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ALJ/DUG/avs DRAFT Agenda ID # 4798
Ratesetting
8/25/2005 Item 53
Decision PROPOSED DECISION OF ALJ LONG (Mailed 7/19/2005)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of SAN DIEGO GAS & ELECTRIC COMPANY under the Catastrophic Event Memorandum Account (CEMA) for Recovery of costs related to the 2003 Southern California Wildfires. (U 902-M) |
Application 04-06-035 |
OPINION ON THE REASONABLENESS OF SAN DIEGO GAS
AND ELECTRIC COMPANY'S RESPONSE TO THE 2003 WILDFIRES
(See APPENDIX A for Appearance Lists)
TABLE OF CONTENTS
TITLE PAGE
a. History of the Wildfires 33
b. SDG&E 2003 Wildfire Costs Through May 2004 66
c. Proposed Recovery of Wildfire Account Costs Through May 2004 77
a. The Standard for Prudent Managerial Action 1111
5. Review by Other Parties 1313
6. Restoration Management 1414
7. Reasonableness of Costs 1515
b. UCAN's Recommendations 1818
a. Allocation of Support Costs to Expense and Capital 2828
b. Amortization of the Wildfire Account 3232
9. Labor Costs and Incentive Compensation 3232
10. SDG&E's Wildfires Update 3636
APPENIDX A
This decision finds San Diego Gas & Electric Company (SDG&E) prudently managed its response and allows the recovery of certain recorded costs incurred to restore service and repair or replace those portions of its gas or electric distribution systems damaged or destroyed by a series of catastrophic wildfires. This decision requires SDG&E to capitalize rather than expense certain support costs ($7.376 million) and allows for an 15-month amortization of the remaining costs charged to expense. Three reductions are made to the total of recoverable costs: to adjust for certain avoided future costs for pole inspection and treatment ($42,348), to adjust for excessive costs charged to SDG&E for food service ($582,300), and disallow unjustified incentive compensation accruals ($426,000). This decision allows SDG&E to recover $39.752 million.