PG&E Catastrophic Event Memorandum Account

Background

PG&E requested CPUC approval to recover $22.8 million in expenses and $26.1 million in capital expenditures in order to repair damage to its infrastructure due to seven catastrophic events in its service areas:

  • August 2009 Fires
  • October 2009 Storms
  • January 2010 Earthquake
  • January 2010 Storms
  • November 2010 Storms
  • December 2010 / January 2011 Storms
  • March 2011 Storms

A Settlement agreement reached between PG&E, ORA and TURN was filed with the CPUC in October 2012, which resulted in reductions of $5.0 million in expenses and $2.5 million in capital expenditures to PG&E’s original request. 

ORA Position

Based on its examinations, ORA initially recommended a disallowance of $4.9 million in expenses and $5.3 million in capital expenditures, which would result in a revenue requirement of approximately $25.6 million or a 21% decrease in PG&E’s proposal. ORA's recommendation was based on PG&E's lack of support that the costs were incremental, which is required by the CPUC for this type of cost recovery. 

See ORA's May 1, 2012 Testimony  

Current Proceeding Status

A CPUC Final Decision on the Settlement is expected in early 2013.

See the Proceeding docket.