Background Of This Proceeding

On June 25, 2001, SCE filed an application requesting that the California Public Utilities Commission (Commission) approve on an expedited basis the servicing agreement that was entered into between the DWR and SCE. The servicing agreement sets forth terms under which SCE will provide for the transmission and distribution of DWR power, as well as billing and related services as the agent for DWR. A copy of the servicing agreement, as executed, is attached to this decision as Appendix A.

On June 26, 2001, the Commission's Chief Administrative Law Judge (ALJ) issued a ruling that ordered that comments and protests on SCE's application be filed by June 29, 2001 and that SCE file its reply by July 2, 2001. The ruling also stated that the servicing agreement formalizes provisions necessary for the critical role that DWR plays in meeting the electrical needs of SCE's customers and for DWR's bond financing.

On June 28, Aglet Consumer Alliance (Aglet) and The Utility Reform Network (TURN) filed separate protests to SCE's application. On July 2, 2001, SCE filed a response to the protests of Aglet and TURN.

On July 5, the Chief ALJ issued a second ruling allowing interested parties to file supplemental protests, supplemental reply comments, or a response to SCE's application by July 12, 2001. The ruling was made in response to the July 2, 2001 letter to Commissioner Lynch from DWR, the California Department of Finance, and the State Treasurer requesting that the Commission postpone taking action on certain items related to the issuance of the DWR's power supply revenue bonds until mid-August, after the effective date of legislation providing for expedited judicial review of Commission orders implementing AB1X. This decision is one of the items that was postponed in response to that letter. The Chief ALJ's ruling also recognized that parties were initially given a short time period to file protests and responses regarding SCE's application.

NewPower Company (NewPower) filed timely comments on the servicing agreements for all three utilities.