CPUC Roundup: Procedural Shifts, Risk Mitigation, and Climate Credit Updates

The California Public Utilities Commission is using various regulatory tools to manage risk, shift cost recovery, and accelerate project timelines across multiple energy proceedings.

Published on Feb. 13, 2026

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The California Public Utilities Commission (CPUC) has been active on several fronts, including approving a data center project, considering changes to the residential electric Climate Credit, standardizing undergrounding program methodologies, and debating utility risk mitigation accountability. The CPUC is using procedural tools like tracking accounts, accountability reports, and cost-recovery sequencing to shift risk and create future leverage in these proceedings.

Why it matters

These CPUC actions demonstrate the Commission's efforts to balance competing priorities, such as expediting infrastructure projects, protecting ratepayers, and enforcing utility accountability. The outcomes could have significant implications for data center development, climate credit distribution, electric grid modernization, and utility risk management in California.

The details

Key details include the CPUC's approval of STACK Infrastructure's data center project in San Jose, a proposed decision to pause the 2026 residential electric Climate Credit, utilities' joint filing on standardized undergrounding program methodologies, and a proposal from Cal Advocates to enforce utility risk mitigation accountability through the rate case process.

  • The CPUC is considering Draft Resolution E-5447 to approve STACK Infrastructure's data center project on March 19, 2026.
  • CPUC President Alice Reynolds issued a proposed decision in R.25-07-013 to pause the 2026 residential electric Climate Credit, with comments due on March 2, 2026.
  • PG&E, SCE, and SDG&E jointly filed an application with the CPUC seeking approval of standardized undergrounding program methodologies in response to Resolution SPD-37.

The players

CPUC

The California Public Utilities Commission, the state agency responsible for regulating privately owned electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies.

STACK Infrastructure

A data center development and operating company that is building a 90 MW data center in San Jose, California.

PG&E

Pacific Gas and Electric Company, a utility that provides natural gas and electricity to customers in Northern and Central California.

SCE

Southern California Edison, an electric utility that serves customers in Southern California.

SDG&E

San Diego Gas & Electric, a utility that provides natural gas and electricity to customers in San Diego and southern Orange County.

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What’s next

The CPUC will consider Draft Resolution E-5447 to approve STACK Infrastructure's data center project on March 19, 2026. Comments on the proposed decision to pause the 2026 residential electric Climate Credit are due on March 2, 2026.

The takeaway

The CPUC's actions demonstrate its efforts to balance various priorities, including expediting infrastructure projects, protecting ratepayers, and enforcing utility accountability. The outcomes of these proceedings could have significant implications for data center development, climate credit distribution, electric grid modernization, and utility risk management in California.