Assignment of Proceeding
Loretta M. Lynch is the Assigned Commissioner and John S. Wong is the assigned ALJ in this proceeding.
1. In response to D.02-09-053, on October 8, 2002, DWR submitted a memorandum and its proposed modifications to the Amended Servicing Agreement.
2. Prior to today's decision, the existing servicing arrangement between DWR and SCE are composed of the Amended Servicing Agreement and Amendment No. 1.
3. D.02-09-053 allocated the DWR contracts, and ordered SCE and the other two large electric utilities, to assume all of the operational, dispatch, and administrative functions for the allocated electricity contracts, effective January 1, 2003.
4. The proposed modifications to the Amended Servicing Agreement and related attachments have been compared to the Amended Servicing Agreement that was approved in D.02-04-047, to Amendment No. 1 approved in D.02-07-039, and have been reviewed in light of the Contract Allocation Decision.
5. One of the goals of R.01-10-024 is to allow the utilities to resume purchasing electric energy, capacity, ancillary services and related hedging instruments to fulfill their obligation to serve and meet the needs of their customers.
6. In order for SCE and the other utilities to undertake the operational responsibilities associated with the allocated DWR contracts beginning on January 1, 2003, certain operational arrangements and servicing arrangements need to be in place before that date.
7. Certain provisions of the proposed operating agreement may affect certain provisions of the proposed modifications to the Amended Servicing Agreement and related attachments.
8. The proposed operational agreement is being considered by the Commission in R.01-10-024.
9. The concerns of SCE over the proposed modifications to the Amended Servicing Agreement and related attachments have been reviewed and considered, and appropriate changes have been made as discussed in this decision.
10. Notwithstanding today's approval of the Servicing Order, DWR and SCE are free to submit a mutually agreeable modified servicing agreement for our approval.
1. All of the proposed modifications to the Amended Servicing Agreement and the related attachments are consistent with the directives ordered in prior Commission decisions.
2. Since DWR and SCE have been unable to timely agree on a mutually acceptable modified Amended Servicing Agreement, the Commission has made additional modifications to convert the modified Amended Servicing Agreement into a Servicing Order.
3. The Servicing Order attached to this decision should be approved.
4. SCE should be directed to comply with the terms and conditions contained in the approved Servicing Order.
IT IS ORDERED that:
1. The "2003 Servicing Order Concerning State of California Department of Water Resources And Southern California Edison Company" (Servicing Order), a copy of which is attached hereto as Appendix A and which contains the revision marks, is approved.
2. Southern California Edison Company shall comply with all of the terms and conditions of the approved Servicing Order.
3. This proceeding is closed.
This order is effective today.
Dated December 19, 2002, at San Francisco, California.
LORETTA M. LYNCH
President
HENRY M. DUQUE
CARL W. WOOD
GEOFFREY F. BROWN
MICHAEL R. PEEVEY
Commissioners
APPENDIX A
2003 Servicing Order
