COM/CRC/tcg Mailed 7/30/2007
Decision 07-07-041 July 26, 2007
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
(See Appendix B for List of Appearances.)
OPINION DENYING APPLICATION IN PART
TABLE OF CONTENTS
Title Page
OPINION DENYING APPLICATION IN PART 1
1. Summary 2
2. Background: General Ratemaking and CEMA 2
2.1. General Ratemaking 3
2.2. CEMA 3
2.2.1. Prohibition Against Retroactive Ratemaking 5
3. Procedural History 7
4. Position of the Parties 9
4.1. PG&E 9
4.2. Edison 10
4.3. DRA 10
4.4. TURN 11
5. Discussion 13
5.1. PG&E Must Comply with Resolution E-3248 and PG&E's Tariff 13
5.2. Disaster Declaration by a Competent State or Federal Authorities 18
6. Comments on Alternate Proposed Decision 21
7. Assignment of Proceeding 21
Findings of Fact 21
Conclusions of Law 22
ORDER 23
Appendix A - Table 1 - Recent CEMA Proceedings
Appendix B - List of Appearances
OPINION DENYING APPLICATION IN PART
1. Summary
During the hot weather of July 2006, certain equipment of Pacific Gas and Electric Company (PG&E) failed. In part of this application, PG&E characterizes this event as catastrophic and seeks to have its expenses and investments in repairing the damage given the extraordinary ratemaking treatment allowed under certain circumstances through its Catastrophic Event Memorandum Account (CEMA). We find that PG&E has not satisfied the applicable eligibility standards for CEMA ratemaking treatment. We therefore deny the application.
Our denial means only that the expenses and investment do not qualify for CEMA treatment. Repairs for severe weather damage are expected to occur and are handled as a matter of course in general rate cases. This proceeding remains open, however, to consider the other part of the application, namely, PG&E's request to recover any incremental costs for the 2005-2006 New Year's storms pursuant to its CEMA tariff.
