The Rate Case Process
A General Rate Case (GRC) is the major regulatory proceeding for California utilities, which provides the CPUC an opportunity to perform an exhaustive examination of a utility's operations and costs. Typically performed every three years, the GRC allows the CPUC to conduct a broad and detailed review of a utility's revenues, expenses, and investments in plant and equipment to establish an approved revenue requirement.
The Commission may schedule a formal evidentiary hearing. At these hearings, the Commission will receive the expert testimony of Park, the Commission's independent Division of Ratepayer Advocates (DRA), and other interested parties including the utility's customers. The DRA staff consists of engineers, accountants, economists, and attorneys who independently evaluate the proposals of utilities and present their recommendations to the Commission.
After considering all proposals and evidence presented during the formal hearing process, the CPUC's Administrative Law Judge (ALJ) will issue a proposed decision. When the Commission issues a final decision, it may adopt all or part of the ALJ's proposed decision as written, amend or modify it, or deny the Application all together. The Commission's final decision may be quite different from the original request.