II. The Petition for Modification
On May 4, 2001, Edison filed a Petition for Modification of D.96-04-059 requesting authorization to eliminate the sharing provision for SONGS 2&3 and all associated provisions for transfer of post-incremental cost incentive pricing (ICIP) through December 31, 2010. Edison proposes to add to its next general rate case a proposal to begin traditional cost-of-service ratemaking for SONGS 2&3 effective January 1, 2004.
Edison makes this request in order to implement a provision of the April 9, 2001 Memorandum of Understanding (MOU) with the California Department of Water Resources (CDWR).1 Edison also states that returning SONGS 2&3 to traditional cost-of-service ratemaking is a way to ensure dedication of SONGS 2&3 to service for California ratepayers, and thus, will implement AB1X-6 which requires the Commission to ensure public utility generation assets remain dedicated to service for the benefit of California ratepayers.2
1 Edison seeks to implement the following provision of the MOU:- "Under current CPUC decisions, net revenues from PVNGS after 2001 and net revenues from SONGS 2&3 after 2003 are subject to a sharing mechanism whereby profits (as defined) are shared equally between shareholders and customers. The CPUC Implementing Decision shall provide that such sharing mechanism, and all provisions for transfer of post-ICIP cost responsibility to SCE, will be eliminated through December 31, 2010." (Edison Petition at p. 2.)
