VII. Assignment of Proceeding
Geoffrey F. Brown is the Assigned Commissioner and Robert Barnett is assigned ALJ in this proceeding.
1. The issues regarding costs presented in federal court were federal issues involving wholesale procurement costs. The issues in this application are state issues which were not included in the federal lawsuit.
2. To have properly pled a cause of action for the four disputed accounts in the federal litigation SCE would have had to bring itself within the supplemental jurisdiction of the federal court set forth in 28 USCA § 1367(a).
3. The four disputed accounts in this proceeding do not arise from the facts that are part of the same case or controversy on which the federal case rested.
4. The costs SCE seeks to recover in this case were both incurred and recorded prior to August 31, 2001. They were not recorded in the TCBA. They were recorded in other regulatory accounts. SCE could not transfer those costs from their present accounts to the TCBA without a Commission decision authorizing their recovery. Since that decision is the subject of this proceeding, those costs could not have been recorded in the TCBA as of August 31, 2001.
5. The release in the Settlement Agreement did not embrace the claims in this application. The claims in this application did not arise out of the federal claims and are not connected with those claims. The claims in this application are state claims which came into existence separately from the federal claims. The release is specific to federal claims and terminates federal claims.
6. Section 2.8 of the Settlement Agreement excludes from rates only the balances in the TCBA as of August 31, 2001.
7. SCE has not recorded the Palo Verde NUIP rewards that it is seeking to recover in this proceeding in any regulatory mechanism. SCE's tariff that was effective through August 31, 2001, provided that SCE must receive Commission approval before any Palo Verde NUIP reward is recorded in any regulatory mechanism. The requested reward of $11,668,994 is reasonable.
8. All costs recorded in SCE's FOIMA during the record period ($5.872 million) are reasonable.
9. The costs of $1.607 million recorded in the IROEDMA are reasonable.
10. The costs of $633,000 recorded in the STGCMA are reasonable.
1. The Settlement Agreement did not release SCE's claims which are the subject of this application.
2. The amounts SCE has recorded in various accounts for its NUIP reward, its FOIMA, its IROEDMA, and its STGCMA are allowed, and are authorized to be recorded in SCE's Settlement Rates Balancing Account.
IT IS ORDERED that:
1. Southern California Edison Company (SCE) shall record in its Settlement Rates Balancing Account the amounts as of June 30, 2001 that were recorded in its Fuel Oil Inventory Memorandum Account, its Increased Return on Equity on Divestiture Memorandum Account, its Short-Term Generation Capacity Memorandum Account, and its Palo Verde Nuclear Unit Incentive Procedure reward.
2. Within 10 days after complying with Paragraph 1 of this order, SCE shall file an advice letter which will be effective upon approval of the Energy Division.
3. This proceeding is closed.
This order is effective today.
Dated , at San Francisco, California.
APPENDIX A
STIPULATED JUDGMENT
Appendix A to A0109004 - Stipulated Judgment
