September 10, 2026

Regulatory Update for September 10, 2026

(Covering September 2, 2026 - September 8, 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 (OPUC, BPA)

White House

• White House

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

• California Independent System Operator (CAISO)
• Midcontinent Independent System Operator (MISO)
• 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

Application (A.) 25-04-014 (Application of San Diego Gas & Electric Company to Revise its 2024-2031 Energy Efficiency Rolling Portfolio Business Plan)

This decision rejects the application of San Diego Gas & Electric Company (SDG&E) to modify its energy efficiency business plan and withdraw from administering regional energy efficiency programs, for both electric and natural gas customers, in its service area. The decision finds that the application is both premature and unsupported by the record. SDG&E is required to continue performing administrative duties to deliver its regional energy efficiency program portfolio, including its codes and standards programs. SDG&E is encouraged to modify or cancel underperforming programs and/or rebalance its regional portfolio budget, in order to continue to improve the performance of its energy efficiency portfolio overall.

A.25-04-020 (Application of Southern California Gas Company to Recover Costs Recorded in the Transmission Integrity Management Program Balancing Account from January 1, 2019, to December 31, 2023)

This decision grants Southern California Gas’s (SoCalGas) request for cost recovery in the amount of $81.3048 million as part of its Transmission Integrity Management Program Balancing Account. CPUC disallows $92.4952 million from the original requested amount.

A.25-05-004 (Application of Southern California Gas Company for Incremental Funding for Customer Information System Replacement Program)

This proposed decision denies SoCalGas’ request for incremental funding to implement its Customer Information System Replacement Program (CIS Replacement Program). The Commission finds that the parties to this proceeding have provided evidence that the costs of SoCalGas’s CIS Replacement Program are not likely to exceed the authorized amount the utility has already been approved to seek ratepayer recovery for, as provided by the Commission in Decision 24-12-074.

Resolution (Res.) E-5483

This resolution approves Pacific Gas and Electric Company’s (PG&E) Advice Letter (AL) 7860-E, the Diablo Canyon Extended Operations Balancing Account (DCEOBA) True-Up Advice Letter filed pursuant to Senate Bill (SB) 846 and D.23-12-036, and denies the protest filed by The Utility Reform Network (TURN). PG&E AL 7860-E trues-up PG&E’s recorded Diablo Canyon Power Plant (DCPP) extended operations costs and market revenues to the Commission-adopted forecast for the record period September 1, 2023 through December 31, 2025. This resolution finds that PG&E’s recorded DCEOBA costs, totaling approximately $1,224.1 million, are below 115% of the approximately $1,325.4 million forecast approved in D.24-12-033, so that no further reasonableness review of those costs is required under Public Utilities Code § 712.8(h)(1). This resolution also finds that TURN’s proposal to apply the 115% threshold separately to each individual cost category, rather than to PG&E’s total recorded costs, is not supported by the statute.

Rulemaking (R.) 19-03-009 (Order Instituting Rulemaking to Implement Senate Bill 237 Related to Direct Access)

This decision denies Alliance for Retail Energy Markets, California Coalition of Large Energy Users, Direct Access Customer Coalition, Regents of the University of California, Shell Energy North America (US), L.P., and Western Power Trading Forum’s petition for modification of Decision 21-06-033. The decision finds that the petition fails to satisfy the requirements of Rule 16.4(b) and 16.4(d) of the Commission’s Rules of Practice and Procedure.

Res.E-5476

The Avoided Cost Calculator (ACC) is used in cost-effectiveness analysis of distributed energy resource (DERs) programs and policies. This resolution provides a link to the final 2026 ACC and related documentation and data files. The documentation provides additional details about this update, including a comparison of the 2026 and 2024 ACC outputs. Further, the resolution describes the data and major modeling updates to the 2026 ACC.

R.22-12-011 (Order Instituting Rulemaking to Address Biomethane Procurement Cost Allocation)

This decision finds that all investor-owned gas utility customers should pay a share of the above-market costs of the Renewable Gas Standard (RGS) program. This proceeding was opened to address two fundamental questions: which customers should share in RGS above-market costs, and how the cost should be allocated among them. The Proposed Decision finds that the RGS above-market costs, which represent the cost of meeting policy goals to reduce pollutant emissions from bio waste, should be allocated on an equal cents per therm basis to all core customers. To extend cost allocation to all core customers, this decision directs the inclusion of the allocated costs within core transportation rates. The allocation of costs is not extended to non-core customers at this time, pending further assessment of whether an exemption (either in whole or in part) should apply to non-core customers. An additional process on this matter is needed to identify whether and how to implement cost allocation in a way that avoids emissions leakage and encourages industry to stay in California. This decision orders the joint gas utilities to lead a workshop process and subsequently file an application that considers recommendations coming out of the work as to whether and how these issues should be addressed.

Alternate Proposed Decision: This decision finds that all investor-owned gas utility customers should pay a share of the above-market costs of the Renewable Gas Standard (RGS) program and enacts a cost allocation structure accordingly. This proceeding was opened to address two fundamental questions: which customers should share in RGS above-market costs, and how the cost should be allocated among customers. The proposed decision finds that the above-market RGS costs, which represent the cost of meeting policy goals to reduce pollutant emissions from bio waste, should be allocated on an equal-cents-per-therm basis to all customers, both core and non-core. To extend the allocation costs to all customers, this decision directs the inclusion of the allocated costs within transportation rates. Further, the decision orders the joint gas utilities to lead a workshop process to identify options to implement cost allocation in a way that minimizes the risk of pushing emissions and industry out of California and subsequently file an application regarding these issues.

R.21-10-001 (Order Instituting Rulemaking to Develop Safety Culture Assessments for Electric and Natural Gas Utilities)

This decision adopts a Safety Culture Assessment Framework for small and multi-jurisdictional utilities (SMJUs) and independent gas storage operators (IGSOs). This framework includes three levels of assessment: a self-assessment for SMJUs and IGSOs with fewer than 50 employees and safety-critical contract workers, a simplified self-assessment including a survey for SMJUs and IGSOs with 50 to approximately 100 employees and safety-critical contract workers, and a peer review for SMJUs and IGSOs with more than approximately 100 employees and safety-critical contract workers.

Voting Meeting

The CPUC held a voting meeting on September 3, 2026 in Sacramento, California, at 11 a.m. PT. The energy-related results are below:

Item 2. Application (A.) 24-08-004 (Application of Pacific Gas and Electric Company 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. Withdrawn.

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. Signed, D.26-09-002.

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. Held to 9/17/26.

Item 5. 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 SDG&E to file a Tier 2 advice letter to propose changes to the workshop cadence. This decision also orders the Investor-Owned Utilities 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. Signed, D.26-09-003.

Item 6. R.21-11-014 (Order Instituting Rulemaking to Implement Senate Bill (SB) 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. Signed, D.26-09-004.

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 ACC, beginning with the 2026 ACC. The updates are designed to create a more robust, transparent ACC model that better reflects changing systems and load patterns due to increased building and vehicle electrification and growing renewable penetration on the grid. Signed, D.26-09-007.

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. Signed, D.26-09-010.

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. Approved.

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 § 854(a), for Approval to Assume the Obligations of a Parent Pursuant to California Public Utilities Code § 830, and for an Order Pursuant to California Public Utilities Code § 851(a) to Encumber Public Utility Assets)

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. Signed, D.26-09-011.

Item 50. R.26-09-003 (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 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. Signed.

Events

Avoided Cost Calculator (ACC) Workshop

Energy Division staff hosted a public workshop on the ACC on September 9, 2026, from 1:30 p.m.-4 p.m.  The goal of the workshop is to present the 2026 Draft ACC to stakeholders and the public and to provide an opportunity for comment and questions. The ACC, which is updated biennially, is used to determine the avoided costs incurred by reductions in electricity and gas consumption from distributed energy resources. It is used to determine the benefits of customer programs that promote distributed energy resources such as energy efficiency and demand response. Workshop details are available on the Commission’s Daily Calendar.

Interconnection Discussion Forum

Energy Division staff will host the next Interconnection Discussion Forum (IDF) on Tuesday, November 3 from 1 p.m.-4 p.m.  The IDF provides an informal venue for utilities, developers, and other stakeholders to explore a variety of issues related to interconnection practices and policies. It is generally scheduled quarterly. The November IDF meeting will focus on interconnection issues relating to community solar, under both the Wholesale Distribution Access Tariff (WDAT) and Rule 21. Additional details are available on the Rule 21 website, 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.

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:

November 12, 2026: Commissioner Workshop on Load Modifier Draft Results, 10 a.m.–5 p.m. PT.

December 14, 2026: Commissioner Workshop on Overall Forecast Results, 10 a.m.–5 p.m. PT.

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.

Lithium Valley Informational Proceeding

The CEC will host a remote-access workshop from 9:00 a.m. to 4:00 p.m. PT on September 10, 2026 to discuss current opportunities for development of the lithium industry in the Salton Sea region of California. Additional information regarding the scope of the workshop and attendance instructions are available in the workshop notice. Written comments are due to the docket unit by 5:00 p.m. PT on September 30, 2026.

Wave and Tidal Energy

The CEC released the Draft Senate Bill 605 Wave and Tidal Energy Report to the Governor and Legislature and will be holding a remote-access workshop on September 30, 2026 to present and gather feedback on the draft report.  Written comments on the draft report are due to the docket unit by 5:00 p.m. on November 3, 2026.

CEC Business Meetings

The CEC held a business meeting on September 9, 2026. The meeting agenda and supporting materials are available here.  The next CEC business meeting is scheduled for October 19, 2026.

PACIFIC NORTHWEST (OPUC, BPA)

Public Utility Commission of Oregon (OPUC)

On September 3, 2026, the OPUC held (1) a public meeting to consider granting PacifiCorp d/b/a Pacific Power’s request for a waiver of OAR 860-089-0250(1) and approving use of PA Consulting as the Independent Evaluator for Phase 2 of PacifiCorp’s 2025 Request for Proposals (Docket No. UM 2383), and (2) a public hearing and commissioner work session to open a formal rulemaking to implement SB 845, which primarily authorizes the Commission to order the sale of a water utility that is unable to provide safe and adequate service (Docket No.  AR 673). The full agenda is accessible here.

Bonneville Power Administration (BPA)

On August 31, 2026, BPA hosted a BP-26 transmission settlement commitment workshop to discuss (1) the short distance discount and the billing determinant for Network Integration Transmission Service as related to behind-the-meter resources and (2) to provide clarity on the scope, eligibility, and costs of the New Generation Technology Pilot Program. The settlement is included in the BP-26 Rate Proceeding Administrator’s Final Record of Decision. More information on the BP-26 rate case is here. On September 1, 2026, BPA hosted the second workshop in its Risk Mitigation & Financial Policies Refresh series, wherein BPA reviewed the existing 2022 Financial Plan which will culminate in a new financial plan, targeting a 2027 publishing date, to ensure BPA’s long-term financial goals are supported with agile risk mitigation strategy and updated financial policies. The 2022 Financial Plan is available here.

Also on August 31, BPA published what it refers to as a refreshed strategic plan to accelerate innovative transmission and power supply solutions to meeting growing demand and expansion in the region.  The plan seeks to protect legacy customers and ratepayers by ensuring that “growth pays for growth.”  The 2026-2030 Strategic Plan is available here.

Lastly, on September 1, BPA announced a two-week delay in issuing its updated large generator interconnection Phase One Cluster Study Reports.  Those reports—initially targeted for September 11, 2026—will now be issued September 25.  In addition, BPA will tender Phase Two Cluster Study Agreements on October 9, 2026, for customers who intend to move forward in the interconnection study process.

White House

WHITE HOUSE

National Emergency to Secure Bulk Power System

On August 26, 2026, President Trump issued Executive Order 14421, “Declaring a National Emergency to Secure the United States Bulk-Power System,” based on his finding that “[c]ertain foreign actors are increasingly creating and exploiting vulnerabilities in the United States bulk-power system.” The order finds that minimal restrictions exist on the acquisition or operation of foreign-produced bulk-power system electric equipment in the United States, augmenting the ability of some foreign entities to create and exploit vulnerabilities in that equipment. The recent order builds on a materially similar order, Executive Order 13920, issued on May 1, 2020, during the President’s first term. That earlier order was suspended on January 20, 2021, and lapsed by its own terms on May 1, 2021, and a separate December 2020 Department of Energy prohibition order issued under it was revoked effective April 20, 2021. The new order broadens that framework in several respects: the equipment definition is wider, the country trigger is broader and more automatic, the reach over already-installed equipment is more explicit, and it adds an anti-evasion clause and express authority to order the replacement of equipment posing an unacceptable risk.

The order authorizes the Secretary of Energy to prohibit or condition certain transactions involving foreign-produced bulk-power system equipment—including transmission and substation equipment, generators, utility-scale and other grid-connected inverters, battery energy storage systems, and uninterruptible power supply systems supporting critical infrastructure, along with any associated critical component, software, firmware, digital service, maintenance service, or remote-access capability. The prohibition applies where the Secretary determines both that the equipment is tied to a “Covered Foreign Entity”—a term keyed to the arms-embargo and sanctions provisions of the International Traffic in Arms Regulations (22 C.F.R. § 126.1), plus any entity the Secretary of Energy (Secretary) designates—and that the transaction poses an unacceptable risk to national security, electric system reliability, or critical infrastructure. For equipment already installed, the Secretary may impose conditions on its continued use, operation, maintenance, servicing, or updating, including requirements to identify, isolate, monitor, secure, disconnect, replace, or remove it, subject to consideration of reliability, safety, replacement availability, and continuity of service. The order directs the Secretary to publish implementing regulations within 120 days “as needed,” and calls for recommended revisions within 180 days to federal procurement policies to ensure national security risks are considered and to prioritize the acquisition of United States-manufactured energy infrastructure. Additional analysis is available here.

Federal Agencies

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

September Commission Meeting

FERC noticed its September 2026 Commission meeting, which will take place on September 10, 2026, at 10:00 a.m. EST. FERC stated it will consider, among other things:

• Administrative matters relating to customer reliability, security, and market operations (AD26-2-000) and a system performance review of the Winter 2026 arctic cold period (AD26-11-000);
• North American Electric Reliability Corporation’s proposed reliability standard (RD26-9-000);
• FERC’s show-cause proceeding against ISO New England Inc. (ISO-NE) related to ISO-NE’s lack of mechanism to allow ISO-NE to adjust erroneous capacity performance payments (EL26-45-000);
• TransAlta Energy Marketing’s spot sales above the Western Electricity Coordinating Council (WECC) soft cap (ER23-276-000);
• Mercuria Energy America’s spot sales above the WECC soft cap (ER23-450-000); and
• Calpine Energy Services’ spot sales above the WECC soft cap (ER23-316-000).

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

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

2027 Default Resource Adequacy Values New Recurring Process

The CAISO held a virtual stakeholder meeting on September 9, 2026, to present the draft default qualifying capacity and default planning reserve margin for the 2027 Resource Adequacy. This is the first meeting in this new Default Resource Adequacy Values recurring process. Stakeholder comments are requested by September 23, 2026. Meeting details can be found here.

2026-2027 Transmission Planning Process (TPP): Meetings

The CAISO will host a virtual public stakeholder meeting on September 23 and September 24, 2026, to discuss the preliminary reliability study results, participating transmission owner’s reliability projects, and updates on other analyses related to the 2026-2027 TPP. The meeting materials can be found on the TPP webpage and meeting access can be found here.

MIDCONTINENT INDEPENDENT SYSTEM OPERATOR (MISO) 

Fifth Expedited Resource Addition Study (ERAS) Cycle

MISO announced its fifth cycle of projects that it will evaluate under ERAS, which is MISO’s temporary process designed to issue a Generator Interconnection Agreement within three months. MISO stated its fifth cycle includes 15 proposed projects totaling approximately 7.3 GW of new capacity, including a mix of natural gas, solar, wind and battery storage resources expected to be in service by 2029.

Data Centers

DATA CENTERS AND LARGE LOADS

North Dakota Rejects Non-Disclosure Agreement (NDA) Data Center Ban

The North Carolina state senate voted to not pass Senate Bill 2406, which would have banned agencies from entering into NDAs with an operating or proposed data center if the data center was seeking approval from the agency. The bill would have penalized data centers that entered into NDAs by allowing for the suspension or revocation of agency approval and subjected agencies to civil penalties of $1,000 per violation. Thirty-two senators voted to not pass the bill over 15 that voted to pass.

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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.