April 8, 2025

Regulatory Update for April 8, 2025

(Covering Week of March 31, 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

Rulemaking (R.) 20-08-020 (Net Energy Metering)

This decision grants Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company’s (SDG&E) (together, IOUs) Petition for Modification of Decision (D.) 23-11-068 addressing remaining proceeding issues in R.20-08-020.  This decision removes requirements in D.23-11-068 that the IOUs enter into a non-disclosure agreement with the California Department of Industrial Relations to protect confidential information that the department may receive from accessing the utilities’ net energy metering (NEM) and net billing tariff interconnection portals. The decision also authorizes the utilities to record the costs of implementing the Public Utility Regulatory Policies Act (PURPA) Compliant Tariff in a separate memorandum account. This decision requires utilities to file a Tier-2 Advice Letter establishing the memorandum account.  In addition, the decision allows the utilities to recover those PURPA Compliant Tariff implementation costs in their respective General Rate Cases.  Finally, the decision denies without prejudice Bloom Energy’s petition for modification requesting that D.23-11-068 be modified to rescind or postpone implementation of the NEM fuel cell tariff greenhouse gas standards until they have been reviewed and updated by the California Air Resources Board (CARB) following a public process.  The decision denies Bloom Energy’s motion for stay regarding the implementation of CARB’s NEM fuel cell greenhouse gas emissions standards as ordered in D.23-11-068.

Application (A.) 20-04-014; A.20-07-002; A.20-07-004; A.20-07-009; A.20-09-014 ; A.20-10-007 (SCE, PG&E, and SDG&E 2021 Energy Resources Recovery Account (ERRA) and Power Charge Indifference Adjustment)

This decision denies the petitions for modification of D.20-12-035, D.20-12-038, D.20-12-028, and D.21-01-017 filed by the Regents of the University of California, School Project for Utility Rate Reduction, and E&B Natural Resources Management Corporation (Petitioners).  The Petitioners request to be exempted from the surcharges approved in D.20-12-035, D.20-12-038, D.20-12-028, and D.21-01-017 to recover the PCIA undercollections recorded in 2020, asserting that they did not contribute to the undercollections that caused the surcharges.  This decision denies the petitions because it finds that the Petitioners failed to support their claims with evidence or facts.

Voting Meeting

The CPUC held a voting meeting in San Francisco, California on April 3, 2025 at 11:00 am PT.  The following are results for energy-related items on the agenda:

Item 7. A.22-06-001 (SDG&E’s 2021 Energy Resource Recovery Account Compliance Application) 

This decision finds that SDG&E meets the standard for compliance under the ERRA regulatory compliance process for the 2021 Record Year.  During the 2021 Record Year, SDG&E complied with all the requirements that the Commission reviewed during the ERRA compliance process.  This decision also authorizes SDG&E to amortize in rates the 2021 costs recorded in the Local Generating Balancing Account, New Environmental Regulatory Balancing Account – Assembly Bill (AB) 32 electric subaccount, and Tree Mortality Non-Bypassable Charge Balancing Account.  In this decision, the Commission also determined the appropriate amount of financial disallowance to impose on SDG&E for the Public Safety Power Shutoff (PSPS) events that occurred during the 2021 Record Year.  D.21-06-014 determined that SDG&E is disallowed from retroactively collecting revenues that SDG&E did not collect, but could have collected, from ratepayers during PSPS events (PSPS Unrealized Revenues).  D.23-06-054 approved a methodology for calculating the appropriate amount of disallowed PSPS Unrealized Revenues.  This decision finds that, using the approved methodology, SDG&E will return $20,191 in PSPS Unrealized Revenues to ratepayers for the 2021 Record Year.  Signed, D.25-04-003.

Item 8. Resolution (Res) 5376 (Bioenergy Renewable Auction Mechanism Program and Procurement of Eligible Contracts Pursuant to AB 2750)

This Resolution extends the deadline for the IOUs to procure their proportionate share of 125 megawatts (MW) from eligible Bioenergy Renewable Auction Mechanism facilities from December 1, 2023 to July 1, 2025.  It also requires the IOUs with contracts to procure electricity generated from biomass that expire on or before December 31, 2028, to amend the contracts or seek approval for new contracts to include expiration dates at least five years later than the expiration dates in the contracts that were operative in 2022.  This Resolution also prohibits the extension of a contract between an IOU and a biomass generator that is located in the Sacramento federal ozone nonattainment area, or any other federal ozone nonattainment area in California, unless the biomass generator first obtains a letter or certificate from the air district with jurisdiction over the biomass generator that states that the federal ozone nonattainment area voluntarily opted to be classified in one or more federal standards in a severe or extreme nonattainment zone and that the continued operation of the facility does not impede the air district’s ability to meet its applicable requirements.  Approved.

Item 9. R.18-07-005 (Order Instituting Rulemaking to Consider New Approaches to Disconnections and Reconnections to Improve Energy Access and Contain Costs)

This decision denies the Petition for Modification (PFM) of D.23-08-049, jointly filed by the IOUs on August 23, 2024.  The decision aimed to reduce residential disconnections and directed the IOUs to offer 24-month payment plans to residential customers until October 1, 2026.  The decision did not authorize the IOUs to record incremental costs to implement their payment plans in a memorandum account.  The IOUs PFM requested that the Commission modify the decision to allow them to record the incremental costs in a memorandum account.  The decision finds that the issues the IOUs raised would properly have been the subject of an application for rehearing of the decision rather than a PFM because a PFM is appropriate when a party asserts that unanticipated events arose after the decision was issued, but that was not the case here.  Therefore, the decision denies the PFM.  Signed, D.25-04-004.

Item 11. 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) it is appropriate to continue to use the general framework and definitions for the use of the surplus performance-based fees as adopted in D.23-12-036 in the post-2024 period; 2) PG&E should consider affordability as a guiding principle when developing and implementing its Volumetric Performance Fee (VPF) spending plan.  In addition to explaining how its annual plans meet the requirements of Public Utilities Code section 712.8(s)(1), where PG&E implements strategies to reduce upward pressure on rates through VPF expenditures, it must explain this alignment, starting with PG&E’s planned expenditure of 2026 VPF; 3) PG&E’s proposed templates reflecting the baseline review criteria for the annual compensation report listed in Assigned Commissioner’s Amended Scoping Memo and Ruling for Phase 2 of Proceeding, dated June 25, 2024, are approved; 4) PG&E must 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) PG&E’s proposal for adjustments to Diablo Canyon Independent Safety Committee’s (DCISC) funding methodology is approved; and 6) DCISC membership terms remain the same.  Held to April 24, 2025.

Item 17. Res 5345 (PG&E Company Mid-Term Reliability Contracts)

This Resolution approves two power purchase agreements for zero emission products from intermittent renewable resources resulting from PG&E’s Mid-Term Reliability Phase 3 Request for Offer.  The first agreement is between PG&E and RWE for 75 MWs of solar photovoltaic nameplate capacity with a 15-year term and is expected to begin deliveries on March 1, 2026, and the second is between PG&E and 174 Power Global for 200 MWs of solar PV nameplate capacity with a 15-year term and is expected to begin deliveries on June 1, 2026.  Approved.

Item 30. Res M-4875 (Clean Energy Access Grant for Los Angeles County)

This Resolution authorizes the addition of a new grant for Community Based Organizations that perform work related to programs administered by the CPUC, the Clean Energy Access Grant for Los Angeles County Technology for Equipment and Clean Heating (CEA-LAT).  The new grant is the result of an appropriation of general fund dollars in the California state budget pursuant to the Budget Act of 2024 AB 157 (Budget Act of 2024 (Ch. 994, Stats. 2024)).  Through the CEA-LAT Grant, $2 million of state appropriated funds from the Aliso Canyon Recovery Account, established in 2018, will provide grants to Community Based Organizations in Los Angeles County that perform outreach and education on the Technology for Equipment and Clean Heating (TECH) Initiative.  Senate Bill (SB) 1477 established the TECH Initiative in 2018 as a statewide market development initiative to advance the state’s market for low-emission space and water heating equipment for new and existing residential buildings.  The TECH Initiative addresses topics required by AB 157: building decarbonization, healthy homes, electrification technologies, accessing funds from the Aliso Canyon Recovery Account, and addressing health-related impacts of the first three topics.  Organizations located in the Aliso Canyon Disaster Area and San Fernando Valley will be prioritized for funding.  Each grant may be up to $200,000.  The application process is competitive and calls for applicants to present their qualifications, the needs of the target community, and a detailed plan for outreach and education on the TECH Initiative.  Approved.

Upcoming Events and Workshops

Avoided Cost Calculator Guiding Principles, Equity, and Changes to the Biennial Update Process

On Thursday, April 10, from 10:00 am to 2:30 pm PT, the CPUC will host a hybrid workshop to provide stakeholders the opportunity to present their recommendations on guiding principles to be considered for the Avoided Cost Calculator, whether and how equity should be considered in Distributed Energy Resource cost-effectiveness, and for the Energy Division to present a proposal to modify the biennial update process and receive stakeholder feedback.  The workshop can be accessed here.

Submetering and Telematics Workshop (Transportation Electrification) 

The CPUC will host a workshop on Tuesday, April 15, 2025 from 10:00 am to 4:00 pm PT, to discuss submetering and telematics issues relating to utility efforts to adopt plug-in electric vehicle protocols.  Discussions will focus on implementation challenges, timing targets, and stakeholder input.  The workshop will be held both remotely and in-person, at the CPUC Auditorium located at 505 Van Ness Avenue, San Francisco.  A link to the virtual workshop is available here.

Vehicle-Grid-Integration (VGI) Forum 

The CPUC is convening an in-person VGI Forum on Wednesday, April 16, 2025, 9:00 am to 4:30 pm PT.  The forum will be conducted by IOUs (PG&E, SCE, and SDG&E) and will be centered around the following issues: 1) rates and demand flexibility programs; 2) technology enablement; and 3) planning.  Attendees should register here, and a remote viewing option will be available for those unable to attend in-person.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

Transmission Development Forum

CAISO in conjunction with the CPUC and the participating transmission owners, is hosting an additional Transmission Development Forum stakeholder call on April 9, 2025.  Participating transmission owners will provide an update on activities they have undertaken related to project management, and the CPUC will present on the SB 1174 reporting in the 2024 CA Renewables Portfolio Standard Annual Report.  Further information is available here.

Interconnection Process Enhancements 2023

CAISO has posted the draft tariff language for Track 3 of the Interconnection Process Enhancements 2023 initiative, and will host a public stakeholder call to discuss the language on April 9, 2025.  Written comments are due April 7, 2025.  Further information is available here.

Western Energy Markets Regional Issues Forum

The Western Energy Markets Regional Issues Forum will take place at PacifiCorp in Portland, Oregon on April 9, 2025.  Registration is requested for in-person attendees.  Additional information, registration, and the agenda are available here.

2026 and 2030 Local Capacity Technical Study

CAISO will hold a public stakeholder call on April 10, 2025, to present and discuss the proposed final local capacity technical study results.  The draft 2026 and 2030 local capacity technical study reports were posted on its website on April 3, 2025.  Further information is available here.

2025 CAISO Legal Forum

CAISO will host its Legal Forum on Thursday, April 10, 2025 at its headquarters in Folsom, California.  This event provides opportunities for legal professionals from the energy industry to network, discuss current legal topics, gain Minimum Continuing Legal Education credit, and tour the CAISO control room overlook.  Further information is available here.

Storage Design and Modeling

CAISO will host a public stakeholder call for the Storage Design and Modeling initiative on April 14, 2025, to review draft Business Practice Manual changes related to State of Charge Management for Capacity Awards.  CAISO has also posted the Issue Paper and Straw Proposal on Outage Management, Nonlinearity, & State of Charge Clarification to its website.  Further information is available here.

2024-2025 Transmission Planning Process

CAISO will host 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 April 29, 2025.  Further information is available here.

CALIFORNIA ENERGY COMMISSION (CEC)

2024 Integrated Energy Policy Report (IEPR) Update

The CEC is working on its 2024 IEPR Update, and ongoing workshops were held through December 2024 to develop the record.  The policy recommendations included in the 2024 IEPR Update will be based on the record developed during the proceedings, including data and technical analyses by staff and stakeholders.  Comments on the draft IEPR were due in early January 2025.  According to the workshop schedule published in December 2024 (which is subject to change), potential adoption of the 2024 IEPR Update was initially scheduled for the March 17, 2025 Business Meeting.  However, upon review of the March 17 meeting agenda, there is no mention of the 2024 IEPR Update.  Thus, the 2024 IEPR Update remains in draft form.

2025 IEPR

The CEC has released the 2025 IEPR workshop schedule.  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 (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.

Wave and Tidal Energy

CEC staff hosted a remote access workshop on April 2, 2025 “to present and gather feedback on the Draft Consultant Report on Sea Space Analysis for Wave and Tidal Energy” pursuant to SB 605 (Draft Report).  Under SB 605, the CEC must evaluate the feasibility, costs, and benefits of wave and tidal energy off the California coast.  According to the workshop Notice and the Notice of Availability, written comments on the Draft Report are due to the Docket Unit by 5:00 pm on May 16, 2025.  The Draft Report was published on March 26, 2025 and is available at the CEC’s SB 605 Wave and Tidal Offshore Renewable Energy website under the “Phase 2” drop down menu.  All information is also available in Docket No. 24-SB-605. 

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

Port Infrastructure

The CEC announced a grant funding opportunity for medium- and heavy-duty (MDHD) zero emission vehicle port infrastructure.  The program includes up to $40 million in grand funds for either MDHD electric refueling infrastructure or hydrogen refueling infrastructure for California seaports and land ports of entry.  A workshop is scheduled for April 8 from 9:30 am to 11:00 am PT to provide an overview of the grant opportunity.  Remote attendance access information is available on the event page, here.

Depot Infrastructure

The CEC has announced the availability of up to $20 million in grant funds under the Clean Transportation Program to support the deployment of depot charging and hydrogen refueling infrastructure for MDHD vehicles.  A pre-application workshop is scheduled for April 21 from 9:00 am to 11:00 am PT.  Access information is available on the event page, here.

Demand Side Grid Side (DSGS) Program Guidelines, Fourth Edition

On April 2, the CEC issued a notice that it plans to consider for adoption the Revised DSGS Program Guidelines, Fourth Edition, at its April 10, 2025 Business Meeting.  This Fourth Edition, available here, reflects changes previously made in response to stakeholder comment, and also removes reference to Incentive Option 4 to allow CEC staff more time to evaluate and concern concerns raised by the CPUC regarding potential impacts on PG&E’s Automated Response Technology Program.

The DSGS Program is part of the state’s Strategic Reliability Reserve established pursuant to AB 205 (Ting, 2022).  It offers several programs with performance-based incentive payments to support electric grid reliability during extreme events and contribute to incremental load reduction.

Joint Agency Reliability Planning Assessment

On March 24, 2025, the CEC posted its Joint Agency Reliability Planning Assessment, which is prepared in collaboration with the CPUC, to Docket No. 21-ESR-01.  The report is required pursuant to SB 846 and includes updates on electric system demand and supply for the next one- and five-year periods, as well as an assessment of electric system reliability under different risk scenarios.  This latest assessment, published in March, is the fourth quarterly report providing an update since the August 2024 report was published.  It includes an update on electric demand and supply forecasts and new resources brought online in June-September 2024. 

CEC Business Meetings

The next CEC Business Meeting is scheduled for April 10, 2025 from 10:00 am to 3:30 pm.  The meeting agenda and backup materials are available here.

CALIFORNIA AIR RESOURCES BOARD (CARB)

Low Carbon Fuel Standard (LCFS) Regulation Update

On February 25, 2025, CARB received a document from the Office of Administrative Law (OAL) detailing requested non-substantive revisions to the text of the LCFS regulation amendments.  The LCFS regulation sets a declining carbon intensity target for transportation fuels used in California.  On April 4, 2025, CARB issued a Third Notice of Public Availability of Modified Text and Availability of Additional Documents and/or Information which proposes modifications to the text of the proposed regulation which will be open for public comment until April 21, 2025.  The current regulation remains in effect as CARB staff work to address the feedback from OAL.

Meetings and Workshops

On April 17, CARB is hosting a public meeting for the AB 32 Environmental Justice Advisory Committee (EJAC).  EJAC was created under AB 32, the California Global Warming Solutions Act of 2006, to help advise the board in developing the Climate Change Scoping Plan and on pertinent issues related to AB 32.  Register here. 

On April 18, 2025, in Fortuna, California, CARB will be hosting a One-Stop Truck Event where it will provide overviews of Clean Truck Check, Advanced Clean Fleets, and the Off-Road Regulation, provide one-on-one compliance assistance, and give out free Clean Truck Check testing for on-board diagnostic equipped heavy-duty trucks and motorhomes/RVs.  Register here.

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.

Opportunities for Public Comment

CARB is seeking public comment on its development of a framework for measuring and then reducing the net greenhouse gas emissions from building materials that are used in the state of California pursuant to California Health and Safety Code § 38561.3.  CARB is particularly interested in hearing from developers, contractors, construction firms, building material manufacturers, and others in the construction industry.  The deadline to submit comments is April 17, 2025.

Pursuant to section 95488.5(d) of the LCFS 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 weekly agenda meeting on April 10, 2025, the MPUC will consider: (1) possible actions related to route alternatives being evaluated as part of the environmental impact statement for the Big Stone South to Alexandria 345-kV transmission project in West-Central Minnesota (Docket No. E017, ET10/TL-23-160), and (2) whether it should adopt the Administrative Law Judge’s findings and grant a certificate of need and route permit for the Minnesota Energy Connection Project through several counties in Minnesota (Docket Nos. E002/CN-22-131; E002/TL-22-132).  The agenda is here.

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

On Thursday, April 17, 2025, from 10:00 to 11:00 am ET, FERC will hold its April Open Meeting.

On April 4, FERC issued an order, 191 FERC ¶ 61,018, partially accepting and directing further compliance on ISO New England Inc. (ISO-NE), the New England Power Pool Participants Committee, and the Participating Transmission Owners Administrative Committee on behalf of the New England Participating Transmission Owners’ proposed revisions to ISO-NE’s Transmission, Markets and Services Tariff in compliance with the requirements of Order Nos. 2023 and 2023-A.

On April 3, FERC issued a Supplemental Notice & Agenda for the Commissioner-led Technical Conference Regarding the Challenge of Resource Adequacy in Docket No. AD25-7-000.  The technical conference will take place from 9:00 a.m. to 4:00 p.m. ET on Wednesday, June 4, 2025, and Thursday, June 5, 2025.  The purpose of this technical conference is to discuss issues related to resource adequacy constructs, including the roles of capacity markets in the Regional Transmission Organization (RTO)/Independent System Operator (ISO) regions that utilize them and alternative constructs in RTO/ISO regions without capacity markets.  The conference will start with a panel discussion on resource adequacy challenges across RTO/ISO regions, including regional differences.  The remainder of the first day will include three panels specific to PJM Interconnection, L.L.C. (PJM) that will explore PJM’s resource adequacy challenge, PJM states’ perspectives, and additional perspectives on PJM’s path forward.  The second day will start with two panels specific to Midcontinent Independent System Operator, Inc. (MISO) that will explore MISO’s resource adequacy challenge and perspectives on MISO’s path forward.  The remainder of the second day will include one panel to explore the resource adequacy challenge in ISO-NE and New York Independent System Operator, Inc. (NYISO) and a final panel on the resource adequacy challenge in CAISO and Southwest Power Pool.  The preliminary agenda for this conference is available here.

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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.