California SB1098 establishes forecast-based ratemaking as the primary method for setting utility rates, limiting the use of memorandum and balancing.

California SB1098 aims to ensure just and reasonable utility rates by prioritizing forecast-based ratemaking. This bill mandates that the Public Utilities Commission (PUC) use forecast-based ratemaking as the default approach for setting revenue requirements and cost recovery mechanisms. It limits the use of memorandum and balancing accounts, which are utility ratemaking mechanisms, to cases where costs cannot be reasonably forecasted. The bill requires the PUC to review all existing memorandum and balancing accounts and consider assigning expiration dates to them.

California SB1098 establishes forecast-based ratemaking as the primary method for setting utility rates, limiting the use of memorandum and balancing.

California SB1098 aims to ensure just and reasonable utility rates by prioritizing forecast-based ratemaking. This bill mandates that the Public Utilities Commission (PUC) use forecast-based ratemaking as the default approach for setting revenue requirements and cost recovery mechanisms. It limits the use of memorandum and balancing accounts, which are utility ratemaking mechanisms, to cases where costs cannot be reasonably forecasted. The bill requires the PUC to review all existing memorandum and balancing accounts and consider assigning expiration dates to them.