WEDNESDAY AGGREGATE: PG&E's Yield Spread Adjustment; SDG&E TIMPBA Settlement; the RA Market Price Benchmark
Today's roundup is heavy on SDG&E filings. Topics covered include:
- PG&E's implementation of a Yield Spread Adjustment, as authorized by the CPUC in its 2026 Cost of Capital decision;
- An amended joint motion filed by SDG&E and Cal Advocates that seeks approval of a settlement resolving SDG&E’s application to recover Transmission Integrity Management Program Balancing Account costs from January 2019 through December 2023;
- SDG&E's response to an application for rehearing filed by two CCAs in which the CCAs argue that the CPUC unlawfully set Power Charge Indifference Adjustment rates by retroactively applying a new Resource Adequacy Market Price Benchmark methodology to 2025 costs;
- A draft resolution approving two SDG&E mid-term reliability contracts resulting from the company's Tranche 3 solicitation, authorizing a combined 92 MW of standalone battery energy storage projects; and
- A ruling requiring PG&E to explain why it filed its recent gas-line subsidy application without including the non-residential gas line extension allowance calculations expressly required by prior Commission direction.
PG&E RATES/COST OF CAPITAL
PG&E filed an advice letter to implement the Yield Spread Adjustment (YSA) authorized in the CPUC's 2026 Cost of Capital decision, establishing how interest will be calculated on balancing and memorandum accounts beginning January 1, 2026.
The YSA is designed to reflect the difference between PG&E’s actual short-term borrowing costs and the three-month Commercial Paper rate historically used for regulatory interest. For 2026, the YSA is set at 125 basis points, based on a 12-month average spread.
| Month | PG&E Rate | H.15 CP (90-Day) | Spread |
|---|---|---|---|
| Nov 2024 | 5.84% | 4.57% | 1.27% |
| Dec 2024 | 5.53% | 4.43% | 1.10% |
| Jan 2025 | 5.44% | 4.23% | 1.21% |
| Feb 2025 | 5.45% | 4.27% | 1.18% |
| Mar 2025 | 5.45% | 4.28% | 1.17% |
| Apr 2025 | 5.45% | 4.32% | 1.13% |
| May 2025 | 5.45% | 4.30% | 1.15% |
| Jun 2025 | 5.46% | 4.32% | 1.14% |
| Jul 2025 | 5.55% | 4.30% | 1.25% |
| Aug 2025 | 5.52% | 4.20% | 1.32% |
| Sep 2025 | 5.54% | 4.01% | 1.53% |
| Oct 2025 | 5.42% | 3.90% | 1.52% |
| Average | 5.51% | 4.26% | 1.25% |
| Source: PG&E Advice Letter 5169-G/7818-E (Jan. 20, 2026). Weighted average reflects PG&E Revolving Credit Facility, AR Facility, 364-Day Floating-Rate Note, and Term Loan. | |||