On Thursday, November 16, 2023, the CPUC issued a Final Decision (FD) for PG&E’s 2023 General Rate Case (GRC) A.21-06-021 approving the Second Revised Alternate Proposed Decision to fund permanent wildfire risk reduction, critical gas and electric safety and reliability investments, and electric capacity upgrades to support new business connections and California’s clean energy goals. Previously, PG&E's GRC was filed every three years and did not include natural gas transmission and storage (GT&S). Beginning in 2023, this review is on a four-year cycle and includes all costs associated with gas operations, electric distribution and generation operations in one proceeding.

This decision adopted the authorized operational and infrastructure revenue requirement for 2023-2026. Within 30 days from the effective date of this decision, PG&E will file a Tier 1 Advice Letter to implement the revenue requirement and ratemaking adopted. The revenue requirement and upcoming revised tariff sheets will be effective January 1, 2024. Once available, CGT will publish the new effective backbone transportation and storage rates on Pipe Ranger.

As a reminder, the GT&S Cost Allocation and Rate Design (CARD) proceeding (A.21-09-018) addresses the cost allocation and rate design of GT&S revenue requirements as approved by the GRC Phase I final decision. On June 30, 2023, PG&E, on behalf of itself and Settling Parties, served and filed its Motion for Adoption of All Party Settlement and Stipulation (the Settlement) in the 2023 GT&S CARD proceeding. The settlement agreement resolved all open issues in the CARD proceeding which includes the following items: Market Responsive Electric Generation (EG) throughput forecast, Local Transmission (LT Cost Allocation, Market Responsive EG LT Rate Design, Inventory Management, Functional Storage Cost Allocation, and Core Storage. The Baja-Redwood settlement resolved the methodology for calculating the Baja-Redwood path rate differentials. The 2023 CARD settlement also adopts the 2023-2026 throughput forecast which is the basis for PG&E’s allocation of adopted costs and end-use rate calculations. Since the Commission has not yet issued a decision on the GT&S CARD settlement, implementation will not occur until sometime in the first quarter of 2024 at the earliest.

Therefore, the rates included in the effective January 1, 2024 rates advice letter filing as mentioned above will not reflect the updated throughput forecast or cost allocations from the CARD settlement. It is important to highlight that once the CPUC issues a decision on the 2023 GT&S CARD settlement, PG&E will file another advice letter to implement the updated effective rates sometime after the first of the year.

If you have any questions, please contact Allen DeBrum at 925.244.3498.