CPUC Approves Interim Electric Rule 30 for PG&E's Data Center Interconnections with Modified Refund Structures
The California Public Utilities Commission (CPUC) has approved an interim implementation of PG&E's Electric Rule No. 30, requiring large load customers, such as data centers, to pay upfront for transmission infrastructure upgrades while refund policies are still being reviewed. Recent agreements with STACK Infrastructure and Microsoft have led to longer refund timelines, capping annual refunds at 75% of net revenues and extending periods from 10 to 15 years. The CPUC is set to finalize decisions on cost allocation and refund methodologies by late 2026.
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The California Public Utilities Commission (CPUC) is evaluating cost recovery for transmission infrastructure upgrades required for large load customers, such as data centers, in PG&E's service area. On July 24, 2025, the CPUC approved an interim implementation of PG&E's Electric Rule No. 30, requiring customers to pay upfront for necessary upgrades, while refund policies remain under review.
Recent decisions regarding agreements with STACK Infrastructure and Microsoft indicate a shift towards slower refund timelines, capping annual refunds at 75% of actual net revenues and extending refund periods from 10 to 15 years. PG&E has also submitted a proposal for a Google data center, seeking to adhere to the traditional Base Annual Revenue Calculation (BARC) method, which faces opposition from the Public Advocates Office. The CPUC has set a timeline for further submissions, with final decisions on cost allocation and refund methodologies expected later in 2026.
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