SACRAMENTO – The Office of Energy Infrastructure Safety (Energy Safety) today published its 2024 Executive Compensation Submission Structure Guidelines for California’s electric corporations applying for safety certification. The draft guidelines were released on Oct. 20 for public comment and published following a public adoption meeting on Dec. 7.
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 guidelines assist electrical corporations in developing their executive compensation structures.
Energy Safety does not set or approve the actual salaries for the corporations’ executives.
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.