6. Assignment of Proceeding
Dian M. Grueneich is the assigned Commissioner and Katherine Kwan MacDonald is the assigned ALJ in this proceeding.
1. Solomon, dba Regency Homes, is a developer/builder who built the subdivided community known as Victoria Falls.
2. Victoria Falls is a development consisting of 337 homes.
3. Peter Solomon and SCE entered into 19 separate contracts for Rule 15 Contracts during the course of construction of Victoria Falls.
4. Solomon chose the Refundable Option for 16 of the Rule 15 Contracts it entered into during the course of construction of Victoria Falls. The Discount Option was chosen for the remaining three Rule 15 Contracts.
5. Each of the 19 Rule 15 Contracts at issue was the Commission approved form Rule 15 Contract.
6. Solomon paid an advance on each project which constituted SCE's estimated cost to complete the Distribution Line Extensions, less any allowances granted plus any applicable ITCC on any contributions or advances paid by Solomon.
7. After filing of this complaint, SCE paid a refund of $43,212.56 on April 6, 2010 and a refund of $1,584.26 on April 19, 2010.
8. SCE submitted evidence that construction of the CVWD well was completed on August 7, 2003 and SCE began service to the pump (well) on August 11, 2003.
9. Addition of the CVWD well resulted in additional permanent load above and beyond the contracted allowances granted by SCE.
10. SCE paid a refund of $1,584.26 on April 19, 2010. No information was presented to indicate when SCE began service to this additional permanent load.
11. No other additional permanent load which produced additional revenues to SCE has come on line.
12. Under Rule 15.E.7, refunds must be made within 90 days after the date of first service to new permanent loads.
13. SCE did not pay the refund for the additional load produced by addition of the CVWD well within 90 days after it began service to the well.
14. No other tariff violations have been established.
1. Both Rule 15 and the Rule 15 Contract govern the Distribution Line Extension to Victoria Falls.
2. SCE must strictly adhere to its lawfully published tariff.
3. The lawful tariff provisions of Rule 15 must be administered and applied regardless of any misquotation by SCE's representative or misunderstanding by either party.
4. Rule 15 requires SCE to pay refunds, without interest, within 90 days after the date of first service to new permanent loads, except that refunds may be accumulated to a $50 minimum or the total refundable balance, if less than $50.
5. SCE's failure to pay the refund due to Solomon within 90 days after the date of first service to the CVWD well is a violation of Rule 15.
6. The Commission has the discretion to impose interest on refunds when SCE fails to pay within the ninety days established by the tariff for timely payment.
7. SCE should pay interest at the rate of 0.9% per month for the use of the refundable advances beginning 90 days after the date the pump went on line to the date payment was made to Solomon.
8. Because no other additional load (with the exception of the CVWD well and the permanent load that gave rise to the $1,584.26 refund) was placed on the Victoria Falls Distribution Line Extension, the remainder of the complaint should be denied.
9. This order should be effective immediately.
IT IS ORDERED that:
1. Southern California Edison Company is ordered to pay interest on the refund payment of $43,212.56, beginning 90 days after August 11, 2003 the date it began service to the Coachella Valley Water District well, until the date the refund was made. Interest shall be calculated at 0.9% per month beginning
90 days after the date the pump went on line. Southern California Edison Company must pay Peter Solomon within 30 days of this decision becoming final.
2. Southern California Edison Company must also pay interest on the refund of $1,584.26 if SCE failed to pay the refund within 90 days of first service to this new permanent load.
3. Southern California Edison Company must make a compliance filing in this proceeding verifying payment of the interest to Peter Solomon.
4. The remainder of the complaint of Peter Solomon, doing business as Regency Homes, is denied.
5. Case 09-11-009 is closed.
This order is effective immediately.
Dated November 9, 2010, at San Francisco, California.
