V. Energy Resource Recovery Account (ERRA)

Consistent with D.03-07-029, SCE used its ERRA to record the difference between ERRA-related revenue and its utility retained generation fuel costs and purchased power-related expenses during the Record Period. DWR power contract expenses were excluded from the ERRA. Details of its ERRA activity for the Record Period resulting in a $171.9 million undercollected balance at December 31, 2004 are set forth in Table XIII-18 to its prepared testimony.

ORA scrutinized the testimony, exhibits, and workpapers of SCE which included documents supporting revenue and expense entries into the ERRA during the Record Period. ORA concluded from its scrutiny that the ERRA balance was appropriate, supported, correctly stated, and in compliance with Commission decisions. Based on this independent analysis and conclusion of SCE's ERRA activity during the Record Period, we find that the $171.9 million undercollected ERRA balance at December 31, 2004 is reasonable and recoverable.