Rulemaking on California advanced electric rate design

The CPUC filed an Order Instituting Rulemaking on California Advanced Electric Rate Design on April 9, 2026, with a date of issuance of April 10, 2026. The order states that in this rulemaking the Commission will establish advanced electric rate design policies to update residential and non-residential rate structures and their underlying cost inputs, so that rates more accurately reflect the cost of providing service and send price signals that support efficient use of grid infrastructure.

A new CPUC rulemaking will reconsider how residential and non-residential electric rates are structured, including the cost inputs behind them.

Non-residential rate structure changes can affect operating costs for facilities, fleets, warehouses, and manufacturing, and can influence customer decisions about electrification, on-site storage, and load management. Suppliers may want to follow the record for how price signals are proposed to change. Any effect on a specific business depends on rate schedule and load profile, and remains a matter of analysis.