Comments to the Draft Decision
The draft decision of Administrative Law Judge Barnett was mailed to parties in accordance with Pub. Util. Code § 311(g)(1) and Rule 77.2 through 77.5.
1. The modifications SCE proposes in its petitions, as modified in the ordering paragraphs, comply with AB6X.
2. The Commission does not base this decision on SCE's MOU with CDWR, nor does the Commission take a position on the MOU in this decision.
3. AB6X was enacted in January 2001, and the Commission adopted the decision that SCE requests be modified (D.96-12-083) in 1996.
4. NUIP replacement power costs should be capped at five cents/kWh.
1. Under the recently enacted AB6X, the Commission is required to ensure that SCE's generating assets, including Palo Verde, "remain dedicated to service for the benefit of California ratepayers."
2. The Settlement Agreement is modified to extend the ratemaking mechanism for recovery of Palo Verde incremental operating costs through SCE's next general rate case or further order of the Commission.
3. Modification of the Settlement Agreement is required because SCE now contemplates adding a request for cost-based rate recovery of Palo Verde costs to its Test Year 2003 GRC for rate to be effective January 1, 2003.
4. SCE should continue the present rate recovery for Palo Verde incremental costs until the effective date of a decision on its next general rate case or further order of the Commission.
5. The modifications to D.96-12-083 set forth in the ordering paragraphs should be adopted.
IT IS ORDERED that:
1. In Decision 96-12-083 (70 CPUC2d 432), the Settlement Agreement set forth in Attachment 1, is adopted, with the following modifications: Sections 4.2.5 and 4.2.6 are deleted and Section 4.4.4 is modified as set forth below:
4.4.4 Nothing in this Agreement will preclude Edison from requesting that it be permitted to recover at any time (a) any assessments or retrospective premiums under the Nuclear Regulatory Commission (NRC) secondary financial protection program, or the Master Worker Liability coverage with ANI/MAELU associated with incidents or exposures at any location or relating to Palo Verde nuclear plant decommissioning, or (b) any costs associated with claims by workers and/or third parties including, but not limited to, allegations of exposure to nuclear radiation and/or electric and magnetic fields (EMF) associated with incidents or exposures at any location or relating to Palo Verde nuclear plant decommissioning.
2. Southern California Edison Company (SCE) shall continue the present rate recovery for Palo Verde incremental costs until the effective date of a decision on its next general rate case or further order of the Commission.
3. The Nuclear Unit Incentive Procedure replacement power costs are capped at five cents/kilowatt-hour.
4. No later than 20 days after the effective date of this decision, SCE shall file revised tariff sheets in compliance with GO 96-A which implement the modifications in this decision. The revised tariff sheets shall apply to service rendered on or after their effective date.
5. Application 96-02-056 is closed.
This order is effective today.
Dated , at San Francisco, California.
