California’s Investor-Owned Utilities (IOUs) – Southern California Edison and Pacific Gas & Electric, are asking for a profit (“earn a rate of return”) on costs that have been previously classified as operations and maintenance (O&M) expenses. In SCE’s request, they seek to capitalize and earn a return on expenses for weed control and other environmental spending on its Tehachapi Renewable Transmission Project. The California Public Utilities Commission contends this violates federal accounting rules, will inappropriately increase ratepayer costs and could set a “bad” precedent. Separately, PG&E wants to earn a profit on a roughly $400 million program painting transmission towers. The CPUC contends the painting should be an O&M expenses. While IOUs are allowed to earn on their investments (“return on equity”), utilities don’t profit on what has typically been considered O&M expenses. Read: