MONDAY AGGREGATE: Capital Recovery & Attrition Design; Decarbonization Cost Allocation; Gas System Continuity w/o New Assets

Capital-recovery mechanics dominate today’s report, with utilities pressing on opposite edges of the same constraint: how to fund authorized investment while limiting long-lived gas exposure.

SoCalGas/SDG&E challenge a one-part attrition design they say strands $5 billion in capital, while PG&E and Stanpac advance a consolidation proposal deliberately structured to avoid new assets. In parallel, SoCalGas frames biomethane procurement as a systemwide cost obligation, and SCE continues routine real-estate downsizing.

SEMPRA UTILITIES' RATES

SoCalGas/SDG&E (the Sempra Utilities) filed a petition for modification of a 2024 decision (D.24-12-074), which resolved the Sempra Utilities' 2024 General Rate Case by setting a test-year revenue requirement and establishing how rates would be adjusted in the following post-test years (2025–2027).