8. Assignment of Proceeding
Carl Wood is the Assigned Commissioner and Burton W. Mattson is the assigned Administrative Law Judge in this proceeding.
1. Bill limiters for SCE interruptible program Schedules I-3 and I-5 were first adopted in SCE's 1992 GRC decision for the purpose of mitigating the impact of transferring Schedule I-3 and I-5 customers of record on December 31, 1992 to Schedule I-6 on January 1, 1993.
2. The annual revenue deficiency created by the bill limiter in 2002 is about $54 million, with $25 million recovered through an existing revenue shift to other large customers, and $29 million not recovered from any other customer class.
3. The option of continuing the bill limiter in full with the revenue shortfall recovered by declining to fully terminate the "catch-up" surcharge for large power customers is unavailable since the "catch-up" surcharge was not terminated on June 2, 2002.
4. SCE proposes to debit the approximately $29 million per year shortfall into the memorandum account created by Resolution E-3776.
5. SCE's proposal is a workable accounting treatment that results in all other large customers paying the approximately $29 million annual revenue deficiency either (a) at the time the memorandum account balances are returned to
ratepayers or (b) if not returned to ratepayers but recorded to PROACT, by smaller rate reductions for large power customers when PROACT is fully recovered.
6. The petition for modification was not opposed by any customer or customer group, and is supported by customer groups representing the large customers who will in turn fund the additional approximately $29 million per year.
7. All issues in this proceeding are now resolved.
1. The May 21, 2002 petition for modification filed by CIU and CLECA regarding the bill limiter should be granted in part by continuing the bill limiter on all rate components at issue, but adopting SCE's proposed accounting treatment for funding the revenue shift within the large customer group.
2. Further treatment of the bill limiter in SCE's interruptible program tariffs (including the possibility of its expansion or complete elimination) should be considered in SCE's next GRC.
3. This proceeding should be closed.
4. This order should be effective today so that the treatment of the bill limiter is clarified, the rate relief is provided as soon as possible, certainty is provided to customers as soon as reasonably possible, and the proceeding is closed without unnecessary delay.
IT IS ORDERED that:
1. The petition dated May 21, 2002 of the California Industrial Users and California Large Energy Consumers Association to modify Decision 02-04-060 regarding the bill limiter is granted in part. The bill limiter shall continue on all
rate elements (including those in place before 2001 and the surcharges adopted in 2001). The revised bill limiter shall be effective on and after the date the revised tariff is effective. The bill limiter shall be funded using the accounting treatment recommended by Southern California Edison Company (SCE).
2. SCE shall file and serve an advice letter with accompanying tariff within five days from today to implement the orders herein. The advice letter and tariffs shall comply with General Order 96-A, and shall become effective within five days after filing unless suspended by the Energy Division Director. The Energy Division Director may require SCE to the advice letter and tariffs to comply with the orders herein.
3. This proceeding is closed.
This order is effective today.
Dated, January 30, 2003 at San Francisco, California.
MICHAEL R. PEEVEY
President
GEOFFREY F. BROWN SUSAN P. KENNEDY
Commissioners
I dissent.
/s/ LORETTA M. LYNCH
Commissioner
I dissent.
/s/ CARL W. WOOD
Commissioner
