STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
November 8, 2002
TO: ALL PARTIES OF RECORD IN RULEMAKING 02-01-011
Decision 02-11-022 is being mailed without the Dissents of President Loretta Lynch and Commissioner Carl W. Wood, and the Concurrence of Commissioner Michael Peevey. The Dissents and Concurrence will be mailed separately.
Very truly yours,
/s/ CAROL A. BROWN
CAROL A. BROWN, Interim Chief
Administrative Law Judge
CAB/sid
ALJ/TRP/sid Mailed 11/8/2002
Decision 02-11-022 November 7, 2002
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking Regarding the Implementation of the Suspension of Direct Access Pursuant to Assembly Bill 1X and Decision 01-09-060. |
Rulemaking 02-01-011 (Filed January 9, 2002) |
TABLE OF CONTENTS
Title Page
O P I N I O N 1
I. Introduction 2
II. Background 5
III. Procedural Summary 7
IV. Scope of Costs Subject to CRS 8
V. Legal Authority for Imposing Cost Responsibility Surcharges 11
VI. Standard for Determining Customer Indifference 18
VII. Modeling of DA Cost Responsibility Surcharges for DWR Costs 28
A. Role of Modeling in Analyzing DA Cost Shifting 28
B. Summary of Proposed CRS Based on Modeled Results 30
C. Merits of Multi-Year Modeling Versus Annual Forecasting 34
VIII. Structure of Costs Comprising DA CRS 38
IX. "Historic Costs" 40
A. Parties' Positions 40
X. DA Customers Cut-Off Date for Applicablility of the Bond Charge 58
XI. Criteria for Determining Cut-Off Date for Applicability of Ongoing DWR Power Charges 64
XII. Ongoing DWR Operating and Portfolio Costs 71
A. Overview 71
XIII. Modeling of Ongoing DWR "Indifference" Costs 74
A. Areas of Dispute Relating to Forecasts 76
1. Assumptions Regarding New Generation Additions 77
2. Assumptions Regarding Market Price for Surplus Power Sales 78
B. Categories of Costs to be Excluded to Measure "Bundled Customer Indifference" 83
1. Exclusion of 130% of Baseline Quantities 83
2. Long-Term Contract Only Versus Incremental Short-Term Costs 86
3. Administrative & General Costs 88
C. Utility-Specific versus Statewide Surcharges 89
XIV. Proposals for DA CRS Covering Costs Other than DWR Procurement 92
XV. CRS Mitigation: Capping or Levelizing CRS 109
XVI. Other Issues 124
A. Implementation of DA CRS in Coordination with Companion Proceedings 124
B. Process for Updating the DA CRS/ True ups and Balancing Account Treatment 132
C. Billing and Tariff Implementation 137
D. TURN's Proposal to Include the Costs of the Interruptible Program in the Distribution Component of Rates 138
E. Negative CTC 138
F. Issues Surrounding the Applicability of the One Cent Surcharge from D.01-01-018 on Direct Access Customers 140
G. PG&E's WAPA Contract 144
H. Additions to DA List 147
I. Adjustment for Voltage Differentials 147
J. Adjustment for 80 MW of U.S. Navy Load 148
XVII. Rehearing and Judicial Review 148
XVIII. Comments on the ALJ Proposed Decision 148
XIX. Assignment of Proceeding 149
Findings of Fact 149
Conclusions of Law 155
ORDER 162
APPENDIX A - Summary of Parties' Proposals Concerning Direct Access Cost Responsibility Surcharge Cost Elements for 2003
APPENDIX B - Modeling Scenarios Performed by Navigant Consulting, Inc.
APPENDIX C - PG&E Calculation of DA CRS (Using Navigant Model)
APPENDIX D - SDG&E Calculation of DA CRS (Using Navigant Model)
APPENDIX E - CLECA Calculation of DA CRS (Using Henwood Model)
Table 1- Total Utility Resource Versus DWR-Only Basis
Table 2- Total Utility Resource Basis by Individual Utility
APPENDIX F - List of Inputs and Calculations for Computing DA CRS
APPENDIX G - List of Appearances
I.
