In action this week, the California Public Utilities Commission set new levels for the Cost of Capitol that represented a 0.3% decrease. While it may not be significant, it is opposite of the 1% increase that the utilities had originally proposed back in March. Prior to this new decision PG&E had proposed to increase the cost of capital from 10.28% to 11.3% and Edison had proposed to go from 10.33% to 11.75%. Considering the current economic environment, it was a bold request by the utilities that was met with tremendous opposition from industry groups, ratepayers and even legislators who were brave enough to challenge the utilities. Association President/CEO Roger A. Isom commented “We applaud the CPUC for having the courage to do the right thing and not only reject the proposed increase, but to actually decrease the rate of return. Electricity rates in California are astronomical compared to the rest of the country, and it is time for the CPUC to bring these utilities in line. Finally, the state is taking a small step in the right direction.”