CPUC OKs Large Increase to PG&E Cost Cap

Source: RTO Insider  |  By David Krause

The California Public Utilities Commission approved a plan to increase Pacific Gas and Electric’s cost cap for customer energization projects in 2025 and 2026 by more than $1.5 billion, despite acknowledging the utility did not provide data to support its forecast growth in energization applications during those years. The increased cap amounts are mountainous: PG&E can now seek to recover costs for up to about $1.1 billion in 2025 and $1.7 billion in 2026 for certain customer energization projects, according to the decision. In a 2024 decision, the CPUC approved cost caps of about $619 million in 2025 and $669 million in 2026 for these types of projects. 

While PG&E said the increased cost cap would translate into a 1.8% rate increase for an average residential customer, the CPUC countered that the “evidence does not support” this projected amount. The Utility Reform Network (TURN) estimates proposed cost cap increases would cost $72.50/year for a residential customer that uses 500 kWh/month.