X. Agreement Between Litigants
In the December 19, 2003 Joint Comparison Exhibits, both SoCalGas and SDG&E show the "agreed changes" based upon litigation, to the applications. We need not discuss the changes and justifications in detail; we can accept them as stipulations. Some of the changes are corrections of errors, which is not unexpected in filings as complex as these. Others, to the extent that SoCalGas and SDG&E chose to reduce their request, we accept as changes to the applications. We also adopt without further discussion, even when those items are discussed in the briefs,47 any changes that are incorporated by SoCalGas and SDG&E in their end-of-litigation revenue requirement spreadsheets which detail the recommendations of parties other than ORA. SoCalGas and SDG&E explain one specific change further in the opening litigation brief:48
"SDG&E and ORA agreed that an adjustment in SDG&E's requested revenue requirement in this case of $3,356,000 is appropriate to resolve reconciliation of SDG&E's 2001 adjusted recorded figures in this case to its general ledger and FERC forms. Therefore, SDG&E has incorporated adjustments totaling that amount in various accounts shown in the SDG&E Comparison Exhibit, Exh. 150."
This adjustment resolves a major issue between ORA and SDG&E, and the effect is included within the overall agreed changes summarized in the table, below.
Joint Comparison Exhibits Summary of Agreed Changes Test Year 2004 | ||
Area |
SoCalGas |
SDG&E |
Miscellaneous Revenue |
$2,724,000 |
-$7,000 |
Operating & Maintenance |
-19,499,000 |
-10,433,000 |
Escalation (Note 1) |
-1,592,000 |
-492,000 |
Reassignments |
1,365,000 |
|
Depreciation |
-151,000 |
-45,000 |
Taxes |
10,785,000 |
-1,128,000 |
Return - related to Rate Base Reductions of $15,006,000 |
-1,302,000 |
|
Return - related to Rate Base Reductions of $11,025,000 |
-967,000 | |
Base Margin Change |
-$7,670,000 |
-$13,073,000 |
Note 1. We adopt the settlement escalation factors as agreed upon by SoCalGas and SDG&E and ORA; but the final revenue requirement impact differs based upon the calculations using the individual cost components as adopted in this decision.
47 For example, SoCalGas included the $0.635 million adjustment for a change in electricity rates proposed by TURN as a result of rate reductions in July 2003 by Edison (TURN opening litigation brief, at p. 109), or Telecommunications expenses, Account 870.9 (at pp. 110-111). Although this decision intends to provide clear expectations where contested issues are resolved, we will not recount all of the agreements regarding expenses, labor and non-labor, and the scope of the program or activity, for the total operations of both companies.
48 Sempra opening litigation brief, p. 118-119. "The adjustments are as shown as Agreed-to Changes in Chapter 2 of Exh. 150, as follows: $360,000 in Account 903.1 on p. 17; $76,000 in Account 910 on p. 18; $113,000 in Account 920 on p. 19; $2,178,000 in Account 921A and $6,000 in Account 921E on p. 20; $1,000 in Account 923 on p. 21; $83,000 in Account 925A on p. 23; $84,000 in Account 926 on p. 24; $203,000 in Account 930A on p. 25; and $252,000 in Account 935 on p. 26 (see also Exh. 150 at p. 160)."
