Here’s a quick, practical briefing on the energy regulatory moves from March 25–31, 2026 that businesses, developers, utilities, and consumers should watch.
Overview
This update summarizes recent actions by the California Public Utilities Commission (CPUC) and related state agencies, covering rate decisions, rulemakings, and scheduled workshops. Items of note affect residential bill design, utility procurement reviews, biomethane procurement targets, transmission planning, and safety inquiries into energy storage.
Key CPUC Decisions and Resolutions
- Income‑graduated fixed charge — The Commission approved modifications allowing Liberty Utilities to implement an income‑graduated fixed charge for residential customers under its recent advice letters.
- Crimson pipeline rates — The CPUC granted a requested rate increase for crude oil transport on a Southern California pipeline, effective August 1, 2025, and authorized recovery of the difference back to that date (with interest). A separate requested increase was denied.
- Climate Credit changes — A rulemaking order directs investor‑owned utilities to reconfigure residential Climate Credits to land in high‑usage months this year, with the goal of improving bill affordability during peak bills tied to the Cap‑and‑Invest program.
- Biomethane procurement rules — The Commission narrowed the long‑term procurement target (revising it downward), adopted a cost‑containment mechanism to protect ratepayers, extended procurement deadlines to 2035, opened feedstock eligibility, and required procurement contracts to be filed via Tier 3 Advice Letters regardless of price.
- New rate design rulemaking — A fresh proceeding will revisit advanced electric rate design for residential and non‑residential customers to better align price signals with grid costs and policy goals.
Voting Meeting Highlights (April 9 agenda items)
- ICA remediation and reporting — A resolution will adopt, with modifications, integration capacity analysis remediation plans and baseline reporting proposals submitted by the three major IOUs, creating tracking and reporting requirements and tying results into biannual reports and workshops.
- SDG&E ERRA compliance — SDG&E’s 2023 procurement and accounting activities were approved with negotiated adjustments; the decision finds a net undercollection for the period (excluding confidential accounts).
- SCE ERRA finding — Southern California Edison was found to comply with ERRA requirements for the 2023 record year, with a net overcollection reflected in its revenue requirement adjustments.
- PG&E entitlement leases — The Commission declined to pre‑approve multi‑period entitlement leases with Citizens Energy but authorized PG&E to pursue each option period via separate Tier 3 Advice Letters for specific projects, subject to review of ratepayer impact.
- PacifiCorp filing adjustment — The Commission granted a modification allowing PacifiCorp to implement a 2025 post‑test year adjustment mechanism by Tier 2 Advice Letter and closed the proceeding.
- Elkhorn energy storage inquiry — A new investigation was opened to examine whether to disallow costs or otherwise exclude consideration of the Elkhorn energy storage system from PG&E’s rates based on safety or service issues while it is out of service.
Workshops and Outreach
- Energy Efficiency Stakeholder Workshop — Scheduled for April 15 in Irwindale (with remote participation). The meeting will cover recent CPUC policy changes, third‑party solicitations, and best practices for efficiency programs.
- Joint agency workshop on FERC Order No. 1920 and CAISO planning — A joint CAISO/CEC/CPUC workshop was convened to engage Tribes on how FERC Order No. 1920 intersects with California transmission planning practices and Tribal interests.
Why this matters
These developments reshape near‑term regulatory expectations across several fronts:
- Bill impacts: Reallocating Climate Credits to high‑usage months and new rate design work can change household and business bills, especially for high‑use customers.
- Procurement and project planning: Biomethane target reductions, new filing requirements, and ERRA decisions affect utility procurement strategies and how developers bid into solicitations.
- Grid operations and interconnection: ICA remediation requirements and CAISO planning discussions influence how distributed resources and transmission projects are evaluated and integrated.
- Safety and accountability: The investigation into a major battery storage system underscores regulator scrutiny on operational readiness and the potential for rate recovery to be limited when reliability or safety concerns arise.
- Stakeholder engagement: Multiple workshops and the Tiered Advice Letter processes create concrete opportunities for utilities, developers, Tribes, and consumer advocates to influence outcomes.
Next steps for stakeholders
- Monitor the CPUC voting meeting on April 9 for final actions on ICA remediation, ERRA matters, and lease authorization guidance.
- Participate in the April 15 energy efficiency workshop if you work on program implementation or utility solicitations.
- Prepare for tighter biomethane procurement requirements and Tier 3 filing obligations if you are a project developer or counterparty to gas procurement contracts.
- Track the Elkhorn investigation if you have interests in energy storage policy, safety standards, or cost recovery precedents.
Conclusion
The week’s CPUC activity advances changes in rate design, procurement rules, and reporting requirements that will influence utility planning and customer bills in California. Stakeholders should engage in the upcoming workshops and closely watch the April 9 voting meeting to understand final outcomes and compliance expectations.