In a move that could affect the pending national transmission buildout, the Federal Energy Regulatory Commission on March 17 rejected Pacific Gas & Electric Co.’s requested 13.3% return on equity for its transmission assets, saying a 9.3% “base” ROE was appropriate for a utility with average risks.
The decision in the long-running case, which involves PG&E’s ROE for a one-year period starting March 1, 2017, comes as utilities are preparing to increase their transmission spending, partly to help bring renewable energy from remote areas to urban centers.