VII. Cost Recovery for PPAs
and RFO Administrative Costs

We approve PG&E's unopposed request to recover costs associated with the power purchase agreements approved in this decision, including the bridge tolling agreement for the Colusa project, through the ERRA mechanism established pursuant to D.02-12-074. The ERRA was established to determine recovery of PG&E's power costs including PPAs.

We approve PG&E's request to transfer the costs that it has tracked in the Long Term Procurement Memorandum Account, established pursuant to Resolution E-3914, to the ERRA account. PG&E may seek recovery of these costs in a future ERRA proceeding, where it should be prepared to demonstrate that costs are incremental to the GRC approved revenue requirement. DRA opposes PG&E's request on the basis that this record does not support PG&E's request for recovery of these costs. PG&E does not request recovery of these costs, and our authorization for transfer of the costs to the ERRA does not constitute authority for PG&E to recover them. We approve PG&E's request as reasonable.

DRA recommends that we require, in this decision, a mandatory audit for determining whether the costs tracked in PG&E's Long Term Procurement Memorandum Account are incremental to the GRC approved revenue requirement. We reject DRA's recommendations. To the extent that DRA is simply reserving its right to scrutinize PG&E's costs, our Rules of Practice and Procedure and Pub. Util. Code §§ 314 and 314.5 provide that right. To the extent that DRA is requesting something else, it has not sufficiently defined or justified its request.