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Regulators stress limits on shifting WMP funds without review; stakeholders warn of revenue uncertainty

Office of Energy Infrastructure Safety and California Public Utilities Commission · July 31, 2026
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Summary

Energy Safety and CPUC staff said utilities cannot reallocate WMP work across programs without review because statute expects Energy Safety to verify WMP commitments; utilities and intervenors pressed for clarity on interim revenue recovery when GRC decisions are delayed.

Energy Safety and CPUC staff emphasized that the legislature intended Energy Safety to verify WMP commitments and that unrestricted shifting of WMP funding across programs without external review would be inconsistent with statute.

Steve Kerr (Energy Safety) said allowing utilities to reallocate WMP work without oversight would "be inconsistent with statute and legislative intent," and he noted utilities can submit revised WMPs if GRC results require reapportionment. Utilities and intervenors raised concerns about how delayed GRC decisions could create revenue uncertainty; Melissa of a utility participant said utilities may plan lower targets in the first year to manage that uncertainty while seeking alignment once revenue decisions are final.

Cal Advocates' Ian Fisher urged clarity on ring‑fencing, stating the WMP funding "actually should really stand alone." CPUC staff said both agencies will coordinate but acknowledged that the WMP Energy Safety approves is preliminary and utilities are required to submit revised WMPs that comport with approved GRC revenue once a decision issues.