MONDAY AGGREGATE: IOU Cost Discipline Following Senate Bill 254; PG&E Cost of Capital Adjustments; LCFS and EV Program Volatility
Today's roundup has a heavy emphasis on PG&E.
- WILDFIRE COST RECOVERY: In PG&E's 2027 General Rate Case proceeding, several parties have responded to an amended scoping memo, with thoughts on how Senate Bill 254 should affect the use of wildfire mitigation memorandum accounts in this GRC. EPUC, joined by the California Large Energy Consumers Association, filed the most aggressive comments, invoking the CPUC's own February 2025 response to Executive Order N-5-24. The CPUC's response, they note, found that wildfire mitigation costs totaled approximately $24 billion in ratepayer collections from 2019-2024, and that multiple recovery venues decreased transparency.
- COST OF CAPITAL: PG&E is proposing to modify several gas and electric revenue adjustment mechanisms. These changes, if approved, would allow interest savings from future draws on a Department of Energy loan (excluded from PG&E's authorized 2026 cost of debt) to be returned to customers.
- ELECTRIC VEHICLES: PG&E is looking to add $18 million to the budget of its "Pre-Owned Electric Vehicle Rebate Program" in order to keep the program open and issuing rebates through the end of 2026. PG&E's request demonstrates how Low Carbon Fuel Standard revenues are functioning as a flexible backstop for EV programs during periods of market volatility
More detail is available below.