Southern California Edison Company Submits Comments on Pacificorp Complaints

Strategic Insights -

The Southern California Edison Company (SCE) and its partners, Pacific Gas and Electric Company (PG&E) and San Diego Gas & Electric Company (SDG&E), have submitted comments to the Federal Energy Regulatory Commission (FERC) in response to Pacificorp's complaints. The comments, filed on July 11, 2025, address Pacificorp's contention that the FERC should abrogate its long-standing precedent on the presumption of prudence and make drastic changes to its approach to assessing allegations of imprudence.

Key Takeaways:

  • The SCE and its partners argue that the FERC should reject Pacificorp's contentions and continue to adhere to its long-standing precedent of assessing allegations of imprudence on a case-by-case basis.
  • The Commission's presumption of prudence serves a valuable purpose in keeping rate filings manageable and efficient, and abrogating it would cause extreme uncertainty and a severe burden on utilities.
  • The SCE and its partners contend that the Commission is the arbiter of whether serious doubt has been raised regarding the prudence of costs, and not challengers to a formula rate update.
  • The comments argue that the FERC should not cede its expert position on the propriety of utility decision-making or its jurisdiction over the recovery of costs to state court verdicts, settlements, or regulatory decisions.
  • The SCE and its partners advocate for a case-by-case determination on whether a serious doubt as to the prudence of costs has been raised, and when it has been, require the development of a complete record to determine these very fact-intensive inquiries.
  • The comments also argue that the FERC should not abrogate its long-standing presumption of prudence, which can be rebutted at hearing whenever another party "creates serious doubt as to the prudence of an expenditure."

Statistics:

  • 18 C.F.R. § 385.213(a)(3) was cited in the comments (2025).
  • 87 FERC P 61,295 was cited in the comments, which was decided in 1999.
  • 158 FERC P 61,050 was cited in the comments, which was decided in 2017.
  • 187 FERC P 61,099 was cited in the comments, which was decided in 2024.
  • The comments were filed on July 11, 2025.
  • The FERC had previously received complaints from Pacificorp's shareholders, including Powerex Corp, Idaho Power Company, and Bonneville Power Administration, on June 27, 2025.

Sources:

  • 18 C.F.R. § 385.213(a)(3) (2025).
  • Powerex Corp. Formal Challenge and Complaint, Dkt. Nos. ER24-2004, EL25-98 (filed June 27, 2025).
  • Idaho Power Company, Dkt. No. ER25-2221 (filed June 27, 2025).
  • Bonneville Power Administration, Dkt. Nos. ER24-2004, EL25-96 (filed June 27, 2025).
  • Joint Customers, Dkt. Nos. ER24-2004, EL25-99 (filed June 27, 2025).
  • Constellation Mystic Power, LLC, 187 FERC P 61,099 (2024).
  • Iroquois Gas Transmission Sys., L.P., 87 FERC P 61,295 (1999).
  • Potomac-Appalachian Transmission Highline, LLC, Opinion No. 554, 158 FERC P 61,050 (2017).