ALJ/TJS/jt2 Date of Issuance 4/20/2009
Decision 09-04-033 April 16, 2009
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company for Recovery of Costs Deemed Reasonable in Generation Divestiture Transaction Costs Memorandum Account Pursuant to D.03-02-028. (U39E) |
Application 08-04-022 (Filed April 14, 2008) |
DECISION GRANTING APPLICATION TO RECOVER TRANSITION COSTS PREVIOUSLY DEEMED REASONABLE
1. Summary
This decision grants Pacific Gas and Electric Company's (PG&E) application to recover $34.8 million in transition costs plus accrued interest that were incurred in 1999 and 2000 to prepare for the appraisal, sale or divestiture of its hydroelectric facilities pursuant to Pub. Util. Code § 367(b).1
Specifically, this decision authorizes PG&E to transfer this balance from the Costs Deemed Reasonable subaccount of the Generation Divestiture Transaction Cost Memorandum Account (including interest at the 90-day commercial paper rate calculated from the date of this Application to the date of transfer plus franchise fees and uncollectibles) to the Modified Transition Cost Balancing Account for recovery in rates as part of PG&E's next Annual Electric True-up advice letter. This decision finds this ratemaking approach reasonable and consistent with previous Commission actions.
This decision also grants the Division of Ratepayer Advocates' (DRA) unopposed request to incorporate Point 3 of the Stipulation of Facts and other Matters (Stipulation)2 into this decision. Point 3 provides that if, subsequent to a Commission decision approving PG&E's application, facts developed indicate that PG&E has previously collected some or all of the $46.9 million in rates prior to this application, any of the signing parties may seek to modify a Commission decision approving Application (A.) 08-04-022, and each of the signing parties would be free to support such a request for modification. DRA's request is reasonable and consistent with the Commission's Rules of Practice and Procedure.
This decision also finds that approval of A.08-04-022 imposes no unacceptable risk that PG&E will "double recover" these costs in the event of a future sale of hydroelectric facilities. Not only is such a future sale unlikely, but procedures for the review of all sales of utility generation facilities ensure that the Commission will be able to prevent any "double recovery" of costs incurred to prepare for a sale.
This proceeding is closed.
1 Decision 03-02-028 deemed these costs reasonable.
2 Stipulation of Facts and Other Matters, August 14, 2008.
