California Cuts PG&E’s Allowed Profit Rate for Grid Spending (1)

California regulators reduced the profit that utilities are allowed to make on infrastructure investments in an effort to rein in soaring electricity bills.

The move Thursday by the California Public Utilities Commission underscores its oft-conflicting policy goals: while the state is keen for power providers to fortify a grid that’s sparked catastrophic wildfires, doing so costs billions of dollars. Those expenses are typically passed on by utilities owned by PG&E Corp., Edison International and Sempra to homes and businesses. State regulators are also trying to minimize further inflation of utility bills.

On a 4-1 vote, returns for PG&E, Southern ...