SB 410 covers California’s investor-owned electrical corporations and the customers who need them to build, extend, or upgrade service. The statute defines “energization” as connecting a customer to the distribution grid, building distribution capacity for a new customer, or upgrading distribution or transmission capacity for an existing customer who needs more power.1California Legislative Information. California Code Public Utilities Code PUC 931 Connecting a power plant or standalone battery storage project to the grid is specifically excluded.

The companion term, “electrification,” is broad on purpose. It reaches any new, expanded, or changed use of electricity across industrial, commercial, agricultural, housing, and transportation uses.1California Legislative Information. California Code Public Utilities Code PUC 931 A homeowner adding an EV charger, a housing developer waiting on service for a subdivision, a business installing commercial charging stations, and a factory moving heavy equipment off fossil fuels all fall inside the law’s reach.

The Connection Deadlines Utilities Must Meet

Section 934 required the CPUC to adopt average and maximum energization time targets by September 30, 2024. The commission met that deadline. The targets below, measured in calendar days from the date a customer requests energization unless noted, apply to standard projects:2California Public Utilities Commission. CPUC Approves Decision to Support Timely Connection of New Customers

  • Distribution line extensions (Rule 15): 182-day average, 357-day maximum
  • Service line extensions (Rule 16): 182-day average, 335-day maximum
  • Combined distribution and service line extensions: 182-day average, 306-day maximum
  • EV infrastructure (Rule 29/45): 182-day average, 335-day maximum
  • Decisions on applications: 10-day average, 45-day maximum
  • Main panel upgrades: 30 business days average, 45 business days maximum

Rule 15 work covers distribution facilities running from the substation area to the secondary transformer, which serves multiple customers. Rule 16 work covers the line from that transformer to your meter. A project needing both gets the combined timeline.2California Public Utilities Commission. CPUC Approves Decision to Support Timely Connection of New Customers

Projects that require entirely new grid capacity run on much longer clocks. Building or upgrading a circuit can take up to 684 calendar days. A substation upgrade caps at 1,021 days. Building a brand-new substation gets up to 3,242 days, which is close to nine years.2California Public Utilities Commission. CPUC Approves Decision to Support Timely Connection of New Customers If you’re planning a large project in an area with limited grid capacity, engage with the utility well before you break ground.

Who Pays for the Upgrade

SB 410 shifted some of the cost of grid upgrades off individual applicants. The law requires the CPUC to make sure electrical corporations recover grid-upgrade costs on a timely basis, and for residential buildings it treats interconnection costs that exceed the utility’s standard allowance as common facility costs recovered from all ratepayers rather than billed in full to the applicant.3Senate Committee on Energy, Utilities and Communications. Senate Committee on Energy, Utilities and Communications Bill Analysis SB 410

The mechanics still run through each utility’s tariff. Under PG&E’s Rule 15, the utility will complete a distribution line extension at no charge if the total estimated installed cost stays within the applicant’s allowance. The residential allowance is $3,255 per meter or dwelling unit. If the cost exceeds the allowance, the applicant can pay the difference as a refundable advance or pay 50 percent of the excess on a non-refundable basis.4Pacific Gas and Electric. Electric Rule 15 Distribution Line Extensions SB 410’s residential cost-sharing rule reduces the share of that excess the applicant has to carry alone.

What to Do If the Utility Misses the Deadline

If your project has run past the maximum target, SB 410 gives you a direct line to the CPUC. The commission maintains an Energization Delay Form. Try to resolve the problem with your utility first. If that fails, or if the project has already blown past the maximums adopted in D.24-09-020, submit the form electronically or mail a signed copy to the CPUC’s Energy Division at 505 Van Ness Avenue in San Francisco.5California Public Utilities Commission. Energy Delay Form

If the delay form doesn’t produce a result, you can escalate through the CPUC’s formal complaint procedure under Article 4 of its Rules of Practice and Procedure. The commission suggests trying the informal complaint process first. Templates for standard and expedited formal complaints are posted on the CPUC website. One important limit: the CPUC cannot award damages for personal injury, property damage, or lost profits. Those claims go through civil court or the utility’s own claims process.6California Public Utilities Commission. Filing a Formal Complaint

Reporting the Public Can See

Utility performance is meant to be visible. Each electrical corporation must file annual reports that include the average, median, and standard deviation of energization times, explanations for any projects that exceeded the maximums, and a breakdown of constraints such as funding, staffing, or equipment availability.7California Legislative Information. California Public Utilities Code 933.5 If a utility’s times exceed the target averages, or if a substantial number of projects miss the maximums, the utility has to include a strategy for catching up, and the CPUC can order changes to that strategy and require remedial actions.8California Legislative Information. California Public Utilities Code 934 The reports are public, with customer-specific data anonymized. Utilities are also required to give real-time status updates to customers whose energization is in progress.9California Public Utilities Commission. CPUC Sets New Statewide Energization Timelines and Targets for Timely Grid Connections

Penalties Still Being Built

The enforcement side of SB 410 is in two phases. The CPUC can already require remedial actions from a utility that misses the targets. A formal enforcement policy with financial penalties for utilities that fail to comply with those remedial orders is due by January 1, 2027.8California Legislative Information. California Public Utilities Code 934

By the same date, the CPUC has to evaluate whether to tie utility executive incentive compensation to meeting the energization targets and report its findings to the Legislature.8California Legislative Information. California Public Utilities Code 934 The CPUC can also update the time targets and reporting requirements as it learns from implementation.

The One-Time Backlog Cleanup

Alongside the forward-looking targets, SB 410 forced a cleanup of existing waiting lists. Any electrical corporation that had energized fewer than 35 percent of customers whose completed applications had been pending more than 12 months as of January 31, 2023 had to submit a report by December 1, 2024 showing that it had energized 80 percent of those backlogged customers.7California Legislative Information. California Public Utilities Code 933.5 Withdrawn or canceled applications, and applications where the customer had asked for energization after that deadline, didn’t count. A utility that fell short had to adopt corrective actions and describe them in the report.