RASA Analysis and Support of Energy Utility GRC Proceedings
Energy Utility General Rates Cases
Safety Policy Division’s Risk Assessment (RASA) section provides technical and subject matter expertise to ensure that proposed utility budget plans, as outlined within their GRC applications, adhere to Commission requirements for incorporating a risk-based decision-making framework into their proposed programs, capital expenditures, and operating expenses.
RASA section will address its next GRC-support assignment in 2024 with PG&E’s 2023 GRC Application seeking authorization for cost recovery for the utility’s proposed electric and gas services risk and safety efforts – including wildfire mitigation spending – for years 2027 through 2030. The Risk Assessment section’s efforts will center on determining the adequacy of PG&E 2024 RAMP application, with ongoing expertise made available to CPUC decision makers and Energy Division, the lead entity for GRC oversight, through May 2026, when it’s expected the Commission will render a decision on whether to approve PG&E’s requests as described in the GRC application.
The process of energy utility RAMP applications informing their GRC applications for safety and risk integrity, with regulatory oversight by the Risk Assessment section, is shown in the figure below with the of the forthcoming PG&E 2024 RAMP as an example.
The Risk Assessment section GRC-support assignment now in progress concerns SCE’s 2021 GRC Application seeking authorization for cost recovery for the electric utility’s proposed risk and safety efforts – including wildfire mitigation spending – for years 2025 through 2028. The Risk Assessment section’s efforts began with a thorough examination of the SCE 2024 RAMP application and culminated with issuance of a Staff Report rendering a determination of adequacy in 2022. RASA’s contribution to remaining SCE GRC-RAMP iteration oversight and processing consists of making available as-needed subject-matter expertise to CPUC decision makers and assigned lead division pertaining to SCE’s safety capacity and the reasonableness of its proposed spending plan and the risk reduction promised to be delivered per dollar of cost. RASA’s participation in the SCE 2021 GRC Application process continue through May 2024, when it’s expected the Commission will render a decision addressing the utility’s GRC application.
The process of energy utility RAMP applications informing their GRC applications for safety and risk integrity is shown in the figure below, with the example given as the SCE 2022 RAMP.
SDG&E/SoCal Gas 2016 RAMP (I.16-10-015/016) and SDG&E/SoCal Gas 2017 GRC (A.17-10-07/008)
This first-of-its-kind proceeding established the utilities' proposed safety risk and mitigation portfolio for the 2019 GRC filed in October 2017. RASA has reviewed the GRC application to see how the utilities have integrated the RAMP evaluation and comments and has also prepared a report to review the safety/reliability incidents per SB 900:
Additional Resources
Energy Utility General Rate Cases
Based on the PG&E 2017 General Rate Case (A.15-09-001) and the May decision (D. 17-05-013), staff focused on PG&E's compliance with safety spending accountability reporting and safety metrics reporting. RASA staff evaluation report (3/7/2016).
Based on the SCE 2018 General Rate Case (A.16-09-001), staff reviewed aspects related to program spending for those operations associated with electric safety and will recommend accountability reporting provisions. RASA staff evaluation report (1/31/2017).