26. Revenues Requirement Memorandum Accounts

By D.06-01-020, dated January 12, 2006, SCE was granted authority to establish the GRC Revenue Requirement Memorandum Account (RRMA) to track the change in revenue requirement adopted in this proceeding during the period between January 12, 2006 and the effective date of this final decision. In the same decision, SDG&E was granted authority to establish the SONGS Revenue Requirement Memorandum Account (SRRMA) to track the change in revenue requirement related to its interest in SONGS adopted in this proceeding during the period between January 12, 2006 and the effective date of this final decision. Authorizations were granted in response to motions filed by SCE on August 2, 2005 and by SDG&E on September 30, 2005.

The Commission has a practice of establishing memorandum accounts to allow GRC case decisions delayed past the start of the test year to be effective as if the decisions had not been delayed, notwithstanding the general rule against retroactive ratemaking. In this proceeding, it was anticipated that a final decision would be issued at the January 12, 2006 Commission Meeting. When it became clear that it would not happen, the motions for memorandum accounts were considered and granted by D.06-01-020. Such action is consistent with our previously stated policy objectives of holding utility shareholders and ratepayers harmless for any required procedural delays, removing incentives for any party to seek or promote delay, and providing parties and decision makers with sufficient time to review and analyze record.¹⁴⁸

The delay in issuing this decision beyond January 12, 2006 was necessary to ensure full and fair consideration of this matter. It is reasonable to reflect the GRC RRMA balance in SCE's rates and the SRRMA balance in SDG&E's rates. With the effective date of this decision, SCE should transfer the GRC RRMA balance to its Base Revenue Requirement Balancing Account, and SDG&E should transfer the SRRMA balance to its Non-fuel Generation Balancing Account.

¹⁴⁸ For instance, see D.03-05-076, mimeo., pp. 7-8.