H. Energy Cost Adjustment Clause (ECAC)

On January 8, 2003, Sierra filed AL 294-E requesting authority to reinstitute its ECAC mechanism. On June 10, 2003, the Energy Division submitted draft Resolution E-3836 to the Commission. That resolution proposed that Sierra's advice letter and supplemental advice letter should be denied without prejudice on the ground that the reinstitution of ECAC should be addressed as part of the Commission's final decision in Phase 2 of A.01-06-041 and not by advice letter. On July 10, 2003 the resolution was approved.

On June 6, 2003, Sierra, ORA and CSAA submitted a joint motion for approval of a partial Phase 2 Settlement Agreement pertaining to all issues on Sierra's revenue requirements. Section 5 of the Settlement Agreement provides that Sierra's ECAC mechanism may be reinstituted. As we approve the settlement, we approve reinstituting the ECAC. The implementation of the ECAC will not change any rates authorized by this decision.