This bill amends the existing law regarding electric utility default service by clarifying policy principles related to default service rates and the recovery of over- or under-collections. Key insertions include the emphasis on utility default service being designed to provide a safety net, ensure universal access, and maintain system integrity while minimizing customer risk and mitigating price volatility. The bill also specifies that utility default service should be procured through competitive markets and may be administered by independent third parties. Additionally, it introduces provisions for the recovery of costs associated with compliance with renewable portfolio standards and outlines how costs related to separate default service rates, including prior period adjustments, should be managed.

The bill deletes references to "purchased power agreements" and modifies the language around default service charges, indicating that costs will be recovered through "default service charges" rather than a singular "default service charge." It also allows the commission to implement measures to discourage misuse of default service, with any generated revenues aimed at offsetting stranded costs. The act is set to take effect upon its passage.