Particle.news
Download on the App Store

CPUC Approves 0.3% Cut to Utility Returns, Setting 2026 ROE Near 10 Percent

The narrow cut frustrated consumer advocates who sought deeper reductions to ease bills.

Overview

  • The commission finalized 2026 shareholder return rates of 9.98% for PG&E, 10.03% for Southern California Edison, and 9.93% for San Diego Gas & Electric.
  • The reduction is smaller than a 0.35‑point cut proposed last month, following utility pushback and requests for return-on-equity levels between 11% and 11.75%.
  • Commissioner Darcie Houck cast the lone dissent, warning the decision does not adequately account for ratepayer hardship.
  • CalMatters reported the change is unlikely to significantly lower bills in the near term because returns are embedded in rates and applied to expanding utility rate bases.
  • Utilities said the decision overlooks wildfire and financing risks, while the Public Advocates Office rejected the companies’ claims for higher returns as unsupported by the record.