5. Comments on Draft Decision
On May 18, 2001, the draft decision of Assigned Commissioner and Presiding Officer Wood on this matter was mailed to parties in accordance with Section 311(g) of the Public Utilities Code and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed on ________________, and reply comments on _______________.
We issue today's order based on the emergency petition, responses to the petition, plus comments and reply on the Draft Decision. With service of the Draft Decision, parties who believed hearings were necessary or required were advised to move for evidentiary hearing by the date comments were due. Motions were required to identify the exact alleged factual issue in dispute, show that it is material and relevant, and state what evidence would be offered at hearing.
1. A balancing account for recovery of incremental costs incurred by respondent utilities implementing orders pursuant to D.01-04-006 provides superior current cost recovery to that permitted by a memorandum account.
2. Incremental costs incurred by respondent utilities to implement orders adopted in D.00-01-004 are part of each utility's cost of service revenue requirement.
3. Amortizing the balance in the ILPIC monthly assures current cost recovery ahead of energy procurement and stranded costs.
4. The public interest in quickly modifying D.01-04-006 so that cost recovery can be clarified for Summer 2001 outweighs the public interest in a full 30-day public review and comment of the proposed amendment.
1. A balancing account should be used to record incremental costs incurred to implement programs adopted in D.01-04-006, and the balances should be amortized monthly.
2. Incremental costs incurred to implement programs adopted in D.01-04-006 should be recoverable prior to calculating the CPA and recovered before any fixed DWR set-aside for PG&E and SCE, and should be recoverable as part of the PECA for SDG&E.
3. The period for public review and comment on the draft decision should be reduced, pursuant to Rule 77.7(f)(9), as we balance the need to quickly amend D.01-04-006 against the public interest in a full 30-day public review and comment period.
4. This order should be effective today so that any potential threat to public health and safety by respondent utilities failing to fully implement the orders in D.01-04-006 can be addressed immediately.
IT IS ORDERED that:
1. The April 30, 2001 emergency petition for modification of Decision (D.) 01-04-006 filed by Pacific Gas & Electric Company (PG&E) is granted to the extent provided herein, and denied in all other respects.
2. Decision 01-04-006 is modified as follows:
a. Conclusion of Law 53 is replaced with:
"53. Each respondent utility should establish an Interruptible Load Program Incremental Cost Balancing Account (ILPIC) to track all dollars it spends and receives above funds authorized in current rates to implement any decision in today's order regarding interruptible programs and curtailment priorities."
b. Conclusion of Law 57 is replaced with:
"57. The annual dollar limits should include annual amounts funded in current rates, plus the annual amounts recorded in the balancing account of each respondent utility, for total interruptible program costs, and new costs implementing changes to curtailment priorities.
c. Ordering Paragraph 15 (as renumbered pursuant to D.01-04-009) is replaced with:
"15. Each respondent utility shall establish a balancing account consistent with the orders herein. The balancing account shall record all dollars spent above funds authorized in current rates to implement any program, activity, study, or report ordered herein. The accounting shall separately identify the cost and revenue associated with each program, activity, study or report (e.g., separately track costs and revenues for the new Base Interruptible Program, Voluntary Demand Response Program, each curtailment study, each report). Each respondent utility may include interest on the balance. The burden to demonstrate reasonableness for future cost recovery shall be on each respondent utility. Each respondent utility shall implement the orders herein without delay consistent with its public utility obligations and responsibilities.
d. The last sentence of Ordering Paragraph 16 is replaced with:
"These dollars include amounts funded in current rates, and those recorded in the balancing account of each respondent utility."
3. Within five days of the date of this order, respondent utilities PG&E, Southern California Edison Company, and San Diego Gas & Electric Company shall each file and serve an advice letter with revised tariffs. The advice letters with revised tariffs shall implement the directions in this order, including amending each utility's Preliminary Statement to create an ILPIC Balancing Account. Each advice letter with tariffs shall be in compliance with General Order 96-A. The advice letters and tariffs shall become effective five days after filing, unless suspended by the Energy Division Director, with the ILPIC Balancing Accounts replacing the memorandum accounts initially adopted in D.01-04-006, and the ILPIC Balancing Accounts becoming effective the date the memorandum accounts initially adopted in D.01-04-006 became effective. The Energy Division Director may require a respondent utility to amend its advice letter and tariffs to comply with the orders herein.
4. The period for public review and comment on the draft decision is reduced, pursuant to Rule 77.7(f)(9) of the Commission's Rules of Practice and Procedure.
5. This rulemaking proceeding remains open.
This order is effective today.
Dated , at San Francisco, California.
