August 26, 2026

Regulatory Update for August 26, 2026

(Covering August 19, 2026 - August 25, 2026)

Our energy regulatory team has compiled a list of state and federal energy regulatory developments to keep you up to speed on key energy regulatory matters from across the United States. Stoel’s energy regulatory team is always available to answer questions about any of these developments. Click here to meet the energy regulatory team.

Jump to the following jurisdictions:

State Regulatory Agencies

• California Public Utilities Commission (CPUC)
• California Energy Commission (CEC)
• Pacific Northwest (WUTC, BPA)

Federal Regulatory Agencies

• Federal Energy Regulatory Commission (FERC)

Independent System Operators (ISO) and Regional Transmission Organizations (RTO)

• California Independent System Operator (CAISO)
• PJM Interconnection (PJM)
• Data Centers

Click here to download this update as a PDF

State Regulatory Agencies

CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC or COMMISSION)[1]

Proposed Decisions and Resolutions

None to report.

Voting Meeting

The CPUC will hold a voting meeting on September 3, 2026 in Sacramento, California, at 11 a.m. PT. The energy-related items on the agenda are below:

Item 2. Application (A.) 24-08-004 (Application of Pacific Gas and Electric Company (PG&E) for a Limited Capital Structure Adjustment)

In this application, PG&E requests permission to deviate from its authorized capital rate structure, governed by Affiliate Transaction Rule IX B. Specifically, PG&E seeks to exclude $2.6 billion in expenses related to the Dixie Fire ($277 million at the time of filing), the Kincade Fire (approximately $1.2 billion at time of filing), and the Department of Water Resources (DWR) loan (approximately $1.4 billion) when calculating its debt-to-equity ratio. The decision denies PG&E’s requested relief and finds that (1) the request does not qualify for an Affiliate Transaction Rule waiver, and (2) it would not be in the public interest to grant a deviation from PG&E’s recently adopted capital rate structure.

Item 2A

President Reynolds issued an Alternate Proposed Decision (APD) in A.24-08-004 (above), which would exempt the DWR loan from PG&E’s regulatory capital structure, and would require PG&E to provide additional information in its next cost of capital application regarding a capital structure true-up analysis that identifies any equity surplus caused by the decision not to exempt the Kincade and Dixie wildfire from the capital structure, and the status of DWR loan forgiveness.

Item 3. Resolution E-5455

This resolution approves, with modifications, PG&E’s Advice Letter (AL) 7785-E, filed on December 18, 2025, requesting Commission approval of an exceptional case agreement between PG&E and Google LLC to support the energization of a new 250-megawatt (MW) transmission-level retail electric load at 230 kilovolts (kV) in San Jose, California.

Item 5. Rulemaking (R.) 21-06-017 (Order Instituting Rulemaking to Modernize the Electric Grid for a High Distributed Energy Resources Future)

This decision adopts a biannual schedule for the Integration Capacity Analysis workshops starting January 1, 2027. This decision allows PG&E, Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E) to file a Tier 2 advice letter to propose changes to the workshop cadence. This decision also orders the IOUs to produce Grid Modernization Progress Reports in the fall of even-numbered years, due on October 1, aligned with the requirements set forth in California Public Utilities Code § 913.6.

Item 6. R.21-11-014 (Order Instituting Rulemaking to Implement Senate Bill 1014-the California Clean Miles Standard Program)

This decision addresses issues in the second phase of the Clean Miles Standard Program. Of note, this decision clarifies exemptions for Autonomous Vehicle Passenger Carriers, codifies additional incentives for low- and moderate-income drivers on Clean Miles Standard Regulated Entities platforms, and outlines a process for ending the Clean Miles Standard Program after the targets have been met. The instant decision declines to adopt a citation program for enforcement of the Clean Miles Standard annual targets at this time.

Item 14. R.22-11-013 (Order Instituting Rulemaking to Consider Distributed Energy Resource Program Cost-Effectiveness Issues, Data Access and Use, and Equipment Performance Standards)

This decision updates the Avoided Cost Calculator (ACC), beginning with the 2026 ACC. The updates are designed to create a more robust, transparent ACC model that better reflects changing system and load patterns due to increased building and vehicle electrification and growing renewable penetration on the grid.

Item 18. A.26-03-008 (Application of SDG&E for authorization to: (1) issue debt securities in an aggregate principal amount up to $2,583 million of debt capital, in addition to previously authorized amounts; (2) issue roll over debt securities in an aggregate principal amount up to $1,348 million of debt capital, in addition to previously authorized amounts; (3) include certain features in the debt securities, or to enter into certain derivative transactions related to underlying debt in order to improve the terms and conditions of the debt portfolio, and with the goal of lowering the cost of money for the benefit of ratepayers; (4) hedge planned issuances of debt securities; and: (5) take all other necessary, related actions)

This decision grants SDG&E authority to issue up to $2.583 billion of new debt and up to $1.348 billion of roll over debt securities, in addition to previously authorized amounts. This decision also authorizes SDG&E to issue certain tax-exempt debt securities to guarantee the obligations of others, to include certain features or enter into certain derivative transactions with the goal of lowering SDG&E’s cost of money for the benefit of ratepayers, to hedge when appropriate and in accordance with the new financing rule, and to take specific related actions as described in this decision.

Item 19. Resolution O-0101

This Resolution approves Torrance Basin Pipeline Company, LLC’s (Torrance Basin) request to increase rates by 10 percent on its M-131 Crude Line pursuant to the provisions of Public Utilities Code § 455.3 and General Order 96-B, Energy Industry Rule 5.3 and Energy Industry Rule 8.

Item 20. A.25-12-021 (Joint Application by Zenith Energy Terminals Holdings, LLC, Zenith Energy West Coast Terminals LLC, and Seaview West Coast Logistics LLC, for Approval of Transfer of Control of Zenith Energy West Coast Terminals LLC Pursuant to California Public Utilities Code Section 854(a), for Approval to Assume the Obligations of a Parent Pursuant to California Public Utilities Code Section 830, and for an Order Pursuant to California Public Utilities Code Section 851(a) to Encumber Public Utility Asset)

This decision approves transfer of ownership of Zenith Energy Terminals West Coast LLC from Zenith Energy Holdings LLC to Seaview West Coast Logistics, LLC. It also authorizes Seaview West Coast Logistics, LLC to encumber the assets of Zenith Energy Terminals West Coast LLC. The change in ownership is not a project subject to review under the California Environmental Quality Act.

Item 50. R.___ [To be Determined] (Order Instituting Rulemaking to Revise the General Rate Case Plan for Energy Utilities)

The Commission initiates this rulemaking to update minimum requirements in the Rate Case Plan (RCP) for the energy utilities filing General Rate Cases (GRC), and to implement the requirements specified by Assembly Bill (AB) 2666 (Boerner, 2024), AB 2847 (Addis, 2024), and Senate Bill (SB) 254 (Becker, 2025). According to the Commission, these updates are designed to facilitate improved evidentiary showings in GRCs in a more uniform manner, and provide parties and Commission decision-makers with more complete information in furtherance of the statutory directive to ensure that rates are sufficient to furnish and maintain “adequate, efficient, just, and reasonable service,” while observing the principle that “electricity and gas services are necessities, for which a low affordable rate is desirable.” In conjunction with these goals, the Commission may also consider broader revisions of the RCP to promote more efficient and effective management of the rate case process while promoting consistency and uniformity in the energy utilities’ GRC applications.

Events

Interconnection Discussion Forum (IDF)

The CPUC’s Energy Division will host the next IDF stakeholder meeting on Tuesday, September 22 from 1 p.m. to 4 p.m. PT. The IDF provides an informal venue for utilities, developers, and other stakeholders to explore a wide variety of issues related to interconnection practices and policies. It is generally scheduled quarterly. This is the designated Q3 meeting for 2026. There was no Q2 2026 meeting due to work on the new interconnection proceeding R.25-08-004. Additional information, including how to contact the IDF hosts, is available on the CPUC Electric Rule 21 webpage, available here.

CALIFORNIA ENERGY COMMISSION (CEC)

2026 Integrated Energy Policy Report (IEPR) Update

The CEC has set the following preliminary schedule for the 2026 IEPR. The schedule is available on the 2026 IEPR Update page.The CEC has set the following preliminary schedule for the 2026 IEPR. The schedule is available on the 2026 IEPR Update page.

Task/Event	Date
• Final 2026 IEPR Update Scoping Order released	April 2026
• Adopt order instituting informational proceeding	May 2026
• Public workshops on specific topics	May–December 2026
• Release draft 2026 IEPR Update	October 2026
• Release proposed 2026 IEPR Update	January 2027
• Adopt 2026 IEPR Forecast	January 2027
• Adopt 2026 IEPR Update	February 2027

The CEC’s 2026 IEPR Update workshop schedule (which remains subject to change) is set forth below. According to the workshop schedule, all workshops will be held via Zoom and the remaining workshops through December 2026 will run as follows:

Written comments regarding the August 20, 2026 and August 31, 2026 workshops are due to the Docket Unit by 5:00 p.m. PT on September 15, 2026.

Notice to Amend Electric Vehicle (EV) Charger Reliability Standards

On August 11, 2026, the CEC announced its proposed rulemaking to amend the EV charger data and reliability standards (set forth in Title 20, California Code of Regulations, Division 2, Chapter 12, Article 2) to exempt MW Charging System EV chargers from certain requirements and to provide other “minor refinements” within the regulations. The CEC will hold a public meeting to consider the proposed regulations on Thursday, September 24, 2026 from 10 a.m. to 1 p.m. PT via Zoom. Access details and other event information are available here. Additional information regarding the EV charger reliability standards is available on the EV Charger Data and Reliability Standards webpage.

Electric Program Investment Charge (EPIC)

The CEC will host its annual EPIC Symposium on September 29, 2026, both in person at the California Natural Resources Agency building at 715 P Street in Sacramento, California and via remote access. EPIC discussion topics include (1) Optimizing Electric Vehicles as Grid Assets and (2) Closing the Battery Lifecycle Loop. Registration is now live and the Symposium agenda is available here.

CEC Business Meetings

The next regular CEC business meeting will be held on September 9, 2026.

PACIFIC NORTHWEST (WUTC, BPA)

Washington Utilities and Transportation Commission (WUTC)

On August 27, 2026, the WUTC will hold a special meeting to consider, in relevant part, PacifiCorp’s petition for approval of a four-year supply and demand forecast for the 2027-2030 compliance period of the Climate Commitment Act (Docket No. UE-260354). The full agenda is accessible here.

Bonneville Power Administration (BPA)

On August 25, 2026, BPA hosted its final workshop related to its efforts to conduct a comprehensive review and update of its existing Public Involvement Policy, at which it will review its proposed policy changes and receive any stakeholder feedback on next steps in the policy update process. Information on the workshop is accessible here.  More information on BPA’s Public Involvement Policy is accessible here. Additionally, on August 26, 2026, BPA will hold its Commercial Business Process Improvement customer conference call to provide updates regarding BPA Transmission Services’ commercial systems support and development efforts, wherein customers will have the opportunity to speak directly with staff on implementation or operational issues or concerns. More information on the meeting is accessible here.

Federal Agencies

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

D.C. Circuit Upholds Southwest Power Pool (SPP) Cost Shifting

The D.C. Circuit upheld FERC’s decision to allow SPP to shift the costs of four transmission facilities across SPP rather than the facilities’ local zones. The D.C. Circuit denied petitions for review, noting that petitioners’ arguments that FERC’s approval was unsupported by substantial evidence failed given that FERC approved SPP’s proposal based on evidence that the four facilities primarily served and benefited customers outside the facilities’ local zones.

Independent System Operators (ISO) and Regional Transmission Organizations (RTO)

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

2027 Effective Flexible Capacity Values for Resource Adequacy Resources

The CAISO has posted the draft final Effective Flexible Capacity Report for 2027. The report can be found here. Comments and suggestions must be submitted by September 3, 2026.

2026-2027 Transmission Planning Process (TPP)

The CAISO posted the TPP preliminary reliability results on August 14, which can be found here. The TPP request window is open until October 15, 2026.

PJM INTERCONNECTION LLC (PJM) 

Proposed Governance Reforms

PJM outlined eight proposed governance reforms that would allow it to act with greater speed and efficiency while operating transparently. FERC previously directed PJM to prepare the preliminary governance and stakeholder process reforms following FERC’s July 23 FERC technical conference.

The reforms include:

• Expanding PJM section 205 filing rights to include energy and ancillary services markets and the Regional Transmission Expansion Planning protocol;
• Changing PJM’s stakeholder process to voting that is advisory instead of binding and providing for expedited consideration of issues;
• Extending the PJM Board of Managers terms of service from three to nine years;
• Granting the Organization of PJM States, Inc. access to Section 205 filing rights on certain matters of resource adequacy subject to certain conditions including a Member vote and a reliability safety valve; and
• Adding state-appointed representatives to the Nominating Committee for the PJM Board of Managers.

Five-Year Reliability Strategy

PJM released its five-year strategy on reliability in which it outlined four priorities to meet the demands of accelerating load growth amid constrained capacity. PJM stated its four priorities are to:

• Reliably operate an increasingly dynamic grid by modernizing operations for an increasingly complex system and introducing next-generation control room technologies;

• Ensure durable market incentives and state alignment by advancing market reforms;
• Proactively adapt planning processes by delivering accelerated transmission and interconnection processes supported by next-generation technologies and streamlined processes; and
• Improve decision-making efficiency by working to reduce friction, streamline governance and accelerate action while preserving trust and transparency.

Data Centers

DATA CENTERS AND LARGE LOADS

Large Load Show-Cause Proceeding Abeyance

FERC granted abeyances for the ISO-New England (ISO-NE), PJM, Midcontinent Independent System Operator, Inc (MISO), Southwest Power Pool, CAISO, and New York Independent System Operator (NYISO) to respond to their respective Federal Power Act section 206 show-cause proceedings, which directed each RTO/ISO to justify or reform rules governing how data centers, manufacturing facilities, and other large energy users connect to the electric grid. Each RTO/ISO was to respond by August 17, 2026, but each requested an abeyance. The responses to the Show-Cause Orders for ISO-NE, PJM, MISO, CAISO, and NYISO will now be due on November 16, 2026, and answers to responses will be due on December 16, 2026. SPP’s response will be due November 20, 2026, and answers to responses will be December 21, 2026.

CAISO issued its Large Load Considerations Straw Proposal, on August 12, 2026, in response to FERC’s Show-Cause Order, which was then followed by an August 19 stakeholder workshop. According to the ISO, the proposal illustrates the progress made in key areas that CAISO is responsible for, including transmission planning, generator interconnection, and reliability of the CAISO system. Comments on the Straw Proposal are due September 2, 2026. A second stakeholder workshop will be held on September 28, 2026, after the Draft Final Proposal is made available on September 21, 2026.

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[1] Per the CPUC’s Rules of Practice and Procedure Rule 14.3, comments on proposed decisions are due 20 days after issuance of the proposed decision, and reply comments are due five days thereafter.  Comments on draft resolutions are due 20 days after the draft resolution appears in the CPUC’s daily calendar, per Rule 14.5.