Summary
Sempra Energy (SRE) reported through its subsidiaries San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas) on September 11, 2015, that they have filed a settlement for their 2016 General Rate Case (GRC) with the California Public Utilities Commission (CPUC). This settlement resolves most key issues for the 2016 GRC, proposing total revenue requirements of $1,811 million for SDG&E and $2,219 million for SoCalGas. It also includes attrition adjustments of 3.5% for both 2017 and 2018 for each company. The settlement is subject to a 30-day comment period and final CPUC approval. A notable point of contention that remains unresolved is the treatment of certain intra-rate case income tax benefits, with an intervenor arguing these should be passed to ratepayers, a position Sempra believes deviates from established practices. The company anticipates that all aspects of the 2016 GRC will be finalized with the CPUC's ultimate decision.
Key Highlights
- 1SDG&E and SoCalGas filed a settlement for their 2016 General Rate Case (GRC) on September 11, 2015.
- 2The settlement proposes 2016 total revenue requirements of $1.811 billion for SDG&E and $2.219 billion for SoCalGas.
- 3Attrition adjustments of 3.5% for 2017 and 2018 are included in the settlement for both utilities.
- 4The settlement is supported by a majority of active parties in the proceeding.
- 5A key unresolved issue is the treatment of certain income tax benefits, with an intervenor seeking them to be passed to ratepayers.
- 6Sempra views the proposed tax benefit treatment as a material departure from long-standing ratemaking and tax policy.
- 7The settlement is pending a 30-day comment period and final approval by the California Public Utilities Commission (CPUC).