The CPUC is updating the process by which rate cases of the state’s investor-owned utilities are considered in order to better integrate and prioritize safety and reliability issues into the process.
The CPUC's decision, made on Nov. 14, 2013, opened a formal, public, and transparent process to gather the best ideas from experts and stakeholders about how the ongoing obligation of the state’s utilities to adequate maintenance, and their investments in safety improvements, should be examined and accounted for in the CPUC’s forward-looking rate-setting decisions.
"Continuing to update the rate-making process, the bedrock of CPUC regulation, is critical for consumers and ratepayers," said CPUC President Michael R. Peevey. "Today’s decision will undoubtedly lead to better information for regulators and the public about how utilities integrate safety in their spending decisions, and will ensure that safety and reliability are key considerations in any request for cost recovery."
Added Commissioner Mike Florio, "The CPUC’s rate case plan has not been comprehensively reviewed in a long time. Given that, and with our renewed focus on safety issues, it is time to re-evaluate the plan and adapt it to modern realities."
Said Commissioner Catherine J.K. Sandoval, "By focusing on safety, reliability, and security, this Rulemaking accurately reflects the mission, values, and priorities of the CPUC. The approach we authorized today will help put safety, reliability, and security at the center of rate cases to fulfill the CPUC’s mission and guide our decisions for the people we serve."