• Electric Rates

  • The CPUC must approve* all rates that each electric utility charges its customers. Once a utility's revenue requirement has been determined, a utility must propose what rate will be charged to customers in order to recover the revenue requirement. Rates are set in formal CPUC proceedings called ratemaking proceedings. The following types of regulatory proceedings address rates and rate design:

    General Rate Case (GRC) Phase II
    proceedings review and approve the ways that costs are allocated to different customer classes and how those costs are collected from those classes. GRC Phase II proceedings follow GRC Phase I proceedings and occur on a three year cycle for the three large utilities.

    Rate Design Window proceedings are shorter proceedings in between GRC Phase II cycles which address rate design issues.

    Residential Rate Reform is a proceeding which began in 2012 to address the rate structure for residential customers and implement Assembly Bill 327 (Perea, 2013). In 2015, the Commission issued a decision (D.15-07-001) providing specific steps for the major investor owned utilities (IOUs) to reform the residential rate structure with an envisioned end-state of default time-of-use rates for residential customers in 2019.
  • *Public Utilities Code section § 451 requires that the CPUC determine whether a utility's proposed rates, services, and charges are just and reasonable. *

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