7. Assignment of Proceeding
John A. Bohn is the assigned Commissioner and Douglas M. Long is the assigned ALJ in this proceeding.
1. The Commission adopted Resolution E-3238 following the Loma Prieta earthquake to provide jurisdictional utilities a ratemaking mechanism to recover the reasonable costs incurred to (a) restore utility service to customers; (b) repair, replace or restore damaged utility facilities; and (c) comply with government agency orders resulting from declared disasters. The jurisdictional utilities were authorized to include a CEMA in their tariffs.
2. Resolution E-3238 states "[b]ecause the intent of such [CEMA] accounts is to capture for consideration for later recovery only those costs associated with truly unusual, catastrophic events such as the Loma Prieta earthquake, their use will be restricted to events declared disasters by competent state or federal authorities." It also states "[t]he costs eligible for entry into such a memorandum account are those necessary for: (a) restoring utility service to customers; (b) repairing, replacing or restoring damaged utility facilities; and (c) complying with government agency orders resulting from declared disasters."
3. The California Legislature enacted SB 1456 (1994 Legislative Session (Chapter 1156)) which added § 454.9 to the Pub. Util. Code. Section 454.9(b) added the requirement for the Commission to hold expedited proceedings for cost recovery.
4. PG&E's currently effective CEMA tariff includes the requirement that there be a declaration of emergency by a competent state or federal authority.
5. PG&E's proposed Advice Letter 2771-G/2918-E would eliminate the need for a disaster declaration by a competent state or federal authority.
6. Prior to this application, no utility has requested CEMA recovery for events declared disasters by governmental entities other than the Governor of California or President of the United States.
7. The USDA's and counties' declarations only relate to agricultural impacts or the need for cooling centers.
8. The SBA's declaration related solely to financial impacts to small businesses.
9. The primary counties covered by the USDA, SBA, and county declarations were different than the counties where PG&E incurred the greatest costs.
10. There is no direct link between the declarations of the USDA, SBA, counties and the costs that PG&E incurred to restore service.
1. The Commission has broad discretion to set the terms and conditions included in PG&E's tariffs, including the CEMA, so long as they are not inconsistent with statutory requirements.
2. The Commission's practice and requirements for CEMA, as adopted in Resolution E-3248, conform to the requirements of § 454.9.
3. The legislative history of § 454.9 shows that the existing CEMA tariffs "are not in conflict with" the statute's requirements.
4. The Commission's Energy Division should be directed to reject Advice Letter 2771-G/2918-E without prejudice.
5. The part of this application that pertains to recovery of costs under CEMA related to the hot weather of July 2006 should be denied as PG&E has failed to satisfy the standards for eligibility set forth in the PG&E tariff and Resolution E-3248.
6. This order should be effective as soon as possible.
IT IS ORDERED that:
1. Pacific Gas and Electric Company's (PG&E) request to recover incremental costs incurred due to the July 2006 Heat Storm is dismissed.
2. This proceeding remains open to consider PG&E's request to recover any incremental costs for the "2005-2006 New Year's storms" pursuant to its Catastrophic Event Memorandum Account tariff.
3. The Energy Division shall reject PG&E's proposed Advice Letter 2771-G/2918-E without prejudice.
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
I reserve the right to file a concurrence.
/s/ JOHN A. BOHN
Commissioner
I reserve the right to file a concurrence.
/s/ RACHELLE B. CHONG
Commissioner
APPENDIX A
Table 1 Recent CEMA Proceedings | ||
Decision |
Application |
Proceeding |
D.06-10-038 |
A.05-12-018 |
Southern California Edison Company, for authorization to recover costs incurred in 2004 and recorded in the Bark Beetle Catastrophic Event Memorandum Account. |
D.06-10-034 |
A.06-06-020 |
Southern California Edison Company, for Authorization to Recover Costs Incurred in 2005 and recorded in the Rainstorm Catastrophic Event Memorandum Account. |
D.06-10-032 |
A.06-07-012 |
San Diego Gas & Electric Company for Recovery of Costs related to the California Bark Beetle Infestation Under the Catastrophic Event Memorandum Account (CEMA). |
D.06-01-036 |
A.05-09-001 |
Pacific Gas and Electric Company, to recover additional costs related to the 1997 New Year's Flood and 1998 February Storms recorded in the Catastrophic Event Memorandum Account (CEMA) pursuant to Ordering Paragraph 1 of Decision 04-09-020. |
D.05-08-039 |
A.04-12-003 |
Southern California Edison Company, for authorization to Recover Costs Recorded in the Catastrophic Events Memorandum Account. (2003 Firestorms.) |
D.05-08-037 |
A.04-06-035 |
San Diego Gas & Electric Company, under the Catastrophic Event Memorandum Account (CEMA) for recovery of costs related to the 2003 Southern California Wildfires. |
D.00-04-050 |
A.99-01-011 |
Pacific Gas and Electric Company, to recover costs recorded in the Catastrophic Event Memorandum Account effective January 1, 2000. |
(END OF APPENDIX A)
APPENDIX B
LIST OF APPEARANCES
************ SERVICE LIST ***********
Last Update on 23-MAY-2007 by: JVG
A0611005 LIST
************ APPEARANCES ************ |
Marcel Hawiger |
Mark Waterworth |
Larry Nixon |
(END OF APPENDIX B)
