Direct Access Cost Responsibility Surcharge

In D.02-11-022, we adopted policies and procedures for determining the DA CRS, but also directed that a compliance workshop be convened to determine the actual numerical values and to implement actual utility compliance tariff filings. D.02-11-022 also called for the implementation process for the DA CRS to be integrated and coordinated with the implementation of the DWR revenue requirement in this proceeding. A Joint Ruling issued in this proceeding and in R.02-01-011 on December 10, 2002 addressed the process for this coordination.¹⁷

The Ruling ruled, among other things, that:

1. In the interests of expediting the start of recovery of Direct Access Cost Responsibility Surcharge (DA CRS) revenues, parties are placed on notice that in finalizing the Commission decision on the 2003 the Department of Water Resources (DWR) revenue requirement, language may be added directing each of the utilities to file advice letter compliance tariffs to implement the 2.7 cents/kWh DA CRS on an interim basis to become effective on January 1, 2003.

2. The language proposed to be added would provide for the DA CRS compliance tariffs to take effect as of January 1, 2003, upon review by the Commission's Energy Division, absent any filed protests or further action by the Commission.

Parties were given the opportunity to file comments on the ruling. Comments were received from SCE, PG&E, and SDG&E. DWR provided a comment memorandum after the deadline for submission of comments. All three utilities and DWR support the addition of the proposed language.

Some of the comments provided detailed recommendations for processes to address this issue further. While we appreciate the thought and effort that went into these comments, we will not address those processes here, but prefer that they be addressed in a separate ruling. Since the implementation of the tariffs is on an interim and provisional basis, any protests will not stay their effective date of January 1, 2003. Similarly, we will not resolve substantive issues raised for the first time in the comments, other than to note that for DA customers that have remained continuously on DA, and did not take bundled service on or after February 1, 2001, pursuant to D.02-11-022 the applicable DA CRS shall be limited to the Historic Procurement Charge (HPC), applicable to SCE customers only.

Consistent with the Joint Ruling, language is added to this decision directing each of the utilities to file advice letter compliance tariffs to implement the 2.7 cents/kWh DA CRS on an interim basis to become effective on January 1, 2003. A ruling addressing the schedule and process for the workshop and implementation of the resulting DA CRS will be issued shortly.