April 22, 2025

Regulatory Update for April 22, 2025

(Covering Week of April 14, 2025)

Our energy regulatory team has compiled a list of state and federal energy regulatory developments to keep you up to speed on key energy regulatory matters from across the United States. Stoel’s energy regulatory team is always available to answer questions about any of these developments. Click here to meet the energy regulatory team.

Jump to the following jurisdictions:

• California Public Utilities Commission
• California Independent System Operator
• California Energy Commission
• California Air Resources Board
• Minnesota Public Utilities Commission
• Federal Energy Regulatory Commission

Click here to download this update as a PDF

CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC or COMMISSION)[1]

Proposed Decisions and Resolutions

None to report.

Voting Meeting

The CPUC will hold a voting meeting in Sacramento, California on April 24, 2025 at 11:00 am PT.  The following are energy related items on the agenda:

Item 3. Rulemaking (R.) 23-01-007 (Diablo Canyon Power Plant Operations Phase 2 Issues)

This decision considers party proposals on Phase 2 issues and makes the following determinations: (1) continues to use the general framework and definitions for the use of the surplus performance-based fees as adopted in Decision (D.) 23-12-036 in the post-2024 period; (2) directs Pacific Gas & Electric Company (PG&E) to consider affordability as a guiding principle when developing and implementing its Volumetric Performance Fee (VPF) spending plan and explain how its annual plans meet the requirements of Public Utilities Code Section 712.8(s)(1), starting with PG&E’s planned expenditure of 2026 VPF; (3) approves PG&E’s proposed templates reflecting the baseline review criteria for the annual compensation report; (4) requires PG&E to estimate, where feasible, the number of customers participating in or benefiting from each VPF project and report it in its annual reporting review filing; (5) approves PG&E’s proposal for adjustments to the Diablo Canyon Independent Safety Committee’s (DCISC’s) funding methodology; and (6) DCISC membership terms remain the same.

Item 9. Resolution (Res.) E-5377 (Pacific Gas & Electric Company Mid-term Reliability Contracts)

This resolution approves two mid-term reliability (MTR) long-term resource adequacy agreement with energy settlement storage contracts with Aypa Power Development (owner of Marici and San Gabriel LLCs) for a total of 500 megawatts of nameplate capacity expected to begin deliveries on September 1, 2027.  The contract terms for each project are 15 years.  PG&E procured these resources to satisfy a portion of its MTR requirements.

Item 10. A.23-06-023 (PG&E Woody Biomass to Renewable Natural Gas Pilot)

This decision denies PG&E’s application seeking approval of its woody biomass to renewable natural gas pilot project.  This decision directs PG&E to use the Tier 2 Annual Gas True-Up of Gas Transportation Balancing Accounts for Rates Effective January 1, 2026 advice letter to return $16.936 million of Cap-and-Trade proceeds, including interest, to ratepayers through the California Climate Credit in 2026.

Item 11. Res. G-3611 (San Diego Gas & Electric Company's Recovery of the Transmission Integrity Management Program Balancing Account for January 1, 2019 to July 31, 2023)

This resolution approves San Diego Gas & Electric Company’s (SDG&E) cost recovery request of approximately $21.7 million of revenue requirement under-collection in the Transmission Integrity Management Program Balancing Account (TIMPBA).  Pursuant to Res. G-3499, the amount authorized for recovery in TIMPBA will be amortized in gas transportation rates based on a functionalized allocation of costs adopted in SDG&E’s most recent Cost Allocation Proceeding, D.24-07-009.

Item 13. A.22-07-015 et al. (Crimson California Pipeline and San Pablo Bay Pipeline Rates)

This decision authorizes Crimson California Pipeline, L.P. (Crimson) to increase the rate charged for the intrastate transportation of crude oil on its KLM pipeline to $2.0471 per barrel transported effective September 1, 2022.  The decision authorizes the retroactive charge and collection of the difference between the rates billed by Crimson and the approved rate beginning March 3, 2023.  The decision authorizes San Pablo Bay Pipeline Company LLC (SPBP) to increase the rates charged for the intrastate transportation of crude oil on its pipeline system to $2.0471 per barrel transported effective March 1, 2023.  The decision authorizes the retroactive charge and collection of the difference between the rates billed by SPBP and the approved rate beginning March 1, 2023.

Item 19. Application (A.) 23-07-007 (PG&E Sale of the Pleasant Creek Gas Storage Field to Pleasant Creek Gas Storage Holdings, LLC)

This decision grants the uncontested Joint Application of PG&E, Pleasant Creek Gas Storage Holdings, LLC (Pleasant Creek LLC), and eCORP Natural Gas Storage Holdings, LLC (collectively, Joint Applicants) for approval of the transfer of Pleasant Creek Gas Storage Field (PCGS) ownership from PG&E to Pleasant Creek LLC pursuant to Public Utilities Code Section 851.  This decision also (1) approves the transfer of PG&E’s Certificate of Public Convenience and Necessity to Pleasant Creek LLC, subject to additional conditions, as proposed by the Joint Applicants; (2) designates Pleasant Creek LLC as an Independent Storage Provider authorized to charge market-based rates for natural gas storage services; (3) authorizes Pleasant Creek LLC to request a tariff for operation of the PCGS via a Tier 2 Advice Letter; (4) finds the proposed transfer of ownership of the PCGS is not subject to review under the California Environmental Quality Act; and (5) approves the Joint Applicants’ proposed ratemaking treatment of the loss on the transfer of the PCGS from PG&E to Pleasant Creek LLC.  The decision does not approve or authorize any projects or construction related to PCGS.

Item 20. A.24-10-004 (Wild Goose and Lodi Gas Storage Exemptions to Encumber Utility Assets)

This decision grants the requests of Wild Goose Storage, LLC and Lodi Gas Storage, L.L.C. for exemptions under Public Utilities Code Sections 853(b) and 829(c) to encumber their utility assets and issue a corporate guarantee to secure the debt refinancing of their senior affiliates.

Item 31. R.25-04-XXX (Order Instituting Rulemaking for Oversight of Energy Efficiency Portfolios, Policies, Programs, and Evaluation) 

This Order Instituting Rulemaking is established as the forum for regulatory issues related to the ongoing oversight and administration of energy efficiency programs by the Commission.  This rulemaking will be the primary venue for all issues relating to the energy efficiency policies, programs, and evaluation efforts for oversight of the portfolio administrators conducting and implementing energy efficiency programs under the Commission’s jurisdiction.  This rulemaking does not include in scope the Energy Savings Assistance Program or any of the energy efficiency programs administered by the small and/or multi-jurisdictional utilities.  This rulemaking is the successor proceeding to R.13-11-005, which was closed in January 2025.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

Cluster 15 Cluster Study Cost and Timeframe 

CAISO issued notice that the estimated cluster 15 cluster study cost and timeframe are posted in the market participant portal.  Further information is available here.

2023-2024 Transmission Planning Process 

CAISO issued notice that it will take additional time to select an approved project sponsor to finance, construct, own, operate, and maintain the New Humboldt 500 kV Substation, with a 500/115 kV transformer, and 500 kV line to the Collinsville Project.  Further information is available here.

Interconnection Process Enhancements 2023 

CAISO has posted updated Track 3 draft tariff language to its website, available here.

2024-2025 Transmission Planning Process 

CAISO held a public stakeholder call for the 2024-2025 Transmission Planning Process to discuss the 2024-2025 draft transmission plan on April 15, 2025.  Written comments on the draft transmission plan are due by April 29, 2025.  Further information is available here.

Gas Resource Management 

CAISO hosted a working group webinar on April 16, 2025, to align the scope and prioritization for the Gas Resource Management policy initiative.  Written comments are due by April 30, 2025.  Further information is available here.

DAME, EDAM, and EDAM Implementation Market Simulation 

CAISO invites all market participants intending to participate in the Day-Ahead Market Enhancements, Extended Day-Ahead Market (EDAM), and EDAM CAISO Participation Rules implementations to register for the upcoming market simulation activities starting May 2025.  CAISO will hold weekly market simulation meetings to support connectivity testing, integration testing, and market simulation execution.  The first meeting is set for Wednesday, April 23 at 10:00 am PT.  Further information is available here.

2026 Flexible Capacity Needs Assessment

CAISO will hold a public stakeholder call on April 28, 2025, to discuss the 2026 through 2028 draft Flexible Capacity Needs Assessment and the availability assessment hour requirements.  Written comments are due by May 5, 2025.  Further information is available here.

Congestion Revenue Rights Enhancements.  CAISO will host a hybrid public stakeholder meeting for the Congestion Revenue Rights (CRR) Enhancements initiative on May 12, 2025.  This session will include a review of stakeholder feedback in the working group thus far, an opportunity for stakeholders to present on their experiences with the CRR market, and a discussion on developing goals and problem statements.  Written comments are due by May 26, 2025.  Further information is available here.

CALIFORNIA ENERGY COMMISSION (CEC)

2025 Integrated Energy Policy Report (IEPR)

The CEC has released the 2025 IEPR workshop schedule and opened a new proceeding number (25-IEPR-01).  Workshop topics and dates included in the notice are below (note: the workshop schedule is subject to change):

• May 7, 2025: IEPR Staff Workshop on Electricity Forms & Instructions (remote access only)
• June 16, 2025: IEPR Commissioner Workshop on Interconnection
• June 25, 2025: IEPR Commissioner Workshop on Load Flex Goal Analysis Update
• July 29, 2025: IEPR Commissioner Workshop on Hydrogen (Senate Bill (SB) 1075) and Zero Carbon Resource (SB 423)
• August 6, 2025: IEPR Commissioner Workshop on Inputs & Assumptions (remote access only)
• August 26, 2025: IEPR Commissioner Workshop on Load Modifier Design (remote access only)
• November 13, 2025: IEPR Commissioner Workshop on Load Modifier Results (remote access only)
• December 2, 2025: IEPR Commissioner Workshop on Forecast (hybrid workshop)

2024 Renewables Portfolio Standard Annual Reporting Requirements

CEC staff will host a webinar on May 7, 2025, at 10:00 am PT to provide load-serving entities with an overview of the annual reporting process and forms required for submission in advance of the July 1, 2025 reporting deadline for the 2024 compliance year.  The webinar can be accessed here, and the password is: 278325.

2025 California Demand Flexibility Summit

The CEC will host the California Demand Flexibility Summit at the UC Davis Conference Center on May 22, 2025.  According to the Save the Date, issued in February, the summit will provide an “opportunity to discuss the progress and challenges in achieving California’s load shift goal of 7,000 megawatts by 2030.”  Registration for the California Demand Flexibility Summit is now open.

Zero-Emission Vehicles

The CEC will host a meeting of the Advisory Committee for the Clean Transportation Program Investment Plan on Wednesday, April 30, 2025 from 10:30 am – 1:00 pm PT.  The meeting will discuss proposed guiding principles that the CEC will use to develop the 2025–2026 Investment Plan Update for the Clean Transportation Program.  The Presiding Member of the Advisory Committee, Commissioner Nancy Skinner, will attend this April 30, 2025 meeting in person.  Public attendance is available either remotely or in-person, and a link to the meeting notice and agenda is available here.

CEC Business Meetings

The CEC canceled the Business Meeting originally scheduled for April 24, 2025.  The next CEC Business Meeting is scheduled for May 8, 2025. 

CALIFORNIA AIR RESOURCES BOARD (CARB)

Meetings and Workshops

On April 30, 2025, at 10:00 am PT, CARB will host a seminar for a research study measuring light-duty vehicle exhaust emissions using roadside-deployed remote sensing devices at eight California locations.  The seminar will also discuss the results of using these measurements and other relevant data to analyze several policy-relevant topics, including long-term vehicle emission trends and emission characteristics disparities for communities of different socioeconomic status.

On May 12, 2025, the Truck Regulation Implementation Group will be meeting to discuss the fundamental elements of a fleet charging infrastructure project, including how to navigate the planning, permitting, and utility interface processes and funding resources.  Representatives from Energetics and the Governor’s Office of Business and Economic Development will discuss how to assess site readiness and plan for fleet electrification and navigate the permitting processes.

On May 20, 2025, CARB is holding a virtual public information session to discuss a new voluntary non-monetary incentive program, the California Clean Construction Program, that would provide recognition to fleets using clean construction equipment in California.  The primary goal of the California Clean Construction Program would be to incentivize and encourage off-road fleets to go beyond existing regulatory fleet rule compliance and adopt advanced technology equipment with a strong emphasis on zero-emission off-road technologies.  CARB staff would develop the program parameters, and contracting entities, policymakers, and state and local governments could then incorporate the program in contract award considerations.  Staff are also exploring whether a program like this could be utilized by local air districts or other lead agencies as part of a California Environmental Quality Act mitigation strategy.

Opportunities for Public Comment

Pursuant to section 95488.5(d) of the Low Carbon Fuel Standard Regulation, the CARB Executive Officer has certified the 2025 annual update to the carbon intensities (CI) of the following two Lookup Table Pathways:

• California Average Grid Electricity Used as a Transportation Fuel in California
• Electricity Supplied Under the Smart Charging or Smart Electrolysis Provision

These two pathways are posted for a 45-day public comment period that ends on May 8, 2025.  The updated pathway CI values are available for quarterly fuel reporting in 2025, beginning with Q1.

MINNESOTA PUBLIC UTILITIES COMMISION (MPUC)

At its April 24, 2025, weekly agenda meeting, the MPUC will consider whether to approve Minnesota Power’s recovery of investments and expenditures for its Boswell Solar Project and Regal Solar Project through the Renewable Resources Rider.  It will also hear comments on quantifications of current long-term financial impacts of the Inflation Reduction Act on ratepayers (e.g., effects of investment tax credits and production tax credits), as well as known changes to federal energy sector grant funding to Minnesota.  Additionally, on April 22, 2025, the MPUC will hear from clean energy businesses at its planning meeting.

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

On April 22, 2025, Chairman Mark Christie issued a statement on the resignation of Commissioner Willie Phillips.  Commissioner Phillips served as Chairman of FERC from January 3, 2023, until January 20, 2025.  He was sworn in as a Member of FERC on December 3, 2021, and his term expires on June 30, 2026.

On April 17, 2025, FERC held its April Open Meeting.  Summaries of orders voted on at the FERC meeting are available here.

On April 14, 2025, FERC issued a Notice and Agenda for the second public meeting of the Federal and State Current Issues Collaborative in Docket Number (No.) AD24-7-000.  The meeting will be held on April 30, 2025, from 9:00 am to 1:00 pm ET.  The purpose of this meeting is to discuss generic issues related to gas-electric coordination and gas storage.  A link to the Webcast will be available on the day of the event: https://www.ferc.gov/federal-state-current-issues-collaborative. The agenda is available here.

On April 14, 2025, in 191 FERC ¶ 61,029, FERC issued an order accepting ISO New England Inc.’s (ISO-NE) proposed revisions to its Transmission, Markets, and Services Tariff (Tariff) to permit ISO-NE to collect and allocate any duties, tariffs, or taxes (Import Duty) that a federal governmental agency directs ISO-NE to pay for Canadian imports of products or services sold under the Tariff into markets administered by ISO-NE, effective March 1, 2025.  FERC directed ISO-NE (1) to submit an informational filing that includes any legal and/or technical guidance and related documentation from the relevant federal authorities showing that a federal agency has assessed an Import Duty on Canadian electricity imports on ISO-NE, triggering ISO-NE’s collection authority, as soon as practicable after receiving such invoice, and (2) if ISO-NE begins paying Import Duties on Canadian electricity imports, to submit informational filings every six months for three years from the date that payments begin quantifying the costs of the Import Duties in ISO-NE.

Also on April 14, 2025, in 191 FERC ¶ 61,030, FERC issued an order accepting New York Independent System Operator, Inc.’s (NYISO) proposed revisions to its Open Access Transmission Tariff and Market Administration and Control Area Services Tariff to govern NYISO’s collection and allocation of costs related to the potential imposition of duties on imports of electrical energy from Canada and to allow NYISO to adjust customer credit requirements as needed to address ad valorem rate of duty (Import Duty)-related costs, effective March 1, 2025, subject to condition.  FERC directed NYISO to submit a compliance filing to revise sections 2 and 3 of Rate Schedule 22 to include a sentence to provide that NYISO shall calculate payment amounts on Import Duties according to federal regulation or guidance governing the calculation of potential Import Duties on Canadian electricity if it differs from the formula proposed in those sections, and to remove the alternate cost allocation methodology from Rate Schedule 22.  FERC also directed NYISO to make the same informational filings as ISO-NE.

On April 11, 2025, in 191 FERC ¶ 61,026, FERC issued an order that addresses arguments raised on rehearing, grants clarification, in part, and denies clarification, in part, of Order No. 1920-A.  Order Nos. 1920 and 1920-A required transmission providers to conduct Long-Term Regional Transmission Planning to ensure the identification, evaluation, and selection, as well as the allocation of the costs, of more efficient or cost-effective regional transmission solutions to address Long-Term Transmission Needs.

Specifically, the order clarifies that, consistent with Order No. 1000, transmission providers are not required to plan for the Long-Term Transmission Needs of unenrolled non-jurisdictional transmission providers, but voluntary arrangements for regional transmission planning and cost allocation that comply with the Federal Power Act (FPA), and FERC’s cost causation precedent are not prohibited.  In addition, FERC sustains the requirement in Order No. 1920-A that transmission providers include Relevant State Entities’ agreed-upon Long-Term Regional Transmission Cost Allocation Method(s) and/or State Agreement Process resulting from the Engagement Period, and associated information provided to transmission providers regarding the state negotiations during the Engagement Period, in transmission providers’ transmittal or as an attachment to their Order No. 1920 regional transmission planning and cost allocation compliance filings.  FERC further sustains the requirement that transmission providers consult with Relevant State Entities:  (1) prior to amending the Long-Term Regional Transmission Cost Allocation Method(s) and/or State Agreement Process; or (2) if Relevant State Entities seek, consistent with their chosen method to reach agreement, for the transmission provider to amend that method or process.  FERC declines to expand the definition of Relevant State Entity to include any entity that establishes or regulates electric rates under state law.  Finally, FERC rejects as procedurally barred, Indicated PJM TOs’ and SPP TOs’ arguments that FERC’s findings under the first prong of FPA section 206 were insufficient to support its exercise of authority in Order No. 1920.

 

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[1] Per the CPUC’s Rules of Practice and Procedure Rule 14.3, comments on proposed decisions are due 20 days after issuance of the proposed decision, and reply comments are due five days thereafter.  Comments on draft resolutions are due 20 days after the draft resolution appears in the CPUC’s daily calendar, per Rule 14.5.