July 22, 2025

Regulatory Update for July 22, 2025

(Covering Week of July 14, 2025)

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:

Click here to download this update as a PDF

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

Proposed Decisions and Resolutions

None.

Voting Meeting

The CPUC will hold a voting meeting in San Francisco, CA on July 24, 2025 at 11:00 am.  The following are energy-related items on the agenda:

Item 3. Application (A.) 23-11-003 (Southern California Gas Company Cost Recovery for Catastrophic Events and COVID-19 Protections)

This decision authorizes partial recovery of costs recorded in Southern California Gas Company’s (SoCalGas) Catastrophic Event Memorandum Account (CEMA) and COVID-19 Pandemic Protections Memorandum Account (CPPMA).  The total capital expenditure/operations and maintenance costs authorized for recovery is $19,231,206, and the requested amount was $58,396,224.  Most of the disallowances are due to understatement of avoided costs in CEMA Subaccount F, which covers certain costs associated with the COVID-19 pandemic.  This decision also authorizes recovery of $2.068 million in waived charges and $297,000 in interest expense associated with the CPPMA.  Authorized costs will be recovered from customer classes using the Equal Cents Per Therm methodology on a 12-month schedule. 

Item 4. Resolution (Res) E-5398 (PacifiCorp Cap-and-Trade Program)

This Resolution directs PacifiCorp to remove costs for compliance with the Washington Cap-and-Invest Program from California rates from Advice Letter (AL) 751-E.  The Commission finds that California PacifiCorp ratepayers would face additional costs if rates include costs from both the California Cap-and-Trade Program and the Washington Cap-and-Invest Program for the same emissions.  The Resolution finds that this issue should be addressed once the state agencies responsible for each program finalize an agreement to harmonize the two systems.  The respective state agencies responsible for these programs, the California Air Resources Board and the Washington Department of Ecology, are currently considering an agreement that would link their carbon markets and determine a unified compliance obligation for utilities, such as PacifiCorp, that operate under both systems.  Lastly, the Commission directs PacifiCorp to determine Washington Cap-and-Invest Program costs already collected or costs owed from California ratepayers in either the 2025 or the 2026 PacifiCorp Energy Cost Adjustment Clause Application.  Held.

Item 5. Res E-5367 (PG&E and SCE DAC-GT Cost Containment Cap Proposal)

This Resolution approves, with modifications, PG&E AL 7363-E-A and SCE AL 5362-E-A to update the cost containment cap for the Disadvantaged Communities Green Tariff (DAC-GT) program, pursuant to Decision (D.) 24-05-065.

Item 6. Res E-5400 (2024-2027 Energy Efficiency Portfolio Business Plans for Northern California Rural Regional Energy Network and Central California Rural Regional Energy Network)

This Resolution approves the revised 2024-27 Energy Efficiency Portfolio Business Plan for Northern California Rural Regional Energy Network and the revised 2024-27 Energy Efficiency Portfolio Business Plan for Central California Rural Regional Energy Network. The cost is $60,029,938 to PG&E customers, $7,267,800 to SCE customers, and $2,180,340 to SoCalGas customers for a four-year period.

Item 18. Res G-3610 (SoCalGas’s Recovery of the Distribution Integrity Management Program Balancing Account for September 1, 2019, to January 1, 2023)

SoCalGas filed AL 6224-G requesting recovery of $81.4 million in undercollected revenue requirement for actual operations and maintenance and capital expenditures recorded in the DIMP Balancing Account (DIMPBA) through January 31, 2023. SoCalGas’s request to recover the undercollection recorded in its DIMPBA for September 1, 2019, to January 31, 2023, is approved. The DIMPBA amount will be amortized via the allocation methodology described in the decision from the most recent Triennial Cost Allocation Proceeding (A.22-09-015).

Item 19. Res E-5386 (Shell Energy North America, L.P. Procurement Obligations)

This Resolution grants Shell Energy’s January, February, and March 2020 month-ahead local waiver requests in ALs 21-E, 22-E, and 24-E due to the significant delays in issuing the associated non-standard disposition letters denying them. Shell Energy filed the January, February, and March 2020 month-ahead local waiver ALs in 2019 and 2020. The Energy Division disposed of them in November 2024, which is almost five years after the initial filings.

Item 25. Res E-5403 (Amendment to PG&E’s Contract with Energy Vault for Development of Clean Substation Microgrid Project)

This Resolution approves PG&E AL 7552-E without modification. In D.21-01-018 and Res E-5261, the Commission directed PG&E to develop a Clean Substation Microgrid (CSM) pilot project to mitigate Public Safety Power Shutoff events. PG&E selected the Calistoga substation for this project, entering into a contract with Energy Vault to develop a hybrid battery energy storage and hydrogen fuel cell microgrid to provide 48 hours of backup power. Through AL 7552-E, PG&E requests Commission approval to amend the contract with Energy Vault to (1) extend the project delivery milestones to reflect updated construction schedules and (2) clarify that Energy Vault may operate the microgrid in “Blue Sky” (non-islanded) mode during normal grid conditions, so long as such operations do not interfere with backup service obligations. This Resolution finds that the clarification is consistent with the original intent and context of the CSM pilot as set forth in D.21-01-018 and Res E-5261. Blue Sky operations were anticipated and encouraged as a way to better utilize project resources without introducing new ratepayer costs. This Resolution finds that PG&E’s proposed amendments are reasonable, do not introduce new ratepayer risks, and are supportive of broader Commission goals for clean energy and resiliency.

Item 26. A.23-05-012 et al. (Large Electric Investor-Owned Utilities’ Energy Resource Recovery Account Applications)

This decision adopts the definition of fixed generation costs as “costs that do not change based on the amount of electricity customers use or the amount of operating time associated with the electricity generation.” This decision applies to PG&E, SCE, and SDG&E. The definition adopted in this proceeding will be used when evaluating each large electric utility’s annual Energy Resource Recovery Account (ERRA) applications after the issuance of this decision. Each Investor-Owned Utility’s (IOU) ERRA filing, in part, seeks Commission review of a balancing account (or accounts) that tracks and allows utilities to seek recovery of costs associated with long-term electric generation contracts the utilities entered before some portion of their customers switched to other load serving entities. Other issues related to the common costs addressed in the large electric utilities’ ERRA applications are not addressed in this decision.

Item 27. Res G-3605 (SoCalGas’s 2024 Compliance Plan, Forecasts, and Caps for Its Natural Gas Leak Abatement Program)

This Resolution approves in part and denies in part SoCalGas’s 2024 Natural Gas Leak Abatement Compliance Plan and the ratemaking forecasts as presented in AL 6277-G-B. SoCalGas requested a forecasted total revenue requirement of $483.12 million. This Resolution approves $102 million for Blowdown Reduction Activities, as it is the sole cost-effective measure in the program. All other costs for Best Practices and RD&D are denied. An additional $4.245 million for SoCalGas’s Natural Gas Leak Abatement Program Administration is authorized for recording in the Natural Gas Leak Abatement Program Memorandum Account for potential recovery in a future general rate case or other proceeding, where it will be subject to reasonableness review. The Resolution approves $78.8 million for ongoing capital undercollections from previously approved Compliance Plans.  Held.

Item 29. Rulemaking (R.) 24-09-012 (Gas Utilities Memorandum Accounts to Record Expenses)

This decision permits each gas utility subject to the Assigned Commissioner’s Ruling Issuing Senate Bill 1221 Mapping Directions to Utilities, filed on April 18, 2025, to establish a memorandum account to record expenses related to complying with mapping activities per Public Utilities Code Section 661. The gas utility may record such expenses in its memorandum account effective April 21, 2025. Each gas utility may record expenses in its respective memorandum account until January 1 of the Test Year of its next general rate case upon which time recording in the memorandum account must cease and ongoing expenses related to mapping activities under Section 661 must be covered in its new general rate case. The reasonableness and recovery of the expenses recorded in such memorandum accounts will not be reviewed in the proceeding, but may be addressed in each utility’s next general rate case.

Item 52. A.24-11-007 (Motion for Interim Implementation of Electric Rule No. 30)

This decision partly grants PG&E’s January 24, 2025 motion for interim implementation of Electric Rule 30 (Motion). This decision allows for interim implementation for transmission-level customers who provide advance or actual cost payments and voluntarily prefund up to 100% of specific transmission network upgrades. The decision requires new transmission-level customers seeking retail services to be responsible for the initial costs of all transmission facilities, rather than those costs being borne by ratepayers. The Motion is partly denied for the interim implementation period regarding any refunds for advances, actual cost payments, or contributions, as well as associated accrued interest. These matters are deferred to the final decision of the proceeding, at which point the Commission will examine cost allocation and causation in light of the entire record. Similarly, the decision finds that repayments of pre-funded loans are also denied during this interim period, and their full repayment is not guaranteed. The specific cost causation and allocation mechanisms for these pre-funded loans will be decided in the final decision of this proceeding. Therefore, no rate recovery is authorized as part of this decision.  

Upcoming Events

Workshop on Slice of Day (R.23-10-011)

On Wednesday, July 30, 2025, Energy Division staff will host a workshop in the RA proceeding to review recent implementation changes, provide updated guidance on the Slice of Day compliance template, and address any related questions in advance of the 2026 RA Compliance Year.  The workshop will be held at 1:00 pm via Webex.  Access details are available here.

Workshop on Customer-Generated Renewables for Priority Communities (R.25-01-005)

On August 20, 2025, beginning at 9:00 am, the Commission will host a workshop in person at the Granlibakken Tahoe Resort to discuss issues in the Customer-Generated Renewables proceeding. Specifically, the workshop is designed to provide guidance for small multi-jurisdictional utilities (Bear Valley, Liberty Utilities, and PacifiCorp) regarding customer generation tariffs and consumer protections.  Additional information and attendance details are available here.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

Interconnection Process Enhancements 5.0

CAISO is launching a new Interconnection Process Enhancements 5.0 initiative and is seeking stakeholder feedback on a scoping document posted to its webpage. Comments were submitted July 16, 2025. Further information is available here.

2026 Net Qualifying Capacity Values for Resource Adequacy Resources

CAISO has posted the preliminary 2026 Resource Adequacy Net Qualifying Capacity (NQC) list. Scheduling coordinators are requested to review their information and submit comments by August 4, 2025, for NQC. Further information is available here.

2026 Import Capability Assignment

CAISO has posted the CAISO Maximum Resource Adequacy Import Capability for Year 2026 document, as a first step to the 2026 import capability assignment process. Further information is available here.

2025 Intra-Cluster Reliability Network Upgrade Prioritization

CAISO has posted its 2025 Intra-Cluster Reliability Network Upgrade Prioritization Study Plan and Methodology document, and a list of Interconnection Customer projects with qualifying Reliability Network Upgrades where available capacity to interconnect earlier may exist. Eligible interconnection customers will receive an email with application instructions. Further information is available here.

Greenhouse Gas Coordination Working Group

CAISO held a Greenhouse Gas Coordination working group meeting on Monday, July 21 to review the Draft Final Proposal for the Accounting and Reporting approach.  Further information is available here.

Western Energy Markets (WEM) Governing Body, Joint, ISO Board of Governors, and Committee Meetings

CAISO has posted the draft agendas for the WEM Governing Body, Joint, ISO Board of Governors, Audit Committee, and Department of Market Monitoring Oversight Committee meeting.  An updated 2025-2026 governance meeting schedule has also been posted.  Further information is available here.

Transmission Development Forum

CAISO, in conjunction with the CPUC and participating transmission owners, will hold its biannual stakeholder call on July 30, 2025, to provide status updates on the transmission planning process and network upgrades identified in the generation interconnection process. Written comments on the stakeholder call discussion are due August 13, 2025.  Further information is available here.

CALIFORNIA ENERGY COMMISSION (CEC)

2025 Integrated Energy Policy Report (IEPR)

The CEC has released the 2025 IEPR workshop schedule and opened a new proceeding number (25-IEPR-01) for the 2025 IEPR.  Workshop topics and dates included in the notice are below (note: the workshop schedule is subject to change and the current schedule was released on July 2, 2025).  Upcoming workshops and recent changes to the workshop schedule are reflected below:

On July 22, 2025, the CEC released a Revised Scoping Order for the 2025 IEPR, which updates the original Scoping Order posted in March 2025.

Assembly Bill (AB) 3 California Offshore Wind Advancement Act

On June 18, 2025, CEC staff hosted a remote access workshop to present CEC staff’s proposed scope and strategy for developing the reports required by AB 3, and to receive public comment on staff’s proposals.  Staff’s Scoping Document and Literature Assessment, as well as all related workshop items, can be accessed here.  Under AB 3, the CEC is required to prepare and submit reports to the Governor and Legislature after consulting with various state agencies as follows:

  • Report 1 is a second-phase plan for seaport readiness due by December 31, 2026 (Public Resources Code (PRC) section 25991.8).
  • Report 2 is a feasibility study of achieving 50% and 65% in-state assembly and manufacturing of offshore wind energy projects due by December 31, 2027 (PRC section 25991.9).

The CEC issued a 30-day extension to the original July 18, 2025 comment deadline.  Written comments on the Scoping Document and the general workshop topics are now due to Docket No. 25-AB-03 by 5:00 pm on August 18, 2025.  Instructions for submitting written comments are also available here.

Electric Program Investment Charge (EPIC)

The CEC has opened registration for the 2025 EPIC Symposium, which will be held on October 7, 2025, at the California Natural Resources Agency in Sacramento.  The EPIC symposium is held in collaboration with the state’s three largest investor-owned utilities, and it convenes clean energy leaders, policy makers, researchers, entrepreneurs, and other stakeholders to discuss the latest innovations driven by EPIC. In-person attendance is limited due to venue capacity, so early registration is encouraged.  Additional information and the registration link are available here.

Electric Vehicle (EV) Charger Reliability

On June 27, 2025, the CEC issued a notice of proposed rulemaking to establish regulations for EV charger recordkeeping and reporting, reliability, and data sharing.  These regulations would apply to EV charging ports installed in California, for purposes of tracking the reliability of publicly or ratepayer funded fast-charging ports and to set a 97% uptime standard.  The proposed express terms are available here and a CEC staff report on the proposed regulations is available here.

The CEC will host a public hearing on the proposed regulations on Wednesday, August 13, 2025 at 10:00 am.  The public hearing can be attended either in person (715 P Street, Sacramento, CA 95814) or remotely via Zoom. Additional information and attendance instructions are available here.

Workshop on EV Load Modeling for Publicly Owned Utilities

The CEC announced it will host a workshop on August 7, 2025 from 10:30 am to 12:00 pm to showcase an EV charging load estimation modeling framework and toolset.  This toolset is being developed in partnership with the Pacific Northwest National Laboratory (PNNL).  During the workshop, CEC and PNNL staff will present technical details of the model’s methodology and demo a prototype version of an interactive web tool they are developing for use by publicly owned utility (POU) grid planning staff. CEC staff will also discuss how PNNL’s work is connected to the Electric Vehicle Service Equipment Deployment and Grid Evaluation (EDGE) mapping and visualization tool (EDGE tool). This workshop is designed specifically for POU distribution planning staff and will include a request for feedback and assistance.  Additional information and attendance information is available here.

CEC Business Meetings

The next CEC Business Meeting is scheduled for August 13, 2025. 

CALIFORNIA AIR RESOURCES BOARD (CARB)

Meetings and Workshops

CARB and other state regulatory agencies will hold a series of dialogue sessions meant to generate public discussion around proposed measures to support increased zero emission vehicle adoption in California. Governor Gavin Newsom signed an executive order on June 12, 2025, which directed CARB, the CEC, the Governor’s Office of Business and Economic Development, the California State Transportation Agency, and the Department of Consumer Affairs to assess additional actions to spur light-, medium-, and heavy-duty zero emission vehicle adoption in California, and to deliver formal recommendations for additional actions to the governor in August. The agencies are planning to host three in-person sessions during business hours and one evening session online:

Sacramento:

July 23, 9:00 am-1:00 pm
CalEPA Headquarters
1001 I Street (10th & I)

Long Beach:

July 31, 1:00-5:00 pm
Civic Center Chambers 
411 W. Ocean Blvd.

MINNESOTA PUBLIC UTILITIES COMMISSION (MPUC)

At its July 24, 2025 agenda meeting, the MPUC will consider whether to: (1) investigate the Upper Sioux Community’s formal complaint against Minnesota Valley Cooperative Light and Power Association, concerning the Community’s attempt to construct and operate a 2.5-megawatt solar generation facility to partially power its casino and other activities within the Community’s reservation (Docket No. E123/C-25-219), and (2) establish a framework for Proactive Distribution Upgrades for Xcel Energy (E002/CI-24-318).

Additionally, on July 15, 2025, the Administrative Law Judge (ALJ) released robust findings and recommendations in the ALLETE acquisition proceeding (Docket No. E015/PA-24-198), wherein Canada Pension Plan Investment Board and Global Infrastructure Partners (the Partners) propose to acquire ALLETE (Proposed Acquisition), the operating arm of which is Minnesota Power, recommending denial of the Proposed Acquisition.  In making her findings and recommendation, the ALJ conducted a thorough review of extensive evidence provided in the docket, based on which she made credibility determinations regarding the Partners and the Proposed Acquisition.  The ALJ rejected the claimed benefits of the Proposed Acquisition, addressing why she found the commitments proposed by the Partners as part of the transaction to be insufficient, already required by law, or offering no benefit to ratepayers.  The ALJ was unpersuaded by contentions that Minnesota Power’s need for capital cannot be satisfied through public markets.  Further, the ALJ explained that the Proposed Acquisition could carry significant risks of ratepayer harm and that ALLETE misunderstands the future governance structure that would follow its acquisition.  In finding the “proposed Acquisition is not in the public interest,” the ALJ expressed concerns about the strategies through which the Partners propose to increase returns, the potential for an early exit if expected returns cannot be met, the potential for reduction in cooperation by the utility, and the level of control the Partners seek over decision-making of ALLETE’s business plans and operating and capital budgets.  The ALJ’s findings briefly addressed the settlement stipulation filed by the Partners and the Minnesota Department of Commerce just days before the ALJ’s findings were expected, stating the settlement did not assuage the ALJ’s concerns about the Proposed Acquisition and did not change her ultimate recommendation: that the MPUC “disapprove the Acquisition.”  The ALJ’s redacted findings are here.  In response, ALLETE issued a press release reiterating its confidence that the Proposed Acquisition is consistent with the public interest.  In so doing, ALLETE stated, “We strongly disagree with the conclusions in this non-binding recommendation. The ALJ report mischaracterizes the parties, their agreements and plans, and the benefits and risks of the acquisition.”  The press release can be found here. National coverage on the proceeding, quoting the ALJ’s decision, is here (New York Times) and here (Utility Dive).  As next steps, the MPUC has opened a comment period on the settlement stipulation and is accepting exceptions to the ALJ’s report, both of which are due August 4, 2025.  

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

FERC will hold its July Open Meeting on July 24, 2025 from 10:00 to 11:00 am ET. The agenda and webcast link will be available the week of the Commission Meeting.

On June 30, in 191 FERC ¶ 61,237, FERC issued a Final Rule to remove references to the Council on Environmental Quality’s (CEQ) rescinded regulations from FERC’s part 380 Regulations Implementing the National Environmental Policy Act  (NEPA) and part 385 Rules of Practice and Procedure.  FERC states that this effort was directed by President Trump’s Unleashing American Energy, Executive Order (E.O.) 14154 issued on January 20, 2025, which calls for unleashing American energy dominance through efficient permitting. In response to E.O. 14154, the CEQ rescinded its NEPA implementing regulations. FERC’s revisions remove all references to the now inoperative CEQ regulations.  The Final Rule finds that under 5 U.S.C. § 553(b)(B), notice-and-comment rulemaking procedures are not required because it merely clarifies and corrects FERC’s NEPA procedures by removing references to CEQ’s rescinded regulations. The Final Rule becomes effective 45 days after publication in the Federal Register.

In connection with the Final Rule, FERC also released a Staff Guidance Manual on Implementation of the National Environmental Policy Act.  The FERC staff manual provides details on how staff will assess what actions are subject to NEPA’s procedural requirements and the requisite level of NEPA review; ensure that relevant environmental information is identified and considered early in the process to support informed decision-making; conduct coordinated, consistent, predictable, and timely environmental reviews, and reduce unnecessary burdens and delays; and implement NEPA’s mandates regarding lead and cooperating agency roles, time limits, and applicant preparations of environmental documents. 

 --------------------

[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.

  • Renewable + Law Blog Image with Windmills
    Subscribe to the Renewable + Law Blog

    Whether your interest involves solar energy, wind energy, biomass, ocean and hydrokinetic energy, biofuels, waste-to-energy, geothermal, electric energy storage or other clean technologies, we blog about it.

    Learn More

Media Contact

Jamie Moss (newsPRos)
Media Relations
w. 201.493.1027 c. 201.788.0142
Email

Mac Borkgren
Director of Marketing Operations
503.294.9326
Email

Practice Areas

Industries

Jump to Page