How Much Risk is Enough? The Answer Will Shape Billions in Utility Spending (R.26-04-016)

On June 8, parties submitted opening comments in the CPUC's Risk-Based Decision-Making Framework proceeding.

The Risk-Based Decision-Making Framework governs how utilities quantify and propose safety spending in General Rate Cases. R.26-04-016 is the successor docket to R.20-07-013, and picks up a handful of unfinished tasks from that proceeding's final decision (D.25-08-032), including:

• Adopting a formal risk tolerance standard;
• Formalizing additional RAMP review time for the CPUC's Safety Policy Division; and
• Standardizing Benefit-Cost Ratio methodology, including optional Present Value Revenue Requirement treatment.