VI. Assignment of Proceeding
Michael R. Peevey is the Assigned Commissioner and Michael J. Galvin is the assigned Administrative Law Judge in this proceeding.
1. SDG&E's application was filed in response to the Commission's directives in D.02-10-062 and D.02-12-074.
2. There is no opposition to this application.
3. SDG&E's tariff provides for a June 1st ERRA application to address an energy resource forecast for the upcoming twelve months and a new ERRA rate based on that forecast.
4. SDG&E's tariff provides for a December 1st ERRA application to address the reasonableness of its ERRA, contract administration, energy resource expenses, and energy dispatch.
5. The inputs used to derive SDG&E's 2003 and 2004 forecasts are based on its load forecast, the forecast of resources to meet its load, and the costs of the various resources.
6. Details of SDG&E's 2003 and 2004 revenue requirement forecasts are set forth in the testimony attached to its application and testimony placed under seal.
7. D.02-10-062 requires the establishment of an ERRA trigger mechanism with a 4% trigger and 5% threshold amount to be set each year based on SDG&E's prior year's actual energy usage.
1. The application should be granted to the extent addressed in the body of this order.
2. Information placed under seal should remain sealed because, if disclosed, it would provide competitors an insight to SDG&E's energy procurement strategy and place SDG&E and its ratepayers at a disadvantage in seeking future energy contracts.
3. This decision should be effective immediately so that SDG&E's ERRA can be implemented expeditiously.
IT IS ORDERED that:
1. The 2003 and 2004 Energy Resource Recovery Account (ERRA) forecasts of San Diego Gas & Electric Company (SDG&E) regarding its load, the resources available to meet its load, fuel costs, and costs for the various resources are adopted.
2. All information placed under seal shall remain sealed for a period of two-years from the effective date of this order except upon the execution of a mutually acceptable nondisclosure agreement or on further order or ruling of the Commission or the Administrative Law Judge then designated as the Law and Motion Judge. If SDG&E believes that further protection of sealed information is needed beyond two years after the effective date of this order, it may file a motion stating the justification for further withholding of the sealed information from public inspection, or for such other relief as the Commission may provide. This motion shall be filed no later than 30 days before the expiration of this ordering paragraph.
3. SDG&E's 2003 ERRA revenue requirement shall be $515.3 million and its 2004 ERRA revenue requirement shall be $282.6 million.
4. SDG&E shall use the same method to allocate any 2003 year-end ERRA over-collected balance that it used to allocate its 2002 year-end Purchased Electric Commodity Account over-collected balance and any shall retain in its ERRA any 2003 under-collected balance.
5. SDG&E's 2003 trigger amount shall be set at $21.419 million and threshold amount at $26.773 million until further adjustment as provided by a subsequent ERRA application or Advice Letter filing. SDG&E is encouraged to include these annual trigger and threshold amounts in its ERRA tariff.
6. SDG&E is encouraged to file a yearly Advice Letter on February 1st to update its ERRA trigger and threshold amounts as set forth in the body of this order. If the first day of February falls on a Saturday, Sunday, or Commission holiday, the date shall be extended to the first day thereafter.
7. Effective January 1, 2004 SDG&E shall establish a Non-Fuel Generation Balancing Account (NGBA) to record San Onofre Nuclear Generation Station Non-fuel costs as addressed in the body of this order and proposed in SDG&E's supplemental testimony.
8. Application 03-06-002 is closed.
This order is effective today.
Dated December 18, 2003, at San Francisco, California.
MICHAEL R. PEEVEY
President
CARL W. WOOD
LORETTA M. LYNCH
GEOFFREY F. BROWN
SUSAN P. KENNEDY
Commissioners
