Monitoring and Evaluation Report of Pacific Gas and Electric Core Procurement Incentive Mechanism
Technical Report, January 25, 2023 -
Overview
The two largest natural gas utilities in California have a ratemaking mechanism to provide a financial incentive to purchase and transport gas on behalf of households and other core customers at the lowest possible cost. The mechanisms compare recorded utility procurement costs to prevailing market prices, or benchmarks, and are reviewed annually by the Commission. The utility shareholders are eligible for financial rewards and potential penalties based on their performance.
The mechanism for Pacific Gas and Electric Company (PG&E) is called the Core Procurement Incentive Mechanism (CPIM). The utility files an annual advice letter to document its performance over the last year. The Public Advocates Office conducts annual audits of PG&E CPIM filings.
Our Monitoring and Evaluation Reports are available through the links below.
The mechanism for Pacific Gas and Electric Company (PG&E) is called the Core Procurement Incentive Mechanism (CPIM). The utility files an annual advice letter to document its performance over the last year. The Public Advocates Office conducts annual audits of PG&E CPIM filings.
Our Monitoring and Evaluation Reports are available through the links below.
- Year 27 (January 25, 2023)
- Year 26 (January 25, 2022)
- Year 25 (December 11, 2020)
- Year 24 (May 10, 2019)
- Year 23 (March 6, 2018)
- Year 22 (February 17, 2017)
- Year 21 (August 26, 2016)
- Year 20 (February 6, 2015)
- Year 18 to 19 (June 5, 2014)
The Public Advocates Office conducts annual audits on a similar mechanism specific to Southern California Gas Company called the Gas Cost Incentive Mechanism (GCIM). These audits can be accessed on the GCIM reports page.
Note: SoCal Gas also purchases natural gas on behalf of San Diego Gas & Electric Company, so SDG&E does not file similar reports.