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ALJ/DKF/avs Date of Issuance 7/30/2010

Decision 10-07-049 July 29, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U338E) for a Commission finding that its Procurement-Related and Other Operations for the Record Period January 1 through December 31, 2008 complied with its Adopted Procurement Plan; for Verification of its Entries in the Energy Resource Recovery Account and Other Regulatory Accounts; and for Recovery of $35.796 Million Recorded in Four Memorandum Accounts.

Application 09-04-002
(Filed April 1, 2009)

DECISION ON SOUTHERN CALIFORNIA EDISON COMPANY

ENERGY RESOURCE RECOVERY ACCOUNT COMPLIANCE

AND REASONABLENESS REVIEW

TABLE OF CONTENTS

Title Page

DECISION ON SOUTHERN CALIFORNIA EDISON COMPANY 2 2

ENERGY RESOURCE RECOVERY ACCOUNT COMPLIANCE 2 2

AND REASONABLENESS REVIEW 2 2

2. Background 3 3

3. Least-Coach Dispatch 4 4

3.1. SCE Trigger Filing 6 6

3.1.1. Discussion 7 7

3.2. Monthly Average Price Comparisons 8 8

3.2.1. Discussion 9 9

5. URG - Nuclear Generation 10 10

5.1. Root Cause Evaluations 11 11

5.1.1. Discussion 13 13

5.2. SONGS Unit 2 Stator Water Low Flow Trip 14 14

5.2.1. Positions of the Parties 14 14

5.2.2. Discussion 21 21

5.3. Palo Verde, Unit 3 - Steam Generator Outage 22 22

5.3.1. Positions of the Parties 22 22

5.3.2. Discussion 24 24

6. URG - Hydroelectric Generation 26 26

7. URG - Coal Generation 27 27

8. URG - Peakers 27 27

9. URG - Catalina Diesel Operations 28 28

10. Replacement Power Costs 28 28

10.1. Positions of the Parties 28 28

10.2. Discussion 32 32

11. Utility Contract Administration and Costs 33 33

12. QF Contract Administration and Costs 33 33

13. Renewable Portfolio Standards Contract Administration and Costs 34 34

14. CAISO-Related Costs 34 34

15. Special Sales Contract Administration Costs 35 35

16. Operation of Ratemaking Accounts 35 35

Title Page

16.1. MRTUMA 37 37

16.1.1. SCE's Request 39 39

16.1.2. DRA's Position 40 40

16.1.3. Discussion 43 43

16.2. DRA Proposal for a Consolidated Proceeding for MRTU Costs 45 45

16.2.1. SCE's Response 46 46

16.2.2. Discussion 49 49

16.3. PDDMA 50 50

16.3.1. Positions of the Parties 52 52

16.3.2. Discussion 53 53

16.4. DOELMA 54 54

16.4.1. Positions of the Parties 55 55

16.4.2. Discussion 57 57

16.5. DRA Proposal for a Consolidated Proceeding
for Non-ERRA Accounts 59 59

16.5.1. SCE's Response 61 61

16.5.2. Discussion 62 62

16.6. DRA's Internal Audit Recommendation 64 64

17. Comments of Proposed Decision 64 64

18. Assignment of Proceeding 64 64

Findings of Fact 65 65

Conclusions of Law 69 69

APPENDIX - Forecast ERRA Revenue Requirement
and Recorded Procurement Costs

DECISION ON SOUTHERN CALIFORNIA EDISON COMPANY

ENERGY RESOURCE RECOVERY ACCOUNT COMPLIANCE

AND REASONABLENESS REVIEW