6. Recovery of Indirect Costs

PG&E remotely operates and dispatches the four South Feather powerhouses. Under the existing contract with South Feather, PG&E bills the resulting costs to South Feather. South Feather then bills PG&E for the costs. The billed costs are recovered through the ERRA as costs under the existing contract. Because these costs are recovered under ERRA, the current GRC revenue requirement excludes these costs.

Under the PPA, these costs will no longer be billed to South Feather. PG&E intends to seek recovery of these costs through its GRC revenue requirement in its next GRC. As a result, PG&E requests authorization to continue to recover these indirect costs through the ERRA until the Commission issues a final decision in its test year 2011 GRC. Since these costs are incurred and no double counting will occur, the request is reasonable and granted.