4. Need for Expedited Consideration

Rule 77.7(f)(9) of the Commission's Rules of Practice and Procedure provides in relevant part that:


"...the Commission may reduce or waive the period for public comment under this rule...for a decision where the Commission determines, on the motion of the party or on its own motion, that public necessity requires reduction or waiver of the 30-day period for public review and comment. For purposes of this subsection, "public necessity" refers to circumstances in which the public interest in the Commission adopting a decision before expiration of the 30-day review and comment period clearly outweighs the public interest in having the full 30-day period for review and comment. "Public necessity" includes, without limitation, circumstances where failure to adopt a decision before expiration of the 30-day review and comment period...would cause significant harm to public health or welfare. When acting pursuant to this subsection, the Commission will provide such reduced period for public review and comment as is consistent with the public necessity requiring reduction or waiver."

PG&E asked that the Commission rule on its petition no later than May 3, 2001.

We balance the public interest in quickly modifying D.01-03-073 against the public interest in having a full 30-day comment cycle on the proposed amendment. We conclude that the former outweighs the latter. We must respond quickly to provide additional assurance (beyond that already provided by the memorandum accounts initially adopted in D.01-03-073) of cost recovery so that respondent utilities may successfully implement the orders in D.01-03-073. Therefore, we reduce the period for public comment on this decision.

We issue today's order based on the emergency petition, responses to the petition, plus comments on the Draft Decision. With service of the Draft Decision, we requested any parties who believed evidentiary hearings were necessary, to request such hearings in the comments they would be filing. Parties were required to identify the exact alleged factual issue in dispute, show that it is material and relevant, and state what evidence would be offered at hearing.

Findings of Fact

1. A balancing account for recovery of incremental costs incurred by respondent utilities implementing orders pursuant to D.01-03-073 provides current cost recovery.

2. Incremental costs incurred by respondent utilities to implement orders adopted in D.01-03-073 are part of each utility's distribution revenue requirement.

3. Amortizing the balance in the DRSGPIC monthly assures current cost recovery.

4. The surcharge adopted in D.01-03-082 was instituted under emergency circumstances.

Conclusions of Law

1. A balancing account should be used to record incremental costs incurred to implement programs adopted in D.01-03-073, and the balances should be amortized monthly.

2. The Legislature has not authorized an additional charge, above current electric rate freeze levels, to recover the costs of § 399.15(b) programs.

3. As determined in D.01-03-082, the rate freeze has not ended.

4. PG&E and SCE should transfer the balances in the DRSGPIC to their TRA monthly. These costs are recoverable now as current costs, and we are persuaded that the companies cannot defer recovery.

5. The utilities should proceed with today's authorized programs without further delay. Each utility should establish balancing accounts to track all program costs. As discussed in this decision, the utilities should also track all program costs and benefits by customer class.

6. The public interest in quickly amending D.01-03-073 so that cost recovery can be clarified for Summer 2001 outweighs the public interest in a full 30-day public review and comment of the draft decision. The period for public review and comment on the draft decision should be reduced.

7. This order should be effective today so that the load control programs adopted in D.01-03-073 can be implemented immediately.

8. For purposes of consistency, this interim decision applies to all respondent utilities.

INTERIM ORDER

IT IS ORDERED that:

1. The April 27, 2001 emergency petition for modification of Decision (D.) 01-03-073 filed by Pacific Gas & Electric Company is granted to the extent provided herein, and denied in all other respects.

2. D.01-03-073 is modified as follows:

a. Conclusions of Law No. 3 is replaced with:

b. The last sentence of Ordering Paragraph 2 is replaced with:

3. Within five days of the date of this order, respondent utilities shall file and serve an advice letter with revised tariffs. The advice letters with revised tariffs shall implement the directions in this order, including amending each utility's Preliminary Statement to create demand responsiveness and self-generation accounts. Each advice letter with tariffs shall be in compliance with General Order 96-A. The advice letters and tariffs shall become effective five days after filing, unless suspended by the Energy Division Director. The Energy Division Director may require a respondent utility to amend its advice letter and tariffs to comply with the orders herein, and may require a respondent utility to file and serve individual advice letter and tariffs as needed to separately implement portions of today's order.

This order is effective today.

Dated , at San Francisco, California.

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