Says state can borrow over $91 billion

By Allen D. Payton

The California Legislative Analyst’s Office issued a report on Dec. 7, 2023, that the state faces a $68 billion budget deficit for the 2024-25 Fiscal Year. Entitled, “The 2024-25 Budget: California’s Fiscal Outlook”, the report’s Executive Summary read as follows:

“California Faces a $68 Billion Deficit.

Largely as a result of a severe revenue decline in 2022-23, the state faces a serious budget deficit. Specifically, under the state’s current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the upcoming budget process.

Unprecedented Prior-Year Revenue Shortfall Creates Unique Challenges.

Typically, the budget process does not involve large changes in revenue in the prior year (in this case, 2022-23). This is because prior-year taxes usually have been filed and associated revenues collected. Due to the state conforming to federal tax filing extensions, however, the Legislature is gaining a complete picture of 2022-23 tax collections after the fiscal year has already ended. Specifically, we estimate that 2022-23 revenue will be $26 billion below budget act estimates. This creates unique and difficult challenges—including limiting the Legislature’s options for addressing the budget problem.

Legislature Has Multiple Tools Available to Address Budget Problem.

While addressing a deficit of this scope will be challenging, the Legislature has a number of options available to do so. In particular, the state has nearly $24 billion in reserves to address the budget problem. In addition, there are options to reduce spending on schools and community colleges that could address nearly $17 billion of the budget problem. Further adjustments to other areas of the budget, such as reductions to one-time spending, could address at least an additional $10 billion or so. These options and some others, like cost shifts, would allow the Legislature to solve most of the deficit largely without impacting the state’s core ongoing service level.

Legislature Will Have Fewer Options to Address Multiyear Deficits in the Coming Years.

Given the state faces a serious budget problem, using general purpose reserves this year is merited. That said, we suggest the Legislature exercise some caution when deploying tools like reserves and cost shifts. The state’s reserves are unlikely to be sufficient to cover the state’s multiyear deficits—which average $30 billion per year under our estimates. These deficits likely necessitate ongoing spending reductions, revenue increases, or both. As a result, preserving a substantial portion—potentially up to half—of reserves would provide a helpful cushion in light of the anticipated shortfalls that lie ahead.”

Controller Cohen Calls for Calm

In a press release issued Tuesday, Dec. 19, State Controller Malia M. Cohen calls for calm in the wake of recent budget deficit announcements and issued the following statement after releasing the recent Cash Report on December 8:

“Despite reports from various sources indicating a budgetary deficit of approximately $68 billion, the state’s cash position remains strong, and, absent any unforeseen circumstances, the state has sufficient cash to pay its bills and meet its financial obligations through the end of the fiscal year.”

“As chief fiscal officer, one of my duties is to track and report on the state’s actual cash balance,” she continued. “In that regard, the state currently has more than $91.4 billion in available borrowable resources, due in large part to the Governor’s and Legislature’s foresight in building prudent rainy-day reserves in the Budget Stabilization Account. While legislators will have difficult choices to make in the new year, I am confident they will be deliberate in addressing the budget challenges before them, and I urge them to protect, to the extent possible, the health and social service programs designed to benefit those who are displaced, without shelter, or otherwise economically disadvantaged.”

About Controller Cohen

As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state’s financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds. Follow the Controller on X at @CAController and on Facebook at California State Controller’s Office.

About the Legislative Analyst’s Office

The Legislative Analyst’s Office (LAO) has provided fiscal and policy advice to the Legislature for 75 years. It is known for its fiscal and programmatic expertise and nonpartisan analyses of the state budget. The office serves as the “eyes and ears” for the Legislature to ensure that the executive branch is implementing legislative policy in a cost efficient and effective manner.

Organization

The office is overseen by the Joint Legislative Budget Committee (JLBC), a 16-member bipartisan committee. Currently, the office has a staff of 43 analysts and approximately 13 support staff. The analytical staff cover several budget and policy areas: Criminal Justice, State Finance, Education (including K-12 and Higher Education), Health and Human Services, Natural Resources and Environment, General Government (including Local Government), Transportation, and Capital Outlay and Infrastructure.

California State Parks welcomes the public to start 2024 in a healthy way and to enjoy the fresh air with the annual First Day Hikes, on Monday, January 1. Currently, up to 60 state parks will be participating, with over 70 guided hikes taking place across the state. Californians and visitors from around the world can hike amongst the gentle redwoods or learn about the geology of the desert or catch a glimpse of bald eagles and other unique wildlife—California has some of the most unique and iconic parks in the country for everyone to explore.

First Day Hikes is a national-led effort that encourages individuals and families to experience, with a seasoned guide, the beautiful natural and cultural resources found in the outdoors and in doing so may inspire them to take advantage of these treasures throughout the year and an individual’s lifetime.

With more than 70 guided hikes taking place in California’s State Park System on January 1, distance and difficulty will vary per hike or activity. Visitors are encouraged to check out details of start times and description of hikes. This year’s First Day Hikes webpage–parks.ca.gov/FirstDayHikes2024–is more interactive, as the public can search a map of locations by park name, county and region. Visitors are also able to see the status of the hike and the last time it was updated, and by zooming into the map, they can find hikes taking place near that region of the map. Additionally, the webpage provides information on new hiking opportunities around the holiday. For example, Carpinteria State Beach will offer a hike the morning of Saturday, December 30, and La Purísima Mission State Historic Park will have a Last Day Hike of the year the morning of Sunday, December 31. 

Below are a few hikes taking place on January 1:

• Angel Island State Park: Join a 5-mile hike to the top of Angel Island’s Mount Caroline Livermore. The hike will pass through oak woodlands, chaparral and wind-blown hillsides. Visitors can take in spectacular views of San Francisco and the Golden Gate Bridge.
• Ocotillo Wells State Vehicular Recreation Area: Instead of a hike, visitors can come in their four-wheel-drive vehicle at the Discovery Center for a quick tour of the western portion of the park. Explore ancient seashore, mesquite dunes and desert washes. See interesting geology, desert plants, signs of wildlife and maybe even some wildflowers. The route will consist of a roughly 20-mile loop, arriving back at the Discovery Center at its conclusion. 
• Calaveras Big Trees State Park: Hikers can experience a snowshoe-guided hike through the park’s North Grove. Snowshoes will be available to borrow, and the first portion of the program will be an introduction to how to snowshoe.
• Salt Point State Park: Hikers can enjoy the pristine beauty of the Sonoma coast. This 2.5-mile, three-hour, easy-to-moderate and round trip hike takes participants along the ocean terrace from Gerstle Cove to Stump Beach.
• Santa Susana Pass State Historic Park: Visitors can enjoy spectacular views of the Simi Hills and the San Fernando Valley and learn about the history of the Butterfield Overland Stage Route The park will offer four hikes of different lengths and difficulty.

Most parks require a parking fee for the hikes. However, if visitors have checked out the State Library Parks Pass or have qualified for the Golden Bear Pass, they can enter for free at participating parks. Additionally, parents of fourth graders are invited to download the California State Park Adventure Pass that allows free entrance to visit park units like Millerton Lake State Recreation Area or Samuel P. Taylor State Park. Learn more about these free passes at parks.ca.gov/OutdoorsForAll.

As with any outing, it is important for all visitors to recreate responsibly. Below are helpful tips to stay safe during First Day Hikes and all year long:

• Know Before You Go: Prior to leaving home, check the statusof the park unit you want to visit to find out what restrictions and guidelines are in place. Have a backup plan in case your destination is crowded. Stay home if you are sick.
• Play It Safe: Find out what precautions you should take when exploring the outdoors, especially if this is your first time visiting the State Park System. For example, make sure to dress in layers, bring plenty of snacks and water, and wear appropriate hiking shoes.
• Leave No Trace: Leave areas better than how you found them by staying on designated trails and packing out all trash. Do not disturb wildlife or plants.

For more safety tips, please visit parks.ca.gov/SafetyTips.

Visitors can also use apps to stay safe and enhance their experience in the outdoors with:

• what3words:Use the what3words app to communicate precise locations within any of the 280 state parks using just three words. This tool aids dispatchers in emergency situations, enabling assistance to those in need. Share locations with family and friends, and provide directions to events, trails or campsites using this convenient app. To learn more on how the app works, visit ca.gov/what3words.
• OuterSpatial:Discover the ultimate guide to California’s state parks with the OuterSpatial app. Navigate through interactive maps, receive real-time updates and stay connected with fellow outdoor enthusiasts. Enhance your exploration by monitoring visits, completing challenges like the Passport to Your California State Parks and sharing memorable experiences.

Visitors are encouraged to share their experiences on social media using the hashtags: #HikeInto2024, #FirstDayHikes, #HikeWithCAStateParks and #CAStateParks.

From state Office of Traffic Safety

A $412,000 grant from the California Office of Traffic Safety (OTS) for Intensive Supervision Program for High-Risk DUI Offenders will go toward check-ins with probationers to make sure they are following court-ordered terms of their probation and prevent probationers from re-offending.

“This grant will allow us to tackle the complex issues surrounding repeat DUI offenders, providing vital resources and guidance to break the cycle of alcohol-related offenses,” said Chief Probation Officer Esa Ehmen-Krause. “With this funding, we can create safer roads and a healthier community by reducing the incidence of DUI offenses.”

“The intensive supervision programs are critical to reducing the devastating consequences of DUI offenses,” OTS Director Barbara Rooney said. “Prevention is an effective, proactive tool to address the often tragic consequences of impaired driving.”

The grant will fund Probation Department personnel to monitor drivers on Probation for felony DUI or multiple misdemeanor DUI convictions, including conducting unannounced Fourth Amendment waiver home searches, field visits, random alcohol and drug testing and ensuring those on probation are attending court-ordered DUI education and treatment programs. The probation grant will also pay for warrant operations targeting probation violations and/or DUI suspects who do not appear in court, officer training in Standard Field Sobriety Testing (SFST), distribution of DUI “Be On the Lookout” (BOLO) alerts, collaborating with courts and prosecutors to establish probation orders and participation with local law enforcement on anti-DUI efforts. While alcohol remains the worst offender for DUI crashes, Contra Costa County Probation supports OTS in its statement, “DUI just doesn’t mean booze.”

Prescription medications and marijuana can be impairing by themselves, but also in combination with alcohol, and can result in a DUI arrest.

The grant program runs through September 2024. Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.

“Accept the donated Viera–North Peak and CEMEX properties for starters” – Save Mount Diablo

Asks public to support effort

By Laura Kindsvater, Senior Communications Manager, Save Mount Diablo

Mount Diablo State Park hasn’t added a new property since 2007—16 years ago. For eight years, Save Mount Diablo has been trying to transfer our 165-acre Viera–North Peak property on the very slopes of Mount Diablo’s North Peak, for free. More than a year ago, the CEMEX quarry publicly announced it wanted to donate 101 acres next to the state park’s Mitchell Canyon, including a section of the historic Black Point Trail. We need the public’s help to urge California State Parks to get moving on these critical acquisitions.

Save Mount Diablo’s Executive Director, Ted Clement, stated, “At Save Mount Diablo, we have worked hard to build a large pool of strategic properties waiting to be added to Mount Diablo State Park—properties like the Balcerzak inholding, the Viera–North Peak property, part of Curry Canyon Ranch, and the CEMEX land. We are poised to dramatically increase the size, value, integrity, and stunning splendor of Mount Diablo State Park for more public benefit and connection to nature. Now is the time for action!”

 We’ve worked closely with the state for 50 years, helping them acquire land. Mount Diablo State Park’s General Plan includes 7,500 acres of “appropriate future additions,” most on the actual slopes of Mount Diablo’s two main peaks. Sometimes they’d buy property, sometimes we would.

Sixteen years ago, California State Parks stopped making progress on any new additions to Mount Diablo State Park. Save Mount Diablo has stepped in to save threatened properties that should be in the state park until the state could move forward, or they would have been lost.

Within the “appropriate additions” area, we’ve purchased 165-acre Viera–North Peak, 1,080-acre Curry Canyon Ranch, 76-acre Wright Canyon, 20-acre Young Canyon, 95-acre Anderson Ranch, 29-acre Smith Canyon, the 10-acre Balcerzak inholding, and very soon, the 6.69-acre Krane Pond property, locking up eight critical properties worth more than $12 million.

Several more properties make sense as additions, including the 101-acre CEMEX property donation above Mitchell Canyon. Save Mount Diablo negotiated with CEMEX for over six years to have this land donated to Mount Diablo State Park. In 2022, the CEMEX corporation agreed and publicly announced it would make this donation to Mount Diablo State Park.

We take care of and clean up the properties we acquire before conveying these lands to Mount Diablo State Park.

Reasons abound for the logjam. State budget shortfalls during recessions. Proposals to close state parks in 2008 and 2011. Several new State Park Directors and several reorganizations.

One of the biggest problems was the loss of experienced land acquisition staff in Sacramento. But state voters also approved resource bonds in 1998, 2001, 2006, and 2018, each with hundreds of millions of dollars for state parks. The acquisition department should be back up to speed.

As California State Parks faltered, nonprofit land trusts all over the state have stepped in to protect critical properties that might have been lost. We’re told that Viera–North Peak and Curry Canyon Ranch properties are on California State Parks’ top priority list, and park staff urged us to acquire the Balcerzak inholding, which had complicated park management for decades.

We were told that acquisitions might resume if we got funding from other sources, so we did, or helped with management for some time, which we agreed to do. The East Contra Costa County Habitat Conservancy provided all funding for Viera–North Peak. All they require is a conservation easement or a deed restriction to ensure long-term protection—which California State Parks has so far failed to accept.

After eight years without progress on Viera–North Peak—a free, turnkey property on the very slopes of the mountain, an appropriate addition that California State Parks pursued for years before we were finally able to acquire it—we and the public are getting frustrated.

We’ve asked Senator Steve Glazer and Assemblymember Rebecca Bauer-Kahan to help move things forward, which they have kindly been doing, and we’re asking the public to urge state parks officials and the California State Parks Commission to make progress.

We are grateful that a small working group has formed, made up of our terrific partners at California State Parks and the East Contra Costa Habitat Conservancy, to help us get lands added to Mount Diablo State Park. However, we recognize that lands not being added to California State Parks is a large statewide issue, so our small working group also needs the voice and support of the public to further our efforts to break the logjam and get strategic lands added to Mount Diablo State Park.

See video of Save Mount Diablo Executive Director Ted Clement and Land Conservation Director Seth Adams speaking about this issue is available on Save Mount Diablo’s YouTube channel at youtu.be/XndEYOgOas8.

We’re asking the public to please send a message simultaneously to these individuals and agencies using this link: bit.ly/3LXEhq8.

About Save Mount Diablo

Save Mount Diablo is a nationally accredited, nonprofit land trust founded in 1971 with a mission to preserve Mount Diablo’s peaks, surrounding foothills, watersheds, and connection to the Diablo Range through land acquisition and preservation strategies designed to protect the mountain’s natural beauty, biological diversity and historic and agricultural heritage; enhance our area’s quality of life; and provide educational and recreational opportunities consistent with protection of natural resources. To learn more, please visit www.savemountdiablo.org.

By CHP – Contra Costa

The California Highway Patrol (CHP) Contra Costa Area will use grant funding to start a regional campaign in Contra Costa County aimed at stopping drivers suspected of driving under the influence and reducing impaired driving-related crashes. This one-year project ends on September 30, 2024.

The CHP Contra Costa Area will deploy officers to conduct enforcement operations on Interstates 80 and 680, State Routes 4, 24, and 242; and unincorporated roadways within Contra Costa County.

“We are taking a proactive approach to keep our roadways safe,” said CHP Captain Ben Moser, Commander of the Contra Costa Area office. “This campaign will use of combination of education and enforcement to help make Contra Costa County roadways a safer place to travel.”

According to the CHP’s Statewide Integrated Traffic Records System, there were nine people killed and 170 people injured in traffic crashes involving impaired drivers within the CHP Contra Costa Area’s jurisdiction between October 1, 2020, and September 30, 2021. This CHP traffic safety effort also includes a community-based task force and public awareness and education to help reinforce the dangers of driving while impaired.

The CHP would like to take this opportunity to remind the public, “DUI Doesn’t Just Mean Booze.” Alcohol, cannabis, prescription medication, illegal drugs, and some over-the-counter drugs can affect a person’s ability to safely operate a motor vehicle. Remember to always plan ahead, designate a sober driver, or arrange for other safe alternative transportation, such as public transit or taxi/ride-hailing service.

Funding for this program was provided by a grant from the California Office of Traffic Safety (OTS), through the National Highway Traffic Safety Administration.

Free admission for all California fourth graders and teachers through Aug. 31, 2024

Get your pass now and start exploring the outdoors for free!

The California State Parks, in partnership with First Partner Jennifer Siebel Newsom and the California Natural Resources Agency, is expanding its popular California State Park Adventure Pass from 19 select state parks to 54. The pilot program, currently in its third year, allows California fourth graders and fourth-grade teachers free admission to participating parks until Aug. 31, 2024. The public can find a park near them at parks.ca.gov/AdventurePass.

The Adventure Pass is one part of the First Partner’s California for All Kids initiative, which seeks to put children and families on a path to a healthier future. 

“We launched the California State Park Adventure Pass in 2021 to provide fourth graders and their families with more opportunities to reap the mental, physical, and social-emotional health benefits of time spent outdoors,” said First Partner Jennifer Siebel Newsom. “Now, we’re expanding the Adventure Pass– nearly tripling the number of gorgeous California State Parks and historic sites fourth graders are able to visit and increasing their access to valuable hands-on, experiential learning opportunities in the process. By growing this program, we’re doubling down on our commitment to ensure California kids have access to the resources they need to get the best start in life.”

The California State Park Adventure Pass program, made possible by Assembly Bill 148, was signed by Governor Newsom in July 2021. The pass is valid for the one-year period during which the child is a fourth grader or fourth grade equivalent, from September 1 to August 31 of that year. Any fourth grader who lives in California is eligible for the California State Park Adventure Pass, no matter how they attend school or how old they are. If they are a fourth grader or fourth-grade equivalent, they qualify. For full terms and conditions, click here. To date, more than 50,000 passes have been provided to families.

“We are thrilled to expand the California State Park Adventure Pass from 19 to 54 participating state parks, including beaches and historic parks,” said State Parks Director Armando Quintero. “The curriculum being taught in fourth grade about history, natural, and social sciences make providing fourth graders with free state park access a great supplement to the lessons being taught to them in school.” 

Obtaining a free pass online is simple. Have a parent and/or guardian go to ReserveCalifornia.com or call (800) 444-7275 (Spanish-speaking customer service available). All they have to do is set up a profile by providing their name, address, phone number and email address, and a free pass will be sent to their email right away. Individuals who do not have access to a smartphone, computer or printer, and/or do not have an email address, can still request a pass by visiting a State Parks Pass Sales Office – click here for a list of locations –  or by calling (800) 444-7275.

“Expanding this Adventure Pass is great news for families across the state and another way our State Parks are expanding outdoor access,” said California Natural Resources Secretary Wade Crowfoot. “As the parent of a fourth grader myself, I know how much kids love exploring new places. Now more kids and families will be able to experience a broader range of our natural places across California, helping us achieve the goal of building an Outdoors for All.”

The State of California champions the right of all Californians to have access to recreational opportunities and enjoy the cultural, historic, and natural resources found across the state. Too many Californians cannot access neither public outdoor spaces nor the state’s array of museums, and cultural and historical sites. The state is prioritizing efforts to expand all Californians’ access to parks, open space, nature and cultural amenities. This priority requires focusing funding and programs to expand opportunities to enjoy these places. Doing so advances Governor Gavin Newsom’s strong personal commitment to building a “California for All.”

Outdoors for All Pass Programs

In addition to the California State Park Adventure Pass, all Californians can check out a California State Parks Library Pass by using their library cards to access more than 200 participating state park units. The Library Pass program is also available to tribal libraries throughout the state.

Families receiving California Work Opportunity and Responsibility for Kids (CalWORKs), individuals receiving Supplemental Security Income (SSI), and income-eligible Californians 62 and over can apply for the Golden Bear Pass with their smartphone or other web-based device in just minutes and have access to more than 200 California state park units. The Golden Bear Pass is also available to participants of California’s Tribal Temporary Assistance for Needy Families (TANF) program.

For more information on all three State Park Pass programs, please visit parks.ca.gov/OutdoorsForAll.

To start exploring 54 state parks for free, visit parks.ca.gov/AdventurePass.

The California Department of Parks and Recreation, popularly known as State Parks, and the programs supported by its Office of Historic Preservation and divisions of Boating and Waterways and Off-Highway Motor Vehicle Recreation provide for the health, inspiration and education of the people of California by helping to preserve the state’s extraordinary biological diversity, protecting its most valued natural and cultural resources, and creating opportunities for high-quality outdoor recreation. Learn more at parks.ca.gov.

The Antioch Police Department had been awarded a grant from the Office of Traffic Safety for Traffic

Enforcement Program to increase safety on the roads. The Antioch Police Department was awarded a $60,000 grant from the California Office of Traffic Safety (OTS). The grant will support our ongoing enforcement and education programs to help reduce the number of serious injuries and deaths on our roads.

The grant will provide additional programs and resources, including:

• DUI checkpoints and patrols focused on stopping suspected impaired drivers.

• High-visibility distracted driving enforcement operations targeting drivers in violation of California’s hands-free cell phone law.

• Enforcement operations focused on the most dangerous driver behaviors that put the safety of people biking or walking at risk.

• Enforcement operations focused on top violations that cause crashes: speeding, failure to yield, stop sign and/or red-light running, and improper turning or lane changes.

• Community presentations on traffic safety issues such as distracted driving, impaired driving, speeding and bicycle and pedestrian safety.

• Collaborative enforcement efforts with neighboring agencies.

• Officer training and/or recertification: Standard Field Sobriety Test (SFST), Advanced Roadside Impaired Driving Enforcement (ARIDE) and Drug Recognition Expert (DRE).

This funding will strengthen our commitment to public safety in our community, and we will be able to increase our efforts in making our roads safer for everyone and focus on critical areas such as distracted driving, impaired driving and speeding.

The grant program will run through September 2024.

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration. Any questions please contact: Sgt. Rob Green, rgreen@ci.antioch.ca.us, 925-778-6864

Claims typical residential customer will pay $32.62 more for combined monthly electric and natural gas bill beginning January 1, 2024.

By CPUC

The California Public Utilities Commission (CPUC) on Thursday, Nov. 16, 2023, resolved Pacific Gas and Electric Company’s (PG&E) General Rate Case (GRC), which covers its operational and infrastructure revenue requirement for 2023-2026. The decision marks a crucial step in fortifying the future of California’s electric grid while prioritizing customer affordability.

Based on the evidence presented, the CPUC today unanimously approved the Alternate Proposed Decision of Commissioner John Reynolds. This decision approves investments in the safety and reliability of PG&E’s energy services. Inflation and a significant investment in undergrounding electric lines ranked among the top drivers in PG&E’s request. Over the past year and a half, numerous parties reviewed PG&E’s GRC request and provided input on each cost category and related proposed expenditures.

“I am proud of today’s decision because it represents the CPUC’s commitment to finding a reasonable balance in the face of incredibly challenging circumstances and competing objectives,” said Commissioner John Reynolds, who is assigned to the proceeding. “This decision ultimately represents both an historic investment in PG&E’s electric and natural gas systems as well as an expectation that PG&E must continue to be safer and more efficient. I am grateful to the many parties, and the scores of CPUC staffers, for their help as we grappled with this decision.”

Today’s decision propels PG&E’s energy infrastructure and operations into the future, addressing critical objectives such as mitigating wildfire risk, enhancing safety and reliability, and anticipating evolving electric grid demands. This comprehensive approach not only ensures PG&E’s capacity to maintain a safe and reliable energy system with a dedicated workforce, but also positions California for a more resilient energy future in the face of climate change. Moreover, the decision reflects rigorous oversight over hundreds of programs, and reduces PG&E’s request to more accurately reflect forecasts for prudent use of ratepayer funds.

Among the key initiatives covered in the decision:

• Wildfire System Enhancement and Undergrounding
  • Approves 1,230 miles of electric line undergrounding, as well as 778 miles of covered conductor, totaling 2,008 hardened miles. This represents an historic opportunity for PG&E to invest in safer, reliable improvements for its customers while also achieving economies of scale to drive down costs; the revised undergrounding total also provides PG&E with a bridge to a future phase of undergrounding planning, through the Senate Bill 884 program.
• Vegetation Management
  • Approves PG&E investing approximately $1.3 billion in vegetation management to reduce wildfire ignition risk and improve reliability on PG&E’s electrical system.
• Capacity Upgrades
  • Approves PG&E investing more than $2.5 billion in upgrading the electric distribution system from 2023-2026, which will help prepare the grid to support initiatives for enhanced building electrification and new interconnections for electric vehicle charging stations and new housing and businesses.

“Today’s decision balances a myriad of competing interests—affordability, feasibility, safety, and reliability,” said CPUC President Alice Reynolds. “And in the face of increasingly turbulent climate-driven weather events, it gives PG&E the opportunity to prove it can underground electric lines at scale.  This will allow PG&E to achieve economies of scale, drive down costs, and reduce wildfire risk.”

Setting the pathway for critical investments in PG&E’s system

For PG&E customers, this approval by the CPUC translates to a continued commitment to safe, reliable, and affordable energy services. The GRC ensures that every dollar invested contributes to more resilient energy infrastructure, offering customers lasting benefits. Moreover, stringent accountability measures are embedded within the decision, assuring customers that their investment yields tangible and accountable improvements in PG&E’s operations and services.

PG&E requested $15.4 billion for 2023; Thursday’s decision cut that amount substantially, by $1.8 billion. Today’s decision sets the 2023 revenue requirement at $13.5 billion, reflecting an 11 percent increase from the authorized 2022 revenue requirement. For the typical residential customer, their combined monthly electric and natural gas bill will increase by $32.62 or 12.8 percent, compared to PG&E’s request of $38.73 or 17.9 percent increase.

PG&E’s 2022 Authorized Revenue Requirement		Proposed 2023 Revenue Requirement	Percent Increase	Dollar Increase
$12.2 billion	PG&E Request	$15.4 billion	26%	$3.2 billion
	Decision	$13.5 billion	11%	$1.3 billion

Customers can expect any changes to their bill to go into effect on January 1, 2024.

For further information on the proceeding, including today’s decision and a fact sheet, please visit the CPUC’s website.

About the California Public Utilities Commission

The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians access to safe and reliable utility infrastructure and services. Visit www.cpuc.ca.gov for more information.