VII. Electric Energy Transaction Administration (EETA)

EETA administrative and general costs are those costs incurred by SCE to procure, dispatch, settle, and administer procurement-related transactions. At December 31, 2004, SCE had a $6.4 million undercollected balance in its EETA Memorandum Account (EETAMA). Details of its activity in this mechanism for the period January 1, 2003 through December 31, 2004 were set forth in Table XVI-50 of Exhibit 2, as revised in Exhibit 6.

SCE requested that the costs recorded in its EETAMA from January 1, 2003 through December 31, 2004 be found reasonable and transferred to its Base Revenue Requirement Balancing Account (BRRBA). The BRRBA compares, on a monthly basis, the Commission-authorized distribution and generation base-related revenue requirements, including authorized EETA costs, with applicable retail revenues from distribution and generation base-related rates and includes distribution and generation sub-accounts to track over- and undercollections. The actual rate level change associated with the recovery of EETA costs through the BRRBA is to take place in a subsequent ERRA forecast proceeding, where SCE presents its consolidated revenue requirements and rate changes.

DRA scrutinized SCE's EETA costs and concluded that the balance was properly calculated. Based on this independent analysis and conclusion, we find the December 31, 2004 EETAMA balance of $6.4 million is reasonable and recoverable.