4. SCE's Updated 2011 CRS

In its updated testimony, SCE provided an estimate of the CRS components applicable to DA, DL, and CCA customers. Because the Commission had not yet issued a final decision in the 2010 DWR revenue requirement proceeding, SCE's updated information utilized SCE's 2011 DWR power charge included in the Proposed Decision (PD) of Administrative Law Judge (ALJ) Wong, issued November 2, 2010 in the 2011 DWR revenue requirement proceeding (Rulemaking 09-06-018). SCE used the DWR power charge included in the PD to determine the total portfolio indifference rate. SCE will update its CRS calculation again with the power charge adopted in a final Commission decision in the 2011 DWR revenue requirement proceeding in its advice letter to be filed in compliance with the final Commission decision in this proceeding.

The Commission has required that SCE and the other investor-owned utilities use the market price benchmark provided by the Commission's Energy Division in their calculation of the ongoing Competition Transition Charge (CTC) and the Power Charge Indifference Adjustment (PCIA). In years past, SCE has received the market price benchmark in early November. However, this year SCE did not receive the market price benchmark from the Energy Division prior to serving its updated testimony in November. Therefore, SCE estimated a market price benchmark value for 2011 of $44.51/MWh based on the same Commission methodology presented in Appendix B to Decision 06-07-030. SCE further explained that if the market price benchmark calculated by the Energy Division is different than $44.51/MWh, SCE will revise the CTC and PCIA components of the CRS in the advice letter filed in compliance with a final Commission decision in this proceeding.