Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 145

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1A
Chunk 145
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 cost recovery proceedings: 

YearRequested revenue requirement (in billions)Requested weighted-average GRC rate base2026 (as adopted)$15.4 54.0 202716.6 67.0 202817.7 73.4 202918.7 79.4 203019.9 85.4 

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In the 2027 GRC application, the Utility proposed various safety, resiliency, and clean energy investments.  Among other things, the Utility proposed to invest a total of approximately $45.0 billion between 2027 and 2030 in CPUC-jurisdictional assets.  The proposed investments would support wildfire safety (including undergrounding 307 miles of electrical lines each year until a 10-year undergrounding plan is approved), grid modernization, gas system safety, clean energy, and resilience.

In addition, the Utility requested authorization to establish new 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.

In its application, in accordance with the CPUC’s standard rate case plan schedule, the Utility requests that the CPUC issue a PD by November 1, 2026.  It also requests that the 2027 GRC rates be effective January 1, 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, 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 debt5.05 %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