General rate cases ("GRCs") are proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California’s three large investor-owned utilities (IOUs), the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible and the rate schedules for each class. Each large electric utility files a GRC application every three years.
The CPUC reviews detailed cost data for various areas of utility operations and approves a budget for the first year – called a test year – of the GRC cycle. For years 2 and 3 – called post-test years – the GRC decision prescribes how to adjust the test year budget for inflation and other factors that may affect costs, such as additional capital projects between test years.
On May 16, 2022, SDG&E filed Application ("A.") 22-05-016, TEST YEAR 2024 GENERAL RATE CASE APPLICATION OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 M), which initiated phase 1 of the GRC proceeding.
