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PG&E proposes new two‑way medical balancing account and repurposing of post‑retirement trust funds
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Summary
PG&E’s Exhibit 8 (People) includes a request to establish a two‑way medical balancing account, a new affordability forecast for medical costs, and a proposal to reallocate roughly $500 million from a post‑retirement benefits trust to offset medical expenses in the attrition years.
PG&E’s people exhibit (Exhibit 8) proposed a new approach to forecast and manage medical and other employee benefits. Samantha White, the People exhibit case manager, explained that PG&E is proposing a five‑year average affordability forecast for medical costs (lower than the company’s actuarial forecast) and requested a two‑way medical balancing account to record actual medical costs against the forecast.
White said the company proposes to reallocate approximately $500,000,000 from its post‑retirement benefits other than pension (PBOC) trust toward medical cost recovery in the attrition years; PG&E stated that repurposing these trust funds would reduce the company’s revenue requirement for 2028–2030.
PG&E reported company‑wide employee benefits and a modest headcount increase and said the medical forecast includes post‑test year escalation assumptions. The company framed the balancing account as a risk‑management tool for the utility and ratepayers given the forecasting approach it used in this GRC.
The proposal was presented for CPUC review; PG&E said detailed actuarial and trust documentation is available in the exhibit work papers and testimony.
