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STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 29, 2001 File No.: A.00-11-038 et al.

TO: ALL PARTIES IN APPLICATION 00-11-038 ET AL.

This mailing replaces the mailing of Decision 01-03-083 on March 27, 2001. This order now includes the correct Attachments B, C, D and E.

The "date of issuance" is now March 29, 2001 for purposes of Pub. Util. Code § 1731(b).

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC:sid

Attachments

COM/LYN/sid Mailed 3/29/2001

Decision 01-03-081 March 27, 2001

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (E 3338-E) for Authority to Institute a Rate Stabilization Plan with a Rate Increase and End of Rate Freeze Tariffs.

Application 00-11-038

(Filed November 16, 2000)

Emergency Application of Pacific Gas and Electric Company to Adopt a Rate Stabilization Plan. (U 39 E)

Application 00-11-056

(Filed November 22, 2000)

Petition of THE UTILITY REFORM NETWORK for Modification of Resolution E-3527.

Application 00-10-028

(Filed October 17, 2000)

AB 1X

INTERIM OPINION

I. Summary

This order implements legislation allowing the state to provide electricity that its utilities are unable to provide. First, this order requires utilities to provide the Department of Water Resources with the money they have collected, that was earned by the sale of power paid for by the Department of Water Resources. Currently, both utilities and the Department of Water Resources sell power to end use customers, but the utilities collect revenues in lump sum for all power that is delivered. Second, this order sets out a proposed method the Commission will use to calculate the "CPA," the California Procurement Adjustment established by Public Utilities Code Section 360.5.1 This order then applies this proposed method, and calculates-for each utility-a proposed company-wide average CPA rate. Using that rate, this order determines a proposed CPA revenue amount, which can be used by the Department of Water Resources to begin the process of issuing bonds. Following a discussion of the context in which this decision is issued, we take these actions in Sections VI, VII and VIII, below.

1 CPA amounts will be used to determine the amount of the bonds the Department of Water Resources can issue to support its power purchases. In addition, the Commission may order that a portion of the revenues generated by the CPA be paid to DWR as partial reimbursement for its power purchases. That portion is the "Fixed DWR Set-Aside."

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