STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

September 2, 2003 Agenda ID #2656

TO: PARTIES OF RECORD IN APPLICATION 00-11-038 ET. AL.

This is the draft decision of Administrative Law Judge Wong. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ Angela K. Minkin

Angela K. Minkin, Chief

Administrative Law Judge

ANG: avs

ALJ/JSW/avs DRAFT Agenda ID #2656

Ratesetting

Decision DRAFT DECISION OF ALJ WONG (Mailed 9/2/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (E 3338-E) for Authority to Institute a Rate Stabilization Plan with a Rate Increase and End of Rate Freeze Tariffs.	Application 00-11-038 (Filed November 16, 2000)
Emergency Application of Pacific Gas and Electric Company to Adopt a Rate Stabilization Plan (U 39 E).	Application 00-11-056 (Filed November 22, 2000)
Petition of THE UTILITY REFORM NETWORK for Modification of Resolution E-3527.	Application 00-10-028 (Filed October 17, 2000)

OPINION REGARDING ASSEMBLY BILL 117'S EXPANDED
REGISTRATION OF ELECTRIC SERVICE PROVIDERS
AND REENTRY FEE

TABLE OF CONTENTS

TITLE Page

OPINION REGARDING ASSEMBLY BILL 117'S EXPANDED REGISTRATION OF ELECTRIC SERVICE PROVIDERS AND REENTRY FEE 22

Summary 22

Background 33

Discussion 55

A. Introduction 55

B. Expanded Registration and Related Proof 77

C. Use of Electric Service Provider in Other Code Sections 1919

D. Reentry Fee 2222

Comments on Draft Decision 2424

Assignment of Proceeding 2424

Findings of Fact 2424

Conclusions of Law 2727

O R D E R 2929

Attachment A

OPINION REGARDING ASSEMBLY BILL 117'S EXPANDED
REGISTRATION OF ELECTRIC SERVICE PROVIDERS
AND REENTRY FEE

Summary

Assembly Bill (AB) 117 (Stats. 2002, ch. 838) went into effect on January 1, 2003. As part of AB 117, Public Utilities Code § 394¹ was amended to expand the registration of electric service providers (ESPs). Prior to the amendment of this code section, only ESPs serving residential and small commercial customers were required to register with the Commission. With certain exceptions, AB 117 expands the registration requirement to all entities offering electric service to customers within the service territory of an electrical corporation. AB 117 also amended § 394.25 by adding subdivision (e), which addresses the reentry fee that might be imposed on an end-use customer if the ESP's customer is involuntarily returned to a utility's electric service.

Today's decision addresses the expanded registration and reentry fee requirements. Unless specifically excluded, all entities that offer electric service to customers within the service territory of an electrical corporation in California shall be required to register with the Commission within 90 days, if they haven't registered already. This expanded registration requirement primarily affects those ESPs who provide electric service to medium to large commercial customers and/or industrial customers.

In order to register these additional ESPs, we direct all California electric utilities to provide a list to the Energy Division of all the entities offering electrical service to customers within their respective service territories. The Energy Division shall then notify all of these entities of the expanded registration requirement and the deadline for complying with this decision.

The decision also solicits comments from interested persons as to whether the current schedule of the amount an ESP must post with the Commission as security is sufficient to cover the reentry fee.