California regulators on Friday proposed approving an emergency 59 percent rate increase in an attempt to save a floundering crude oil pipeline central to the state’s energy infrastructure.
What happened: The California Public Utilities Commission published a draft resolution that would raise the rate on the San Pablo Bay pipeline from $2.36 per barrel to $3.75 per barrel. The interim rate increase would be effective dating back to Aug. 1, 2025.
Why it matters: The proposed decision is a major win for pipeline owner CorEnergy Infrastructure Trust, which has been warning for months that without rate hikes, it would be forced to shutter the last remaining link between the Southern California oil fields and Northern California fuel refineries.
In September, the company appealed to Gov. Gavin Newsom to expedite a trio of CPUC proceedings. The agency green-lighted two of the requested rate increases on the company’s Southern California pipeline system in the months that followed; Friday’s proposal would fulfill the last of their requests.
