Petition
On February 11, 1993, DRA filed the above-cited applications to modify Pacific Bell's Price Cap Resolution T-15160 and GTEC's Price Cap Resolution T-15161 issued December 16, 1992. The disputed resolutions authorized surcharge adjustments to the utilities' (Pacific Bell and GTEC) price cap mechanism which included a $107.5 million revenue requirement increase for Pacific Bell and a $42 million revenue requirement increase for GTEC3 applicable to PBOP.
DRA seeks to modify these resolutions, alleging that the Commission incorrectly found that the utilities submitted their advice letter filings in compliance with Decision 92-12-015 (PBOP Decision).4 The PBOP Decision addressed the procedures that the utilities should use to recover PBOP costs.
DRA believes that the utilities failed to comply with the PBOP Decision because GTEC did not use the employee's total active service life as the attribution period and Pacific Bell did not use a 20-year amortization period of prior PBOP accruals. DRA also believes that the utilities failed to comply with the PBOP Decision because the utilities did not provide any evidence that:
a. Trusts have been established by the utilities and approved by the Internal Revenue Service (IRS).
b. PBOP funding is not used for any other purpose.
c. PBOP funding is segregated from all other investments and trusts.
d. Surplus pension assets are used to pre-fund PBOP.
e. Actuarial valuation and revenue requirement calculations are fair, reasonable, and accurate.
DRA requests that the resolutions be modified so that PBOP surcharges are subject to refund until the utilities demonstrate compliance with the PBOP Decision. DRA also requests that the resolutions be modified so that PBOP surcharges are rescinded and forfeited if the utilities remain in non-compliance with the PBOP Decision after a review of the utilities' compliance filing by DRA and the Commission's Advisory and Compliance Division (CACD).5 DRA further requests that the resolutions be modified to require excess PBOP surcharges refunded to ratepayers if a DRA and CACD review of the compliance filing determines that the PBOP surcharges are too much.
3 GTEC's $42 million revenue requirement increase was $7.773 million lower than the $49.773 million revenue requirement increase alleged by DRA to have been granted GTEC. 4 46 CPUC2d, 499-537, (1992). 5 CACD also ceased to exist as a staff unit on September 10, 1996, the product of a Commission stall reorganization. The functions relevant here are now assigned to the Telecommunications Division.
