The California Public Utilities Commission (CPUC) has outlined its process for handling General Rate Cases (GRCs), which play a key role in determining the rates that customers pay for electricity and natural gas. GRCs are complex proceedings involving detailed examination of utility company forecasts, costs, and service plans.
For large investor-owned utilities such as Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric, GRCs occur every four years. The process is divided into two phases: the first determines the total revenue required by the utility to operate and maintain its infrastructure; the second phase allocates this approved revenue among different customer groups.
According to Leuwam Tesfai, CPUC Deputy Executive Director for Energy and Climate Policy, “As the Deputy Executive Director for Energy and Climate Policy at the CPUC, I’d like to share with you information on how we tackle Phase 1 of GRCs to provide clarity on the process and its transparency to the public.”
GRCs require utilities to submit extensive documentation including historical data and future spending forecasts. These documents cover areas such as infrastructure replacement, wildfire mitigation, customer service operations, IT systems, cybersecurity measures, employee training, insurance costs, legal expenses, and regulatory compliance. Preparing these materials often takes over a year before filing.
Intervenors—including consumer advocates, local governments, and environmental organizations—also participate by submitting their own expert testimony. In major cases there may be more than 20 intervenors offering alternative analysis or recommendations.
Public participation is another important element. The CPUC organizes virtual and in-person forums across each utility’s service area to gather direct feedback from customers. Written comments are also accepted online through the CPUC docket system.
Formal evidentiary hearings allow parties to cross-examine witnesses from both utilities and intervenors. Testimony from these hearings becomes part of the official record reviewed by Administrative Law Judges (ALJs) and CPUC Commissioners during decision-making.
CPUC staff assigned to GRCs include engineers, financial analysts, policy experts, attorneys, ALJs, distribution planning specialists who review grid modernization proposals; safety experts who assess wildfire mitigation strategies; affordability analysts who examine impacts on customer bills; as well as general rate case teams who scrutinize financial models.
Tesfai explained that “Each GRC decision can span hundreds of pages… To guide this process, subject-matter experts from across the CPUC’s Divisions collaborate closely with ALJs and the Commissioner assigned to the GRC.”
The full review typically lasts about 18 months from initial application through final adoption at a Voting Meeting. Throughout this period staff conduct technical analysis of evidence submitted by all parties involved.
Tesfai emphasized that “At its core, a GRC is about evidence and accountability. Utilities are granted the opportunity to collect revenue based on the reasonable cost of providing service. The CPUC ensures that these requests are thoroughly reviewed, justified, and in the public interest…” She added that each decision reflects months of technical analysis with input from stakeholders across California.
