9. Utility Contract Administration and Costs

As used in this section, "contract administration" means activities implementing the exercise of contract rights and the performance of contract obligations subsequent to either contract execution by SCE or allocation by the Commission to SCE of certain Department of Water Resources power purchase agreements in accordance with AB 57. SCE indicates that during the Record Period it administered 200 bilateral contracts related to electric purchases, sales, and exchanges. Administration of QF and renewable contracts are addressed separately.

In D.87-05-071, the Commission authorized the electric utilities to develop special electric rate contracts to allow them to continue to serve load to large customers who demonstrated their intent to bypass the utility's system by building self-generation projects. In D.88-03-008 and D.88-07-058 the Commission set policy principles and established the guidelines the utilities would adhere to in developing and administering Self-Generation Deferral Rate (SGDR) agreements. We review the reasonableness of SGDR agreements in this proceeding. SCE requests that the Commission find that SCE's administration of both remaining SGDR agreements during the Record Period was reasonable.

DRA states that it has no objections to SCE's non-QF contract administration processes, contract activity, and training programs for the Record Period. Based on the testimonies of SCE and DRA, and review of the record we conclude that SCE's contract administration activities and SGDR agreements were reasonable.