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CPUC Acts to Adopt Methodology to Address Future Utility Wildfire Cost Recovery

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The CPUC today took steps to adopt a methodology to address future utility requests for wildfire cost recovery. 

The proceeding opened today (called a Rulemaking) will evaluate proposed methodologies to implement the requirement of Senate Bill (SB) 901 to determine the maximum amount a utility can pay for wildfire-related liabilities without harming ratepayers or materially impacting a utility's ability to provide adequate and safe service.

In undertaking the adoption of criteria and a methodology to determine the maximum amount a utility can pay, the CPUC is mindful of both the impact on ratepayers in California, and the importance of maintaining financially viable utilities to provide safe and reliable service.  The scope of the proceeding does not include the consideration of cost recovery for any specific fire event.  The CPUC's approval of criteria and a methodology in this proceeding is not a determination of the reasonableness of any type of costs.

The utilities that are subject to the findings of the proceeding are Pacific Gas and Electric Company; Southern California Edison; San Diego Gas & Electric; Liberty Utilities; Bear Valley Electric Service; and Pacific Power, a division of PacifiCorp.

The SB 901 Cost Recovery Methodology Rulemaking that was voted on is available on the CPUC's website.

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