Report 2022-115 Recommendation 5 Responses

Report 2022-115: Electricity and Natural Gas Rates: The California Public Utilities Commission and Cal Advocates Can Better Ensure That Rate Increases Are Necessary (Release Date: August 2023)

Recommendation #5 To: Public Utilities Commission

To ensure that customers can readily identify the factors that contribute to energy rate increases when rates change, the CPUC should by the beginning of February 2024 provide to the public a summary of energy rate increases. Although the CPUC should determine the exact approach for communicating these increases, this approach should—at a minimum—identify the previous rate, the new rate, and the expected impact on the average customer's bill, and it should explain the CPUC-approved cost components that are driving the rate increase.

6-Month Agency Response

The CPUC has adopted a standardized format for communicating these changes, making it simple and easy to grasp. This summary includes illustrative bill impacts on an average customer's bill. In addition, it will break down the CPUC-approved cost components responsible for the rate increase, such as infrastructure maintenance, renewable energy investments, and inflation. To ensure accessibility, this information will be readily available on the CPUC website and shared through various communication channels, including newsletters and social media.

By implementing these measures, the CPUC aims to empower customers with knowledge they need to comprehend the factors behind energy rate changes and make informed decisions about their energy consumption.

Staff drafted an internal protocol and implemented these actions in January of 2024, and adopted its new procedure in February 2024 for ongoing implementation. Via letter sent in December, the CPUC required the Investor Owned Utilities (IOU) to publish rate alerts explaining cost components driving rate increases. Such rate alerts were published in mid-January. (See CPUC Rate Advisory Procedures)

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

The CPUC will adopt a standardized format for communicating these changes, making it simple and easy to grasp. This summary will include illustrative bill impacts on an average customer's bill. In addition, it will break down the CPUC-approved cost components responsible for the rate increase, such as infrastructure maintenance, renewable energy investments, and inflation.

To ensure accessibility, this information will be readily available on the CPUC website and shared through various communication channels, including newsletters and social media.

By implementing these measures, the CPUC aims to empower customers with the knowledge they need to comprehend the factors behind energy rate changes and make informed decisions about their energy consumption.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2022-115

Agency responses received are posted verbatim.