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An Introduction to Utility Cost of Capital

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Our Policy and Planning Division has issued a paper that offers An Introduction to Utility Cost of Capital. The paper explains what cost of capital is, how it is calculated, and what its overall impact is to consumers.


The CPUC authorizes a utility a return high enough to attract investor capital and low enough to minimize consumer costs. The question is: What is a fair return that reasonably balances and optimizes these offsetting goals?


In addition to issuing this paper, the CPUC will hold an introductory class on this topic on June 6, 2017, in its Auditorium in San Francisco. The training will be open to the public and it will be webcast.

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