Catastrophic events are those of significant magnitude that were unforeseen at the time of a regular General Rate Case and impact utility customer service.
Catastrophic Events Memorandum Account (CEMA)
The Catastrophic Events Memorandum Account (CEMA) was approved in 1991. The purpose of this account is to allow utilities to recover the incremental costs incurred to repair, restore or replace facilities damaged during a disaster declared by the appropriate federal or state authorities.
The CPUC is considering SDG&E's request to recover $379 million in third party wildfire damage costs, in excess of its insurance coverage due to 2007 wildfires caused by its facilities.
The Wildfire Expense Balancing Account (WEBA) was a proposed mechanism denied by the CPUC in 2012 that would have allowed recovery of wildfire-related costs in excess of insurance coverage or previously authorized revenue requirements.