II. DISCUSSION

A. Limited Rehearing of D.12-02-038 is granted to consider all issues related to the refund methodology and calculation.

Our review of the issues raised in the Independent Shippers' rehearing application of D.12-02-038 has led us to the conclusion that further consideration is necessary and warranted on all the issues surrounding the refund methodology and calculation.

From the issues raised in the rehearing application, it appears that the Commission was unclear as to its intent for limited rehearing of D.11-05-026 granted in D.12-02-038. It appears that the language in D.12-02-038 may have been too restrictive. The Commission did not intend to restrict the limited rehearing to one particular methodology, nor prevent other proposals from being considered. The intent was to grant limited rehearing so that the further proceedings could be held on the correct methodology and calculations of the refund, based on the record. Thus, we will modify D.12-02-038 to reflect this intent.

Further, our review of the parties' pleadings and the evidentiary record indicates that we may not have a complete record on the correct refund calculation methodology. Thus, limited rehearing of D.12-02-038 is granted to give the parties' notice and opportunity to be heard on our reconsideration of the correct methodology and calculation. We emphasize that the parties' positions should be supported by either citations to the existing record, or provide additional evidence either through evidentiary hearings or comments, as appropriate.

In order to avoid any prejudgment, we note that we do not address the merits of the issues specifically raised in the application for rehearing of D.12-02-038. We believe that these issues are best considered during proceedings for the limited rehearing of D.12-02-038 and limited rehearing of D.11-05-026 that was granted in
D.12-02-038. These two limited rehearings shall be consolidated, so all the issues may be considered in one setting.

B. The determinations made in D.11-05-026 and D.12-02-038 regarding the statute of limitations issues are vacated, and are to be reconsidered during the limited rehearings.

Our statute of limitations determinations are closely related to the refund issues. Since we have decided to grant limited rehearing on all the issues related to the methodology and calculation of the refund together in one consolidated proceeding, it makes sense for us to reconsider our determinations on these issues. Accordingly, we hereby vacate our statute of limitations determinations as set forth in the ordering paragraphs below.

C. The stay on the refund payments will not be lifted at this time

In D.11-10-019, we granted a partial stay of D.11-05-026. We stated the basis for the partial stay: "After a review of the pleadings for the motion, we conclude that a partial stay of the payment of the refunds is warranted and should be granted. We are persuaded that the amount of the refunds and the calculation of these refunds justify further review. In these circumstances, we believe that a partial stay should be granted." (Order Granting Partial Stay of Decision (D.) 11-05-026 [D.11-10-019] (2011) ___ Cal.P.U.C.3d ___, p. 3 (slip op.).)

We believe that a partial stay is still warranted, especially in light of the limited rehearings granted. Accordingly, the Independent Shippers' request that the stay on refund payments be lifted is denied.

However, we note that although the methodology and the calculation of the refund are being reconsidered, refunds have been ordered. We understand the amount of money is estimated at over $100 million, and thus, we would suggest that the parties might consider placing a portion of the money into an escrow account or other such mechanism. Our suggestion is not intended to prejudge any issues in the limited rehearings.