Background
D.00-02-046 ordered PG&E to file a TY 2002 GRC. As stated in that decision, the Rate Case Plan (RCP) schedule would require that PG&E file its Notice of Intent (NOI) in summer 2000, and its GRC application in the fall of 2000. Litigation would proceed in 2001, and the 2002 GRC decision would be issued in late 2001 to become effective January 1, 2002.1 SCE also plans to file a TY 2002 GRC on a concurrent schedule.2
In Application (A.) 97-12-020, PG&E requested an attrition rate adjustment mechanism for years 2000 and 2001 to match changes in authorized revenues with anticipated cost changes during those years. D.00-02-046 denied PG&E's attrition year 2000 proposal, but allowed PG&E to file for an attrition year 2001 adjustment.
In D.00-02-046, the Commission ordered Energy Division to conduct an audit of PG&E's electric distribution capital projects closed to Plant in Service during calendar year 1999, and report to the Commission on or before November 15, 2000. In addressing electric distribution plant issues in that decision, the Commission referenced its investigation of PG&E's expenditures made pursuant to Pub. Util. Code § 368(e) for safety and reliability enhancements of its electric distribution system. The Commission noted that the results of the 1999 electric distribution capital audit and the 368(e) investigation may be used in the TY 2002 GRC and PG&E's attrition year filing to help refine procedures for estimating and authorizing distribution capital spending for the future.3
PG&E filed an electric distribution and gas base rate Performance Based Ratemaking (PBR) proposal in A.98-11-023. In D.00-02-046, the Commission stated it does not intend to proceed with PG&E's PBR proposal, but that the PBR should not be dismissed. On March 30, 2000, PG&E filed a Petition to Withdraw A.98-11-023. PG&E proposes to file a new application proposing PBR performance standards in compliance with D.00-02-046 if the Commission grants its petition. The Commission intends for the PBR to be narrowed to provide a basis for adopting specific operating and performance standards relating to outage frequency, outage duration, and other reliability and performance measures.
The Commission noted in D.00-02-046 that "when coupled with the service quality standards we have already adopted, we will have a solid basis for measuring the quality of PG&E's performance, and for linking that to costs under conditions of prudent management in the post-2002 period."4 The Commission intends for the outcome of the TY 2002 GRC to provide a solid cost and operational benchmark for a PBR mechanism, if that still appears appropriate.
On April 27, 2000, Assigned Commissioner Bilas and Coordinating Commissioner Wood issued a ruling requesting comments on specific matters of scope and timing relating to PG&E's TY 2002 GRC. PG&E, the Office of Ratepayer Advocates (ORA), The Utility Reform Network (TURN), Enron Corporation, and James Weil filed comments on this ruling.
1 D.00-02-046, Section 12.2.1. The RCP schedule adopted in D.89-01-040 shows the timing of events by number of days prior to or following the day the application is filed. The accepted NOI is filed 60 days prior to the application filing date. The day the NOI is tendered is not specified, however, that usually occurs one to two months before the NOI is filed. PG&E's TY 1999 GRC application was filed in December 1997. 2 In a letter dated September 15, 1999, to the Commission's Executive Director, SCE stated that it intends to file a 2002 TY GRC under the RCP (D.89-01-040) in 2000. 3 D.00-02-046, Section 7.3.3. 4 D.00-02-046, Section 12.2.2.
