The California Public Utilities Commission (CPUC) is responsible for overseeing General Rate Cases (GRCs), which are complex proceedings that determine the rates customers pay for essential services such as electricity and natural gas. These cases involve a detailed review of the costs utilities incur to operate and maintain their systems.
For major investor-owned utilities like Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric, GRCs are filed every four years. The process is divided into two phases: the first phase establishes the total revenue requirement needed by the utility to provide service, while the second phase allocates this amount among different customer groups.
Leuwam Tesfai, Deputy Executive Director for Energy and Climate Policy at CPUC, explained how Phase 1 of GRCs is handled: “As the Deputy Executive Director for Energy and Climate Policy at the CPUC, I’d like to share with you information on how we tackle Phase 1 of GRCs to provide clarity on the process and its transparency to the public.”
GRCs require extensive documentation from utilities, including historical data and forecasts covering infrastructure upgrades, safety investments, customer service operations, cybersecurity measures, employee training costs, insurance expenses, legal fees, and regulatory compliance. Preparing these forecasts can take over a year before filing.
Intervenors—such as consumer advocates, local governments, and environmental organizations—submit expert testimony that analyzes utility proposals. In large GRCs more than 20 intervenors may participate. Public input is also collected through forums held across service areas as well as written comments submitted online.
Formal evidentiary hearings allow parties to cross-examine witnesses from both utilities and intervenors. Testimony from these hearings becomes part of the official record reviewed by Administrative Law Judges (ALJs) and CPUC Commissioners in crafting final decisions.
CPUC staff—including engineers, financial analysts, policy experts, attorneys, ALJs—collaborate throughout each case. They assess revenue requirements proposed by utilities; evaluate infrastructure upgrade plans; analyze wildfire mitigation strategies; review impacts on customer bills; request additional data when necessary; and prepare recommendations for decision-makers.
The entire process typically takes about 18 months from initial filing to final decision. During this period staff conduct technical analysis and modeling; review all submitted testimony; participate in hearings; assist in drafting proposed decisions; and support adoption of outcomes at voting meetings.
Tesfai emphasized accountability in these proceedings: “At its core, a GRC is about evidence and accountability. Utilities are granted the opportunity to collect revenue based on the reasonable cost of providing service. The CPUC ensures that these requests are thoroughly reviewed, justified, and in the public interest, and we do so through an open and transparent process in which the voice of the consumer is very necessary and solicited.”
Each GRC decision reflects months of technical analysis along with stakeholder participation aimed at ensuring Californians have access to safe utility services at fair rates.
