4. Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Amy C. Yip-Kikugawa is the assigned Administrative Law Judge in this proceeding.

1. Resolving the subject application to modify Resolution E-4013 serves the interests of the public in promoting a reasonable CCA program, as envisioned by AB 117 and the Commission's consideration of the subject application would not impose any hardship or prejudice on any party.

2. Section 20 of the utilities' tariffs and CCA service agreements, as described herein, require the members of a CCA joint powers agency to assume joint and several liability for the debts, liabilities, and obligations of the CCA joint powers agency.

3. The utilities' tariffs do not impose joint and several liability on the affiliates of ESPs and the utilities do not make a distinction between CCAs and ESPs that would justify treating the two types of organizations differently for purposes of allocating liability.

4. On balance, the provisions of Section 20, as approved in Resolution E-4133, are not necessary to protect the interests of utility ratepayers in light of other provisions of law and policy designed to protect utility customers from the failure of a CCA.

1. The requirements of Section 20 of the utilities' CCA tariffs and service agreements, as described herein, impede the authority conferred upon local governments by Government Code Section 6508.1 to create joint powers agency agreements that relieve member agencies from liability for the debts and obligations of the joint powers agency.

2. No provision of law circumscribes the rights of local agencies to create CCA joint powers agencies under agreements that exempt the members of the joint powers agency from joint and several liability for the debts, liabilities, and obligations of the joint powers agency.

3. Utility tariffs may not impede the intent of the Legislature with regard to the rights and authority of local governments.

4. SCE, SDG&E and PG&E should be ordered to amend their tariffs and service agreements to eliminate any requirement or condition of service that impose on a CCA joint powers agency's members joint and several liability for the debts and obligations of the CCA joint powers agency.

IT IS ORDERED that:

1. Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E) shall, within 10 days of the effective date of this order, modify their tariffs to remove any requirement that imposes joint and several liability on the members of a joint powers agency for the debts and obligations of that joint powers agency that is seeking to provide Community Choice Aggregation (CCA) as described in Assembly Bill 117 and related statutes. The tariffs or service agreements of PG&E, SCE and SDG&E for CCA customers shall not unilaterally impose such liability or make it a condition of service.

2. To the extent set forth herein, the San Joaquin Valley Power Authority's application for modification of Resolution E-4133 is granted.

3. Application 07-12-032 is closed.

This order is effective today.

Dated April 24, 2008, at San Francisco, California.

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