Liberty Utilities (CalPeco Electric) LLC GRC Proceedings

Test Year (TY) 2025 A.24-09-010 - Docket 

On September 20, 2024, Liberty Utilities (CalPeco Electric) LLC (or “Liberty”) filed its Test Year (TY) 2025 General Rate Case (GRC) Application A.24-09-010 requesting authority to increase its authorized revenues for electric service, establish marginal costs, allocate revenues, and design rates, effective January 1, 2025. In its application, Liberty sought approval of a proposed TY 2025 base revenue requirement of $247.920 million (reflecting an overall revenue increase of $39.773 million or 19.1 %), a rate of return on rate base of 8.568 %, a return on equity (ROE) of 11.0%, and a capital structure of 47.5 % debt and 52.5 % equity. In its application, Liberty cited wildfire-related expenditures, including wildfire insurance premiums, as the primary drivers of the revenue requirement increase.

On October 1, 2025, Liberty, the Public Advocates Office at the CPUC (Cal Advocates), The Utility Reform Network (TURN), the Tahoe Energy Ratepayer Group (TERG), the A-3 Customer Coalition (A-3 CC) and the Small Business Utility Advocates (SBUA) filed a Joint Motion for Approval and Adoption of the Multi-party Settlement Agreement on most of the revenue requirement issues, except ROE.  Thus, the ROE and the issues on Marginal Cost, Revenue Allocation and Rate Design remained to be litigated.

On March 19, 2026, the Commission issued Decision 26-03-017 which, among other things, adopted and modified the uncontested multi-party Settlement Agreement, authorized a ROE of 9.75%, cost of debt of 5.87%, capital structure of 47.5% debt and 52.5% equity, and rate of return of 7.91% resulting in a revenue requirement of $231.938 million (an increase of $23.791 million or 11.4% over currently authorized revenues). This represents a revenue requirement increase that is 40% lower than the increase requested by Liberty.

For the average residential customer, the total bill impact is approximately $46.34 per month, or an increase of 23.8%. This includes approximately $24.34 per month, or a 12.5% increase, associated with the costs approved in this GRC, in addition to recovery of revenue that was under-collected before the new rates from this GRC took effect.

Please refer to the Decision 26-03-017 for more information, including the authorized revenue requirement for TY 2025 and revenue increases for 2026 and 2027.  

Previous Liberty GRC Decisions: