V. Uncontested Matters Raised by the Applications

PG&E asks the Commission to approve the following uncontested proposals which would permit PG&E to:

    1. Consolidate and unbundle the 1999 revenue requirement;

    2. Include shareholder incentives in the 1999 revenue requirement if a decision is rendered on A.98-05-001 before a decision in the current RAP proceeding or, alternatively, recovery through the 1999 RAP;

    3. Transfer balances in the Streamlining Residual Account, Hazardous Substance Mechanism and Electric Vehicle Balancing Account to the distribution revenue requirement;

    4. Finalize entries to the TRA for the record period, January 1 through May 31, 1998, subject to any adjustment required by the Commission's December 31, 1998 headroom audit;

    5. Transfer funds for the CARE discount from the PPP to the distribution function;

    6. Include shareholder participation credit amounts recorded to the TRA for the record period, January 1, 1998, through Mary 31, 1998, subject to future adjustment as a result of the review that will occur in the 1999 RAP; and

    7. Implement proposals for interim rates and functional rate design.

We find PG&E's uncontested proposals reasonable at this time and adopt them herein with the condition that all changes to revenue requirements which have not been the subject of a reasonableness review will be authorized on an interim basis pending the Commission's findings with regard to the audit conducted by the Energy Division or pursuant to decisions issued in future proceedings.

Edison asks the Commission to adopt the following uncontested proposals with regard to revenue requirements:

    1. Update its forecast revenue requirement provided in Table II-1 of its report to reflect December 31, 1998 recorded balances in all accounts and Commission decisions issued through the effective date of this order;

    2. Update 1999 PBR exclusions, nuclear decommissioning, and public purpose programs revenue requirement to reflect use of a 100% retail allocation factor;

    3. Include in the 1999 distribution revenue requirement the PBR exclusions adopted in D.96-09-092 and D.97-08-056 for balances related to the Reduced Capital Recovery Amount and Incremental Return, the Base Rate Performance Memorandum Account, the Electric and Magnetic Fields, the Affiliate Transfer Fee Memorandum Account, Non-Utility Affiliate Credits, the Hazardous Waste Balancing Account and the Catastrophic Event Memorandum Account (CEMA);

    4. Include in the Nuclear Decommissioning revenue requirement the updated balance, the annual revenue requirement of $104.426 million, the San Onofre Nuclear Generating Station Unit No. 1 Shutdown O&M revenue requirement of $11.522 million, the Department of Energy Decontamination and Decommissioning Fee revenue requirement amount of $4.642 million, the balance in the SRA, the Spent Nuclear Fuel Storage fee revenue requirement amount of $3.27 million and the balance in the SRA associated with Spent Nuclear Storage Fees; and

    5. Include in the PPP revenue requirement costs associated with RD&D royalties, low emission vehicles, $7.36 million in Low Income Program Plans, the $0.958 million cost of administering the CARE, the balance of the costs and revenues in the CARE Adjustment Account, and the balance in the SRA associated with intervenor compensation costs.

Edison asks for approval of several proposals concerning revenue allocation, rate design, balancing accounts, and sales forecasts:

    1. Update the nongeneration EPMC percentages used to allocate the PBR exclusions with Edison's 1999 sales forecast and convert those allocated revenues to a cents-per-kilowatt hour rate;

    2. Change the distribution revenue requirement to reflect the cost of capital trigger mechanism and allocate the change using EPMC;

    3. Include in the PPP charge the CARE surcharge amount of $.00079 per kilowatt hour;

    4. Use Edison's 1999 retail sales forecast of 77,300 gigawatthours to calculate the PBR Exclusions, Nuclear Decommissioning, and PPP rates;

    5. Transfer the Optional Pricing Adjustment Clause Balancing Account balance to the TRRA following review of the 1997 Flexible Pricing Options Annual Report and a determination that the shareholders contributions have been correctly calculated;

    6. Approve the recorded entries to the TRA and the RGTMA for the period January 1998 to May 1998 subject to the Energy Division's audit; and

    7. Include the balancing and memorandum account balances in the TCBA subject to the Commission's further review of the Energy Division's audit.

We adopt the uncontested proposals of Edison with the following conditions. Those increases in distribution rates which are attributable to CEMA costs shall be limited to those for which the Commission has issued a decision finding the costs to be reasonable and associated with distribution facilities, consistent with D.97-08-056 and D.97-12-109. Similarly, changes in rate components associated with balancing accounts for which the Commission has not issued a finding of reasonableness are authorized on an interim basis pending the Commission's findings with regard to the audit conducted by the Energy Division or pursuant to decisions issued in other proceedings.

SDG&E asks the Commission to approve the following uncontested proposals:

    1. Adoption of SDG&E's proposed revenue requirement which is derived from D.97-08-056, updated to account for Commission orders in various subsequent and pending proceedings;

    2. Adoption of SDG&E's proposed revenue allocation as set forth in rebuttal testimony for the distribution revenue requirement and in its stipulation with ORA for various other functions;

    3. Termination of certain generation related rate schedules which SDG&E states are currently unused, including A-V6,AL-TOU-C,RTP-1,1-2, and the "signaled period " rate option with AL-TOU;

    4. Inclusion of a new option for metal halide lamps in Schedule LS-1 and LS-2, with rates equal to those used for unit charges for existing metal halide rate options;

    5. Adoption of the calculation of "headroom," which is based on a methodology already approved by the Commission; and

    6. Adoption of SDG&E's entries into its RGTCOMA, which tracks transition cost obligations by rate group pursuant to D.97-06-060.

We find these proposals for SDG&E to be reasonable, and we adopt them with the conditions described for Edison and PG&E.

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