A.22-05-016 Test Year 2024 Docket

In its application, SDG&E requested the Commission authority to update its electric and gas revenue requirement for Test Year 2024.  SDG&E also requests revenue increases for 2025 to 2027.  Specifically, SDG&E requests the Commission authorize a combined $2.995 billion revenue requirement ($2.332 billion for electric and $664 million for gas) to be effective January 1, 2024.  If approved, this revenue requirement would be an increase of $462 million over the as-expected authorized 2023 authorized revenue requirement, or an 18% increase.

On December 19, 2024, the Commission issued Decision 24-12-074 adopting a Test Year 2024 base revenue requirement of $2.699 billion ($2.192 billion for electric and $506 million for gas) for Track 1 of the proceeding.  It also authorizes an annual 3 percent post-test year base revenue increase at $2.845 billion, $2.964 billion, and $3.086 billion for years 2025, 2026, and 2027, respectively.  Additionally, the decision adopts a post-test year budget-based capital exception for undergrounding and system hardening for wildfire capital expenditure at $166.5 million, $167.4 million, and $168.6 million for years 2025, 2026, and 2027, respectively, to underground overhead lines and installed covered conductor on 140 miles per year.

The proceeding remains open, with Track 2 of the SDG&E Test Year 2024 GRC currently in process.  Track 2 considers SDG&E’s request for cost recovery of incremental 2019-2022 wildfire mitigation costs recorded in the Wildfire Mitigation Plan Memorandum Accounts (WMPMA) at $284 million for O&M, $1,188 million for Capital Expenditures, resulting in a revenue requirement of $775 million.

Previous SDG&E GRC Decisions:  

Dec. 19, 2024: Proposed Decision Issued - Read our Fact Sheet.