Cost Of CapitalThe change to the CCM’s 'adjustment ratio', if adopted, would lower both SoCalGas and SDG&E’s ROE by 42bps, implying a $0.09/share or ~2% impact to the 2025 EPS estimate.
Financial PerformanceThe proposed changes would lower both SoCalGas and SDG&E’s ROE by 42bps, implying a $0.09/share or ~2% impact to the 2025 EPS estimate.
Regulatory DecisionsCalifornia's utilities underperformed after ALJ Lakey issued a proposed decision that included a change to the CPUC’s cost of capital mechanism and effectively lowers all three utilities' 2025 ROE.