PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ITEM # 48
ID # 11184
ENERGY DIVISION RESOLUTION E-4464
April 19, 2012
Resolution E- 4464. Review of California Pacific Electric Company, LLC (CalPeco) request for authorization to establish a new memorandum account, Vegetation Management Memorandum Account (VMMA), to record its vegetation management expenses.
PROPOSED OUTCOME: This resolution hereby grants CalPeco the authority to establish the VMMA to book costs.
ESTIMATED COST: No cost recovery is authorized in this resolution. The authorization is only to create a memorandum account to book costs to seek recovery at a later date.
By Advice Letter 11-E-A filed on November 1, 2011.
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SUMMARY
By Advice Letter (AL) No.11-E, filed on October 20, 2011, as supplemented by AL 11-E-A filed on November 1, 2011, California Pacific Electric Company, LLC (CalPeco) requests authorization to establish a new memorandum account, the Vegetation Management Memorandum Account (VMMA), to track its incremental vegetation management expenses. CalPeco proposes to use the VMMA to record any expenses associated with all vegetation management activities required by General Orders 95 and 165, and any other current and future order or decision by the Commission, for which the Commission has not already authorized rate recovery.
This resolution hereby authorizes CalPeco to establish the VMMA with several modifications to CalPeco's proposed tariff. CalPeco's tariff should be clarified to state that it must request recovery of the balance in the account in a future formal Commission proceeding. The authority to establish the VMMA does not in anyway imply the reasonableness of costs that CalPeco requests authority to record in the VMMA or that it will ultimately recover these costs. Ordering Paragraph 2 sets forth the specific showing that CalPeco must make in order to obtain recovery. Finally, CalPeco may only record in the VMMA those incremental costs incurred after the effective date of this tariff, which date shall be no earlier than the filing of the revised tariff sheet required by this resolution.
