XIII. Assignment of the Proceedings
Michael R. Peevey is the assigned Commissioner and Douglas M. Long is the assigned ALJ in these proceedings.
1. The Edison and SDG&E settlement is uncontested and resolves all disputed issues.
2. The PG&E settlement is uncontested except for the issues litigated by PG&E and Fielder.
3. The settlements resolve all of the disputed issues among the settling parties.
4. The active parties in the proceeding are representative of the stakeholders, and each has ably and vigorously pursued the interests of its constituency.
5. The proposed settlements' results are within the range of reasonable findings if the applications had been fully litigated on the parties' testimony.
6. An Independent Board of Consultants would interfere with PG&E exercising its obligations to efficiently and reasonably manage the decommissioning process.
7. Good utility practices would require a utility to engage a sufficient staff with appropriate expert training and experience to decommission a nuclear generation plant. This expert staff could be permanent staff, contractors or consultant staff.
8. Further detailed analysis and study is needed before the Commission can adopt reasonable future estimates for low level radiation waste storage.
9. Further detailed analysis and study is needed before the Commission can adopt reasonable future estimates for contingency factors in the decommissioning cost forecasts.
1. Rules 51 et seq., applicable during the pendency of this proceeding, should be used to review the settlement agreement.
2. The settlements for Edison and SDG&E meet the criteria of an uncontested settlement under Rule 51(f) and San Diego Gas & Electric 46 CPUC 2d 538 (1992).
3. The settlement for PG&E met the criteria for settlements under Rules 51 et seq. Rule 51.6 was satisfied by conducting an evidentiary hearing and the filing of briefs on the contested issues.
4. The settlements are reasonable in light of the whole record.
5. The settlements are in the public interest.
6. The costs incurred by Edison and SDG&E towards the decommissioning of SONGS Unit 1 were reasonable.
7. The costs incurred by PG&E towards the decommissioning of Humboldt Unit 3 were reasonable.
8. Under Rule 51.8, the adoption of the proposed settlements creates no precedent for subsequent triennial reviews of the nuclear decommissioning trust funds or the decommissioning activities of Edison, SDG&E, or PG&E.
9. The Settlements do not contravene or compromise any statutory provision or Commission decision, and are consistent with law.
10. It is reasonable to direct the parties to conduct and include detailed studies in subsequent triennial decommissioning review proceedings.
11. A.05-11-008 and A.05-11-009 should be closed.
IT IS ORDERED that:
1. The attached settlement in Appendix B for Application (A.) 05-11-008 is adopted.
2. The attached settlement with updates in Appendix B for A.05-11-009 is adopted.
3. Southern California Edison Company (Edison) shall file a compliance advice letter with the Commission's Energy Division within 10 days of the effective date of this decision. It shall be served on the service list for this proceeding. The advice letter shall describe how Edison will implement the settlement as adopted in this decision, subject to Energy Division determining that the filing is in compliance with this order. Edison may consolidate the rate changes authorized in this decision with its Energy Resource Recovery Account forecast compliance filing in early 2007.
4. San Diego Gas & Electric Company (SDG&E) shall file a compliance advice letter with the Commission's Energy Division within 10 days of the effective date of this decision. It shall be served on the service list for this proceeding. The advice letter shall describe how SDG&E will implement the settlement as adopted in this decision and the tariffs will be effective on January 1, 2007, or the first day of the month following the effective date of this order, subject to Energy Division determining that the revised tariffs are in compliance with this order. SDG&E is authorized to apply $2.79 million of the overcollection in its Nuclear Decommissioning Adjustment Mechanism as a 12-month amortization to the nuclear decommissioning rate effective January 1, 2007, to offset the impact of the increase in the Nuclear Decommissioning revenue requirement in 2007.
5. Within 10 days of the effective date of this Decision, Pacific Gas and Electric Company (PG&E) shall file a separate compliance advice letter with the Commission's Energy Division, which shall include the revenue requirement described in the Settlement Agreement. Any resulting rate change shall be incorporated with the next available consolidated rate change following the effective date of this order, subject to Energy Division determining that the revised tariffs are in compliance with this order. The compliance advice letter shall be served on the service list for this proceeding. The compliance advice letter shall describe how PG&E will implement the settlement as adopted in this decision. In accordance with Item 6 of the Settlement Agreement, PG&E shall file a second compliance advice letter in the first quarter of 2007 to update the 2007-2009 revenue requirements that incorporate the December 31, 2006 nuclear decommissioning trust fund balances. The update will serve as the basis for the required IRS Schedule of Ruling Amounts for years 2007-2009. An adjustment to the Nuclear Decommissioning Adjustment Mechanism (NDAM) balancing account shall be made to address any difference in the revenue collected in rates and the annual revenue requirements, as described and updated in the compliance advice letters.
6. Edison, SDG&E, and PG&E shall serve testimony in their next triennial review of nuclear decommissioning trusts and related decommissioning activities that demonstrates they have made all reasonable efforts to retain and utilize sufficient qualified and experienced personnel to effectively, safely, and efficiently pursue any physical decommissioning related activities for the nuclear generation facilities under their control.
7. Edison, SDG&E, and PG&E shall serve testimony in their next triennial review of nuclear decommissioning trusts and related decommissioning activities that demonstrates they have made all reasonable efforts to conservatively forecast the costs of low level radioactive waste storage.
8. Edison, SDG&E, and PG&E shall serve testimony in their next triennial review of nuclear decommissioning trusts and related decommissioning activities that demonstrates they have made all reasonable efforts to conservatively establish an appropriate contingency factor for inclusion in the decommissioning revenue requirements.
9. A.05-11-008 and A.05-11-009 are closed.
This order is effective today.
Dated January 11, 2007, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
Commissioners
************ APPEARANCES ************ |
Carol A. Schmid-Frazee |
Douglas M. Long |
Bill Marcus |
Maybelline Dizon |
Michael Shames |
(END OF APPENDIX A)
