May 6, 2025

Regulatory Update for May 6, 2025

(Covering Week of April 28, 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:

• California Public Utilities Commission
• California Independent System Operator
• California Energy Commission
• California Air Resources Board
• Minnesota Public Utilities Commission
• Federal Energy Regulatory Commission

Click here to download this update as a PDF

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

Proposed Decisions and Resolutions

Application (A.) 23-11-003 (Application of Southern California Gas Company for Authorization to Recover Costs Recorded in Its Catastrophic Event Memorandum Account and Its COVID-19 Pandemic Protections Memorandum Account)

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. SoCalGas requested $58,396,224, and the decision authorizes $19,231,206 of total capital expenditure/operations and maintenance costs for recovery. The decision states that 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. Authorized costs will be recovered from customer classes using the Equal Cents Per Therm methodology on a 12-month schedule.

A.22-04-001 (Application of Southern California Edison Company for a Commission Finding that its Procurement-Related and Other Operations for the Record Period January 1 Through December 31, 2021 Complied with its Adopted Procurement Plan and for Verification of its Entries in the Energy Resource Recovery Account and Other Regulatory Accounts)

This decision approves Southern California Edison Company’s (SCE) Energy Resource Recovery Account (ERRA) compliance application for the 2021 Record Year. The decision finds that during the 2021 Record Year, SCE complied with all the requirements that the Commission reviews during the ERRA compliance process, except for certain entries it recorded in the Portfolio Allocation Balancing Account (PABA). In 2021, SCE recorded entries in the PABA that included franchise fees it double collected from departed load customers. This decision finds that SCE is responsible for the errors in the PABA tariff language that caused the double collection of franchise fees and directs SCE to refund $3.7 million in double-collected franchise fees to departed load customers through a vintage-specific sur-credit to the affected customers’ Power Charge Indifference Adjustment rates. This decision authorizes SCE to recover $25.706 million in undercollected revenue requirement from rates. This undercollection was recorded across five of SCE’s accounts: Residential Rate Implementation Memorandum Account, Integrated Resource Planning Costs Memorandum Account, Microgrid Memorandum Account, Summer Reliability Demand Response Program Memorandum Account, and Litigation Costs Tracking Account. In this decision, the Commission determines the appropriate amount of financial disallowance to impose on SCE for the Public Safety Power Shutoff (PSPS) events that occurred during the 2021 Record Year. This decision finds that, using the approved methodology, SCE is disallowed from collecting $301,296 in PSPS Unrealized Revenues for the 2021 Record Year.

A.24-02-012 (Application of Pacific Gas and Electric Company for Compliance Review of Utility-Owned Generation Operations, Portfolio Allocation Balancing Account Entries, Energy Resource Recovery Account Entries, Contract Administration, Economic Dispatch of Electric Resources, Utility-Owned Generation Fuel Procurement, and Other Activities for the Record Period January 1 through December 31, 2023)

This decision approves Pacific Gas and Electric Company’s (PG&E) ERRA compliance application for the 2023 Record Year. This decision also requires PG&E to complete a cause evaluation for any future outage caused by the failing of the engine water pump bearing in unit 6 at the Humbolt Bay Generating Station and to submit the cause evaluation in the next ERRA compliance proceeding following the outage. The decision also requires PG&E to submit independent evaluator reports for completed resource adequacy solicitations held during the quarterly reporting period in its quarterly compliance reports submitted to the Commission regardless of whether the solicitations award a transaction.

Voting Meeting

The CPUC will hold a voting meeting in Kings Beach, CA on May 15, 2025 at 11:00 am PT.  The following are energy-related items on the agenda:

Item 3. Rulemaking (R.) 23-01-007 (Diablo Canyon Power Plant Operations Phase 2 Issues) 

This decision considers party proposals on Phase 2 issues and makes the following determinations: (1) to continue to use the general framework and definitions for the use of the surplus performance-based fees as adopted in Decision 23-12-036 in the post-2024 period; (2) PG&E should consider affordability as a guiding principle when developing and implementing its Volumetric Performance Fee (VPF) spending plan; (3) PG&E’s proposed templates reflecting the baseline review criteria for the annual compensation report are approved, in addition to the data templates, PG&E must report on total expense spending (relative to authorized amounts) for individual major work categories, in which the maintenance activity type is located, related to work funded by VPFs, and information on recorded and authorized spending should be provided for a historical period that covers the most recent five years and be submitted with the Diablo Canyon annual cost forecast application; (4) PG&E must estimate, where feasible, the number of customers participating in or benefiting from each VPF project, with specific identification by customer class, and report it in its annual reporting review filing; (5) PG&E’s proposal for adjustments to Diablo Canyon Independent Safety Committee’s (DCISC) funding methodology is approved; and (6) DCISC membership terms remain the same.

Item 4. A.23-06-023 (PG&E’s Woody Biomass to Renewable Natural Gas Pilot)

This decision denies PG&E’s application seeking approval of its woody biomass to renewable natural gas pilot project. This decision directs PG&E to use the Tier 2 Annual Gas True-Up of Gas Transportation Balancing Accounts for Rates Effective January 1, 2026, Advice Letter to return $16.936 million of Cap-and-Trade proceeds, including interest, to ratepayers through the California Climate Credit in 2026.

Item 8. R.20-08-020 (Order Instituting Rulemaking to Revisit Net Energy Metering Tariffs Pursuant to Decision 16-01- 044, and to Address Other Issues Related to Net Energy Metering)

This decision grants PG&E, SCE, and San Diego Gas & Electric Company’s (SDG&E) Petition for Modification (PFM) of Decision (D.) 23-11-068 addressing remaining proceeding issues in R.20-08-020. The decision removes requirements in D.23-11-068 that the investor-owned utilities enter into a non-disclosure agreement with the California Department of Industrial Relations to protect confidential information that the department may receive from accessing the utilities’ net energy metering/net billing tariff interconnection portals. The decision also authorizes the utilities to record the costs of implementing the Public Utility Regulatory Policies Act compliant tariff in a separate memorandum account. The decision requires utilities to file a Tier-2 Advice Letter establishing the memorandum accounts and allows the utilities to recover those PURPA compliant tariff implementation costs in their respective general rate cases. Finally, the decision denies Bloom Energy Corporation’s PFM requesting that D.23-11-068 be modified to rescind or postpone implementation of the net energy metering (NEM) fuel cell tariff greenhouse gas standards until they have been reviewed and updated by the California Air Resources Board following a public process. The decision also denies Bloom Energy Corporation’s motion for stay regarding the implementation of California Air Resources Board’s NEM fuel cell greenhouse gas emissions standards as ordered in D.23-11-068.

Item 12. Resolution (Res) E-5188 (SDG&E Request for Funds Reallocation)

This resolution approves SDG&E’s request to shift $1 million of unused funds from the 2018-2022 Demand Response Budget Category 5 to Budget Category 7 for increased portfolio support costs incurred after budget approval due to changes in California Independent System Operator requirements and vendor licensing costs.

Item 16. Res E-5364 (PG&E, SCE, and SDG&E Virtual Net Billing and Virtual Net Energy Metering Tariffs)

This resolution adopts, with modifications, the virtual net billing tariff (VNBT) and the amended virtual net energy (VNEM) metering tariffs, including Solar on Multifamily Affordable Housing and Multifamily Affordable Solar Homes tariffs proposed by SCE, SDG&E, and PG&E. The resolution rejects the joint utility proposal to amend the VNBT and VNEM tariffs to permit emergency grid charging of integrated storage. Instead, this resolution directs PG&E, SCE, and SDG&E to establish a special condition in the VNBT and VNEM tariffs to allow benefiting account customers to access multiple tariffs for combined technologies. The resolution finds that this will enable a benefiting account customer to have behind-the-meter net billing tariff or non-export/non-net energy metering renewable energy and/or storage in addition to their VNBT or VNEM credit allocation, and satisfies D.23-11-068’s intent to allow emergency grid charging of storage that can serve loads during an outage. The resolution clarifies existing policy, acknowledging and formally allowing VNBT and VNEM customers access to multiple tariffs, to increase resiliency options and allow emergency grid charging of (non-VNEM/non-VNBT) storage prior to a known or planned outage. The resolution directs the utilities to submit Tier 2 Advice Letters, one submittal per tariff, demonstrating conformance with the modifications adopted.

Item 19. Res E-5391 (2025 and 2026 Forecasted Revenue Requirements Bioenergy Market Adjusting Tariff Program)

This resolution approves Central Coast Community Energy’s, Orange County Power Authority’s, Pioneer Community Energy’s, and Redwood Coast Energy Authority’s forecasted Bioenergy Market Adjusting Tariff (BioMAT) program costs. Central Coast Community Energy, Orange County Power Authority, Pioneer Community Energy, and Redwood Coast Energy Authority have not executed contracts with any BioMAT facilities and thus forecast zero costs for 2025 and 2026 and seek no forecast revenue requirements for 2025 and 2026.

Item 23.  A.24-10-023 (PG&E Debt Authorization)

This decision grants PG&E’s request for authorization to: (1) issue, sell, and deliver one or more series or other types of debt securities, the total aggregate principal amount of such indebtedness and guarantees not to exceed $15 billion; (2) execute and deliver one or more indentures; (3) sell, lease, assign, mortgage, or otherwise dispose of or encumber utility property; (4) issue, sell, and deliver one or more series of preferred stock or depository shares; (5) utilize various debt enhancement features; and (6) enter into interest rate hedges. In connection with the issuance of the debt securities, this decision also authorizes PG&E to: (a) guarantee the securities and other debt instruments of regulated direct or indirect subsidiaries or regulated affiliates of PG&E or of governmental entities that issue securities on behalf of PG&E; (b) execute and deliver indentures or supplemental indentures and other instruments evidencing or governing the terms of debt securities; and (c) sell, lease, assign, mortgage, or otherwise dispose of or encumber utility property, including but not limited to its accounts receivable, in connection with the issuance and sale of debt securities.

Item 47.  R.19-01-011 (Order Instituting Rulemaking Regarding Building Decarbonization)

This decision resolves the Phase 4 Track A issues identified in the Assigned Commissioner’s Phase 4 Scoping Memo and Ruling issued on July 1, 2024, and the implementation issues relating to Assembly Bill 157 identified in the Assigned Administrative Law Judge’s Ruling issued on October 8, 2024. Specifically, this decision: (1) authorizes up to $5 million annually through the end of 2029 for California’s electric utilities to provide electric service line upsizing to qualified under-resourced customers pursuing full electrification of their home or business; (2) adopts measures to help prevent unnecessary electric service line upsizing, including expanding the existing electric utility safety evaluation processes to authorize non-isolating devices that interface with utility metering equipment; (3) clarifies and modifies various aspects of D.23-12-037, including extending the energization deadline for mixed-fuel new construction projects to receive electric line extension subsidies, and requires, starting in 2026, all annual reports ordered pursuant to decisions in this proceeding to be submitted on April 15 of each year via an Advice Letter and made available on the utility’s website; and (4) authorizes augmentation of the Technology and Equipment for Clean Heating Initiative budget by an additional $40 million using funding from the Aliso Canyon Recovery Account, directed for use in SoCalGas service territory in a manner consistent both with new legislative direction and past precedent.

Upcoming Events

Reliable and Clean Power Procurement Program (RCPPP) Workshop

On Friday, May 16, 2025, the Commission will host a remote-only workshop to provide an overview of the recently released RCPPP, issued in the IRP proceeding R.20-05-003. 

2025 Energy Efficiency Potential Goals Study Workshop

On Monday, May 12, 2025, the CPUC will host a webinar to present the draft 2025 Potential Goals Study results prepared by Guidehouse.  Stakeholders will have the opportunity to ask questions and provide feedback.  A link to the webinar, which will be held via WebEx, is available here.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

2025 California ISO Summer Loads and Resources Assessment Report

CAISO has posted its 2025 Summer Loads and Resources Assessment on its website, available here.

Subscriber Participating Transmission Owner Market Scheduling

CAISO has posted the final proposal for the Subscriber Participating Transmission Owner Market Scheduling Options initiative to its website, available here.

Cluster 15 Cluster Study Cost and Timeframe

CAISO issued notice that the estimated cluster 15 cluster study cost and timeframe are posted in the market participant portal.  Further information is available here.

2023-2024 Transmission Planning Process

CAISO issued notice that it will take additional time to select an approved project sponsor to finance, construct, own, operate, and maintain the New Humboldt 500 kV Substation, with a 500/115 kV transformer and 500 kV line to the Collinsville Project.  Further information is available here.

Interconnection Process Enhancements 2023

CAISO has posted updated Track 3 draft tariff language to its website, available here.

Storage Design and Modeling

CAISO will host a virtual working group meeting for the Storage Design and Modeling initiative on May 9, 2025.  Further information is available here.

Summer Readiness 2025

CAISO will offer a refresher training for resource owners and operators on Resource Performance Expectations on May 12, 2025.  Further information is available here.

Congestion Revenue Rights Enhancements

CAISO will host a hybrid public stakeholder meeting for the Congestion Revenue Rights (CRR) Enhancements initiative on May 12, 2025.  This session will include a review of stakeholder feedback in the working group thus far, an opportunity for stakeholders to present on their experiences with the CRR market, and a discussion on developing goals and problem statements.  Comments are due May 26, 2025.  Further information is available here.

2025 Participating Transmission Owner Per Unit Cost Guides

CAISO will host a stakeholder call on May 8, 2025, to review the Draft 2025 Draft Participating Transmission Owner Per Unit Cost Guides. Comments are due May 22, 2025. The draft cost guides and further information are available here.

CALIFORNIA ENERGY COMMISSION (CEC)

Reliability

The CEC hosted a day-long workshop on May 2, 2025 regarding summer reliability.  According to the workshop notice, the workshop provided “an outlook for 2025 summer energy reliability for electricity, fossil gas and petroleum” and included “an overview of anticipated summer weather and fire conditions, new clean energy resources expected to come online, hydroelectric resource conditions, and an update on anticipated system reliability conditions for the electricity, fossil gas, and petroleum markets.”  Topics discussed at the workshop are outlined here and a CEC News Release summarizing the workshop was made available the afternoon of May 2, 2025.  Written comments regarding summer reliability eligibility may be submitted to Docket No. 21-ESR-01 by 5:00 pm PT on May 16, 2025. 

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.  The current schedule was released on April 23, 2025):

• May 7, 2025: IEPR Staff Workshop on Electricity Forms & Instructions (remote access only). The Workshop begins at 2:00 pm PT.  Written comments may be submitted to Docket No. 25-IEPR-02 until 5:00 pm PT on May 21, 2025.  Please see the workshop notice for additional details.
• June 6, 2025: IEPR Commissioner Workshop on Gas Price Outlook (remote access only) (NEW)
• June 16, 2025: IEPR Commissioner Workshop on Interconnection
• June 25, 2025: IEPR Commissioner Workshop on Load Flex Goal Analysis Update
• July 14, 2025: IEPR Commissioner Workshop on Interconnection (remote access only) (NEW)
• July 29, 2025: IEPR Commissioner Workshop on Hydrogen (Senate Bill (SB) 1075) and Zero Carbon Resource (SB 423)
• August 6, 2025: IEPR Commissioner Workshop on Inputs & Assumptions (remote access only)
• August 26, 2025: IEPR Commissioner Workshop on Load Modifier Design (remote access only)
• November 13, 2025: IEPR Commissioner Workshop on Load Modifier Results (remote access only)
• December 11, 2025: IEPR Commissioner Workshop on Forecast (hybrid workshop) (rescheduled from December 2, 2025)

2024 Renewables Portfolio Standard Annual Reporting Requirements

CEC staff will host a webinar on May 7, 2025, at 10:00 am PT to provide LSEs with an overview of the annual reporting process and forms required for submission in advance of the July 1, 2025 reporting deadline for the 2024 compliance year.  The webinar can be accessed here, and the password is: 278325.

2025 California Demand Flexibility Summit

The CEC will host the California Demand Flexibility Summit at the UC Davis Conference Center on May 22, 2025.  According to the Save the Date, issued in February, the summit will provide an “opportunity to discuss the progress and challenges in achieving California’s load shift goal of 7,000 megawatts by 2030.”  Registration for the California Demand Flexibility Summit is now open.

Zero-Emission Vehicles

The CEC hosted a meeting of the Advisory Committee for the Clean Transportation Program Investment Plan on Wednesday, April 30, 2025.  The meeting discussed proposed guiding principles that the CEC will use to develop the 2025-2026 Investment Plan Update for the Clean Transportation Program.  A link to the meeting notice and agenda is available here.

The CEC issued a preview of its 2025-2026 Investment Plan Update for the Clean Transportation Program, which will be discussed during the Advisory Committee Meeting on April 30.  The document sets forth guiding principles the CEC proposes to use to develop funding allocations for the 2025-2026 Investment Plan Update, which will be published in fall 2025, after the state budget is finalized.  The guiding principles include the following: (1) funding allocations for multiple years; (2) funding for light-, medium-, and heavy-duty infrastructure; (3) increased support for multi-family homes and continued support for rural and disadvantaged communities; (4) stronger emphasis on public fast charging; and (5) an emphasis on flexibility and responsiveness.

CEC Business Meetings

The next CEC Business Meeting is scheduled for May 8, 2025.  The agenda and backup materials are available here.

The CEC commissioners will host a commissioner meeting on May 12-13, 2025 in Berkeley, CA.  During the retreat, the commissioners will discuss their respective subject matter areas, and they will also receive updates regarding and discuss the CEC’s administration and budget, as well as the outlook for clean energy.  Additional details about attendance at the meeting and meeting location are available in the meeting notice.

CALIFORNIA AIR RESOURCES BOARD (CARB)

Meetings and Workshops

On May 12, 2025, the Truck Regulation Implementation Group will be meeting to discuss the fundamental elements of a fleet charging infrastructure project, including how to navigate the planning, permitting, and utility interface processes and funding resources.  Representatives from Energetics and the Governor’s Office of Business and Economic Development will discuss how to assess site readiness and plan for fleet electrification and navigate the permitting processes.

On May 20, 2025, CARB is holding a virtual public information session to discuss a new voluntary non-monetary incentive program, the California Clean Construction Program, that would provide recognition to fleets using clean construction equipment in California.  The primary goal of the California Clean Construction Program would be to incentivize and encourage off-road fleets to go beyond existing regulatory fleet rule compliance and adopt advanced technology equipment with a strong emphasis on zero-emission off-road technologies.  CARB staff would develop the program parameters, and contracting entities, policymakers, and state and local governments could then incorporate the program in contract award considerations.  Staff are also exploring whether a program like this could be utilized by local air districts or other lead agencies as part of a CEQA mitigation strategy.

On May 27, the Methane Task Force will host its next public meeting. The Task Force is composed of the Department of Conservation’s Geologic Energy Management (CalGEM), CARB, and their umbrella agencies, the California Natural Resources Agency and California Environmental Protection Agency. The virtual public meeting will cover a recap of CalGEM and CARB’s joint workshops on SB 1137, updates from CARB on the Satellite Methane Project Update as well as the Methane Regulation, and an update on CalGEM’s Project Plug program.

On May 30, 2025, CARB will hold a virtual public workshop to support the development of California’s Corporate Greenhouse Gas Reporting Program, established by SB 253 (Wiener, 2023), and the Climate-Related Financial Risk Disclosure Program, authorized by SB 261 (Stern, 2023). The workshop will consist of a morning session where staff will present an overview of the above-mentioned legislation, a timeline for regulatory development, and an overview of feedback received from stakeholders from our December 2024 California Climate-Disclosure Information Solicitation. Additional presentations will include a comparative analysis of greenhouse gas accounting and reporting mechanisms that currently exist across various regulatory and voluntary programs.

Opportunities for Public Comment

Pursuant to Section 95488.5(d) of the Low Carbon Fuel Standard Regulation, the CARB Executive Officer has certified the 2025 annual update to the carbon intensities (CI) of the following two Lookup Table Pathways:

• California Average Grid Electricity Used as a Transportation Fuel in California
• Electricity Supplied Under the Smart Charging or Smart Electrolysis Provision

These two pathways are posted for a 45-day public comment period that ends on May 8, 2025.  The updated pathway CI values are available for quarterly fuel reporting in 2025, beginning with Q1.

MINNESOTA PUBLIC UTILITIES COMMISSION (MPUC)

At its May 8, 2025, agenda meeting, the MPUC will consider whether to: (1) accept Dakota Electric Association’s 2025 AGi Rider filing and approve updated Monthly Fixed Charges per Meter (E111/M-25-84), (2) approve Otter Tail Power Co.’s 2024 Renewable Resource Cost Recovery Rider Petition and associated recovery factors (E017/M-24-422), (3) grant requested exemptions to Xcel Energy’s certificate of need application for its Lyon County Generating Station (E002/GS-25-145), (4) approve Xcel Energy’s petition for approval of its 2025-2027 Triennial Nuclear Plant Decommissioning Study and Assumptions, and if so, determine the annual accruals for decommissioning and the end-of-life nuclear fuel (E002/M-24-394), and (5) approve Xcel Energy’s requested changes to its net metering tariff to allow the tariff to apply to Qualifying Facilities up to and including 5 MW (E002/M-24-389).

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

On May 15, 2025, from 10:00 am to 11:00 am ET, FERC will hold its May Open Meeting. A webcast link will be available the week of the meeting.

On April 30, from 9:00 am to 1:00 pm ET, FERC held the second meeting of the Federal-State Current Issues Collaborative in Docket Number AD24-7-000.  The purpose of the meeting was to discuss issues related to gas-electric coordination and gas storage.  The notice and agenda are available here.

On April 22, 2025, Chairman Mark Christie issued a statement on the resignation of Commissioner Willie Phillips.  Commissioner Phillips served as Chairman of FERC from January 3, 2023, until January 20, 2025.  He was sworn in as a Member of FERC on December 3, 2021, and his term expires on June 30, 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.