"In a proposed decision, the California Public Utilities Commission recommended dropping the "return on equity" by 0.35% each for Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric. If approved, shareholders of all three companies would see a potential return next year of just under 10%. Such returns for PG&E and Edison haven't dipped below double digits in at least 20 years. Utilities said the decline would affect their ability to bring in needed investment for their work. Critics of the decision said that the decline is too small to meaningfully impact ratepayers' bills, even if it's a step in the right direction."
""California and other [public utility commissions] authorize rates of return that are far in excess of the statutory requirement," said Mark Ellis, former chief economist at Sempra, which owns San Diego Gas & Electric. The California Public Utility Commission is expected to vote on the decision in December. Californians pay the second-highest electric rates in the U.S. after Hawaii, according to the most recent figures from the U.S. Energy Information Administration. A number of factors go into those rates, including wildfire mitigation costs. PG&E in particular has attracted the ire of California customers for its frequent rate hikes within the last year."
The California Public Utilities Commission proposed reducing the return on equity by 0.35 percentage points for Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric, which would bring potential shareholder returns to just under 10% next year. PG&E and Edison have not seen returns below double digits in at least 20 years. Utilities warn the reduction could hinder investment, while critics say the cut is too small to significantly lower ratepayers' bills. Californians face the nation's second-highest electric rates, influenced by factors including wildfire mitigation costs. The commission is expected to vote in December.
Read at San Jose Inside
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