CPUC JAN. 15, 2026 VOTING MEETING PREVIEW: SDG&E GRC Wildfire Costs; Non-IOU Provider of Last Resort Framework; PG&E Long-Duration Storage

The CPUC's January 15, 2026 voting meeting agenda carries $1.2 billion in capital decisions and two framework-setting items that may shape utility operations for years. Below are the proposed decisions and draft resolutions that are currently scheduled for consideration.

• For SDG&E's wildfire-mitigation cost recovery, the CPUC disallows $435 million out of the $1.47 billion requested. An ALJ Larsen proposed decision calls for better documentation and cost-benefit analysis. Every California utility filing Wildfire Mitigation Plan costs should read this PD closely.
• The Provider of Last Resort framework builds procedural infrastructure for a future that hasn't arrived. No CCA has sought full POLR designation, but when one does, the application pathway will exist, with financial security, insurance, and anti-cost-shifting requirements baked in.
• A pair of PG&E energy-storage items illustrate the mid-term reliability squeeze: Balsam (225 MW, eight-hour) moves toward 2028 delivery while Nighthawk (300 MW) gets a second delay extension to avoid outright default.

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SDG&E GENERAL RATE CASE

This proposed decision resolves SDG&E’s request to recover wildfire-mitigation costs recorded in its Wildfire Mitigation Plan Memorandum Accounts from May 2019 through 2022.

SDG&E sought recovery of $284 million in O&M and $1.188 billion in capital, reflecting extensive grid-hardening, vegetation management, inspections, situational-awareness tools, and other wildfire-risk-reduction measures pursuant to post-2019 wildfire-mitigation legislation.

• The PD finds some costs reasonable and aligned with mandated wildfire-risk reduction but disallows $192.6 million in O&M and $242.4 million in capital, citing insufficient support, cost-effectiveness concerns, and other deficiencies. The PD ultimately approves $90.6 million in O&M and $945.2 million in capital as just and reasonable.
• The PD also addresses recovery of the undercollected revenue requirement associated with depreciation, taxes, and return on rate base for WMP-related assets through 2027. After subtracting the $289.9 million in interim relief already collected (subject to refund), the PD authorizes $430.9 million in additional revenue requirement, amortized over three years to mitigate bill impacts on residential customers.
• The PD rejects TURN’s request to force SDG&E to refile the application but requires SDG&E to include cost-benefit ratios in future wildfire-cost-recovery filings.

PROVIDER OF LAST RESORT

This proposed decision establishes a procedural framework for how non-investor-owned entities may seek designation as a Provider of Last Resort under Senate Bill 520, without pre-judging eligibility criteria in the absence of a concrete applicant. (Providers of Last Resort are the load-serving entity designated to supply electricity to customers when their chosen provider fails or exits the market).

The PD concludes that, because no non-IOU entity has expressed intent to assume full POLR responsibility for all customer classes in a geographic area, it would be inefficient and speculative for the Commission to resolve detailed substantive issues in advance.