IV. Scope and Issues

The first purpose of these proceedings is to establish just and reasonable rates to adequately fund the nuclear decommissioning trusts in place for the benefit and protection of ratepayers. Secondly, we verify that Edison, SDG&E, and PG&E are in compliance with all prior decisions applicable to decommissioning. Finally, these proceedings determine whether the costs expended to-date to decommission SONGS Unit 1 and Humboldt Unit 3 were reasonable and prudent. To the extent necessary, these proceedings examined all underlying forecasts and assumptions to estimate the future costs of decommissioning the various nuclear generating stations; the costs and earnings associated with the decommissioning trust funds; the rate impacts of the Energy Policy Act of 2005, including all relevant changes to Internal Revenue Code Section 468A; and other relevant data, policies or laws and regulations. These proceedings included the standard reasonableness review of managerial decisions and actions by PG&E, Edison, and SDG&E as they have pursued decommissioning either Humboldt Unit 3 or SONGS Unit 1. PG&E supplemented its application and explicitly addressed consideration of an Independent Board of Consultants to oversee the decommissioning of Humboldt Unit 3. Finally, we considered whether or not to grant the request by Edison and SDG&E to pre-approve the cost forecast for the remaining work to decommission SONGS Unit 1.