ALJ/RS1/jyc Date of Issuance 11/22/2010
Decision 10-11-011 November 19, 2010
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company (U39E), Modesto Irrigation District, and Merced Irrigation District For Approval Of Nonbypassable Charge Agreement. |
Application 09-06-023 (Filed June 24, 2009) |
DECISION ADDRESSING APPLICATION FOR APPROVAL
OF NONBYPASSABLE CHARGE AGREEMENT 11
2. Schedule E-NMDL and the NBCs Applicable to NMDL Customers 44
3. Background on the Application 55
4. Is an Application Necessary for Approval of the NBC Agreement? 77
5. Description of Proposed Agreement 99
6. Issues Raised by the NBC Agreement 1111
6.1. May PG&E Reduce the NBCs Payable by NMDL Customers
Served by the Districts and Release those NMDL Customers from Liability for NBCs, and Relieve PG&E of its Obligations to Bill and/or Collect NBCs? 12126.2. Do the Districts Qualify for the Stand-Alone Exemption? 1616
6.3. What Impact, if any, will the Agreement Have on the Accounts, Trusts, or Funds Established for NBCs? Are any Conditions Needed to Ensure Costs are not Inappropriately Shifted to PG&E's Bundled Customers? 1818
6.3.1. Bond Charge Remittance Procedures
Established by D.07-03-025 18186.3.2. Data Requirements for Remittances under the NBC Agreement 2121
6.3.3. Bond Charge Remittance Information and
Confidentiality Concerns 22226.3.4. Other DWR Recommendations 2424
6.4. May the Commission Approve an Agreement wherein neither the Districts nor the NMDL Customers Served by the Districts will Pay any New Generation or Distribution Related NBCs that may be Established? 2626
7. Other Modifications to the NBC Agreement 2929
8. Is the NBC Agreement Reasonable? 3131
9. Proceeding Category and Need for Hearings 3434
10. Comments on Proposed Decision 3434
DECISION ADDRESSING APPLICATION FOR APPROVAL OF NONBYPASSABLE CHARGE AGREEMENT
Summary
This decision approves, with modifications, the nonbypassable charge agreement (NBC Agreement) between the Modesto Irrigation District and the Merced Irrigation District (jointly, the Districts) and Pacific Gas and Electric Company (PG&E) whereby the Districts will pay mutually agreed upon amounts that PG&E will apply to nonbypassable charges (NBCs) under PG&E's Electric Rate Schedule for New Municipal Departing Load customers (NMDL Customers) served by the Districts. Approval of the NBC Agreement resolves all issues surrounding PG&E's billing and collection of NBCs from NMDL Customers served by the Districts.
Approval of the NBC Agreement is in the interest of PG&E and its ratepayers because the NBC Agreement reduces the costs that PG&E ratepayers would otherwise bear.
