SUBJECT: Modification of the Distribution Resources Plan Memorandum Account Pursuant to Decision

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1 STATE OF CALIFORNIA Edmund G. Brown Jr., Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA April 13, 2018 Advice Letter 3764-E Russell G. Worden Director, State Regulatory Operations 8631 Rush Street Rosemead, CA SUBJECT: Modification of the Distribution Resources Plan Memorandum Account Pursuant to Decision Dear Mr. Worden: Advice Letter 3764-E is effective as of March 12, Sincerely, Edward Randolph Director, Energy Division

2 Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations March 12, 2018 ADVICE 3764-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Modification of the Distribution Resources Plan Memorandum Account Pursuant to Decision (SCE) hereby submits for approval by the California Public Utilities Commission (Commission) the following changes to its tariffs. The revised tariffs are listed on Attachment A and are attached hereto. PURPOSE In accordance with Decision (D.) , SCE submits this advice letter to modify Preliminary Statement Part N.11, Distribution Resources Plan Memorandum Account (DRPMA), to track the incremental costs of implementing the Grid Needs Assessment (GNA), Distribution Deferral Opportunity Report (DDOR), and Data Access Portal (DAP). In addition, in accordance with D , SCE will create a sub-account within the DRPMA to track the incremental costs associated with implementing the Integration Capacity Analysis (ICA) and the Locational Net Benefit Analysis (LNBA) authorized in D BACKGROUND On October 6, 2017, the Commission issued D , Decision on Track 1 Demonstration Projects A (Integration Capacity Analysis) and B (Locational Net Benefits Analysis) that adopted use cases for both the ICA and LNBA and requires the Investor Owned Utilities (IOUs) to implement these use cases and methodology system wide. In D , the Commission authorized the establishment of a memorandum account to track the incremental costs associated with implementing the ICA and the LNBA. SCE expects to incur incremental operation and maintenance (O&M) expense and capital expenditures to implement the ICA and LNBA. Pursuant to D , SCE filed Advice 3687-E on November 3, 2017 establishing the DRPMA to track incremental costs associated with implementing the ICA and the P.O. Box Rush Street Rosemead, California (626) Fax (626)

3 ADVICE 3764-E (U 338-E) March 12, 2018 LNBA. On December 19, 2017, the Director of the Energy Division approved Advice 3687-E with an effective date of November 3, On February 15, 2018, the Commission issued D on Track 3 Policy Issues, Sub-Track 1 (Growth Scenarios) And Sub-Track 3 (Distribution Investment And Deferral Process) Sub-Track 3: Distribution Investment Deferral Framework that adopted the GNA, DDOR, and DAP. The GNA and DDOR data shall be made available in map form, as a pop-up layer atop the circuit models being developed for the ICA, and in downloadable, machine-readable datasets. Datasets shall be organized by the circuits or geographic region containing each identified grid need, planned investment, and candidate deferral pertaining to one of the four distribution services adopted by D The DDOR will present a report of SCE s planned investments that provide one or more of the four distribution services adopted by D The DAP shall be a central Distribution Resources Planning (DRP) data access portal, by which users can click between tabs to view ICA, LNBA, GNA, and DDOR data on the circuit map, and query and export data in tabular form based on a geographic or keyword search. PROPOSED TARIFF CHANGES As discussed above and in accordance with OP 2.n of D , in this advice letter SCE modifies Preliminary Statement Part N.11, DRPMA, to track the incremental costs associated with implementing the GNA, DDOR and the DAP. In addition, SCE will create a sub-account within the DRPMA to track the incremental costs associated with implementing the ICA and the LNBA authorized in D Consistent with D , SCE will seek recovery of the costs tracked in the DRPMA in the next General Rate Case (GRC) proceeding where the Commission will determine if the costs are reasonable and incremental to the approved GRC amounts. No cost information is required for this advice filing. This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.1, and OP 2.n. of D , this advice letter is submitted with a Tier 1 designation. EFFECTIVE DATE SCE requests that this advice filing become effective March 12, 2018, same day as the date filed. 1 D , Ordering Paragraph (OP) 2, pp

4 ADVICE 3764-E (U 338-E) March 12, 2018 NOTICE Anyone wishing to protest this advice letter 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 letter. Protests should be submitted to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue, 4th Floor San Francisco, California Facsimile: (415) EDTariffUnit@cpuc.ca.gov Copies of protests should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki 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 must be received by the deadline shown above. In accordance with General Rule 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 R 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

5 ADVICE 3764-E (U 338-E) March 12, 2018 all other service lists, please contact the CPUC 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 CPUC, log on to SCE s web site at For questions, please contact Kimwuana Blebu at (626) or by electronic mail at Kimwuana.Blebu@sce.com. GAS:kb:cm Enclosures /s/ Gary A. Stern Gary A. Stern, Ph.D.

6 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: Darrah Morgan 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) #: 3764-E Tier Designation: 1 Subject of AL: Modification of the Distribution Resources Plan Memorandum Account Pursuant to Decision Keywords (choose from CPUC listing): Compliance, Memorandum Account AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 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: 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: 3/12/18 No. of tariff sheets: -2- 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: Service affected and changes proposed 1 : See Attachment A Pending advice letters that revise the same tariff sheets: None 1 Discuss in AL if more space is needed.

7 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 Avenue San Francisco, California Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations 8631 Rush Street Rosemead, California Telephone: (626) Facsimile: (626) Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

8 Public Utilities Commission DRPMA Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part N Revised E Revised E Table of Contents Revised E 1

9 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 12 N. MEMORANDUM ACCOUNTS (Continued) (Continued) 11. Distribution Resources Plan Memorandum Account (DRPMA) a. Purpose The purpose of the Distribution Resources Plan Memorandum Account (DRPMA) is to track incremental costs associated with implementing the Grid Needs Assessment (GNA), Distribution Deferral Opportunity Report (DDOR), and Data Access Portal (DAP). The DRPMA subaccount will separately track the Integration Capacity Analysis (ICA) and the Locational Net Benefit Analysis (LNBA) incremental costs authorized in D b. Operation of the DRPMA Monthly entries to the DRPMA shall be determined as follows: A debit entry equal to the recorded incremental O&M expense and capital-related revenue requirements (depreciation, taxes and return on rate base) related to the implementation of the GNA, DDOR, and DAP projects. Monthly entries to the ICA and LNBA sub-account shall be determined as follows: A debit entry equal to the recorded incremental O&M expense and capital-related revenue requirements (depreciation, taxes and return on rate base) related to the implementation of the ICA and LNBA projects. Interest shall accrue monthly to the DRPMA by applying one-twelfth of the three-month Commercial Paper, as reported by the Federal Reserve, to the average monthly balance in the DRPMA. (N) (N) c. Disposition and Review Procedures Pursuant to D , SCE will seek recovery of the costs tracked in the DRPMA in the next General Rate Case proceeding where the Commission will determine if the costs are reasonable and incremental to the approved GRC amounts. (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3764-E Caroline Choi Date Filed Mar 12, 2018 Decision Senior Vice President Effective Mar 12, C8 Resolution

10 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE E TABLE OF CONTENTS - RATE SCHEDULES E E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS E TABLE OF CONTENTS - RULES E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS E TABLE OF CONTENTS - SAMPLE FORMS E E PRELIMINARY STATEMENT: A. Territory Served E B. Description of Service E C. Procedure to Obtain Service E D. Establishment of Credit and Deposits E E. General E F. Symbols E G. Gross Revenue Sharing Mechanism E E H. Baseline Service E I. Charge Ready Program Balancing Account E J. Not In Use... -E K. Nuclear Decommissioning Adjustment Mechanism E L. Purchase Agreement Administrative Costs Balancing Account E M. Income Tax Component of Contributions E N. Memorandum Accounts E E E E E E E E O. California Alternate Rates for Energy (CARE) Adjustment Clause E E P. Optional Pricing Adjustment Clause (OPAC) E (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3764-E Caroline Choi Date Filed Mar 12, 2018 Decision Senior Vice President Effective Mar 12, H7 Resolution

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