Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 35

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 7
Chunk 35
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5, the CPUC issued a decision extending the statutory deadline in the proceeding from June 30, 2025 to March 31, 2026. 

Forward-Looking Rate Cases

The Utility routinely participates in forward-looking rate case applications before the CPUC and the FERC.  Those applications include GRCs, where the revenue required for general operations (“base revenue”) of the Utility is assessed and reset.  In addition, the Utility is periodically involved in “cost of capital” proceedings to adjust its regulated return on rate base.  The Utility’s future earnings will depend on the revenue requirements authorized in such rate cases.  The Utility also expects to file its SB 884 cost application with the CPUC after the OEIS approves guidelines.  See “SB 884 10-Year Distribution Undergrounding Program” below.

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Decisions in GRC proceedings have historically been expected prior to the commencement of the period to which the rates would apply.  In recent decades, decisions in GRC proceedings have been delayed.  Delayed decisions may cause the Utility to develop its budgets based on possible outcomes, rather than authorized amounts.  When decisions are delayed, the CPUC typically provides rate relief to the Utility effective as of the commencement of the rate case period (not effective as of the date of the delayed decision).  Nonetheless, the Utility’s spending during the period of the delay may exceed the authorized amount, without an ability for the Utility to seek cost recovery of such excess.  If the Utility’s spending during the period of the delay is less than the authorized amount, the Utility could be exposed to operational and financial risks associated with the lower level of work achieved compared to that funded by the CPUC.

The Utility’s forward-looking rate cases that are pending, have pending appeals, or were completed during the quarter ended June 30, 2025 are summarized in the following table:

Rate CaseRequestStatusEnergization Timelines OIRCapital cost cap increase of $3.13 billion for 2025 and 2026PD authorizing $2.38 billion increase for 2025 and 2026 cost cap issued in July 2025.2027 GRC Revenue requirement of $16.64 billion for 2027Filed May 2025.  A decision is requested by the fourth quarter of 2026.2026 Cost of CapitalIncrease ROE to 11.30% and cost of debt to 5.05%Filed March 2025.Transmission Owner Rate Case for 202