What is CEMA and what does it do?
CEMA stands for Catastrophic Event Memorandum Account. State law and the CPUC allow public utilities to recover the incremental costs of: (1) restoring utility service to its customers; (2) repairing, replacing or restoring damaged utility facilities; and (3) complying with government agency orders resulting from declared disasters, as a result of catastrophic events. The CPUC also authorizes utilities to record capital-related costs such as depreciation and return on capitalized plant additions resulting from the restoration activities. The CPUC requires that costs recorded in a utility’s CEMA “may be recovered in rates only after a request by the affected utility, a showing of their reasonableness, and approval by the CPUC.” Background to the filing of this Application From May 22, 2008 through October 2008 wildfires caused significant damage to portions of PG&E’s infrastructure and operations. Because of these fires Governor Schwarzenegger issued State of Emergency Proclamations for
