STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
October 8, 2002 Agenda ID #1209
TO: PARTIES OF RECORD IN APPLICATION 02-05-022 ET AL.
This is the proposed decision of Administrative Law Judge (ALJ) Galvin, previously designated as the principal hearing officer in this proceeding. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. This matter was categorized as ratesetting and is subject to Pub. Util. Code § 1701.3(c). Pursuant to Resolution ALJ-180 a Ratesetting Deliberative Meeting to consider this matter may be held upon the request of any Commissioner. If that occurs, the Commission will prepare and mail an agenda for the Ratesetting Deliberative Meeting 10 days before hand, and will advise the parties of this fact, and of the related ex parte communications prohibition period.
The Commission may act at the regular meeting, or it may postpone action until later. If action is postponed, the Commission will announce whether and when there will be a further prohibition on communications.
When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Parties to the proceeding may file comments on the proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.
/s/ CAROL A. BROWN____
Carol A. Brown, Interim Chief
Administrative Law Judge
CAB:hkr
ALJ/MFG/hkr DRAFT Agenda ID #1209
Decision PROPOSED DECISION OF ALJ GALVIN (Mailed 10/8/2002)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company for Authority to Establish Its Authorized rates of return on Common Equity for Electric Utility Operations and Gas Distribution for Test Year 2003. (U 39 M) |
Application 02-05-022 (Filed May 8, 2002) |
|
And Related Matters. |
Application 02-05-025 (Filed May 8, 2002) Application 02-05-026 (Filed May 8, 2002) Application 02-05-031 (Filed May 8, 2002) |
(See Appendix B for appearances.)
INTERIM OPINION ON RATES OF RETURN
ON EQUITY FOR TEST YEAR 2003
TABLE OF CONTENTS
Title Page
INTERIM OPINION ON RATES OF RETURN ON EQUITY
FOR TEST YEAR 2003 22
II. Jurisdiction and Background 22
IV. Long-Term Debt and Preferred Stock Costs 1212
V. Return on Common Equity 1616
VIII. Assignment of Proceeding and Procedural Matters 2929
APPENDIX A
APPENDIX B
INTERIM OPINION ON RATES OF RETURN
ON EQUITY FOR TEST YEAR 2003
I. Summary
This interim decision establishes the 2003 ratemaking return on common equity (ROE) for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), Sierra Pacific Power Company (Sierra), and San Diego Gas & Electric Company (SDG&E). This proceeding remains open for PG&E to true up its test year capital structure and ROE upon its implementation of a financing plan approved by the Bankruptcy Court that enables it to emerge from Chapter 11 of the Bankruptcy Code. The overall ROE, return on rate base, and estimated change in revenue requirement is as follows.
Common Return on Estimated Change In
Utility Equity Rate Base Revenue Requirement
(Millions)
PG&E - Electric 11.70% 9.47% $ 35.1
- Gas 11.50% 9.37% $ 4.7
SCE 11.70% 9.80% $ 44.6
Sierra 11.20% 9.16% $ 0.1
SDG&E - Electric 11.00% 8.82% $ 3.2
- Gas 11.00% 8.82% $ 0.9
