ALJ/TRP/sid Mailed 3/6/2006
Decision 06-03-004 March 2, 2006
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking Regarding the Implementation of the Suspension of Direct Access Pursuant to Assembly Bill 1X and Decision 01-09-060. |
Rulemaking 02-01-011 (Filed January 9, 2002) |
OPINION ESTABLISHING PROCEDURES TO SEEK
EXEMPTION ELIGIBILITY
I. Background
This order establishes procedures for publicly-owned utilities (POUs)1 to be added to the list of entities eligible to apply for exemption from the Municipal Departing Load (MDL) Cost Responsibility Surcharges (CRS) on behalf of their customers as authorized by Decision (D.) 04-11-014. In D.04-11-014, the Commission adopted eligibility criteria for existing POUs whose customers may qualify for the limited CRS exemption applicable to "transferred load"2 as discussed in that order. For customers of a POU to qualify for this CRS exemption, the POU had to be providing electricity to 100 or more retail end use customers as of July 10, 2003. In D.04-11-014, the Commission established an initial list of POUs that satisfied the criteria for the CRS exemption. The Commission recognized, however, that in addition to the list of POUs identified in D.04-11-014, there could be additional POUs that met the CRS exemption criteria. Accordingly, the Commission indicated that in addition to those POUs that were specifically identified, other POUs could be added to the CRS exemption eligibility list based on a demonstration that they meet the criteria in D.04-11-014. In Ordering Paragraph 12 of D.04-11-014, the Commission stated that any entity seeking to be added to the list must submit evidence of its eligibility pursuant to procedures to be developed.
In reference to this matter, Hercules Municipal Utility (Hercules) filed a motion on September 29, 2005, requesting that the Commission develop and promulgate procedures for the determination of the CRS exemption pursuant to D.04-11-014. Hercules stated that development of such procedures would help to confirm the number of POUs that may qualify for the exemption. The number of POUs claiming the exemption, in turn, could affect the calculation of MDL charges or the allocation of the exemption. Hercules intends to request to be added to the eligibility list once the procedures to do so are adopted.
An Administrative Law Judge's (ALJ) ruling, issued on November 7, 2005, granted the motion of Hercules and solicited comments concerning the appropriate processes to identify and verify the POUs whose customers qualify for CRS customer exemptions under the criteria in D.04-11-014. Parties were also to address what documentation should be required to substantiate that a POU was providing electricity to at least 100 customers on or before July 10, 2003, in accordance with D.04-11-014.
Opening comments were filed on November 15, 2005, and reply comments were filed on November 22, 2005. Parties filing comments were Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), City of Corona (Corona), Port of Stockton (Stockton), Hercules, and the California Municipal Utilities Association (CMUA).
1 As used in this order, the term "publicly-owned utility" refers to entities is defined in Pub. Util. Code § 9604(d).
2 "Transferred load," as referenced in D.04-11-014, is customer load that was originally served by an investor-owned utility (IOU, but that was subsequently transferred to a publicly-owned utility (POU).
