Rate of Return

Rate of Return (ROR) (Actual and Authorized)

The profit that is authorized or actually earned on the rate base/capital investment over a period of time. The ROR is the weighted average cost of debt and equity.  For more on ROR, see the cost of capital webpage.  

Notes:

*Data prior to 202 is reflected as consolidated rate of returns only.  All posted information reflects the most up-to-date information as of July 2026.

1. SCE 2018 - 2022 - Underearning driven by wildfire-related costs and liabilities associated with the Thomas Fire, Woolsey Fire, and Montecito debris flow.
2. ASCE 2025 - SCE received authorization to recover previously incurred wildfire-related claims under the TKM and Woolsey Settlement Agreements. These cost recoveries provided an offset to O&M expenses for the year, resulting in a higher reported ROR. Please see SCE 2025 10-K Page 4 footnote for more details. ROR excluding these settlements would be 7.91%.
3. PG&E 2012 - Underearning driven by costs related to San Bruno Pipeline Rupture.
4. PG&E 2018 - 2021 Underearning driven by costs related to 2017 North Bay Fire and 2018 Camp Fire. Wildfire liabilities and bankruptcy.
5. SDG&E 2025 - Underearning driven by disallowance of recovery of wildfire mitigation costs, 2024 GRC track 2.
6. SoCalGas 2021-2022 - Underearning driven by litigation from 2015 Aliso Canyon natural gas leak.