PCG 2017 GRC Final Decision

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Market Price (5/12/2017): $66.15/share; ST-Target: $77/share; NIV: $112/share

  • On May 11, 2017, the California PUC (CPUC) promulgated its final decision (FD) regarding Pacific, Gas & Electric Company’s (PG&E) 2017 general rate case (2017 GRC)
  • The FD substantially replicates the alternate proposed decision (APD) that was issued on April 4, 2017, except with two modifications related to the recovery of certain customer outreach and other incurred costs resulting from residential rate reform implementation and potential changes to the federal corporate tax rates
  • The FD calls for an effective date for revenue increases as of January 1, 2017 (retroactively to that date) in the amount of some $88.2MM, an increase of about 1.1% to roughly $8.0B
    • Compared to PG&E’s final requested increase of some $319MM, the permitted increase for 2017 in the FD is lower by about $231MM or lower by some 62%
    • The increase was based on adjustments to 2016 rates in effect:
      • Gas distribution rates decreased by about $3MM
      • Electric distribution rates decreased by some $62MM
      • Electric transmission rates increased by approximately $153MM
    • The 2Q2017 financial results are expected to account for the increase attributable to the cumulative 6-months financial results ending June 30, 2017

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