Conclusions of Law
1. The Settlement Agreement fully resolves and settles all disputed issues, among the parties concerning SCWC's application in this proceeding.
2. The Settlement Agreement we approve herein does not contravene the law.
3. Because the Settlement Agreement sufficiently states the amount of the proposed electric revenues, the proposed allocation of revenues to customer classes, adjustments to the PPAC balancing account, and miscellaneous provisions, the Settlement Agreement creates no regulatory uncertainty.
4. Approval of the Settlement Agreement provides that consistent with AB 1X, rates for residential customers using 130% or less of baseline allowance will be exempted from a rate increase.
5. Approval of the Settlement Agreement does not provide baseline allowances for those SCWC customers whose usage is for a second home under Schedule DO, consistent with D.89-01-043, and D.86-02-030.
6. A reduction of $1.851 million per year in energy rates is within the range of outcomes the Commission could have found reasonable based on the record and evidence, had this matter not been settled.
7. The Settlement Agreement is reasonable in light of the strength of each party's litigation position, the risk, expense, and complexity of the litigation, and the settlement amount upon which the parties agreed.
8. The Settlement Agreement is reasonable in light of the whole record, consistent with law, consistent with prior Commission decisions, and in the public interest.
9. As provided in Rule 51.8 of the Commission's Rules of Practice and Procedure, and consistent with the terms of the Settlement Agreement itself, the adoption of the Settlement Agreement is binding on all parties but does not constitute approval of, or precedent regarding, any principle or issue in the proceeding or in any future proceeding.
10. The decision should be effective today so that the settlement may be implemented expeditiously.
IT IS ORDERED that:
1. The February 8, 2002 Joint Motion of Southern California Water Company (SCWC), the Office of Ratepayer Advocates (ORA), and Bear Mountain, Inc. for approval of the Settlement Agreement dated February 8, 2002 is granted and the Settlement Agreement is approved without modification.
2. SCWC shall credit the Purchased Power Adjustment Clause (PPAC) Balancing Account by the differential between $87.41 per Megawatt-hour(MWh) and $77.00 per MWh times the average of actual purchases and prorated adopted purchases for the period April 1, 2001 through the end of the calendar month of this decision.
3. The weighted average annual energy cost component of the PPAC shall not exceed $77.00 per MWh.
4. SCWC shall forgo its previously-authorized attrition allowance of $600,000 for its water utility customers for 2002.
5. SCWC shall vigorously pursue its complaint against Mirant Americas Energy Marketing, L.P. at the Federal Energy Regulatory Commission, and report to the Commission the results of the complaint. If the result of the complaint lowers average annual purchased power costs below $77.00 per MWh, SCWC shall file an advice letter with this Commission within thirty days reflecting that result.
6. The motion of the Big Bear Area Regional Wastewater Agency, filed, February 13, 2002 to withdraw its testimony, identified as Exhibit 16, from evidence and to withdraw from the proceeding is granted.
7. SCWC shall file an advice letter to modify its tariffs in conformance with the attached Settlement Agreement.
8. This proceeding is closed.
This order is effective today.
Dated , at San Francisco, California.
ATTACHMENT 1
Schedule No. A-1
GENERAL SERVICE
Less than 20kW
APPLICABILITY
Applicable to all general power service including lighting and power,
also for heating service whose maximum load is less than 20 kW as
estimated by SCWC or as metered. Demand cannot exceed 20 kW
in any 12-month consecutive period.
TERRITORY
Big Bear Lake and vicinity, San Bernardino County.
RATES Per Meter
Per Month
System Availability Charge, Per Meter, Per Month: $ 5.00
Metering, Per Meter, Per Month: $ 2.30
First 1,500 kWh Excess
Local Transmission and Distribution Charge, per kWh: $0.07580 $0.07580
Transmission Service, per kWh: $0.00200 $0.00200
Capacity Service, per kWh: $0.00850 $0.00850
Ancillary Services per kWh: $0.00770* $0.00770*
Total PSDC Components, per kWh $0.01820 $0.01820
Energy Charges for Purchases, per kWh: $0.06480* $0.11570*
CARE and Public Good, per kWh: $0.00038 $0.00038
Research and Development, per kWh: $0.00050 $0.00050
Renewable Resource Technologies, per kWh: $0.00050 $0.00050
Amortization, per kWh $0.02246 $0.02246
*Component available for direct access purchases.
Schedule No. A-2
GENERAL SERVICE
20 to 50 kW
APPLICABILITY
Applicable to all general power service including lighting and power,
also for heating service whose maximum load is between 20 and 50 kW
as estimated by SCWC or as metered.
TERRITORY
Big Bear Lake and vicinity, San Bernardino County.
RATES Per Meter Per Month
System Availability Charge, Per Meter, Per Month: $47.70
Metering, Per Meter, Per Month: $2.30
First 7,500 kWh Excess
Local Transmission and Distribution Charge, per kWh: $0.07580 $0.07580
Transmission Service, per kWh: $0.00200 $0.00200
Capacity Service, per kWh: $0.00850 $0.00850
Ancillary Services per kWh: $0.00770* $0.00770*
Total PSDC Components, per kWh $0.01820 $0.01820
Energy Charges for Purchases, per kWh: $0.06480* $0.11570*
CARE and Public Good, per kWh: $0.00038 $0.00038
Research and Development, per kWh: $0.00050 $0.00050
Renewable Resource Technologies, per kWh: $0.00050 $0.00050
Amortization, per kWh $0.02246 $0.02246
* Component available for direct access purchases.
Schedule No. A-3
GENERAL SERVICE
Greater than 50 kW
APPLICABILITY
Applicable to all general power service including lighting and power,
also for heating service where load is in excess of 50 kW.
TERRITORY
Big Bear Lake and vicinity, San Bernardino County.
RATES Per Meter Per Month
System Availability Charge, Per Meter, Per Month: $497.70
Metering, Per Meter, Per Month: $2.30
First 20,000 kWh Excess
Local Transmission and Distribution Charge, per kWh: $0.07580 $0.07580
Transmission Service, per kWh: $0.00200 $0.00200
Capacity Service, per kWh: $0.00850 $0.00850
Ancillary Services per kWh: $0.00770* $0.00770*
Total PSDC Components, per kWh $0.01820 $0.01820
Energy Charges for Purchases, per kWh: $0.06480* $0.11570*
CARE and Public Good, per kWh: $0.00038 $0.00038
Research and Development, per kWh: $0.00050 $0.00050
Renewable Resource Technologies, per kWh: $0.00050 $0.00050
Amortization, per kWh $0.02246 $0.02246
* Component available for direct access purchases.
Schedule No. D
DOMESTIC SERVICE - SINGLE FAMILY ACCOMMODATION
APPLICABILITY
Applicable only to permanent residents of Bear Valley for domestic
single-phase service, including lighting, heating, cooking and power
or combination thereof in a single-family accommodation; also to
permanent domestic single-phase farm service when supplied through
the farm operator's domestic meter.
