California Public Utilities Commission

LA wildfire liability and equipment investigations — The January 2026 Eaton (Altadena) and Palisades fires destroyed 12,000+ structures and killed 28 people. Cal Fire and CPUC are investigating whether SCE transmission lines and LADWP distribution equipment were ignition sources. SCE faces inverse condemnation exposure under California strict liability doctrine; LADWP faces City Council scrutiny over its $4.6B rate increase request filed weeks after the fires. Insurance industry is reassessing California IOU risk.

Data center and large load proceeding — CPUC opened Rulemaking 24-09-020 in 2025 to update interconnection and cost allocation rules for large loads, particularly data centers. Projected to add 5–8 GW of load by 2030. Proceeding addresses whether infrastructure costs are socialized to all ratepayers or assigned to the triggering customer. Related to the statewide Rule 30 reform effort.

Wildfire cost recovery and AB 1054 fund solvency — The California Wildfire Fund (AB 1054, 2019) provides a $21B backstop for utility wildfire liability. The January 2026 fires represent the largest potential draw since the fund's creation. CPUC is monitoring fund solvency; depletion would shift costs directly to utilities and trigger rate recovery proceedings under existing CPUC cost-of-service principles.

AB 205 income-graduated fixed charge implementation — AB 205 (2022) requires CPUC to adopt income-graduated fixed charges to reduce volumetric rates for low-usage customers. PG&E, SCE, and SDG&E filed compliance proposals. CPUC decision expected mid-2026; implementation will materially restructure residential rate design for the first time in decades.

Commissioner transition — Reynolds and Harada — Alice Reynolds was elevated to CPUC President by Governor Newsom in February 2026 after serving as commissioner since 2019. John Harada was appointed to fill the resulting vacancy. Reynolds's elevation signals continuity on climate and affordability priorities; Harada's posture on cost allocation and large load proceedings is being closely watched.