7. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Amy C. Yip-Kikugawa is the assigned ALJ in this proceeding.

1. Water Code § 80110 suspended the right of retail end-use customers to subscribe to direct access service.

2. D.01-09-060 determined that the suspension of direct access service would be effective September 21, 2001.

3. The AB 80 specified the conditions under which Cerritos could act as a community aggregator on behalf of retail end-use customers within its jurisdiction following construction of the MPP.

4. The AB 80 Agreement included an ILL and specified how Cerritos could increase this limitation in the future.

5. AB 1169 sought to modify AB 80 to clarify, among other things, that § 366.1 did not require Cerritos to rely solely on power from the MPP.

6. AB 1169 was never enacted.

7. The legislative history of AB 80 reveals that AB 80 had been proposed to ensure that MPP would be completed and serve as a generation resource.

8. The legislative history of AB 80 does not support a conclusion that the Legislature had intended to put Cerritos in a better position than other electric service providers affected by the suspension of direct access service.

9. Cerritos is subject to the RPS requirements and is required to participate in the RPS program.

1. Under the rules of statutory interpretation, the Commission should first look at the plain meaning of the statute; if there is more than one reasonable interpretation, the Commission may consider other aids to determine statutory intent.

2. Section 366.1(b) is clear that Cerritos may provide service to retail end-use customers on an opt-in basis.

3. Section 366.1(b) is ambiguous as to whether Cerritos was granted a complete exemption from the suspension of direct access service or an exemption up to its entitlement share of generation power from MPP.

4. It would be unreasonable to interpret AB 80 as granting Cerritos complete exemption from the suspension of direct access service.

5. Cerritos and SCE should amend the AB 80 Agreement to modify the ILL to reflect Cerritos' share of output from MPP on an energy basis.

6. Cerritos and SCE should amend the AB 80 agreement, if necessary, to increase the ILL to include Cerritos' RPS obligations.

ORDER

IT IS ORDERED that:

1. The City of Cerritos shall serve as a community aggregator to retail end-use customers in its jurisdiction pursuant to Public Utilities Code Section 366.1 on an opt-in basis.

2. The load provided by the City of Cerritos as a community aggregator is limited to its entitlement share of energy from the Magnolia Power Plant plus any obligations under the renewables portfolio standard program.

3. The City of Cerritos' request to amend the Assembly Bill 80 Agreement to eliminate the Initial Load Limit is denied.

4. The City of Cerritos and Southern California Edison Company shall amend the Assembly Bill 80 Agreement to: (1) modify the Initial Load Limit to reflect Cerritos' share of output from Magnolia Power Project on an energy basis, and (2) if necessary, increase the Initial Load Limit to include Cerritos' obligations under the renewables portfolio standard program. This amendment shall be made within 90 days of this decision.

5. Southern California Edison Company shall file an advice letter in compliance with General Order 96-B within 30 days after the amended agreement is signed. The advice letter shall include the amended Assembly Bill 80 Agreement.

6. Application 09-06-008 is closed.

This order is effective today.

Dated January 21, 2010, at San Francisco, California.

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