The California Public Utilities Commission (CPUC) regulates and approves the price of energy and all rates paid by customers. When we need to make any rate change, we submit an application to the CPUC. The application describes the upgrade required or a new program or service. It also includes the costs and impact on rates. Our application is reviewed in a public forum and by stakeholders such as:
- Groups representing residential and business customers
- Low-income and community advocates
- Environmental groups
- Agricultural interests and others
After hearing from these stakeholders, the CPUC issues a decision on the basis of what is just and reasonable for customers to pay in rates. Rates are set in formal meetings that are open to public participation and comments. Once approved, we incorporate the changes into rates.
We file a new application every four years for the CPUC to review and authorize revenues collected for certain electric generation and distribution and natural gas transmission, storage and distribution operations costs. This process is called the General Rate Case for electric and gas.
In addition to the CPUC, the Federal Energy Regulatory Commission approves the retail electric transmission portion of rates.