California decouples utility profits from demand/quantity supplied, and has done so since about 1980. If they didn't, then as you point out, the utilities would be trying to get people to consume more.

Here is a two page CPUC brochure (PDF) about it: http://www.fishnick.com/pge/Decoupling_Explained.pdf

Thanks, that's just odd.

I'm not 100% sure how California public utilities commission works, but in most states, the company would in fact need government permission to do upgrades. Otherwise they can't charge more money to do it.

Power companies are heavily regulated and so are power rates. Their business model is dictated to them.

There is no need to change rates if demand increases, if anything things get cheaper per KWH as electric cars increase night time demand. As to permission, that’s not a cost which would need to be paid for.

The man hours (and there would be many) required to document the need, apply for permission, potentially attend hearings of some sort, argue for, and comply with the conditions of permission most certainly have non-zero cost to the utility company.