13. Operation of Ratemaking Accounts

SCE has provided testimony to the review of the following accounts:

· ERRA;

· Base Rate Revenue Requirement Balancing Account (BRRBA);

· Nuclear Decommissioning Adjustment Mechanism (NDAM);

· Public Purpose Programs Adjustment Mechanism (PPPAM);

· CARE Balancing Account (CBA);

· Energy Settlements Memorandum Account (ESMA) and Litigation Cost Tracking Account (LCTA);

· SmartConnect Balancing Account;

· Department of Energy Litigation Memorandum Account (DOELMA);

· Medical Program Balancing Account (MPBA)

· Market Redesign and Technology Upgrade Memorandum Account (MRTUMA);

· New Systems Generation Balancing Account (NSGBA);

· Palo Verde Balancing Account (PVBA);

· Pension Costs Balancing Account (PCBA) and Post Employment Benefits Other than Pensions Balancing Account (PBOP BA);

· Project Development Division Memorandum Account (PDDMA);

· Results Sharing Memorandum Account (RSMA); and

· Solar Photovoltaic Program Memorandum Account (SPVPMA).

For the majority of these accounts, SCE is not seeking recovery or refund as the recorded costs have already been recovered from or refunded to customers. In this proceeding, SCE requests cost recovery of $19.409 million for the ESMA/LCTA, and $3.912 million for the PDDMA. SCE also seeks recovery of $343,000 in FF&U. In its Reply Testimony, SCE withdrew its request to recover $232,000 for costs incurred in 2007 through 2009 in the DOELMA. In total, SCE now seeks recovery of $29,715,000. SCE also requests that it be allowed to transfer the $2,865,000 balance of the SPVPMA to the newly-created Solar Photovoltaic Program Balancing Account (SPVPBA), and to eliminate the SPVPMA as no longer needed.

In its prepared testimony, DRA indicates that it reviewed all of the balancing and memorandum accounts and concludes that the costs recorded for the various accounts are consistent with Commission Decisions and Resolutions. DRA does not recommend any disallowances.

Based on the testimonies of SCE and DRA and our review regarding the amounts and dispositions of the ratemaking accounts, we have determined the following for the Record Period:

1. The operation of and entries in the ERRA, BRRBA, NDAM, PPPAM, NSGBA and CBA as presented by SCE in Exhibit SCE-2 are appropriate, correctly stated, and in compliance with Commission decisions.

2. The amounts recorded in the ESMA and the LCTA are appropriate, correctly stated, consistent with Commission orders, and reasonably incurred.

3. The entries recorded in the RSMA are appropriate, correctly stated, and in compliance with prior Commission decisions.

4. The Phase III costs recorded in the SmartConnect Balancing Account were properly recorded, consistent with the categories adopted in D.08-09-039, and recoverable.

5. SCE should be allowed to transfer the $2,865,000 balance of the SPVPMA to the newly-created SPVPBA, and to eliminate the SPVPMA.

6. SCE and DRA agree that is it reasonable to defer consideration of the DOELMA until all costs and proceeds are known. SCE should request disposition of the DOELMA at that time.