CPUC Approves 2026 ERRA Forecasts With 350-455% PCIA Increase for CCA Customers

The California Public Utilities Commission (CPUC) is poised to approve significant increases to the Power Charge Indifference Adjustment (PCIA) for Community Choice Aggregation (CCA) customers of Pacific Gas and Electric (PG&E) and Southern California Edison (SCE) in 2026. The proposed forecasts suggest a staggering 350-455% jump in the PCIA for these customers between 2025 and 2026. This adjustment, a component of the Energy Resource Recovery Account (ERRA) forecasts, will directly impact the rates paid by CCA subscribers across the state.

What Changed

The core of the proposed change lies within the CPUC’s ERRA forecast decisions for PG&E and SCE for the year 2026. These forecasts dictate how utilities recover costs associated with legacy power contracts and other generation-related expenses. The PCIA is the mechanism by which departing load customers, including those served by CCAs, are charged for these costs to ensure remaining bundled utility customers do not bear an undue burden. The magnitude of the proposed PCIA increase, ranging from 350% to 455%, signals a substantial shift in how these stranded costs are being allocated.

Why It Matters

This substantial PCIA increase has direct financial implications for CCA customers. The California Community Choice Association (CalCCA) has voiced strong opposition, arguing that the CPUC’s methodology over-allocates these legacy stranded-cost recovery obligations to CCA subscribers. In comments filed on February 18, 2026, CalCCA urged the CPUC to constrain these increases, highlighting the potential for significant rate hikes. For context, PG&E reported total revenues of $5.1 billion for the first quarter of 2026, indicating the scale of the financial flows involved in these rate adjustments. The PCIA, while intended to ensure cost neutrality, could become a substantial cost driver for CCA customers under the proposed forecast.

Critical Perspective

The proposed PCIA hike raises critical questions about cost allocation and fairness within California’s evolving energy landscape. While utilities must recover costs associated with long-term obligations, the dramatic percentage increase suggests a potential disconnect between the intended purpose of the PCIA and its practical application. CalCCA’s assertion that the methodology over-allocates costs warrants careful scrutiny by regulators. The CPUC’s final decision will have a tangible impact on the competitiveness of CCAs and the overall cost of electricity for a significant portion of California’s ratepayers. The utilities, PG&E and SCE, will be the administrators of these charges, but the ultimate burden falls on their CCA customers. The SEC filing for PG&E’s 10-Q for the period ending March 31, 2026, provides financial context for the utility’s operations, but does not detail the specific PCIA methodology under review.

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