VII. Assignment of Proceeding

Michael R. Peevey is the Assigned Commissioner and David Gamson is the assigned ALJ in this proceeding.

Findings of Fact

1. SCE and DETM entered into 10 PPAs in November and December 2000.

2. DETM terminated the PPAs on January 16, 2001.

3. SCE and DETM disputed the termination payment required under the PPAs.

4. SCE and DETM settled their dispute on March 10, 2006.

5. SCE proposes to distribute the settlement proceeds, plus interest, to ratepayers through the ERRA Balancing Account, less escrow and arbitrator fees, and that the ERRA credit amount be excluded when calculating ERRA Trigger or AB 57 threshold amounts on a recorded basis.

Conclusions of Law

1. The settlement agreement between SCE and DETM is reasonable and should be approved.

2. It is reasonable to distribute the settlement proceeds, plus interest, to ratepayers through the ERRA Balancing Account, less escrow and arbitrator fees, and that the ERRA credit amount be excluded when calculating ERRA Trigger or AB 57 threshold amounts on a recorded basis.

3. The determinations made in Resolution ALJ 176-3173, dated May 25, 2006, that this proceeding is categorized as ratesetting and that hearings are not needed should be confirmed.

ORDER

IT IS ORDERED that:

1. The March 10, 2006 settlement agreement between Southern California Edison Company and Duke Energy Trading and Marketing, L.L.C. is approved.

2. The settlement proceeds, plus interest, shall be distributed to ratepayers through the Energy Resource Recovery Account (ERRA) Balancing Account, less escrow and arbitrator fees.

3. The settlement proceeds, plus interest, shall be excluded when calculating ERRA Trigger or Assembly Bill 57 threshold amounts on a recorded basis.

4. The determinations made in Resolution ALJ 176-3173, dated May 25, 2006, that this proceeding is categorized as ratesetting and that hearings are not needed is confirmed.

5. Application 06-05-018 is closed.

This order is effective today.

Dated September 21, 2006, at San Francisco, California.

Previous PageTop Of PageGo To First Page