Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 153

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 153
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 balancing accounts for new business capital spend and employee medical expenses. 

The Utility is not seeking recovery of compensation of PG&E Corporation’s and the Utility’s officers within the scope of 17 Code of Federal Regulations 240.3b-7.

On July 31, 2025, the CPUC issued a scoping memo that modifies the standard rate case plan schedule.  The scoping memo indicates that the CPUC will issue a PD by March 2027 and a final decision by May 2027.

Cost of Capital Proceedings

2026 Cost of Capital Application

On March 20, 2025, the Utility (along with the other IOUs in California) submitted its 2026 Cost of Capital application.  These applications set the cost of capital, ROE, cost of preferred stock, and cost of debt for the Utility’s electric generation, electric distribution, natural gas distribution, and natural gas transmission and storage rate base beginning on January 1, 2026.

In the application, as modified by the Utility’s opening brief, the Utility requests the following cost of capital rates:

CostWeightWeighted CostReturn on Common Equity11.30 %52.00%5.88%Return on Preferred Equity5.52 %0.30%0.02%Return on Long-term debt5.04 %47.70%2.41%

The application also requests CPUC approval of a revenue credit to return the benefit of potential DOE loan draws to customers, and a temporary yield spread adjustment to compensate the Utility for its actual cost of short-term debt.  The scoping memo issued by the CPUC provides for a procedural schedule that would provide a final decision in 2025. 

Transmission Owner Rate Cases

Transmission Owner Rate Case for 2024

On October 13, 2023, the Utility filed its TO21 rate case with the FERC.  In the filing, the Utility forecasted a 2024 retail electric transmission revenue requirement of $2.83 billion.  The Utility requested that FERC approve a 12.37% base ROE as well as a 0.5% adder for its participation in the CAISO.  The TO21 filing also addresses the Utility’s capital structure and several new issues including wildfire self-insurance recovery from transmission customers.  

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On December 29, 2023, the FERC issued an order accepting the TO21 filing subject to refund, establishing a January 1, 2024 effective date