Existing law requires the Public Utilities Commission (PUC) to appoint a chief internal auditor responsible for overseeing the internal audit unit and conducting audits to improve accountability and transparency within the commission. This bill would eliminate the position of chief internal auditor and, effective January 1, 2026, transfer the internal audit unit and its staff to a newly established Independent Office of Audits and Investigations within the PUC, led by an Inspector General appointed and removed under specified conditions. The office would have authority to examine all records and entities regulated by the PUC and would be required to report to the Governor and Legislature. Since violations of the Public Utilities Act or commission actions implementing this bill’s requirements would constitute crimes, the bill would create a state-mandated local program; however, it specifies that no reimbursement to local agencies or school districts is required.