11. Utility Contract Administration and Costs

As used in this section, "contract administration" means activities implementing the exercise of contract rights and the performance of contract obligations subsequent to either contract execution by SCE or allocation by the Commission to SCE of certain Department of Water Resources power purchase agreements in accordance with AB 57. SCE indicates that during the Record Period it administered 152 bilateral contracts related to electric purchases, sales, and exchanges. Administration of QF and renewable contracts are addressed separately.

DRA states that its review of the Record Period indicates that SCE prudently and diligently administered its Non-QF contracts, and no information was uncovered that cast any suspicion on the company's processes, staff, or results. Consequently, DRA recommends that the Commission grant SCE's request that its Non-QF contract administration activities be found reasonable.

Based on the testimonies of SCE and DRA, we conclude that SCE's contract administration activities were reasonable.