Attachment 2
Redline of Modifications to Affected Portions of D.07-03-045
REDLINES OF MODIFICATIONS TO D.07-03-045
11. The initial cost of the Tehachapi-Vincent Transmission Project is capped at $63 million for Segment 2 and $102.1 million for Segment 3.
30. The maximum reasonable and prudent cost for the approved project is $63 million for Segment 2 and $102.1 million for Segment 3, as discussed in Section X above. The maximum reasonable and prudent cost for the Antelope-Pardee Transmission Project (Antelope Segment 1) and Tehachapi-Vincent Transmission Project (Antelope Segments 2 and 3) is $746.0 million in 2008 dollars, including pension and benefits and administrative and general expenditures, but excluding Allowance for Funds Used During Construction (AFUDC), assuming construction and operation at the full 500 kV level for the appropriate segments.
31. A reasonable estimate of AFUDC for ATP Segments 1, 2 and 3 is $77.3 million in nominal dollars.
32. Pursuant to FERC order, SCE is already receiving CWIP incentive rate treatment for Segments 1, 2, and 3 in lieu of collecting the $77.3 million in AFUDC, and will seek retail rate recovery from the Commission for those costs - anticipated to be small - that FERC does not allow to be included in CWIP.
28. The Commission should approve a maximum reasonable and prudent cost of 63 million for Segment 2 and $102.1 million for Segment 3. The Commission should approve a maximum reasonable and prudent cost for the Antelope-Pardee Transmission Project (Antelope Segment 1) and Tehachapi-Vincent Transmission Project (Antelope Segments 2 and 3) of $746.0 million in 2008 dollars, including pension and benefits and administrative and general expenditures, but excluding AFUDC, assuming construction and operation at the full 500 kV level for the appropriate segments.
29. Cost estimates submitted to the Commission should include AFUDC or another proxy for financing costs, and should also include estimates for construction costs increases. AFUDC will not be included in the maximum cost adopted by the Commission, but will be included in the Commission's factual findings to provide full disclosure to the Commission and public regarding the potential ratepayer exposure to construction financing costs.
30. The Commission should approve this increased cost cap pursuant to Public Utilities Code Section 1005.5. In authorizing this cost cap the Commission should fully expect that SCE filings at FERC seeking cost recovery for these projects will not be in excess of the maximum costs specified herein without prior notice to the Commission regarding the reasons for any inconsistency between the authorized maximum cost and its FERC filing.
IT IS ORDERED that:
1. A Certificate of Public Convenience and Necessity is granted to Southern Edison Company (SCE) to construct the Tehachapi-Vincent Transmission Project, following the route proposed by SCE, as modified by Option A, as described in the Final EIR, and as subsequently modified by the set of maps set forth in Attachment A to SCE's July 18, 1008 Petition for Modification of D.07-03-045.
2. SCE shall, as a condition of approval, build the project in accordance with these modifications as subsequently modified by the set of maps set forth in Attachment A and tables of changes to structure height and types set forth in Attachment B to SCE's July 18, 2008 Petition for Modification of D.07-03-045.
5. Pursuant to Pub. Util. Code § 1005.5(a), the maximum cost (in 2005 dollars) determined to be reasonable and prudent for the Antelope-Pardee Project, including Allowance for Funds Used During Construction, pension and benefits, and administrative & general expenditures, is $63 million for Segment 2 and $102.1 million for Segment 3. Pursuant to Pub. Util. Code § 1005.5(a), the maximum reasonable and prudent cost (in 2008 dollars) for the Antelope-Pardee Transmission Project (Antelope Segment 1) and Tehachapi-Vincent Transmission Project (Antelope Segments 2 and 3) is $746.0 million, including pension and benefits and administrative and general expenditures, but excluding Allowance for Funds Used During Construction, assuming construction and operation at the full 500 kV level for the appropriate segments.
15. Southern California Edison shall not seek ratepayer funding in excess of the maximum cost specified herein in any filing at the Federal Energy Regulatory Commission without prior notice to the Commission regarding the reasons for any inconsistency between the authorized maximum cost and its FERC filing.
15. 16. Application 04-12-008 is closed.
(END OF ATTACHMENT 2)
