Energy Resource Recovery Account (ERRA)

The Energy Resource Recovery Account (ERRA) is a balancing account where the utilities record and track energy procurement costs (fuel and purchased power). ERRA tracks the difference between the utilities’ authorized revenue recovered in customer rates and the actual cost of power. Public Utilities Code §454.5(d)(3) required the CPUC to establish this account and to ensure timely recovery of these procurement costs.   

In October 2002, the CPUC issued a Decision establishing ERRA for California’s three investor owned utilities: PG&E, SCE and SDG&E. Through the ERRA proceeding, the utilities are able to recover 100 percent of their fuel, purchased power, and other related costs if they are consistent with the utility’s approved procurement plan. At the end of year, any under or over collection are charged or credited to customers’ bills. The utilities do not earn a rate of return on funds in the Recovery Account.  

The ERRA process is comprised of two types of annual proceedings: 

• Compliance:  A review of a utility’s compliance with its procurement plan from the preceding year, including:
   
  • Accounting records of its expenses and revenues in the ERRA balancing account
   
  • Energy procurement activities of contract administration
   
  • Economic procurement of electric resources (Least Cost Dispatch) and fuel expenses  
   

• Forecast:  Establishes a utility’s revenue requirement for the upcoming year based the utility’s anticipated accrual of electric procurement costs and sales, as approved by the CPUC.  
  

Follow the links below to ERRA by Utility.

Utility ERRA Applications are submitted to the CPUC on a regular basis: