PG&E 2024 RAMP A.24-05-008
Background
PG&E filed its 2024 RAMP application with the Commission on May 15, 2024. The RAMP application describes the energy utility’s primary safety risks and the proposed mitigation solutions and associated spending PG&E believes are necessary to keep Californians safe. The 2024 PG&E RAMP application is the first regulatory hurdle PG&E must surmount in order to secure funding approval for the energy utility’s four-year funding request for operations in years 2027 through 2030. The process by which a utility makes a request to secure funding for such a four-year period is known as a General Rate Case application rulemaking.
The role of the Safety Policy Division’s Risk Assessment (RASA)section, begun well before any GRC is application is filed with the Commission, is to closely scrutinize those aspects of PG&E’s proposed spending for risk and safety efforts that address wildfire, gas line ignition, electric distribution and transmission interruption, cyber security, and climate change, among other threats to public safety. As such, the 2024 PG&E RAMP application constitutes the Risk Assessment section’s newest GRC-support assignment: the forthcoming PG&E 2027 GRC application to be filed in May 2025, and seeking authorization for cost recovery for the utility’s proposed electric and gas services risk and safety efforts for years 2027 through 2030. The Risk Assessment section’s efforts will lead to 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 General Rate Case application rulemakings – through May 2026, when it’s expected that the Commission will render a decision on whether to approve PG&E’s requests as described in the GRC application.
The process by which an energy utility RAMP application informs a GRC application, with regulatory oversight by the Risk Assessment section, is shown in the figure below, with the with the case of the PG&E 2024 RAMP as an example.
Public Engagement Efforts
Pre-Application Filing Public Workshops
Workshop #3
On June 18, 2024, PG&E presented on its 2024 Risk Assessment and Mitigation Phase Report (RAMP) which was filed with the Commission on May 15, 2024. PG&E provided an overview of the report and its supporting workpapers, as well as presented on the following four risks:
- Wildfire with PSPS and EPSS
- Large Uncontrolled Water Release (Dam Failure)
- Loss of Containment on Gas Transmission Pipeline
- Cybersecurity Risk Event
These four risks represent the highest safety risks within their respective functional area in PG&E (e.g., Gas Operations).
Workshop #2
On April 11, 2024, the Safety Policy Division and Pacific Gas & Electric jointly hosted a virtual public workshop from 10 a.m. to 4 p.m.
In accordance with D.22-12-027, PG&E demonstrated how the Commission’s dollar valuation approach has impacted risk assessment and mitigation proposals. PG&E will describe the methodologies and assumptions used in valuing the safety, reliability, and financial attributes in its RDF implementation. PG&E will also show how the Cost-Benefit Approach is used to calculate risk scores and cost-benefit ratios on one of its top priority risks. This is the second of two workshops to be held in advance of PG&E’s upcoming Test Year (TY) 2027 Risk Assessment Mitigation Phase (RAMP) report, which will be filed on May 15, 2024.
Workshop #1
On February 7, 2024, the Safety Policy Division and Pacific Gas & Electric jointly hosted a virtual public workshop from 10 a.m. to 4 p.m.
In accordance with Decision D.22-12-027 requirements, PG&E provided its preliminary list of RAMP risks and the monetized Safety Risk Value for each risk in the Enterprise Risk Register for scrutiny examination and feedback. The first of two planned workshops held in advance of PG&E’s upcoming Test Year (TY) 2027 Risk Assessment Mitigation Phase (RAMP) report whose application will be filed on May 15, 2024.
Useful Links
Environmental and Social Justice Pilots
PG&E 2023 GRC rulemaking A.21-06-021