Assignment of Proceeding
Loretta M. Lynch and Geoffrey F. Brown are the Assigned Commissioners, and John S. Wong is the assigned ALJ in this proceeding.
1. D.03-09-017 directed PG&E to have its shareholders pay interest on the power charge remittance owed to DWR, and directed PG&E to discuss the interest issue with DWR to determine the appropriate amount of interest that should be paid.
2. PG&E's supplemental notice states that PG&E and DWR have agreed that the WAPA interest amount is $13,316,623.77.
3. The WAPA interest amount is based on the monthly weighted average interest rate PG&E earned on short-term investments during the period between when it would have made specific remittances to DWR had the remittance rules adopted by D.03-09-017 been in place initially, and when PG&E actually made the WAPA true up remittance pursuant to D.03-09-017 and D.03-09-018.
4. PG&E has agreed with DWR to pay the interest amount to DWR within five days after a Commission action authorizing PG&E to do so, and if no payment is made, that the penalty provisions of the servicing order will apply.
5. In their opening and reply comments to the ALJ's draft decision, SDG&E and SCE assert that PG&E should pay a higher amount to DWR due to the actual financing costs that DWR incurred.
6. DWR acknowledges that it financed PG&E's under-remittances with revenue bonds, and as a result, the ratepayers in the service territories of SCE and SDG&E are also shouldering the burden caused by PG&E's past under-remittances.
7. DWR has no preference as to the amount of interest that PG&E should pay, and that the approach favored by PG&E, and the approach favored by SDG&E and SCE, would result in a reasonable outcome.
1. The WAPA interest amount of $38 million should be approved.
2. PG&E should be directed to remit the amount of $38 million to DWR within 20 days from today's date.
IT IS ORDERED that:
1. The interest amount of $38 million, which represents the amount of interest owed on the under-remittance associated with the California Department of Water Resources (DWR) energy used to serve Pacific Gas and Electric Company's (PG&E) contractual obligation with the Western Area Power Administration, is approved.
2. The shareholders of PG&E shall be responsible for paying the interest amount of $38 million to DWR, and PG&E shall remit such sum to DWR within 20 days from today's date.
This order is effective today.
Dated , at San Francisco, California.
CERTIFICATE OF SERVICE
I certify that I have by mail, and by electronic mail to the parties to which an electronic mail address has been provided, this day served a true copy of the original attached Commissioner Wood's Proposed Alternate Draft Decision Regarding Western Area Power Authority Interest on all parties of record in this proceeding or their attorneys of record.
Dated January 8, 2004, at San Francisco, California.
/s/ MANUEL RAMIREZ |
Manuel Ramirez |
NOTICE
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