CPUC To Consider Updates to Rate Case Process to Strengthen Affordability, Accountability, and Transparency
The California Public Utilities Commission (CPUC) today opened a new proceeding to consider updated requirements for energy utility General Rate Cases (GRCs) to increase affordability, accountability, and transparency.
The proceeding, called an Order Instituting Rulemaking (OIR), will consider revisions to the CPUC’s existing Rate Case Plan (RCP) to further standardize GRC filings, streamline the GRC process, and address legislative requirements. An updated RCP further promotes the CPUC’s goals of balancing safe, reliable, and affordable energy services for utility customers.
A GRC is the CPUC’s primary review of a utility’s spending plan, in which the CPUC scrutinizes utility funding requests for safely and reliably operating its system and determines which costs are just and reasonable. The RCP is the guiding document that provides the timeline and minimum filing requirements for each GRC application.
The new proceeding will consider revisions to the RCP for energy investor-owned utilities (IOUs) related to recent legislative and regulatory requirements and stakeholder input. Considerations in the OIR include:
- Requiring additional details that were requested in past GRCs, settlements, and energy proceedings impacting rates to provide a holistic analysis of affordability.
- Updates to GRC pre-filing requirements that reflect legislative mandates to increase IOU transparency and accountability. These would include annual reporting of actual and authorized rate of return and costs (Assembly Bill (AB) 2666), a requirement for an estimate of future costs on ratepayers (AB 2847), and greater coordination with utility Wildfire Mitigation plans and spending (Senate Bill 254).
- Standardization of evaluation and decision-making frameworks to promote efficient proceedings, reduce delays, and decrease uncertainty while also protecting utility customers.
The strategies adopted through the proceeding have the potential to strengthen accountability for utility spending, support efforts to address affordability, enable greater transparency into utility spending for intervenors and the public, and generate a more efficient process for all parties. By consolidating details on issues impacting rates in a GRC, the updated process will equip the CPUC and intervenors who participate in GRC proceedings, such as groups representing consumers, with more complete information when considering GRCs.
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About the California Public Utilities Commission
The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians access to safe and reliable utility infrastructure and services. Visit www.cpuc.ca.gov for more information