This bill would require the CPUC to include, as part of its annual update to the Legislature on the status of its review of balancing accounts, the amount of funds in, and the expenditures from, the memorandum accounts and balancing accounts of each public utility. The bill would require the CPUC to annually determine if each memorandum account and each balancing account has achieved its intended purpose in the previous year. It would also require the CPUC, if it determines that the intended purpose has not been achieved and those costs should not be subject to recovery in the next general rate case, to deny the public utility recovery of those costs and other expenses and to reduce the authority of the public utility to use, or close, the memorandum account or balancing account in order to limit future rate increases. Finally, it would require the CPUC to make those determinations and take those actions in a manner that ensures that the rates are sufficient to enable the public utility to recover a just and reasonable rate of return.