CPUC R.87-11-012 established an annual Cost of Capital (CoC) proceeding for IOUs. In December 2025, the CPUC voted to drop the return on equity for Pacific Gas & Electric, Southern California Edison, Southern California Gas Company and San Diego Gas & Electric by 0.3 percentage points each. to just under 10 percent, which are more consistent with national trends. Legislation introduced in both Rhode Island (H 5018) and New York (S5687) proposes to establish a fixed ROE of 4 percent annually for electric and gas utilities.