State reins in profits for PG&E, other utilities, as bill debate rages

""Today's decision does not set rates, but it does affect customer bills over time," PUC President and Commissioner Alice Reynolds said before voting to approve the new capital cost and rate of return structure for PG&E, Southern California Edison, San Diego Gas & Electric, and Southern California Gas Co."

""This decision does not quite strike the right balance in addressing customer costs," Houck said before casting the sole no vote."

""Energy service is capital-intensive," PUC Commissioner John Reynolds said before voting yes. "Wires and poles, generators and transformers, pipelines and compressors, labor and equipment" are among those expenses, he add"

The state Public Utilities Commission voted 4-1 to approve slightly lower rates of return for utility shareholders starting in 2026. The change applies to PG&E, Southern California Edison, San Diego Gas & Electric, and Southern California Gas Co. PG&E's maximum return on equity will drop to 9.98% from 10.28%, imposing a modest curb on profits. PG&E reported monthly electricity bills are lower than at the start of 2024 and forecasted costs to drift lower in 2026. The lone no vote expressed concern that the action does not adequately protect ratepayers from future bill increases. Regulators emphasized the need for sufficiently robust returns to attract capital for capital-intensive energy infrastructure.

Read at The Mercury News