Overview
- The commission adopted a smaller reduction than first proposed, setting 2026 returns near 10%: PG&E 9.98%, Southern California Edison 10.03%, SDG&E 9.93% and SoCalGas 9.78%.
- Commissioner Darcie L. Houck cast the lone no vote, warning the change shortchanges affordability and pointing to rising rate bases that could lift total authorized returns by about $840 million over 2025.
- Utilities sought roughly 11%–11.75% and said elevated wildfire risk requires higher returns, while CPUC leaders said the new levels are consistent with national trends.
- Consumer advocates and some experts pushed for returns closer to 6% and argue the modest cut will bring little immediate relief in a state with some of the nation’s highest electricity rates.
- The CPUC said the adjustment reduces aggregate shareholder returns by about $100 million next year, but ongoing wildfire and infrastructure spending embedded in growing rate bases will continue to pressure bills.