ALJ/RAB/avs DRAFT Agenda ID#2958

Ratesetting

1/8/2004 Item 48

Decision PROPOSED DECISION OF ALJ BARNETT (Mailed 11/4/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Sierra Pacific Power Company (U 903 E) for an Order Authorizing an Immediate Interim Rate Increase, subject to Refund and for Consideration of a Rate Stabilization Plan.

Application 01-06-041 (Filed June 29, 2001; Phase 2 filed April 1, 2002)

David M. Norris, Attorney at Law, for
applicant.

James E. Scarff, Attorney at Law, for
Office of Ratepayer Advocates.

Andrew J. Skaff, Attorney at Law, for

California Ski Areas Association.

OPINION GRANTING A RATE INCREASE OF $3.02 MILLION

A. Summary

This decision grants a rate increase of $3.02 million based on a settlement agreement of the parties. It finds that the New Customer Only method is appropriate to determine marginal customer costs. It increases rate by 8.8% to all customer classes except large commercial, which get no increase because their marginal costs are significantly below their current revenue allocation.