11. Assignment of Proceeding
Dian M. Grueneich is the assigned Commissioner and Jessica Hecht is the assigned ALJ in this proceeding.
1. SCE's proposed AMI Project will meet the minimum functionality criteria established by President Peevey.
2. The Commission has encouraged utilities to research the feasibility and cost-effectiveness of AMI technology.
3. Approval of AMI deployment by this Commission is dependent on research showing that the technology is cost-effective.
4. There has been no record developed through the evidentiary process to test, rebut, or verify SCE's AMI business case assumptions or results.
5. Funding proposed Phase 2 activities and costs that do not provide information that will assist in Commission's determination of whether SCE should proceed with AMI deployment requires the Commission either to assume that AMI deployment will occur, resulting in prejudgment of a future deployment application, or to leave ratepayers at risk of significant stranded costs.
6. Research related to a new technology can be a "prudent investment" if it assists in making an informed decision on whether to proceed with implementation of the project.
7. Pre-deployment activities are defined as activities that 1) test meter functionality, communications technology and equipment, or 2) develop and refine estimates of costs and benefits associated with its AMI project prior to committing to full scale deployment.
8. Approving funding for further research into the feasibility and cost-effectiveness of AMI does not prejudge the outcome of a future proceeding on whether SCE should deploy AMI.
9. Activities that may refine the business case and related cost effectiveness calculations should not be arbitrarily excluded simply because they may be completed after the Phase 3 deployment application is expected to be filed.
10. The fact that we do not pre-approve ratepayer cost recovery for certain activities does not foreclose SCE from pursuing these activities.
11. SCE already has authorization to record costs associated with all of its defined pre-deployment activities in a memorandum account, which preserves its ability to seek future cost recovery.
12. SCE should be authorized to record up to $25.52 million in pre-deployment expenses and $19.7 million in pre-deployment capital expenditures. SCE's proposed deployment plan and schedule will be determined in a future Commission proceeding.
13. We approve the addition of $5.6 million in capital costs associated with the AMI product Management and Field deployment categories, and not the $14.1 million approved for other capital costs in the information technology and systems integrator categories, to SCE's ratebase.
14. SCE may shift funds among approved activities as long as the limits on O&M expenses, capital costs, and revenue requirement adopted in this decision are not exceeded.
15. We expect SCE to file its deployment application when sufficient information is available to develop a complete and accurate business case.
16. If relevant information becomes available during the Commission proceeding on Phase 3, we expect SCE to provide updated or amended testimony and supporting information to other parties to ensure a complete and accurate record in that proceeding and an opportunity for full participation by all parties.
17. It is in the public interest for utilities to share information on their AMI technical and business requirements and testing results for the sole purpose of informing utilities' future purchasing decisions.
1. The finding that SCE's proposed AMI Project meets the minimum functionality criteria does not establish that the system proposed by SCE is the correct or best system, or provides the best value for ratepayers. These are issues to be decided in SCE's future application requesting approval for deployment of its AMI system.
2. There is no legal impediment to authorizing pre-deployment activities.
3. It is reasonable at this time to authorize ratepayer funding for a set of activities those activities designed 1) to test meter functionality, communications technology and equipment, or 2) to develop and refine estimates of costs and benefits associated with its AMI project prior to committing to full scale deployment.
4. It is also reasonable to authorize ratepayer funding at this time for expenditures that will provide ratepayer value whether or not the Commission approves ratepayer funding for AMI deployment.
5. SCE should be authorized to record up to $45.22 million in pre-deployment expenditures, with not more than $5.6 million of this amount to be added to rate base.
6. It is reasonable to allow SCE to shift funding among approved activities as long as the total amounts of funding adopted for O&M activities and capital expenditures and the revenue requirement described in this decision are not exceeded.
7. SCE's proposed approach of recovering authorized AMI pre-deployment costs through electric distribution rates is reasonable.
8. It is reasonable to authorize SCE to make modifications to the language of its AMIBA account to provide for recording of the costs authorized today.
9. It is reasonable to authorize SCE to transfer amounts associated with activities approved in this decision from its AMIMA to its AMIBA.
10. Subsequent review of the costs recorded in AMIBA should be limited to verification that the costs recorded are consistent with the limitations set forth in this decision.
11. Costs recorded in AMIBA should be transferred monthly to the BRRBA for recovery in distribution rates.
12. It is reasonable to allow SCE to continue to utilize its existing AMIMA to record the costs of AMI activities described in its application that are not pre-approved.
13. It is reasonable to direct SCE to share information on its AMI technical and business requirements and testing results with other California utilities to assist them in making their own independent purchasing decisions.
IT IS ORDERED that:
1. Southern California Edison Company (SCE) is authorized to spend ratepayer funding on activities that provide value to the Commission by providing information that will assist in the development or evaluation of SCE's final proposal for deployment of an advanced metering infrastructure system.
2. SCE shall file an Advice Letter within 10 days of the effective date of this decision to update its Advanced Metering Infrastructure Balancing Account (AMIBA) tariff sheets consistent with the limitations on activities described in this decision.
3. SCE may record up to $25.52 million in pre-deployment expenditures and $19.7 million in pre-deployment capital costs in its AMIBA for activities consistent with those approved in this decision. SCE will consult with Energy Division staff in determining the scope of research and types of work products that should result from expenditures in the customer tariffs and programs area.
4. SCE may include in rate base, as described above, its capital expenditures associated with metering and telecommunications equipment, not to exceed $5.6 million.
5. SCE may shift funds among activities approved in this decision as long as the limits on O&M expenditures, capital costs, and revenue requirement adopted in this decision are not exceeded.
6. SCE may file an Advice Letter to transfer any recorded costs that are consistent with the activities and funding level authorized in this decision from its Advanced Metering Infrastructure Memorandum Account (AMIMA) to its AMIBA.
7. Subsequent review of the costs recorded in AMIBA shall be limited to verification that the costs recorded and transferred to the Base Revenue Requirement Balancing Account (BRRBA) are consistent with the limitations set forth in this decision.
8. SCE may continue to utilize the existing AMIMA account approved on January 5, 2007, to record costs of activities described in that account that did not receive pre-approved ratepayer funding in this decision. SCE may request that the Commission review the reasonableness of the costs recorded in the AMIMA for possible recovery in a subsequent proceeding.
9. SCE is directed to share its AMI technical and business requirements and testing results, subject to appropriate confidentiality requirements, with other California investor-owned utilities that agree to use this information solely to inform their independent purchasing decisions.
10. Application 06-12-026 is closed.
This order is effective today.
Dated July 26, 2007, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
Appendix A
List of Appearances A0612026
Last Update on 31-MAY-2007 by: JVG
************ APPEARANCES ************
Paul Angelopulo
Legal Division
505 VAN NESS AVE, RM. 5031
San Francisco CA 94102 3298
(415) 703-4742
pfa@cpuc.ca.gov
For: DRA
Salle E. Yoo, Attorney At Law
DAVIS WRIGHT TREMAINE
505 MONTGOMERY STREET, SUITE 800
SAN FRANCISCO CA 94111-6533
(415) 276-6500
salleyoo@dwt.com
For: Wal-Mart Stores, Inc./sam's west, inc.
Kathleen H. Cordova
SAN DIEGO GAS & ELECTRIC
8330 CENTURY PARK CT, CP32D
SAN DIEGO CA 92123-1530
(858) 650-4186
KCordova@semprautilities.com
For: San Diego Gas & Electric
Janet Combs, Attorney At Law
SOUTHERN CALIFORNIA EDISON COMPANY
2244 WALNUT GROVE AVENUE
ROSEMEAD CA 91770
(626) 302-1524
janet.combs@sce.com
For: Southern California Edison Company
Nina Suetake, Attorney At Law
THE UTILITY REFORM NETWORK
711 VAN NESS AVE., STE 350
SAN FRANCISCO CA 94102
(415) 929-8876
nsuetake@turn.org
For: TURN
********** STATE EMPLOYEE ***********
Nilgun Atamturk
Executive Division
505 VAN NESS AVE, RM. 5303
San Francisco CA 94102 3298
(415) 703-4953
nil@cpuc.ca.gov
Moises Chavez
Energy Division
505 VAN NESS AVE, AREA 4-A
San Francisco CA 94102 3298
(415) 703-1851
mcv@cpuc.ca.gov
For: Energy Division
Christopher Danforth
Division of Ratepayer Advocates
505 VAN NESS AVE, RM. 4209
San Francisco CA 94102 3298
(415) 703-1481
ctd@cpuc.ca.gov
For: DRA
Theodore H Geilen
Division of Ratepayer Advocates
505 VAN NESS AVE, RM. 4209
San Francisco CA 94102 3298
(415) 703-1235
u19@cpuc.ca.gov
For: DRA
Jessica T. Hecht
Administrative Law Judge Division
505 VAN NESS AVE, RM. 5113
San Francisco CA 94102 3298
(415) 703-2027
jhe@cpuc.ca.gov
Bruce Kaneshiro
Energy Division
505 VAN NESS AVE, AREA 4-A
San Francisco CA 94102 3298
(415) 703-1187
bsk@cpuc.ca.gov
Scarlett Liang-Uejio
Division of Ratepayer Advocates
505 VAN NESS AVE, RM. 4209
San Francisco CA 94102 3298
(415) 703-2043
scl@cpuc.ca.gov
For: DRA
Ralph E. Abbott
PLEXUS RESEARCH, INC.
629 MASSACHUSETTS AVE
BOXBOROUGH MA 01719-1528
(978) 263-6080
rabbott@plexusresearch.com
For: DRA consultant on AMI
********* INFORMATION ONLY **********
Tanya Gulesserian
ADAMS BROADWELL JOSEPH & CARDOZO
601 GATEWAY BLVD. STE 1000
SOUTH SAN FRANCISCO CA 94080
(650) 589-1660
tgulesserian@adamsbroadwell.com
Marc D. Joseph, Attorney At Law
ADAMS, BROADWELL, JOSEPH & CARDOZO
601 GATEWAY BLVD., STE. 1000
SOUTH SAN FRANCISCO CA 94080
(650) 589-1660
mdjoseph@adamsbroadwell.com
Chris Hickman
CELLNET TECHNOLOGIES, INC.
4085 SUDBURY ROAD
COLORADO SPRINGS CO 80908
(719) 337-9862
chris.hickman@cellnet.com
Ward Camp
CELLNET TECHNOLOGIES, INC.
12217 SAN VICTORIO NE
ALBUQUERQUE NM 87111
(678) 258-1608
Ward.camp@cellnet.com
Steven F. Greenwald, Attorney At Law
DAVIS WRIGHT TREMAINE, LLP
505 MONTGOMERY STREET, SUITE 800
SAN FRANCISCO CA 94111-6533
(415) 276-6500
stevegreenwald@dwt.com
Donald C. Liddell
DOUGLASS & LIDDELL
2928 2ND AVENUE
SAN DIEGO CA 92103
(619) 993-9096
liddell@energyattorney.com
Chris King, Chief Strategy Officer
EMETER CORPORATION
1 TWIN DOLPHIN DRIVE
REDWOOD CITY CA 94065
(650) 631-7230
chris@emeter.com
Sharon Talbott
EMETER CORPORATION
ONE TWIN DOLPHIN DRIVE
REDWOOD CITY CA 94065
(650) 631-7230 X-117
sharon@emeter.com
Mwirigi Imungi
15615 ALTON PARKWAY
IRVINE CA 92618
(949) 701-4646
Mlungi@energycoalition.org
Jeff Nahigian
JBS ENERGY, INC.
311 D STREET
WEST SACRAMENTO CA 95605
(916) 372-0534
jeff@jbsenergy.com
Clark Pierce
LANDIS+GYR, REGULATORY AFFAIRS
246WINDING WAY
STRAFORD NJ 08084
(856) 435-6024
Clark.Pierce@us.landisgyr.com
Jeff Francetic, Business Development Manager
LANDIS+GYR, INC.
14891 LAGO DRIVE
RANCHO MURIETA CA 95683
(916) 354-8400
jeff.francetic@us.landisgyr.com
MRW & ASSOCIATES, INC.
1814 FRANKLIN STREET, SUITE 720
OAKLAND CA 94612
(510) 834-1999
mrw@mrwassoc.com
Karen Lang
PACIFIC GAS AND ELECTRIC COMPANY
77 BEALE STREET, MC B10A
SAN FRANCISCO CA 94105
KEL3@pge.com
Larry Nixon
PACIFIC GAS AND ELECTRIC COMPANY
77 BEALE STREET, MC B10A
SAN FRANCISCO CA 94105
(415) 973-5450
lrn3@pge.com
Central Files
SDG&E AND SOCALGAS
8330 CENTRUY PARK COURT, CP31-E
SAN DIEGO CA 92123
CentralFiles@semprautilities.com
Vicki L. Thompson, Attorney At Law
SEMPRA ENERGY
101 ASH STREET, HQ-13D
SAN DIEGO CA 92101-3017
(619) 699-5130
vthompson@sempra.com
Scott H. Debroff
SMIGEL, ANDERSON & SACKS
RIVER CHASE OFFICE CENTER
4431 NORTH FRONT STREET
HARRISBURG PA 17110
(717) 234-2401
sdebroff@sasllp.com
For: Cellnet Technology, Inc.
Paul F. Kubasek
SOUTHERN CALIFORNIA EDISON
2244 WALNUT GROVE AVENUE
ROSEMEAD CA 91770
(626) 302-8183
paul.kubasek@sce.com
Bruce Foster, Vice President
SOUTHERN CALIFORNIA EDISON COMPANY
601 VAN NESS AVENUE, STE. 2040
SAN FRANCISCO CA 94102
(415) 775-1856
bruce.foster@sce.com
Case Administration
SOUTHERN CALIFORNIA EDISON COMPANY
LAW DEPARTMENT
2244 WALNUT GROVE AVENUE
ROSEMEAD CA 91770
(626) 302-4875
case.admin@sce.com
Paul De Martini
SOUTHERN CALIFORNIA EDISON COMPANY
2244 WALNUT GROVE, G01Q1C
ROSEMEAD CA 91770
(626) 302-3376
paul.demartini@sce.com
Patricia Thompson
SUMMIT BLUE CONSULTING
2920 CAMINO DIABLO, SUITE 210
WALNUT CREEK CA 94597
(925) 935-0270
pthompson@summitblue.com
Marcel Hawiger
Attorney At Law
THE UTILITY REFORM NETWORK
711 VAN NESS AVENUE, SUITE 350
SAN FRANCISCO CA 94102
(415) 929-8876
marcel@turn.org
(END OF APPENDIX A)
