The California Public Utilities Commission (CPUC) has outlined its ongoing efforts to protect electricity customers from unnecessary transmission costs. Transmission infrastructure, which moves electricity across regions and state lines, is a major component of utility bills for Californians. These costs are regulated by the Federal Energy Regulatory Commission (FERC), not the CPUC.
The CPUC’s Energy and Legal Divisions regularly participate in FERC proceedings to advocate for transparency and fairness in how these costs are determined and passed on to consumers. According to the CPUC, its interventions over the past decade have resulted in more than $5 billion in savings for ratepayers, with additional stakeholder processes yielding another $1 billion in long-term savings.
Transmission investments are paid off by utility customers over many years. Without careful oversight, there is a risk that customers could be burdened with charges that are premature or unsupported. The CPUC acts as an advocate for Californians during federal regulatory processes to prevent this outcome.
FERC oversees interstate transmission rates, cost recovery mechanisms at the wholesale level, reliability standards for bulk power systems, and wholesale power markets. While FERC sets these rates, the CPUC regulates retail electric rates within California—specifically those related to local distribution systems.
To monitor transmission projects subject to FERC cost recovery, the CPUC established the Transmission Project Review (TPR) Process. This process requires investor-owned utilities to report semi-annually on their capital transmission projects using standardized data formats. The TPR Process allows stakeholders—including regulators and members of the public—to review project status, costs, schedules, and scopes through structured meetings and inquiries.
Simon Hurd, Program and Project Supervisor in the CPUC’s FERC Cost Recovery Section said: “FERC presumes that the costs utilities include in their rate cases are prudent. As a result, the CPUC needs to advocate on behalf of ratepayers to make sure that the costs that utilities are able to recover from Californians are just and reasonable.”
By collecting uniform data through TPR and participating as intervenors when utilities file rate cases at FERC, CPUC staff aim to ensure that only justified expenses reach customer bills. The commission collaborates with other stakeholders such as wholesale transmission customers—the California Department of Water Resources State Water Project; cities including Anaheim, Azusa, Banning, Colton, Pasadena, Riverside; and agencies like Northern California Power Agency—to scrutinize filings closely.
“This multi-stage framework of data collection and oversight through the TPR Process coupled with advocacy at FERC forms a comprehensive effort to protect California customers,” said Hurd.
With significant new investments anticipated over the next two decades due to increased energy demand and clean energy targets statewide, monitoring both progress and expenditures remains crucial for keeping energy affordable while meeting environmental goals.
The bottom line according to Adam Cranfill of the CPUC: while federal authorities set key aspects of transmission pricing outside direct state control, strong advocacy ensures fair outcomes for households and businesses across California.
