Utility Dive•7 days ago
California PUC lowers utilities’ return on equity by 0.3 percentage points
Key Takeaway
The CPUC's ROE reduction signals a tighter financial environment for California utilities, potentially impacting grid infrastructure development and the cost of power for developers and large consumers.
AI Summary
- •California Public Utilities Commission (CPUC) reduced utility Return on Equity (ROE) by 0.3 percentage points.
- •The decision aims to balance ratepayer affordability with utilities' need for capital, particularly for managing wildfire risk.
- •This regulatory change could increase the cost of capital for California utilities, potentially impacting their ability to finance grid upgrades, transmission projects, and new generation interconnections.
- •Developers and large power consumers in the CAISO region may experience higher PPA costs or slower infrastructure development due to utilities' potentially constrained capital access.
Topics
caisofinancingpolicytransmission