Akbar Jazayeri Vice President, Regulatory Operations Southern California Edison Company P O Box 800 Rosemead, CA 91770

Transcription

1 STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor PUBLIC UTILITIES COMMISSION SAN FRANCISCO, CA December 27, 2010 Advice Letter 2427-E Akbar Jazayeri Vice President, Regulatory Operations P O Box 800 Rosemead, CA Subject: Disposition of the December 31, 2009, Electric Deferred Refund Account Balance Dear Mr. Jazayeri: Advice Letter 2427-E is effective December 16, 2010 per Resolution E Sincerely, Julie A. Fitch, Director Energy Division

2 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: SCE Date Utility Notified: 2/24/2010 Utility No./Type: 338/Electric [X] to: Advice Letter No.: 2427-E Date AL filed: January 25, 2010 Fax No.: N/A Utility Contact Person: James Yee ED Staff Contact: Don Lafrenz Utility Phone No.: For Internal Purposes Only: Date Calendar Clerk Notified / / Date Commissioners/Advisors Notified / / [X] INITIAL SUSPENSION (up to 120 DAYS) This is to notify that the above-indicated AL is suspended for up to 120 days beginning February 25, 2010 for the reason(s) noted below. If the AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division extends beyond the expiration of the initial suspension period, the advice letter will be automatically suspended for up to 180 days beyond the initial suspension period. [ X ] Section 455 Hearing is Required - A Commission resolution may be required to address the advice letter. [ ] Advice Letter Requests a Commission Order [ ] Advice Letter Requires Staff Review Expected duration of initial suspension period: 120 days [ ] FURTHER SUSPENSION (up to 180 DAYS beyond initial suspension period) The AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division has extended beyond the expiration of the initial suspension period. The advice letter is suspended for up to 180 days beyond the initial suspension period. If you have any questions regarding this matter, please contact Don Lafrenz at (415) (dlf@cpuc.ca.gov). cc: Maria Salinas Honesto Gatchalian Robert Finkelstein, TURN * Note: reference Decision D , dated February 21, 2002, and Rule 7.5 in appendix A of D.O

3 Akbar Jazayeri Vice President of Regulatory Operations January 25, 2010 ADVICE 2427-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Disposition of the December 31, 2009, Electric Deferred Refund Account Balance PURPOSE In compliance with Decision (D.) , Resolution E-3525 and D , (SCE) hereby submits for filing the disposition of the accumulated balance recorded as of December 31, 2009, in SCE s Electric Deferred Refund Account (EDRA), Preliminary Statement, Part EE. BACKGROUND The EDRA was established to record credits for electric disallowances ordered by the California Public Utilities Commission (Commission), Utility Electric Generation (UEG) shares of gas disallowances ordered by the Federal Energy Regulatory Commission (FERC), and electric and UEG amounts resulting from the settlement of reasonableness disputes at the Commission or FERC. 1 In addition, the December 31 st balance in the Gross Revenue Sharing Tracking Account (GRSTA) is also transferred to the EDRA. 2 SCE is required to provide a refund to customers of the amounts accumulated in the EDRA based on each customer s average monthly energy usage for each calendaryear period and to file a refund plan for such amounts on or before January 31 of the succeeding year. 3 1 Pursuant to Ordering Paragraphs 2 and 5 of D , SCE established the EDRA effective December 20, The purpose of the GRSTA is to record the customers share of certain Other Operating Revenues (OOR) pursuant to D Ordering Paragraph 4 of D P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

4 ADVICE 2427-E (U 338-E) January 25, 2010 In Phase 2 of SCE s 2003 General Rate Case (Application ), SCE reached a settlement with the active parties (Settlement Agreement) which included the following provision associated with prospective EDRA bill credits. The use of the bill credit refund method to provide customer refunds for amounts accrued in the EDRA shall be limited to instances when the annual amount to be refunded exceeds $25 million. If the annual amount to be refunded does not meet this threshold value, SCE shall amortize the EDRA balance in future rates through an appropriate annual rate adjustment proceeding. 4 On March 17, 2005, the Commission adopted the Settlement Agreement in Ordering Paragraph 1 of D The credit balance recorded in the EDRA as of December 31, 2009, is $9.504 million, 5 and pursuant to D SCE will refund the $9.504 million to all customers by transferring the December 31, 2009 balance in the EDRA to the distribution subaccount of its Base Revenue Requirement Balancing Account (BRRBA) EDRA ACTIVITY Attachment A shows the operation of the EDRA during Upon approval of Advice 2315-E, SCE was authorized to transfer $ million, plus accrued interest of $0.012 million, to the distribution subaccount of BRRBA in March In addition, in December 2009, SCE transferred the December 31, 2009 balance recorded in the GRSTA to the EDRA, resulting in an overall credit balance in the amount of $9.504 million recorded in the EDRA as of December 31, Attachment B shows the entries recorded in the GRSTA during Section 6.c(1)g of the Settlement Agreement. 5 The balance in the EDRA is related to the annual transfer from SCE s GRSTA. 6 The $ million is the December 31, 2008 balance recorded in the EDRA. This amount plus interest of $0.012 million that accrued during the months of January and February 2009, was transferred from the EDRA to the BRRBA. 7 SCE estimates that this amount will begin to be refunded to customers on March 1, 2010, after the Commission issues a decision in SCE s 2010 Energy Resource Recovery Account Forecast Proceeding (Application ) and SCE is authorized to consolidate the December 31, 2009 balance recorded in the BRRBA in customers rate levels.

5 ADVICE 2427-E (U 338-E) January 25, 2010 TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.2, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE SCE requests that this advice letter become effective on February 24, 2010, the 30 th calendar day after the date filed. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California jnj@cpuc.ca.gov and mas@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Akbar Jazayeri Vice President of Regulatory Operations 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com Bruce Foster Senior Vice President, Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com

6 ADVICE 2427-E (U 338-E) January 25, 2010 There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously. In accordance with Section 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B and A service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) For changes to all other service lists, please contact the Commission s Process Office at (415) or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at For questions, please contact Patrick Ott at (626) or by electronic mail at Patrick.Ott@sce.com. AJ:po:sq Enclosures Akbar Jazayeri

7 ATTACHMENT A 2009 ELECTRIC DEFERRED REFUND ACCOUNT Recorded in Thousands of Dollars No. Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Summary 1. BEGINNING BALANCE: (10,875) (10,884) (10,887) (10,875) 2. Transfer per Advice 2315-E , , Transfer per Advice 2315-E - Accrued Intere Adjusted Beginning Balance (10,875) (10,884) MONTHLY ACTIVITY 5. Bill Credits Refund Amounts UNDER/(OVER) COLLECTION INTEREST (9) (3) (12) 9. Recorded Interest Rates 0.97% 0.31% 0.48% 0.37% 0.28% 0.23% 0.26% 0.28% 0.24% 0.19% 0.19% 0.15% 10. Transfer from GRSTA 1/ (9,504) (9,504) 11. EDRA ENDING BALANCE (10,884) (10,887) (9,504) (9,504) Recorded Interest Rates 0.97% 0.31% 0.48% 0.37% 0.28% 0.23% 0.26% 0.28% 0.24% 0.19% 0.19% 0.15% 1/ The transfer of the Gross Revenue Sharing Tracking account containing the ratepayers' share of OOR revenues, including interest of $7K.

8 2009 ATTACHMENT B Gross Revenue Sharing Tracking Mechanism (GRSTM) Recorded in Thousands of Dollars Line Annual No. Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Summary 1. BEGINNING BALANCE: (740) (1,686) (2,910) (3,952) (5,409) (6,401) (7,586) (8,535) 0 2. Provision Adjustment (5) Interest Adjustment Non-Provision Adjustment Adjusted Beginning Balance , (740) (1,690) (2,910) (3,952) (5,407) (6,401) (7,586) (8,337) Customers' Share of OOR 0 0 (1,143) (1,148) (1,196) (1,469) (1,291) (1,706) (1,243) (1,434) (1,197) (1,416) (13,243) 7. FERC Transmission Revenue 1/ , UNDER/(OVER) COLLECTION (893) (898) (946) (1,219) (1,041) (1,456) (993) (1,184) (947) (1,166) (10,243) 9. INTEREST (0) (0) (0) (1) (1) (1) (1) (1) (1) (7) 10. Recorded Interest Rates 0.97% 0.31% 0.48% 0.37% 0.28% 0.23% 0.26% 0.28% 0.24% 0.19% 0.19% 0.15% 11. ENDING BALANCE PRIOR TO TRANSFER (740) (1,686) (2,910) (3,952) (5,409) (6,401) (7,586) (8,535) (9,504) (9,504) 12. Transfer to EDRA 9,504 9, ENDING BALANCE AFTER TRANSFER 0 0 1/ Reflects the amount of OOR provided to customers through FERC authorized Transmission rate levels

9 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: (U 338-E) Utility type: Contact Person: James Yee ELC GAS Phone #: (626) PLC HEAT WATER Disposition Notice to: EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 2427-E Tier Designation: 2 Subject of AL: Disposition of the December 31, 2009, Electric Deferred Refund Account Balance Keywords (choose from CPUC listing): Compliance, Balancing Account, Refund AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D , D , Resolution E-3525 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL 1 : Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information: Resolution Required? Yes No Requested effective date: 2/24/10 No. of tariff sheets: -0- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: None Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed.

10 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Ave., San Francisco, CA and Akbar Jazayeri Vice President of Regulatory Operations 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) Bruce Foster Senior Vice President, Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415)