The California Public Utilities Commission is getting ready for the day in the not-too-distant future when Internet connections will be available over electrical lines – just by plugging into the wall – instead of through phone lines, which require hooking up to a phone jack or cable connection.

The commission on Thursday proposed guidelines for a broadband over power line (BPL) program in California. The service is being tested in 26 other states, but not yet in California.

Until San Diego Gas and Electric planned a BPL pilot program this month, California was the only large state in the U.S. without a pilot program underway by any of its public utilities, according to the PUC press release.

The commission’s proposal outlines a fast-track process to allow electric utilities to lease power lines and poles for broadband projects, avoiding the lengthy review and approval process that normally goes with public power lines. The rules also would allow shareholders - presumably the companies or municipalities funding the programs - to keep revenues generated by the project, as long as ratepayer funds were not used in financing.

The guidelines basically reaffirm that PUC will not assert regulatory authority over broadband access over power lines – a contentious issue with phone and cable lines, as telecom and cable companies are battling with Internet service providers on regulatory authority over their lines.

“BPL has the potential to offer head-to-head competition with cable and DSL someday,” said PUC President Michael R. Peevey in a press release. “The fact that electrical power lines already reach virtually every home in the state makes BPL an important tool in our effort o make broadband accessible to every household in California.”

Pacific Gas and Electric Company, Southern California Edison and L.A. Department of Water and Power are preparing to launch pilot programs, according to the PUC.

The PUC’s proposal is the beginning of the rule-making process. Once rules are written, released for public comment and modified, they’re subject to commission approval by year-end.