Discussion

In D.10-12-026, the Commission authorized memorandum accounts for PG&E, SDG&E, SCE, and SoCalGas pending the outcome of Phase II of this proceeding. In that decision the Commission found it was timely and reasonable to authorize memorandum accounts while considering the merits of the utilities' proposal. Similarly, Southwest should be able to record costs in a memorandum account pending the final decision on the question of cost recovery in rates.

Today's decision therefore authorizes the establishment of the AB 32 Fee memorandum account proposed by Southwest. We defer, either to a subsequent phase of this proceeding or to Southwest's next general rate case, a determination of whether costs incurred and recorded in the memorandum account will be recoverable in rates, and the appropriate manner in which any approved costs will be recovered. This decision does not prejudge any issues regarding cost recovery.