VII. Assignment of Proceeding

Geoffrey F. Brown is the Assigned Commissioner, and Janice Grau is the assigned ALJ in this proceeding.

Findings of Fact

1. SB 1755 requires the Commission to establish a "nonbypassable" surcharge for water districts that elect to generate their own power.

2. The CRS costs at issue are DWR bond charges, DWR power charges, utility-incurred charges, and tail-CTC costs.

3. SB 1755 delegates to the Commission the determination of whether cost-shifting will occur and whether there are additional costs attributable to the districts' self-generation.

4. D.03-04-030 adopted a CRS for customer generation departing load.

5. D.03-07-028 adopted a CRS for municipal departing load of publicly owned utilities as defined by Pub. Util. Code § 9604(d).

6. D.03-04-030 defined customer generation departing load.

7. D.03-04-030 contained exceptions for net metered customers under 1 MW, clean self-generation under 1 MW and partial exceptions for clean customer generation, low-emission systems and other customer generation.

8. D.03-04-030 determined that setting an overall cap of 3,000 MW for exceptions to the DWR power charge would avoid cost-shifting to bundled customers.

Conclusions of Law

1. It is reasonable to apply the CRS adopted in D.03-04-030 to county and municipal water districts that generate their own electricity.

2. The CRS adopted for locally owned publicly utilities in D.03-07-028 does not apply to county and municipal water districts that generate their own power.

3. It is reasonable to apply the definition of customer generation departing load found in D.03-04-030 to county and municipal water districts that generate their own electricity.

4. It is reasonable to apply the exceptions found in D.03-04-030 to county and municipal water districts that generate their own electricity.

5. This order should be effective today in order to provide guidance to the county and municipal water districts.

ORDER

IT IS ORDERED that:

1. This order shall apply to the service territories of Southern California Edison Company (SCE), Pacific Gas and Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E).

2. Decision (D.) 03-04-030's mechanism for determining a Cost Responsibility Surcharge (CRS) shall apply to county and municipal water districts that generate their own electricity.

3. D.03-04-030's exceptions to imposing the CRS shall apply to county and municipal water districts that generate their own electricity.

4. PG&E, SCE, and SDG&E shall file necessary tariff revisions in compliance advice letters within 10 days of the effective date of this order. The advice letters shall be effective on filing, subject to post-filing review for compliance by the Energy Division.

5. The utilities shall report to the Energy Division and the California Energy Commission, on a quarterly basis, the amount of customer generation installed under the provisions of this order.

6. Rulemaking 03-09-029 is closed.

This order is effective today.

Dated June 30, 2005, at San Francisco, California.

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