2. Background
D.01-03-073 implemented Assembly Bill (AB) 970 which directed the Commission to initiate certain utility-performed load control and distributed generation programs within 180 days of enactment. The decision directs the utilities to fund two new load control and self-generation programs at an annual cost of $138 million per year, for four years - a total expenditure of $550 million. Pacific Gas and Electric Company (PG&E) estimates its share is $63 million with approximately $55 million allocated to the electric revenue requirement. In D.01-03-073, the Commission directed the utilities to increase their distribution revenue requirements, without modifying current rates, to reflect the authorized budgets, and track program costs in memorandum accounts.
On April 27, 2001, PG&E filed and served an emergency petition for modification of D.01-03-0731. PG&E seeks an immediate, ongoing source of funds for programs adopted in D.01-03-073 through either an additional surcharge to current rates, or an offset to revenues collected by PG&E on behalf of the California Department of Water Resources (DWR).
PG&E also asserts that it is a Chapter 11, "debtor in possession" under the United States Bankruptcy Code. In this petition, PG&E states that it cannot incur new unfunded program costs without detrimentally affecting creditors and other interest holders, and without impairing its prospects for a successful reorganization. As such, PG&E says it is constrained from implementing new programs without concurrent receipt of funds. Thus, it filed this emergency petition for modification.
Further, PG&E asks to clarify that these costs are not subject to any prohibition on cost recovery after the end of the rate freeze, such as the prohibition PG&E believes was established in D.99-10-057 (the post-transition electric ratemaking), and affirmed in D.00-03-058.
Southern California Edison Company (SCE) filed comments on the emergency petition on May 15, 2001. SCE refers to a joint application for rehearing filed by PG&E, SCE, and San Diego Gas and Electric Company (SDG&E).2 SCE states its support for PG&E in requesting modification of D.01-03-073 such that post rate freeze recovery will not be barred by D.99-10-057, D.00-03-058, or related decisions.
1 Recently, SCE filed a petition for modification by SCE in this proceeding, but on a different matter. Today's decision does not address or dispose of SCE's petition for modification. 2 We note that today's decision in no way is intended to prejudge the disposition of this joint application for rehearing.
