Comments on Proposed Decision

The proposed decision (PD) of the ALJ in this matter was mailed to the parties in accordance with Section 311(d). Rule 77.7(g) of the Commission's Rules provides that the 30-day comment period may be reduced upon the stipulation of all parties to the proceeding. All parties stipulated to a 10-day comment period with no reply comments.

Comments on the PD were received from Sierra and WMA. Most of Sierra's comments recommended minor changes, which we have simply incorporated into the text. However, one of Sierra's concerns should be discussed. In its comments, Sierra requested that references in the PD related to the consistency of the settlement with Assembly Bill (AB) 1 X should be deleted. We have deleted these references, because the provisions in Water Code ยง 80110 that restrict rate increases for usage up to 130% of baseline do not apply to Sierra, as Sierra's customers do not pay for any of the power purchased by the California Department of Water Resources pursuant to AB 1 X.

Findings of Fact

1. On February 3, 2006, Sierra filed a motion requesting the Commission to adopt a settlement agreement entitled "Settlement Agreement Between Sierra Pacific Power Company, Division of Ratepayer Advocates, The Utility Reform Network, The A-3 Customer Coalition, and the Western Manufactured Housing Communities Association."

2. All parties have agreed to settle this proceeding.

3. All issues in this proceeding are encompassed by, and resolved in, the Settlement Agreement.

4. The parties to the Settlement Agreement are all of the active parties in this proceeding.

5. The parties are fairly reflective of the affected interests.

6. No term of the Settlement Agreement contravenes statutory provisions or prior Commission decisions.

7. The Settlement Agreement conveys to the Commission sufficient information to permit it to discharge its future regulatory obligations with respect to the parties and their interests.

8. The Settlement Agreement is reasonable in light of the record, is consistent with law, and is in the public interest.

9. The revenue requirement as set forth in Exhibit A of the Settlement Agreement is reasonable.

10. The revenue allocation set forth in Table A of the Settlement Agreement is reasonable.

Conclusions of Law

1. The Settlement Agreement fully resolves and settles all disputed issues among the parties concerning Sierra's application in this proceeding.

2. The Settlement Agreement we approve is reasonable in light of the whole record, consistent with law, and in the public interest.

3. The Settlement Agreement should be approved.

4. This decision should be effective today so that the Settlement Agreement may be implemented expeditiously.

5. A.05-06-018 should be closed.

ORDER

IT IS ORDERED that:

1. The Settlement Agreement set forth in Attachment A is approved.

2. Within eight days of today's date, Sierra Pacific Power Company shall file an advice letter with tariff changes and new rates to implement this decision. The tariff changes and new rates shall become effective on or after the date filed, subject to Energy Division's determination that they are in compliance with this decision.

3. Application 05-06-018 is closed.

This order is effective today.

Dated August 24, 2006, at San Francisco, California.

APPENDIX A

(List of Appearances)

************ APPEARANCES ************

Edward G. Poole
Attorney At Law
ANDERSON & POOLE
601 CALIFORNIA STREET, SUITE 1300
SAN FRANCISCO CA 94108-2818
(415) 956-6413
epoole@adplaw.com

For: Western Manufactured Housing Community Association

Jeffrey P. Gray
Attorney At Law
DAVIS WRIGHT TREMAINE, LLP
ONE EMBARCADERO CENTER, SUITE 600
SAN FRANCISCO CA 94111
(415) 276-6581
jeffgray@dwt.com

For: A-3 Customer Coalition

Charlyn A. Hook
Legal Division
RM. 5033
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-3050
chh@cpuc.ca.gov

For: ORA

William B. Marcus
JBS ENERGY, INC.
311 D STREET, SUITE A
WEST SACRAMENTO CA 95605
(916) 372-0534
bill@jbsenergy.com
.
For: TURN

Elena Mello
Rates And Regulatory Affairs
SIERRA PACIFIC POWER COMPANY
6100 NEIL ROAD
RENO NV 89520
(775) 834-5696
emello@sppc.com

For: Sierra Pacific Power Company

Bob Finkelstein
Attorney At Law
THE UTILITY REFORM NETWORK
711 VAN NESS AVENUE, SUITE 350
SAN FRANCISCO CA 94102
(415) 929-8876
bfinkelstein@turn.org

For: TURN

********** STATE EMPLOYEE ***********

A Kirk McKenzie
Administrative Law Judge Division
RM. 5115
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-4622
mck@cpuc.ca.gov


Robert M. Pocta
Division of Ratepayer Advocates
RM. 4205
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-2871
rmp@cpuc.ca.gov

For: ORA

James R. Wuehler
Division of Ratepayer Advocates
RM. 4208
505 VAN NESS AVE
San Francisco CA 94102
(415) 703-1667
jrw@cpuc.ca.gov

For: ORA

********* INFORMATION ONLY **********


Geoffrey Inge
KTM INC.
SUITE 104
4009 PEARL EAST CIRCLE
BOULDER CO 80301
(303) 442-2719
gbinge@ktminc.com


Richard Mccann
M.CUBED
2655 PORTAGE BAY ROAD, SUITE 3
DAVIS CA 95616
(530) 757-6363
rmccann@umich.edu


Bruce Foster
Vice President
SOUTHERN CALIFORNIA EDISON COMPANY
601 VAN NESS AVENUE, STE. 2040
SAN FRANCISCO CA 94102
(415) 775-1856
bruce.foster@sce.com




Case Administration
SOUTHERN CALIFORNIA EDISON COMPANY
ROOM 370
2244 WALNUT GROVE AVENUE
ROSEMEAD CA 91770
(626) 302-4875
case.admin@sce.com

For: SOUTHERN CALIFORNIA EDISON COMPANY

James M. Lehrer
Attorney At Law
SOUTHERN CALIFORNIA EDISON COMPANY
2244 WALNUT GROVE AVENUE
ROSEMEAD CA 91770
(626) 302-3252
james.lehrer@sce.com

For: SOUTHERN CALIFORNIA EDISON COMPANY


 

(END OF APPENDIX A)

McKenzie Attach A to A0506018

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