VI. UTILITY PAYMENTS PRIOR TO ESTABLISHMENT OF DWR'S REVENUE REQUIREMENT

Edison claims that the Accounting Decision improperly requires payment of funds to DWR in violation of AB 1X. Edison argues that it cannot be ordered to pay funds to the DWR until DWR sets a revenue requirement. These arguments are without merit. First, the Accounting Decision does not directly order funds to be paid to DWR. It merely states that the three cents per kWh increase shall be added to generation related rates for PG&E and Edison that are adopted in Ordering Paragraph 1 of D.01-03-081 for the purpose of all of the calculations required by that decision dealing with the transfer of funds to DWR. It further orders PG&E and Edison to provide revenues from the generation related rates and the three cent increase to DWR immediately, consistent with D.01-03-081. Thus the Accounting Decision merely makes clear that the three cent increase is to be included in the calculations set forth in D.01-03-081, and reiterates our directive that these monies be paid immediately to DWR. Secondly, Edison is incorrect that it cannot be ordered to pay funds to the DWR until DWR sets a revenue requirement. In D.01-03-081, we did not allocate utility revenues, but established procedures to ensure that the Utilities properly segregate and transfer those revenues that they collected from retail end use customers on DWR's behalf. We note that challenges to D.01-03-081 have been rejected at the Commission and at the state appellate court.