CPUC proposals for PG&E revenues insufficient for necessary safety work: CEO Poppe

Source: Utility Dive |  By Kavya Balaraman

This September, the CPUC issued two proposals in response to PG&E’s general rate case request which cover the utility’s operational and infrastructure costs from 2023 through 2026. California utilities file general rate case applications with state regulators every four years, during which regulators scrutinize the revenues the utility will need for that period. PG&E’s latest application sought a $15.41 billion, $16.34 billion, $16.98 billion and $17.43 billion revenue requirement for 2023, 2024, 2025 and 2026, respectively.

But Mark Toney, executive director of ratepayer advocacy group The Utility Reform Network, said that the administrative law judge’s proposed decision “got it right in terms of making an evidence-based decision that insulating the overhead power lines is not only faster and cheaper, but when you look at the safety benefit analysis, turns out to be as safe – if not a tiny bit more safe – than burying the lines.” On the broader issue of balancing the safety and affordability of the electric grid, Toney stressed that utilities can’t have a blank check approach to safety. “You need to figure out how do you get the most safety for the most cost-effectiveness — and the reason is because there’s not unlimited funding,” he said.