II. Background
Sierra filed an application for authority to increase its 2001 test year electric distribution system Return on Equity (ROE) from 11.60% to 12.00%. Sierra also requested authority to replace its annual ROE application with an automatic trigger mechanism (ATM).
In Decision (D.) 00-12-062, we authorized a 10.80% ROE for Sierra's 2001 test year electric distribution system, an eighty basis points2 reduction from its previously authorized 11.60% ROE. We also adopted an ATM to replace Sierra's annual ROE application.
Sierra, Aglet, API, and the Office of Ratepayer Advocates (ORA) actively participated in this proceeding, and Aglet and API requested compensation.
2 One-basis points equal 0.01%.
