Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 72

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 72
---
 for the period of 2024 to 2026.  The decision also provides the Utility the ability to request revisions to the 2025 and 2026 cap amounts under certain conditions.  On October 4, 2024, the Utility filed a motion to increase the 2025 and 2026 cap amounts by an aggregate $3.1 billion, which reflects approximately $300 million originally included in 2024, for a net increase of $2.8 billion.

On October 18, 2024, the assigned commissioner issued an amended scoping memo providing for a final decision in spring 2025.

79

Cost of Capital Proceedings

2023 Cost of Capital Application

On December 19, 2022, the CPUC issued a final decision adopting a new 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, 2023.  On October 22, 2024, the CPUC issued the decision in Phase 2 modifying the Cost of Capital mechanism and setting new returns on equity effective January 1, 2025.  

On November 6, 2024, the Utility submitted an advice letter with updated 2025 cost of capital rates.  On December 4, 2024, the CPUC approved the advice letter and the following cost of capital rates, which went into effect beginning January 1, 2025:

CostWeightWeighted CostReturn on Common Equity10.28 %52.00%5.35%Return on Preferred Equity5.52 %0.50%0.03%Return on Long-term debt4.80 %47.50%2.28%

The Utility will file the next cost of capital application on March 20, 2025 for test year 2026.

Transmission Owner Rate Cases

Transmission Owner Rate Case for 2024 (the “TO21” rate case)

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 proposed amount reflects an approximately 11% decrease over the rate year 2023 retail revenue requirement of $3.18 billion, due in part to a refund to customers (see