PRELIMINARY STATEMENT Sheet 1

Transcription

1 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 1 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 1. Purpose. The Hazardous Substance Cleanup Cost Recovery Mechanism, authorized by Commission Decision , provides a methodology for allocating costs and related recoveries associated with cleaning up certain properties contaminated with hazardous substances between the Company s ratepayers and shareholders. Under the Hazardous Substance Cleanup Cost Recovery Mechanism, the Company shall recover the following from its ratepayers without a reasonableness review: (1) 90 percent of Covered Hazardous Substance Cleanup Costs; (2) 70 percent of Covered Insurance Litigation Costs, and (3) 90 percent of Covered Third-Party Litigation Costs. The remainder of these costs shall be the responsibility of the Company s shareholders. The ratepayers' portion of these costs shall be recorded in the Hazardous Substance Cleanup and Litigation Cost Balancing Account (HSCLC Balancing Account). Recoveries from insurance carriers shall be allocated annually between the Company's ratepayers and shareholders as follows: o o o The Company's ratepayers shall receive 70 percent and shareholders shall receive 30 percent of any Covered Insurance Recoveries until such time as the ratepayers and shareholders have been reimbursed for their respective shares of the recorded Covered Insurance Litigation Costs; Once the ratepayers and shareholders have been reimbursed for their respective shares of the recorded Covered Insurance Litigation Costs, the ratepayers shall receive 10 percent and shareholders shall receive 90 percent of any remaining Covered Insurance Recoveries until such time as the shareholders have been fully reimbursed for their respective share of the recorded Covered Hazardous Substances Cleanup Costs and Covered Third- Party Litigation Costs; and Once the shareholders have been fully reimbursed for their share of the recorded Covered Hazardous Substances Cleanup Costs and Covered Third- Party Litigation Costs, ratepayers shall receive 60 percent and shareholders shall receive 40 percent of any remaining Covered Insurance Recoveries, subject to the conditions set forth in Section 6. Advice 1055-E-A John R. Fielder Date Filed Jun 8, 1994 Decision Senior Vice President Effective Jun 8, C1

2 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 2 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 1. Purpose. The ratepayers' portion of the Covered Insurance Recoveries shall be recorded in the HSCLC Balancing Account. Recoveries from Third-Parties shall be allocated between the Company's ratepayers and shareholders on the same percentage basis as the Covered Hazardous Substance Cleanup Costs and Covered Third-Party Litigation Costs. Ratepayers shall receive 90 percent and shareholders shall receive 10 percent of any Covered Third-Party Recoveries. The ratepayers' portion of the Covered Third-Party Recoveries shall be recorded in the HSCLC Balancing Account. The disposition of the balance in the HSCLC Balancing Account shall be determined in a proceeding expressly authorized by the Commission. (C) 2. Definitions. a. Interest Rate: The Interest Rate shall be 1/12 of the most recent month's interest rate on Commercial Paper (prime, three months) published in the Federal Reserve Statistical Release, G.13. Should publication of the interest rate on Commercial Paper (prime, three months) be discontinued, interest will accrue at the rate of 1/12 of the most recent month's interest rate on Commercial Paper which most closely approximates the rate that was discontinued, and which is published in the Federal Reserve Statistical Release, G.13, or its successor publication. b. Manufactured Gas Plant Site: A Manufactured Gas Plant Site is a site which has been used by a utility or one of its predecessors to manufacture synthetic gas from fossil fuel. c. Presently Identified Federal Superfund Site: A Presently Identified Federal Superfund Site is a site which: (1) is the subject of an order issued by a Federal or State governmental agency under the authority of the Comprehensive Environmental Response, Compensation, and Liability Act; (2) involves the Company; and (3) was identified as of November 19, Advice 2861-E Akbar Jazayeri Date Filed Mar 13, 2013 Decision Vice President Effective Apr 12, C9

3 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E* PRELIMINARY STATEMENT Sheet 3 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 2. Definitions. d. Covered Sites: Covered Sites are those Manufactured Gas Plant Sites and Presently Identified Federal Superfund Sites authorized by the Commission for inclusion in the Hazardous Substance Cost Recovery Mechanism. Any Manufactured Gas Plant Sites identified in the future shall be automatically included as Covered Sites. New federal Superfund sites and other types of sites added to the Hazardous Substance Cleanup Cost Recovery Mechanism through an Advice Letter filing shall also be included as Covered Sites. The currently authorized Covered Sites are listed in Table A. Table A Authorized Covered Sites Covered Site Authorization Manufactured Gas Plant Sites: Bellflower Decision Colton Decision Corona Decision Long Beach I Decision Long Beach II Decision Long Beach III Decision Monrovia Decision Pomona Decision Redlands II Decision Riverside Decision San Bernardino Decision San Pedro Decision Santa Ana I Decision Santa Ana II Decision Santa Barbara I Decision Santa Barbara II Decision Santa Monica Decision Venice Decision Ventura Decision Whittier Decision Federal Superfund Sites: Visalia Pole Yard Decision Operating Industries, Inc. Landfill Decision Stringfellow Decision Casmalia Decision Advice 1455-E John R. Fielder Date Filed May 24, 2000 Decision Senior Vice President Effective Jul 3, C1

4 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 4 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 2. Definitions. d. Covered Sites: Table A Authorized Covered Sites Covered Site Authorization Other Sites: Rosen's Electrical Equipment Company Adv. Ltr E Alamitos Generating Station D /Adv Ltr E Cool Water Generating Station D /Adv Ltr E El Segundo Generating Station D /Adv Ltr E Etiwanda Generating Station D /Adv Ltr E Huntington Beach Generating Station D /Adv Ltr E Highgrove Generating Station D /Adv Ltr E Long Beach Generating Station D /Adv Ltr E Mandalay Generating Station D /Adv Ltr E Ormond Beach Generating Station D /Adv Ltr E Redondo Generating Station D /Adv Ltr E San Bernardino Generating Station D /Adv Ltr E Alhambra Combined Facility D /Adv Ltr E Ascon Landfill D /Adv Ltr E Cameron-Yakima D /Adv Ltr E Mobil Smelting D /Adv Ltr E Omega Chemical D /Adv Ltr E Walker Properties D /Adv Ltr E Fuel Oil Pipeline & Storage System D /Adv Ltr E Quicksilver Products, Inc. D /Adv Ltr E Jack Engle & Company D /Adv Ltr E Pole and Cribwall Firewrap Removal D /Adv Ltr E Gibson Environmental, Inc. D /Adv Ltr E Southern California Edison General Office Complex D /Adv Ltr E Pebbly Beach Generating Facility D /Adv Ltr E BKK Landfill Facility D /Adv Ltr E Cooper Drum Facility D /Adv Ltr E EPC Eastside Disposal Facility D /Adv Ltr E Mercury Refining Company, Inc. D /Adv Ltr E Lafayette D /Adv Ltr 2689-E (N) Advice 2689-E Akbar Jazayeri Date Filed Jan 24, 2012 Decision Vice President Effective Feb 23, C9

5 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 5 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 2. Definitions. e. Covered Hazardous Substance Cleanup Costs: Covered Hazardous Substance Cleanup Costs are all costs incurred to cleanup hazardous substance contamination at Covered Sites. These costs shall include, but are not limited to, investigation costs, remediation costs, monitoring costs, agency oversight fees, permit fees, hazardous substance taxes, as well as payments made to satisfy claims against the Company as a result of costs incurred by persons or entities other than the Company in order to clean up hazardous substance contamination. Costs which are included in base rates, including employee labor, shall not be considered Covered Hazardous Substance Cleanup Costs. Covered Hazardous Substance Cleanup Costs shall include generation-related costs pursuant to Assembly Bill X1 6 which prohibits a facility for the generation of electricity owned by a public utility from being disposed of prior to January 1, (T) (T) f. Covered Insurance Litigation Costs: Covered Insurance Litigation Costs are all costs incurred to pursue a claim against an insurer pursuant to an insurance policy held by the Company, which relates to Covered Hazardous Substance Cleanup Costs paid by the Company. Costs which are included in base rates, including employee labor, shall not be considered Covered Insurance Litigation Costs. Covered Insurance Litigation Costs shall include generation-related costs pursuant to Assembly Bill X1 6 which prohibits a facility for the generation of electricity owned by a public utility from being disposed of prior to January 1, (T) (T) g. Covered Insurance Recoveries: Covered Insurance Recoveries are all payments received by the Company, reduced as necessary by contingency fees paid to outside attorneys to obtain the payment, that: (1) relate to Covered Hazardous Substance Cleanup Costs paid by the Company; (2) are made in response to a claim asserted by the Company; and (3) are made by an insurer to the Company pursuant to a policy held by the Company. Advice 1625-E John R. Fielder Date Filed May 22, 2002 Decision Senior Vice President Effective Jul 1, C9

6 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 6 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 2. Definitions. h. Covered Third-Party Litigation Costs: Covered Third-Party Litigation Costs are all costs incurred by the Company in litigation or otherwise to pursue or defend a claim against or by a person or entity other than an insurer of the Company pursuant to a policy held by the Company which relate to Covered Hazardous Substance Cleanup Costs paid by the Company. Costs which are included in base rates, including employee labor, shall not be considered Covered Third-Party Litigation Costs. Covered Third-Party Litigation Costs shall include generation-related costs pursuant to Assembly Bill X1 6 which prohibits a facility for the generation of electricity owned by a public utility from being disposed of prior to January 1, (T) (T) Advice 1625-E John R. Fielder Date Filed May 22, 2002 Decision Senior Vice President Effective Jul 1, C9

7 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 7 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 2. Definitions. i. Covered Third-Party Recoveries: Covered Third-Party Recoveries are all payments received by the Company, reduced as necessary by contingency fees paid to outside attorneys to obtain the payment, that: (1) relate to Covered Hazardous Waste Cleanup Costs; and (2) are made in response to a claim asserted by the Company, against or by a person or entity other than an insurer of the Company pursuant to a policy held by the Company. j. Internal Hazardous Substance Cleanup Costs: Internal Hazardous Substance Cleanup Costs are Hazardous Substance Cleanup Costs, such as employee labor, which are not paid to a third party. 3. Hazardous Substance Cleanup and Litigation Cost Balancing Account. The Company shall maintain the HSCLC Balancing Account to record the ratepayers' share of Covered Hazardous Substance Cleanup Costs, Covered Third-Party Litigation Costs, Covered Insurance Litigation Costs, Covered Insurance Recoveries, and Covered Third-Party Recoveries. The monthly entry to this account shall be determined as follows: a. 90 percent of all Covered Hazardous Substance Cleanup Costs recorded during the month; b. Plus: 70 percent of all Covered Insurance Litigation Costs recorded during the month; c. Plus: 90 percent of all Covered Third-Party Litigation Costs recorded during the month; d. Less: 90 percent of all Covered Third-Party Recoveries recorded during the month; e. Less: Any amounts transferred from the Covered Insurance Recoveries Tracking Account. f. Less: the allocation of the net of "(a)" through "(e)" to resale sales in direct proportion to the ratio of generation for resale sales to total system sales. Advice 1055-E-A John R. Fielder Date Filed Jun 8, 1994 Decision Senior Vice President Effective Jun 8, C1

8 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Original Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 8 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 3. Hazardous Substance Cleanup and Litigation Cost Balancing Account. If the above calculation produces a positive amount (undercollection) such amount will be debited to the HSCLC Balancing Account. If the calculation produces a negative amount (overcollection), such amount will be credited to the HSCLC Balancing Account. Interest will accrue monthly to the HSCLC Balancing Account by applying the Interest Rate to the average of the beginning and ending balances until the issues are resolved. Ninety-one days following the filing of the Annual Report described in Section 7 below, the Company shall transfer the balance in the HSCLC Balancing Account as of March 31 of that year (as set forth in the Annual Report), plus interest, to the account determined appropriate in the annual Revenue Adjustment Proceeding (RAP) or other proceeding expressly authorized by the Commission. If the accounting for the costs reported in the Annual Report are contested by the Energy Division, the disputed amounts shall remain in the HSCLC Balancing Account until the issues are resolved. 4. Shareholder Cleanup Cost Tracking Account. The Company shall maintain a Shareholder Cleanup Cost Tracking Account (SCC Tracking Account). The monthly entry to this account shall be determined as follows: a. 10 percent of Covered Hazardous Substance Cleanup Costs recorded during the month; b. Plus: 10 percent of Covered Third-Party Litigation Costs recorded during the month; c. Less: 10 percent of Covered Third-Party Recoveries recorded during the month; d. Less: Any amounts transferred from the Covered Insurance Recoveries Tracking Account. If the above calculation produces a positive amount (undercollection) such amount will be debited to the SCC Tracking Account. If the calculation produces a negative amount (overcollection), such amount will be credited to the SCC Tracking Account. Interest will accrue monthly to the SCC Tracking Account by applying the Interest Rate to the average of the beginning and ending balances. Advice 1254-E-A John R. Fielder Date Filed Dec 24, 1997 Decision Senior Vice President Effective Jan 1, C1 E-3514

9 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 9 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 5. Shareholder Insurance Litigation Cost Tracking Account. The Company shall maintain a Shareholder Insurance Litigation Cost Tracking Account (SILC Tracking Account). The monthly entry to this account shall be determined as follows: a. 30 percent of all Covered Insurance Litigation Costs recorded during the month; b. Less: Any amounts transferred from the Covered Insurance Recoveries Tracking Account. If the above calculation produces a positive amount (undercollection) such amount will be debited to the SILC Tracking Account. If the calculation produces a negative amount (overcollection), such amount will be credited to the SILC Tracking Account. Interest will accrue monthly to the SILC Tracking Account by applying the Interest Rate to the average of the beginning and ending balances. 6. Covered Insurance Recoveries Tracking Account. The Company shall maintain a Covered Insurance Recoveries Tracking Account (CIR Tracking Account) to track Covered Insurance Recoveries received by the Company and their allocation among ratepayers and shareholders. A separate subaccount to the CIR Tracking Account shall be maintained for each calendar year's Covered Insurance Recoveries. The monthly entry to the CIR Tracking Account shall be determined as follows: a. 100 percent of all Covered Insurance Recoveries recorded during the month; b. Less: Amounts transferred to the HSCLC Balancing Account, the SILC Tracking Account, the SCC Tracking Account, or other appropriate accounts based upon the methodology set forth in this section. The amount resulting from the above calculation will be credited to the CIR Tracking Account. Interest will accrue monthly to the CIR Tracking Account by applying the Interest Rate to the average of the beginning and ending balance. Advice 1055-E-A John R. Fielder Date Filed Jun 8, 1994 Decision Senior Vice President Effective Jun 8, C1

10 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Original Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 10 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 6. Covered Insurance Recoveries Tracking Account. The CIR Tracking Account shall be adjusted on an annual basis to transfer amounts in the tracking account to the HSCLC Balancing Account, the SILC Tracking Account and the SCC Tracking Account based upon the allocation methodology below. These transfers shall take place on March 31 of each year beginning chronologically with the oldest subaccount and ending with the most recently formed subaccount: a. If the balance in the SILC Tracking Account is greater than zero, then the balance in the CIR Tracking Account shall be transferred to the HSCLC Balancing Account and the SILC Tracking Account on a 70 percent/30 percent basis until the balance in the SILC Tracking Account is equal to zero. b. If a balance remains in the CIR Tracking Account after the actions required in the preceding paragraph are taken, and the balance in the SCC Tracking Account is greater than zero, then the balance in the CIR Tracking Account shall be transferred to the HSCLC Balancing Account and the SCC Tracking Account on a 10 percent/90 percent basis until the balance in the SCC Tracking Account is equal to zero. c. If a balance remains in the CIR Tracking Account after the actions required in the preceding paragraph are taken, and the recovery being tracked in the subaccount was recorded in the account more than five calendar years earlier, a portion of the account shall be dispersed as follows: (1) 1/5 of the Covered Insurance Recoveries recorded in the account six calendar years earlier, and associated interest shall be allocated on a 60 percent/40 percent basis to ratepayers and shareholders. The ratepayer portion shall be transferred to the HSCLC Balancing Account. (2) 1/4 of the Covered Insurance Recoveries recorded in the account seven calendar years earlier, and associated interest shall be allocated on a 60 percent/40 percent basis to ratepayers and shareholders. The ratepayer portion shall be transferred to the HSCLC Balancing Account. (3) 1/3 of the Covered Insurance Recoveries recorded in the account eight calendar years earlier, and associated interest shall be allocated on a 60 percent/40 percent basis to ratepayers and shareholders. The ratepayer portion shall be transferred to the HSCLC Balancing Account. Advice 1489-E John R. Fielder Date Filed Sep 29, 2000 Decision Senior Vice President Effective Nov 8, C4

11 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Original Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 11 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 6. Covered Insurance Recoveries Tracking Account. c. If a balance remains in the Covered Insurance Recovery... (4) 1/2 of the Covered Insurance Recoveries recorded in the account nine calendar years earlier, and associated interest shall be allocated on a 60 percent/40 percent basis to ratepayers and shareholders. The ratepayer portion shall be transferred to the HSCLC Balancing Account. (5) All of the Covered Insurance Recoveries recorded in the account ten calendar years earlier, and associated interest shall be allocated on a 60 percent/40 percent basis to ratepayers and shareholders. The ratepayer portion shall be transferred to the HSCLC Balancing Account. 7. Notice and Reporting Requirements. a. Initial Report. By August 2, 1994, the Company shall file an initial annual report with the CACD. The initial report shall include the following: (1) The name of each memorandum account that previously recorded Covered Hazardous Substance Cleanup Costs are being transferred from, and the source of authorization of the account; (2) The amount of previously recorded Covered Hazardous Substance Cleanup Costs being transferred from each memorandum account; and (3) The amount of Internal Hazardous Substance Cleanup Costs included within these costs, if any. The report shall also describe the costs in enough detail to allow CACD to determine whether the costs have been properly accounted for by the Company, and whether reported Internal Hazardous Substance Cleanup Costs are already being recovered in rates. The initial report shall be served upon each of the parties to Application No Advice 1489-E John R. Fielder Date Filed Sep 29, 2000 Decision Senior Vice President Effective Nov 8, C4

12 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Original Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 12 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 7. Notice and Reporting Requirements. b. Annual Report. Commencing on June 1, 1995, the Company shall file an annual report with the CACD to reflect the costs and recoveries recorded in the HSCLC Balancing Account. The annual report shall be filed on June 1, and shall cover the 12 month period ending March 31. The report shall include the following: (1) The name and location of each Covered Site for which costs were incurred; (2) The amount of Covered Hazardous Substance Cleanup Costs incurred; (3) The amount of Internal Hazardous Substance Costs included within these costs, if any; (4) The total Covered Third-Party Litigation Costs and Covered Insurance Litigation Costs incurred for all Covered Sites; (5) A description of the costs and recoveries in enough detail to allow a determination of whether the costs have been properly accounted for by the Company; (6) The amount of Covered Insurance Recoveries and Covered Third-Party Recoveries received during the period; and (7) A summary of the monthly entries to and ending balances of all accounts included in the Hazardous Substance Cleanup Cost Recovery Mechanism. The Annual Report shall be served upon each of the parties to A c. Notice of Expenditures at Manufactured Gas Plant Sites. Within 15 days after first incurring $50,000 or more in Covered Hazardous Substance Costs and Covered Insurance Litigation Costs for a Manufactured Gas Plant Site which is not listed in Table A in Part 2.d., the Company shall file an informational notice with the CACD. The informational notice shall state the location of the Site, and what governmental agency, if any, is overseeing the cleanup. The notice shall be served upon each of the parties to A Advice 1489-E John R. Fielder Date Filed Sep 29, 2000 Decision Senior Vice President Effective Nov 8, C4

13 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 13 V. Hazardous Substance Cleanup Cost Recovery Mechanism. 8. Other Hazardous Substance Cleanup Cost Memorandum Account. The Company shall maintain an Other Hazardous Substance Cleanup Cost Memorandum Account (OHSCC Memorandum Account) to track those cleanup costs associated with sites which have not been identified as Covered Sites, but for which the Company has filed or plans to file an Advice Letter requesting that the site be identified as a Covered Site. The costs applicable for inclusion in the OHSCC Memorandum Account shall be those costs which would meet the definition of Covered Hazardous Substance Cleanup Costs, Covered Third-Party Litigation Costs, and Covered Insurance Litigation Costs if they can be directly identified to the specific site, if the site were a Covered Site. In addition, the OHSCC Memorandum Account shall track any Covered Third-Party Recoveries and Covered Insurance Recoveries if they can be directly identified to the specific site. On a monthly basis, the Company shall track the recorded costs and recoveries for each site in a subaccount to the OHSCC Memorandum Account. Each subaccount shall have a $50,000 cap until such time as the Advice Letter requesting the site be identified as a Covered Site is filed with the Commission. Once the Advice Letter is filed, the cap shall be removed. Interest will accrue monthly to the OHSCC Memorandum Account by applying the Interest Rate to the average of the beginning and ending balances. Upon approval of a site as a Covered Site, the costs and recoveries reflected in the subaccount for that site, including accrued interest, shall be transferred to the HSCLC Balancing Account, SCC Tracking Account, SILC Tracking Account and the Covered Insurance Recoveries Tracking Account based upon the appropriate percentages and classification of costs. Advice 1055-E-A John R. Fielder Date Filed Jun 8, 1994 Decision Senior Vice President Effective Jun 8, C1