Energy Safety Releases Executive Compensation Structures Draft Decision for Public Comment

PG&E, SCE, SDG&E, AND BVES Seek Approval for Safety Certification

 

SACRAMENTO – The Office of Energy Infrastructure Safety (Energy Safety) today released its draft decisions for public comment on the executive compensation structures for Pacific Gas and Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDGE), and Bear Valley Electric Service (BVES).

 

Electrical corporations are statutorily required (Pub. Util. Code § 8389(e)(4))(Pub. Util. Code § 8389(e)(6)) to have an executive compensation structure that meets specific criteria in order to be eligible for the safety certification process. The executive compensation structures for 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. Energy Safety does not set or approve the actual salaries for electrical corporation executives.

 

All individuals and entities are welcome to submit both opening and reply comments. Reply comments must be strictly limited to addressing the issues raised in opening comments. Opening comments must be submitted no later than September 6 by 5 p.m. Reply comments must be submitted no later than September 18 by 5 p.m.

 

Comments must be submitted to Energy Safety’s e-filing system in the 2023 Executive Compensation Docket (#2023-EC). The title of the comments must be in accordance with Section 3.5 of the 2023 Executive Compensation Structure Submission Guidelines.

 

This is the fourth consecutive year that Energy Safety has evaluated executive compensation structures for electric corporations seeking safety certification.

 

An electrical corporation with an approved executive compensation structure satisfies two of seven criteria required to be eligible for an annual safety certification. An electrical corporation with a safety certification is presumed to have acted reasonably in proceedings before the California Public Utilities Commission (CPUC) to recover costs of a utility-caused wildfire.