California PUC to revise general rate case plan around transparency goals

The California Public Utilities Commission has opened a review of how it sets electric and gas rates for the state's big utilities, including Pacific Gas and Electric, Southern California Edison, San Diego Gas & Electric, and Southern California Gas. The process for approving these "general rate cases" — the filings utilities use to justify what they charge customers — hasn't been substantially updated since 2007. The commission says the goal is more transparency and accountability, with an eye on keeping bills affordable. California currently has the second-highest average electricity prices in the country, behind only Hawaii.

The review will put in place several recent state laws, including one requiring utilities to report how their actual profits compare with what regulators approved, and another requiring more disclosure about long-term spending plans. One commissioner also raised the idea of tying utility profits more directly to performance, pointing to Hawaii's approach, which considers penalizing or rewarding utilities based on whether they hit targets like connecting new solar and battery projects on time, and requiring utilities to share profits with customers if they earn more than allowed.

None of this changes your bill right away. The commission is taking public comments for 45 days and expects to hold workshops before deciding on changes. If it results in stricter oversight of utility spending and profits, it could eventually affect how fast rates rise in California, but any impact is still a long way off.