Pacific Gas & Electric (PCG)

Operating Expenses

Operating expenses are a key factor in determining whether the Utility earns the rate of return authorized by the CPUC. Many of the Utility’s costs, including electricity procurement costs, discussed above, are subject to ratemaking mechanisms that are intended to provide the Utility the opportunity to fully recover these costs. In the Utility’s GRC, the CPUC authorizes the Utility to collect a fixed revenue requirement from customers that is intended to enable the Utility to recover its operating and maintenance expenses. If the Utility’s operating expenses exceed the amount of the authorized revenue requirement, the Utility’s results of operations and ability to earn its authorized rate of return may be affected.

Operating Expenses

        Operating expenses are a key factor in determining whether the Utility earns the rate of return authorized by the CPUC. Many of the Utility's costs, including electricity procurement costs, discussed above, are subject to ratemaking mechanisms that are intended to provide the Utility the opportunity to fully recover these costs. In the Utility's GRC, the CPUC authorizes the Utility to collect a fixed revenue requirement from customers that is intended to enable the Utility to recover its operating and maintenance expenses. If the Utility's operating expenses exceed the amount of the authorized revenue requirement, the Utility's results of operations and ability to earn its authorized rate of return may be affected.