MP1/AYK/mto 10/23/2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Implement the Commission's Procurement Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions Standards into Procurement Policies. |
Rulemaking 06-04-009 (Filed April 13, 2006) |
ASSIGNED COMMISSIONER AND ADMINISTRATIVE LAW
JUDGE'S RULING ENTERING ADDITIONAL INFORMATION
INTO THE RECORD AND SEEKING COMMENTS
This joint Assigned Commissioner and Administrative Law Judge's (ALJ) Ruling enters into the record additional information concerning Southern California Edison Company's (SCE) ownership interest in Units 4 and 5 of the Four Corners Generating Plant. This Ruling further sets forth the deadlines for parties to file comments on this additional information. Finally, this Ruling directs SCE to explain why it failed to include this information in its Petition to Modify Decision (D.) 07-01-039 and why the Commission should not pursue an investigation into whether SCE has violated Rule 1 of the Commission's Rules of Practice and Procedure.
Background
In D.07-01-039 (Decision), we adopted an interim greenhouse gas emissions performance standard (EPS) for new long-term financial commitments to baseload generation undertaken by all load-serving entities, consistent with the requirements of Senate Bill (SB) 1368 (Stats. 2006, ch. 598). As part of the Decision, we determined that a utility's new investment in retained baseload generation "intended to extend the life of one or more units of an existing baseload powerplant for five years or more, or [that] results in a net increase in the existing rated capacity of that powerplant" is a "covered procurement" under SB 1368 and, thus, subject to the EPS.1
On January 28, 2008, SCE filed a Petition to Modify (Petition) D.07-01-039. It states that as part of its General Rate Case (GRC) Application for Test Year 2009, Application (A.) 07-11-011, it has requested authorization to recover $178,593,000 to cover its share of capital expenditures at Four Corners Generating Station (Four Corners).2 SCE states that, as written, the Decision's language concerning new investment in retained baseload power could be applied in a manner that would prevent it from fulfilling its financial obligations under the Agreements. It further maintains that "application of [D.07-01-039] to preclude SCE's future investment in Four Corners will conflict with SCE's contractual obligation to financially support Four Corners, contravene [D.07-01-039's] stated intention, and harm SCE and its ratepayers." (Petition, p. 2.) Consequently, it requested that -- to deal with generating units owned jointly with third parties --the Decision be modified to exclude from the "Covered Procurements" subject to the EPS "financial contributions required by existing contractual agreements ([i.e., those] effective prior to January 29, 2007)". (Petition, pp. 8-9.)
On September 2, 2008, the Assigned Commissioner issued a proposed decision (PD). The PD would deny SCE's Petition, but find that the definition of "new ownership investments" in D.07-01-039 was not intended to apply to the capital expenditures requested by SCE in A.07-11-011. Based on this determination, the PD would have allowed SCE to recover these expenditures in rates.
1 D.07-01-039 at p. 49 (slip op.).
2 SCE owns a 48% co-tenancy interest in Units 4 and 5 of Four Corners. SCE's rights and obligations with respect to Four Corners are stated in various agreements (Agreements).
