April 3, Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA 91770

Transcription

1 STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA EDMUND G. BROWN JR., Governor April 3, 2015 Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA Dear Ms. Scott-Kakures, Southern California Edison Company s Advice Letter No. 93-W, filed on November 17, 2014, regarding the Purchased Power Expenses Memorandum Account and the CARE Memorandum Account Balances has been withdrawn per the utility s letter dated April 3, 2015 (re: Withdrawal of SCE s Advice 93-W ). A copy of the letter is enclosed. Please contact Kevin Truong at (415) if you have any questions. Thank you, /s/daniel SONG Daniel Song Water & Sewer Advisory Branch Division of Water and Audits Enclosures

2 Russell G. Worden Managing Director, State Regulatory Operations April 3, 2015 Mr. Daniel Song California Public Utilities Commission Division of Water and Audits 505 Van Ness Avenue San Francisco, California Dear Mr. Song: Re: Withdrawal of SCE s Advice 93-W On November 17, 2014, Southern California Edison Company (SCE) filed Advice 93-W, Review of Purchased Power Expenses Memorandum Account and CARE Memorandum Account Balances in Accordance with Decision SCE withdraws Advice 93-W herein and will refile a similar advice letter once supporting workpapers are complete addressing the issues raised in Advice 93-W. SCE submits this request for withdrawal of Advice 93-W pursuant to General Order 96-B, Section 5.3, and asks that a confirmation letter be returned regarding this withdrawal. Should you have any questions, please feel free contact me. Sincerely, /s/ RUSSELL G. WORDEN Russell G. Worden RWG:dm cc: General Order 96-B and A service lists Bruce DeBerry, CPUC, Division of Water and Audits James Boothe, CPUC, Division of Water and Audits Viet (Kevin) Truong, CPUC, Division of Water and Audits P.O. Box Rush Street Rosemead, California (626) FAX (626)

3 ADVICE LETTER (AL) SUSPENSION NOTICE * DIVISION OF WATER AND AUDITS Utility Name Southern California Date Utility Notified 12/16/14 Edison Utility No./Type WTC 338 via Advice Letter No. 93 [ ] Fax No. ( ) Date AL filed 11/17/14 [X] Ryan.Stevenson@sce.com Utility Contact Person Ryan Stevenson [ ] Mail Utility Telephone No. (626) Date Calendar Clerk Notified DWA Project Manager 12/16/14 Bruce DeBerry DWA Staff Analyst Kevin Truong [X] INITIAL SUSPENSION (up to 120 DAYS) This is to notify you that the above-indicated AL is suspended from _12/18/14_ to _4/20/15_ for the following reason(s). If the Commission does not act on this AL within this time, the second suspension will commence automatically. [ ] AL Protested [ ] Resolution is required [ ] AL not in compliance with Commission Statute/Decision/Resolution [ ] Additional information is required [ X ] Additional time is required [ ] Other [ ] FURTHER SUSPENSION (up to 180 DAYS) The Commission has not taken action on this AL; therefore, an additional 180-day suspension period will automatically commence on: If you have any questions regarding this matter, please contact _Kevin Truong_ at _(415) _ or via at _vt4@cpuc.ca.gov_. Cc: Division Director Program Manager Division Process Personnel Protestants (see attached)

4 Megan Scott-Kakures Vice President, State Regulatory Operations November 17, 2014 ADVICE 93-W (U 338-W) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA DIVISION OF WATER AND AUDITS SUBJECT: Review of Purchased Power Expenses Memorandum Account and CARE Memorandum Account Balances in Accordance with Decision In compliance with California Public Utilities Commission (Commission) Decision (D.) (the Decision), dated October 16, 2014, SCE hereby submits its recorded Purchased Power Expenses Memorandum Account (PPEMA) and Catalina Water CARE 1 Memorandum Account (CWCMA) balances for recovery in water rates. PURPOSE In this compliance advice filing, pursuant to Ordering Paragraph (OP) 3 of the Decision, SCE requests Staff review and approval 2 of the balances recorded in the PPEMA and CWCMA from their inception through the October 16, 2014 effective date of the Decision. BACKGROUND SCE s Catalina water service operation is classified as a Class C water utility serving approximately 1,535 residential and 425 non-residential customers on Catalina Island, which is located approximately 22 miles off the coast of southern California in Los Angeles County. 1 California Alternate Rates for Energy. 2 In accordance with General Order 96-B, General Rule 7.6.1, SCE believes this compliance advice filing is subject to disposition by the Division of Water and Audits. P.O. Box Rush Street Rosemead, California (626) Fax (626)

5 ADVICE 93-W (U 338-W) November 17, 2014 On November 1, 2007 the Commission issued Resolution W-4665 (the Resolution) which, in addition to other items, authorized SCE to establish the PPEMA to track the difference between authorized and recorded purchased power expenses associated with the provision of water service on Santa Catalina Island. On December 4, 2007, SCE filed Advice 61-W to establish Preliminary Statement Part M, Purchased Power Expenses Memorandum Account. The Water Division approved Advice 61-W effective January 3, The Resolution also authorized SCE to establish the CWCMA to track lost revenues resulting from the 20 percent discount offered to low-income residential customers for water service. On May 22, 2008, SCE filed Advice 63-W-A to supplement and replace Advice 63-W in order to establish Preliminary Statement Part N, Catalina Water CARE Memorandum Account. The Water Division approved Advice 63-W-A effective April 29, SCE filed Advice 70-W on February 27, 2009, requesting that the PPEMA and CWCMA 2008 balances be recovered in 2010 Catalina water rates. 3 The Commission rejected this advice letter because it was not in conformance with Appendix D of the standard practice U-27-W. On October 16, 2014, the Commission issued D which granted the motion for adoption of an all-party settlement in A between SCE, the Division of Ratepayer Advocates (DRA), 4 The Utility Reform Network (TURN) and the Protestants, which constitutes a cross section of Catalina Water customers including the city of Avalon, the Chamber of Commerce, Catalina s principal land owners and condominium associations, and campgrounds. The adopted all-party settlement resolved all revenue requirement, rate of return, rate design, memorandum account, and Uniform System of Accounts issues. OP 3 of the Decision directed SCE to file a Tier 2 advice letter, within 30 days of the decision s effective date of October 16, 2014, to amortize the balances in the PPEMA and CWCMA through water rates over a one-year period. Pursuant to OP 2 of the Decision, SCE will also be filing a Tier 1 compliance advice filing providing revised tariff schedules to reflect the recovery of the adopted revenue requirement. In this subsequent Tier 1 compliance advice filing, SCE will also include the approved PPEMA and CWCMA balances in water rates for Santa Catalina Island (Catalina) customers to be effective on January 1, SCE s Preliminary Statement Part M and Preliminary Statement Part N state that by March 1 st of each year, SCE shall file an advice letter for the Commission to review the operation of the PPEMA and CWCMA and approve any under-collected balance to be included in water rates. 4 Subsequent to the filing of the Settlement, DRA changed its name to Office of Ratepayer Advocates.

6 ADVICE 93-W (U 338-W) November 17, 2014 General Order (GO) 96-B contains the requirements for advice filings, including the specific Water Industry Rules. Water Industry Rule 7.2 outlines the effective date provisions for advice filings. Although it could be asserted that this compliance advice filing should have an effective date five days after the date of the filing with Industry Rule 7.2(1), SCE is requesting an effective date as soon as reasonably practicable but no later than 30 days after the date of filing per Industry Rule 7.2(2). As indicated above, SCE plans to begin recovering/refunding the approved PPEMA and CWCMA balances beginning on January 1, 2015 in conjunction with the adopted revenue requirement in the Decision via its subsequent Tier 1 compliance advice filing to implement the revised tariff schedules. As such, an effective date five days after the date of filing is not needed. However, SCE needs time to prepare and file the subsequent Tier 1 compliance advice filing and revised tariff schedules with the approved PPEMA and CWCMA balances in order for the new tariff schedules to become effective beginning January 1, SCE also needs to time to implement the new rates, surcharge and surcredit into its billing system. SCE believes an effective date no later than 30 days after the date of filing will enable Staff to review and approve the balances recorded in the PPEMA and CWCMA as efficiently as practicable and provide SCE the necessary time to file and implement its subsequent Tier 1 compliance advice letter with new rates, surcharge, and surcredit beginning on Janurary 1, Pursuant to the request for an effective date not later than 30 days from the date of filing, SCE respectfully requests for the protest period to be shortened to 10 days in accordance with General Rule 1.3 of GO 96-B. SCE s request for this compliance advice filing to become effective no later than 30 days after the date of filing and to have a shortened protest period will provide sufficient time for Staff to review and approve the balances recorded in the PPEMA and CWCMA and will not disadvantage parties 6 whom may decide to submit a protest. Moreover, the actions requested herein will eliminate the need to potentially file multiple revisions to the tariff schedules. PPEMA and CWCMA Balances In this compliance advice filing, SCE is providing the recorded activity in the PPEMA and CWCMA for Staff review. In SCE s Tier 1 compliance advice letter to be filed revising Santa Catalina Island Water Operations tariffs, SCE will also include the 5 In the event SCE is unable to modify its billing system and components in time for the new rates to become effective on January 1, 2015, SCE will inform Staff of the revised date it plans to make the rate changes effective. 6 While a party other than TURN, ORA and the Protestants may file a protest, these parties represent all Catalina Water customers and agreed in the all-party settlement to allow SCE to amortize the balances in the PPEMA and CWCMA. Additionally, and as further discussed below, given that the net impact of the recorded balances in the PPEMA and CWCMA is a slight over-collection, SCE does not anticipate any protests.

7 ADVICE 93-W (U 338-W) November 17, 2014 PPEMA and CWCMA balances, approved by Staff in this compliance advice filing, in the water rates included in the Tier 1 compliance advice filing. 7 Table 1 below provides a summary of the balances recorded in the PPEMA and the CWCMA from their inception in 2008 through October 16, 2014, the effective date of the Decision. 8 The net of the over-collected PPEMA balance (authorized purchased power expenses exceeded actuals) and the under-collected CWCMA balance is an overcollection of $21,000. Upon Staff approval of these balances, SCE will include the PPEMA surcredit of $209,000 (includes franchise fees and uncollectibles (FF&U)) and the CWCMA surcharge of $188,000 (includes FF&U) in the revised rate schedules to be provided to the Commission in the subsequent Tier 1 compliance advice filing discussed above. These balances will be recovered/refunded over a one-year period or shorter if directed to do so by Staff. 9 SCE will refund and recover the balances through fixed rate components, on a dollar-per-month basis. The surcredit will be applied to all Catalina customer bills, while the surcharge will only be applied to non-care bills. Table 1 Recorded as of Oct. 16, 2014 ($000) PPEMA (209) CWCMA 188 Total (21) Attachment A provides the workpapers in support of the PPEMA and CWCMA recorded monthly balances. This compliance advice filing will not cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to OP 3 of D , this compliance advice letter is submitted with a Tier 2 designation. 7 In this subsequent Tier 1 compliance advice filing, SCE will also withdraw both the PPEMA and CWCMA preliminary statements from its currently-effective tariffs as they will no longer be required. 8 SCE prorated the October 2014 recorded amounts to reflect the first 16 days for recovery purposes. 9 SCE will file an advice letter in the fourth quarter of 2015 or earlier to remove the PPEMA and CWCMA balance cost recovery from water rates effective January 1, 2016 or earlier.

8 ADVICE 93-W (U 338-W) November 17, 2014 EFFECTIVE DATE As discussed above, SCE requests for this compliance advice filing to become effective no later than December 17, 2014 (i.e., or 30 days after the date filed). NOTICE Anyone wishing to protest this compliance advice filing may do so by letter sent via U.S. Mail, facsimile, or electronically, any of which must be received by the Division of Water and Audits and SCE no later than 10 days after the date of this compliance advice filing. Protests should be mailed to: Director, Division of Water and Audits California Public Utilities Commission 505 Van Ness Avenue San Francisco, California Facsimile: (415) water_division@cpuc.ca.gov In addition, protests and all other correspondence regarding this compliance advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Megan Scott-Kakures Vice President, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com 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 Water Industry Rule 4.1 of GO 96-B, SCE is serving copies of this compliance 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

9 ADVICE 93-W (U 338-W) November 17, 2014 be directed to (626) or by electronic mail at AdviceTariffManager@sce.com. 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 Water Industry Rule 3.2 of GO 96-B, notice to customers of a compliance advice letter is not needed. Notwithstanding this rule, SCE plans to send a letter to every customer that informs them of their new rate schedule and will also include a bill onsert on the first bill that includes the rate changes that explains the rate increase, surcharge and surcredit. To view other SCE advice letters filed with the Commission, log on to SCE s web site at For questions, please contact Linda Letizia at (626) or by electronic mail at Linda.Letizia@sce.com. Southern California Edison Company MSK:ll:dm Enclosures /s/ MEGAN SCOTT-KAKURES Megan Scott-Kakures

10 CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER AND AUDITS Advice Letter Cover Sheet (Date Filed / Received Stamp by CPUC) AL # 93-W Date Mailed to Service List: 11/17/14 Requested Effective Date: 12/17/14 Requested Tier: Tier 1 Tier 2 Tier 3 Replacing AL#: Authorization for Filing: Compliance Filing? Rate $ D Yes No The public has 10 days from Date Mailed (above) to protest this advice letter. If you chose to protest or respond to the advice letter, send Protest and/or Correspondence within 10 days to: Impact % Director Division of Water and Audits 505 Van Ness Ave. San Francisco, CA and if you have capability, also to: water_division@cpuc.ca.gov Your protest also must be served on the Utility Company Name: Southern California Edison Company Address: 8631 Rush Street City, State, Zip: Rosemead, CA (see attached advice letter for more information and grounds for protest) CPUC Utility Number: WTA WTB WTC U 338-W WTD SWR Contact Name: Phone No. Fax No. Address: Filer Darrah Morgan advicetariffmanager@sce.com Alternate Susan Quon susan.quon@sce.com Description: In this space or on the back of this form: 1. Explain justification for requested Tier: Complies with OP 3 of D Describe service affected and how it is affected: No service changes are proposed. 3. Describe differences from related Advice Letters (Similar service, replacement filing): N/A (FOR CPUC USE ONLY) WTS Budget/Activity/Type Process as: Tier 1 Tier 2 Tier 3 / / 20th Day 30th Day Project Manager: Analyst: Due Date: Completion Date: Suspended on: Extended on: Resolution No.: AL/Tariff Effective Date: Rev. 03/04/08

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