12 Assignment of Proceeding
Michael R. Peevey is the Assigned Commissioner and Michelle Cooke is the assigned ALJ in this proceeding.
Findings of Fact
1. The AMI system selected is sufficiently flexible to accommodate different approaches to rate design and informational tools.
2. PG&E's proposed AMI Project will meet the minimum functionality criteria established by Commissioner Peevey.
3. PG&E's pre-deployment activities do not consist of a significant amount of testing that the AMI system selected physically works or meets minimum functionality criteria.
4. The activities PG&E has defined as pre-deployment consist of preparing its existing legacy systems to accept data from its proposed AMI system, establishing and testing processes for meter and communication system installation and billing.
5. The reasonable AMI pre-deployment activities are estimated to cost $49.0 million.
6. The authorized pre-deployment funding translates to an expected 2005 revenue requirement of $7.6 million for electric and $6.2 million for gas.
7. PG&E will not install AMI test meters or network elements in Yolo County or the SSJID service territory during the pre-deployment phase.
8. PG&E's proposed deployment plan and schedule is the subject of
A.06-05-028.
Conclusions of Law
1. Because ORA made reasonable efforts to serve its brief as promptly as possible, its motion to accept its late-filed brief should be granted.
2. The finding that PG&E's proposed AMI Project meets the minimum functionality criteria does not establish that the system selected by PG&E is the correct or best system, or provides the best value for ratepayers. These are issues to be decided in A.05-06-028.
3. The fact that TURN and ORA chose not to evaluate the cost-effectiveness of PG&E's proposed expenditures does not preclude the Commission from independently assessing the expenditures that PG&E has proposed for reasonableness.
4. There is no legal impediment to authorizing pre-deployment activities.
5. PG&E should be authorized to record up to $11.7 million in pre-deployment expenses and $37.4 million in pre-deployment capital additions.
6. It is reasonable to authorize PG&E to modify its AMDRA account to provide for recording of costs authorized today and to create a GAMA.
7. Subsequent review of the costs recorded in AMDRA and GAMA should be limited to verification that the costs recorded are consistent with the limitations set forth in this decision.
8. Costs recorded in AMDRA and GAMA should be verified quarterly, upon PG&E filing an Advice Letter, and the verified balances transferred to the DRAM and CFCA for recovery in the Annual Electric True-Up proceeding and gas transportation rate change proceedings, respectively.
9. PG&E's proposed approach of recovering authorized AMI pre-deployment costs through electric distribution rates and gas transportation rates is reasonable.
10. PG&E should not install AMI test meters or network elements in Yolo County or the SSJID service territory during the pre-deployment phase.
ORDER
IT IS ORDERED that:
1. Exhibits 5A and 302 are received into evidence as of August 1, 2005.
2. The motion of the Office of Ratepayer Advocates to accept its late-filed brief is granted.
3. PG&E is authorized to spend ratepayer funding on the pre-deployment activities proposed in this application.
4. PG&E shall file an Advice Letter within 5 days of the effective date of this decision to update its Advanced Metering and Demand Response Account (AMDRA) tariff sheets and to establish a Gas Advanced Metering Account (GAMA) consistent with this decision.
5. PG&E may record up to $11.7 million in pre-deployment expenses and $37.4 million in pre-deployment capital additions in its AMDRA and GAMA for activities consistent with those approved in this decision.
6. Subsequent review of the costs recorded in AMDRA and GAMA shall be limited to quarterly verification, upon PG&E filing an Advice Letter, that the costs recorded are consistent with the limitations set forth in this decision and the verified balances transferred to the Distribution Revenue Adjustment Mechanism and Core Fixed Cost Account for recovery in the Annual Electric True-Up proceeding and gas transportation rate change proceedings, respectively.
7. PG&E may file an Advice Letter to transfer any recorded costs that are consistent with the activities and funding level authorized in this decision from its Advanced Metering Infrastructure Memorandum Accounts (AMIMA) to its AMDRA and GAMA.
8. Upon transfer of funds from its AMIMA accounts to its AMDRA and GAMA, and adoption of a decision on cost recovery and ratemaking treatment in A.05-06-028, PG&E shall file an Advice Letter to close its AMIMA accounts.
9. PG&E shall not install AMI test meters or network elements in Yolo County or the South San Joaquin Irrigation District service territory during the pre-deployment phase.
10. This proceeding is closed.
This order is effective today.
Dated ________, at San Francisco, California.
