SACRAMENTO – The Office of Energy Infrastructure Safety (Energy Safety) today approved executive incentive compensation structures for Pacific Gas and Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDGE), and Bear Valley Electric Service (BVES). The approvals follow a public comment period that concluded on June 13 .
Energy Safety does not set or approve the actual salaries for electrical corporation executives. The executive incentive compensation structures of the four electrical corporations meet the statutory criteria, which are intended to promote and incentivize public safety as a priority and to ensure the utility’s financial stability.
Electrical corporations are statutorily required (Pub. Util. Code § 8389(e)(4))(Pub. Util. Code § 8389(e)(6)) to have an executive incentive compensation structure that meets specific criteria to be eligible for the safety certification process, now known as certificate process.
This is the fifth consecutive year that Energy Safety has approved executive incentive compensation structures for electric corporations seeking a certificate.
An electrical corporation with an approved executive incentive compensation structure satisfies two of seven criteria required to be eligible for an annual certificate. An electrical corporation with a certificate is presumed to have acted reasonably in proceedings before the California Public Utilities Commission (CPUC) to recover costs of a utility-caused wildfire.