The California Public Utilities Commission (CPUC) is actively involved in federal regulatory proceedings to protect electricity customers from unnecessary transmission costs. Transmission infrastructure, which moves electricity across regions and state lines, represents a significant portion of utility bills for Californians. The Federal Energy Regulatory Commission (FERC) regulates these transmission rates, and its decisions directly impact what customers pay.
The CPUC’s Energy and Legal Divisions participate in FERC transmission cases to ensure that costs are transparent, justified, and fairly reflected on customer bills. Over the past decade, CPUC interventions have resulted in more than $5 billion in savings for ratepayers. Additional stakeholder processes led by the CPUC have contributed over $1 billion in long-term savings.
Transmission investments are paid off by utility customers over many years. If not properly reviewed, these costs can become a greater burden on consumers, especially if utilities seek recovery for expenses that are premature or unsupported. Because FERC sets interstate rates, Californians depend on the CPUC’s oversight to prevent unreasonable charges.
FERC is responsible for regulating interstate transmission rates, approving cost recovery mechanisms at the wholesale level, overseeing reliability standards for the bulk power system, and regulating wholesale power markets. While FERC manages interstate rates, the CPUC handles retail electric rates within California.
To represent California customers’ interests at FERC proceedings, the CPUC reviews utility cost filings, challenges insufficient claims, provides technical analysis on project status and classifications, and advocates for rate adjustments when necessary. Under state law, the CPUC must represent retail electric customers during federal cost recovery processes.
“FERC presumes that the costs utilities include in their rate cases are prudent,” said Simon Hurd, Program and Project Supervisor in the CPUC’s FERC Cost Recovery Section. “As a result, the CPUC needs to advocate on behalf of ratepayers to make sure that the costs that utilities are able to recover from Californians are just and reasonable.”
To support its oversight role further, the CPUC established the Transmission Project Review (TPR) Process. This process standardizes how investor-owned utilities report data about capital transmission projects every six months. It includes details about project status, costs, schedules, scopes of work—and requires regular stakeholder meetings so concerns can be raised early.
This approach allows regulators and stakeholders to identify potential issues such as scope changes or delays before they affect customer bills through federal cost recovery requests. With substantial new investment needed over two decades to meet clean energy goals and forecasted demand growth in California’s grid system—estimated at tens of billions of dollars—the TPR Process aims to keep these future costs manageable for consumers.
When utilities file rate cases with FERC regarding transmission projects—which account for roughly 90 percent of approved transmission costs borne by investor-owned utility customers—the CPUC intervenes alongside groups like the California Department of Water Resources State Water Project; Six Cities (Anaheim, Azusa Banning Colton Pasadena Riverside); and Northern California Power Agency. Together they review filings closely and submit technical or legal arguments as needed.
“This multi-stage framework of data collection and oversight through the TPR Process coupled with advocacy at FERC forms a comprehensive effort to protect California customers,” said Hurd.
In summary: while FERC sets interstate transmission rates outside direct state control,the CPUC participates in federal proceedings,reviews filings,and tracks project progress—all aimed at ensuring only fair,supported costs reach Californian households’and businesses’electricity bills.The commission states it will continue this work as part of its commitment to consumer protection.
