BACKGROUND

All investor-owned utilities must obtain approval from the California Public Utilities Commission (CPUC) of their budgeted expenses and investments before they are able to include those costs in rates charged to utility customers. The investor-owned utility will submit a General Rate Case (GRC) application to the CPUC to justify the proposed budget. In addition to seeking customers’ funding of its operating expenses, the utility can include in its GRC application such things as a request to upgrade its computer systems or to build new infrastructure. The GRC includes PG&E's expected costs of electric generation and distribution and natural gas generation, transmission and storage.   

 

PUBLIC ADVOCATES OFFICE POSITION

The Public Advocates Office participates in these proceedings on behalf of utility customers to obtain the lowest rates possible, consistent with safety, reliability, and the state’s environmental goals. We evaluate the proposals made in each GRC and recommend whether the CPUC should approve or adjust the costs that will be passed on to customers. Our advocacy in GRC proceedings is one way we accomplish our statutory mandate.

The Public Advocates Office's recommendations from the Pacific Gas and Electric (PG&E) GRC include: 

  • Recommend $12.4 billion less than PG&E's requested revenue level over the 4-year period from 2023 through 2026.
  • Rising utility rates in the State are creating an affordability crisis for many ratepayers. PG&E does not dispute that these rising rates are reaching a crisis level.

  • Much of PG&E’s requested increase over 2022 adopted rates is for costs to underground as much of the overhead power lines in PG&E’s service territory as the company deems fit, without regard to ratepayer costs and the Commission’s efforts towards risk-based decision making. Cal Advocates recommends that PG&E ensure it starts with the top 10% of the highest risk segments. 

  • Cal Advocates, TURN, and PG&E were able to agree on a mechanism for a self-insurance fund that allows PG&E to remain adequately insured for wildfire risks.

Read our press release on the CPUC's November 2023 decision.

Contact Us

Matthew Marcus, Legislative

Matthew.Marcus@cpuc.ca.gov

Mary Flannelly, Policy & Communications
Mary.Flannelly@cpuc.ca.gov

General Support & Questions
PublicAdvocatesOffice@cpuc.ca.gov

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