Moneys in the fund shall be expended upon appropriation by the Legislature, for the benefit of ratepayers. Moneys in the fund may be appropriated for the following purposes:
(a) To finance energy litigation and investigation expenses of state entities.
(b) To reduce rates for customers in the affected service areas of electrical utilities and gas utilities.
(c) To reduce the debt service on bonds issued pursuant to Division 27 (commencing with Section 80000) of the Water Code.