ALJ/MLC/hkr DRAFT Agenda ID #1296

Ratesetting

12/5/2002 CA-12

Decision PROPOSED DECISION OF ALJ COOKE (Mailed 10/29/2002)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Southern California Edison Company (U 338-E) for a Finding of Reasonableness for the Ratepayer Expenditures for the ENVEST Pilot Program.

Application 99-03-063 (Filed March 31, 1999)

Frank J. Cooley, Attorney at Law, for Southern California Edison Company, applicant.

Norman J. Furuta, Attorney at Law, for Department of Navy.

Robert C. Cagen, Attorney at Law, for Office of Ratepayer Advocates.

OPINION

Summary

This decision approves the "Joint Recommendation of the Office of Ratepayer Advocates (ORA) and Southern California Edison Company (SCE) to Terminate the ENVEST Pilot Program" (Joint Recommendation), attached as Appendix A. The ENVEST Pilot Program (ENVEST) will remain open only to existing participants until the final payments have been made, estimated to be in 2010. Ratepayers will now receive a refund of $2 million plus interest credited to SCE's Electric Deferred Refund Account (EDRA). SCE will assume all future credit risks and risk of collections associated with the ENVEST contracts and program. SCE will not seek recovery of the amount it spent for program administration costs in excess of the $8 million provided by ratepayers.