VI. Assignment of Proceeding
Susan P. Kennedy is the Assigned Commissioner and Bertram D. Patrick is the assigned Administrative Law Judge in this proceeding.
Findings of Fact
1. The accounting change adopted in the decision requiring the utilities to book the lower of the utility's estimated costs or the actual costs applies only to the refundable portion of applicants' installed project costs.
2. To implement the accounting change adopted in the decision, the utilities should use the applicant's third-party contract anticipated costs at the start of a project as set forth in applicant's third-party contract with applicant's installer.
3. The decision converts inspection fees from a non-refundable cost to a refundable cost; therefore, inspection costs should be fixed at the outset of the project and not be subject to reconciliation.
4. The decision limits inspection cost refunds to an amount that ensures that the total amount added to rate base will not exceed the revenue-based allowance for the project.
5. To implement the accounting change adopted in the decision, it is necessary that the applicant provide the utility with a copy of the applicant's third-party contract with their installer to enable the utility to verify applicant's claims, and to ensure there is no gaming of refundable costs and non-refundable costs.
6. If an applicant fails to provide the utility with a copy of applicant's third-party contract within 90 days of the service ready date, the utility may by default use its own estimate for bookkeeping purposes and deny payment of refunds.
The clarification of D.03-03-032, as set forth above, should be adopted.
IT IS ORDERED that:
1. In response to Pacific Gas and Electric Company's petition for clarification of Decision (D.) 03-03-032, we find that:
a. The accounting change adopted in the decision requiring the utilities to book the lower of the utility's estimated costs or the actual costs applies only to the refundable portion of applicant-installed project costs.
b. In implementing the above accounting change, the utilities shall use the applicant's third-party contract anticipated cost at the start of a project as set forth in applicant's third-party contract with applicant's installer.
c. In implementing the decision to allow refund of inspection costs, the utilities shall fix the costs at the outset and the costs shall not be subject to reconciliation for purposes of calculating line extension refunds.
d. In implementing the decision allowing refund of inspection costs for applicant-installed projects, such refunds shall be limited to an amount that ensures that the total amount added to rate base for a project will not exceed the revenue-based allowance for the project.
e. Applicants seeking allowances and refunds for applicant-installed projects shall provide the utility with a copy of the third-party contract with their installer. An applicant's failure to provide a copy of such third-party contract within 90 days of the service ready date, shall by default allow the utility to use its own estimate for bookkeeping purposes and to deny payment of refunds to applicants.
2. This proceeding remains open to address the application for rehearing of D.03-03-032 filed by Utility Services Group.
This order is effective today.
Dated , at San Francisco, California.
