Comments on Proposed Decision

The proposed decision of the Administrative Law Judge (ALJ) in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code and Rule 14.2(a) of the Commission's Rules of Practice and Procedure. Cerritos and SCE filed comments on March 19, 2007, and reply comments were filed on March 26, 2007. This order makes minor changes to the proposed decision to reflect those comments.

Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Kim Malcolm is the assigned ALJ in this rulemaking.

Findings of Fact

1. D.06-07-030 adopted modifications to the CRS, some of which could be applied to the CCA CRS, as anticipated by D.05-12-041 issued in this docket.

2. The Commission has addressed whether to carry-over of negative CRS balances from year-to-year in R.02-01-011 and is reviewing related petitions to modify D.06-07-030 on that subject.

3. SCE has not yet calculated a final CCA CRS for the period during which Cerritos operated.

Conclusions of Law

1. Sections 366.1 and 366.2 require that the CRS reflect all liabilities incurred by the utility on behalf of CCA customers and therefore the CRS adopted in D.06-07-030 cannot be used as a proxy for Cerritos' CRS.

2. The Commission should order SCE to calculate Cerritos' CRS for the period 2005-2006 during which Cerritos' provided procurement services to its customers as set forth herein.

3. The calculation of the CRS for Cerritos should be consistent with
D.06-07-030 and orders issued in this proceeding.

4. The motion of Cerritos filed on December 14, 2006 should be denied to the extent set forth herein.

IT IS ORDERED that:

1. Southern California Edison Company shall, no later than 30 days from the effective date of this order, calculate the cost responsibility surcharge (CRS) applicable to the City of Cerritos, consistent with Decision (D.) 05-01-009 and
D.07-01-025.

2. The motion of the City of Cerritos filed in this docket on December 14, 2006 is denied as set forth herein.

3. Rulemaking 03-10-003 is closed.

This order is effective today.

Dated April 12, 2007, at San Francisco, California.

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