Aglet proposes to adjust SDG&E's attrition year revenue requirements to reflect scheduled refueling outages at SONGS 2 and 3 based on the adopted estimate in Edison's recent rate case. In D.04-07-022, we:
"approved (Edison's) proposed flexible outage schedule ratemaking mechanism for SONGS 2 & 3 and a per-outage O&M estimate of $52.462 million (2000 dollars, 100% share). A component of that mechanism is (Edison's) proposal to forecast outage O&M costs in annual (post-test year) filings based upon the adopted outage cost estimate and a forecast of the number of outages expected to occur in the next year." (Mimeo, p. 276.)
Aglet recommends that the Commission should adopt the same method and dollar amount found reasonable in Edison's rate case, adjusted for SDG&E's 20% ownership share.
We further required that:
"in any (post-test year) filing in which it includes costs for SONGS outages that it forecasts will occur in the following year, (Edison) shall include a proposal for refunding to ratepayers the costs of any outage that was forecast and included in rates but did not occur in that year.
O&M costs were specifically excluded from our procurement proceedings,94 and we will be consistent here, as we were by adopting SONGS O&M expenses in Phase 1. We will adopt a comparable requirement for SDG&E, so that it may include its proportional share of O&M costs in its post-test year ratemaking filings and it shall also refund any costs that were not incurred.
Many of the SONG's non-fuel O&M costs are billed by Edison including the impact of post-test year escalation factors: they are therefore beyond SDG&E's direct control. SDG&E proposes that post-test year ratemaking for its SONGS costs be consistent with the escalation rates adopted for Edison in D. 04-07-022, and as may be authorized for subsequent years in Edison's current A. 04-12-014, for a test year 2006, and later. Similarly, certain SONGS-related capital costs for 2005 and beyond have been or will be determined in Edison's rate applications, not SDG&E's. SDG&E again proposes to use the capital expenses authorized in D. 04-07-022, and subsequently in an applicable decision for A. 04-12-014, to derive its post-test year capital expenses. This proposal was not opposed and is consistent with the deference shown in phase 1 to D. 04-07-022 for adopting SDG&E's test year 2004 SONGS costs.
94 D.02-10-062, mimeo p. 61, in Rulemaking 01-10-024.