Advice Letters 3072-E and 3072-E-A
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1 STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION SAN FRANCISCO, CA Edmund G. Brown Jr., Governor August 19, 2014 Advice Letters 3072-E and 3072-E-A Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company P O Box 800 Rosemead, CA Subject: Establishment of the Mobilehome Park Master Meter Balancing Account in Compliance with D and Supplemental Filing Dear Ms. Scott-Kakures: Advice Letters 3072-E and 3072-E-A are effective August 8, Sincerely, Edward F. Randolph, Director Energy Division
2 Megan Scott-Kakures Vice President, Regulatory Operations July 9, 2014 ADVICE 3072-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of the Mobilehome Park Master Meter Balancing Account in Compliance With Decision In compliance with the California Public Utilities Commission s (Commission s or CPUC s) Decision (D.) (or the Decision), effective March 13, 2014, Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariffs. The revised tariff sheets are listed on Attachment A and are attached hereto. PURPOSE Pursuant to D Ordering Paragraph (OP) 8, this advice filing establishes Preliminary Statement Part MM, Mobilehome Park Master Meter Balancing Account (MMMBA), to record costs associated with the conversion of master-metered service to direct service. In addition, Preliminary Statement Part YY, Base Revenue Requirement Balancing Account (BRRBA) is modified to account for the MMMBA. BACKGROUND On March 13, 2014, the Commission issued D which adopted a three-year living pilot program to incentivize voluntary conversions of master-metered service to direct service at mobilehome parks (MHP). The program directs SCE to convert approximately 10 percent of the spaces within its service territory over the pilot program s three-year term. The Decision authorizes the creation of a balancing account for recording actual MHP program costs. The Decision directed that each utility submit an advice letter on or before July 30, 2014, for approval of a new tariff to establish the voluntary, mobilehome park/manufactured housing community conversion program that contains all the program components referenced and described in the Decision. In this advice letter, SCE requests approval to establish a balancing account for recording actual MHP P.O. Box Rush Street Rosemead, California (626) Fax (626)
3 ADVICE 3072-E (U 338-E) July 9, 2014 conversion program costs. On or before July 30, 2014, SCE will submit a new tariff, program application, and program agreement detailing the terms and conditions of the MHP conversion program. Specifically, D requires that reasonable incremental expenses for program development and administration, not otherwise recovered in rates, should be entered as incurred for annual recovery in SCE s pilot program balancing account. 1 PROPOSED TARIFF CHANGES As discussed above, and in accordance with OP 8 of D , SCE requests to establish Preliminary Statement Part MM, MMMBA, to record the incremental costs associated with the conversion of the master-metered service. Incremental costs include the incremental revenue requirement associated with to the meter costs capitalized and placed in service upon system cutover to direct utility service, including incremental Operation and Maintenance start-up costs such as customer outreach, administrative and other ongoing costs to implement the three-year pilot program. The MMMBA will also record the incremental revenue requirement for the regulatory asset associated with beyond the meter costs incurred. The regulatory asset will be amortized over a ten-year period earning a rate of return at SCE s currently authorized rate of return. Additionally, Preliminary Statement Part YY, BRRBA, is modified to include a debit entry to the Distribution Sub-account to record the transfer from the MMMBA. 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 In accordance with OP 9 of D , this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE SCE respectfully requests that this filing become effective on August 8, 2014, the 30 th calendar day after the date filed. 1 D , p 3.
4 ADVICE 3072-E (U 338-E) July 9, 2014 NOTICE Anyone wishing to protest this advice filing may do so by letter sent via U.S. Mail, facsimile, or electronically, any of which must be received by the Energy Division and SCE 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 EDTariffUnit@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: Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com Leslie E. Starck Senior Vice President, Regulatory Policy & 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 Section 4 of General Order (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 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.
5 ADVICE 3072-E (U 338-E) July 9, 2014 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 Douglas Tessler at (626) or by electronic mail at Douglas.Tessler@sce.com. Southern California Edison Company MSK:dt:sq Enclosures /s/ MEGAN SCOTT-KAKURES Megan Scott-Kakures
6 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company 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) #: 3072-E Tier Designation: 2 Subject of AL: Establishment of the Mobilehome Park Master Meter Balancing Account in Compliance With Decision Keywords (choose from CPUC listing): AL filing type: Monthly Quarterly Annual One-Time Other Compliance, Balancing Account, Mobile Home Parks, Metering If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D 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: 8/8/14 No. of tariff sheets: -6- 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 : Preliminary Statement Parts MM and YY and Table of Contents Pending advice letters that revise the same tariff sheets: 3033-E 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 Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) Leslie E. Starck Senior Vice President, Regulatory Policy & Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)
8 Public Utilities Commission 3072-E Attachment A Cal. P.U.C. Sheet No. Original E Original E Title of Sheet Preliminary Statement Part MM Preliminary Statement Part MM Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part YY Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1
9 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. Sheet 1 MM. Mobilehome Park Master Meter Balancing Account (MMMBA) 1. Purpose The purpose of the Mobilehome Park Master Meter Balancing Account (MMMBA) is to record actual incremental incurred costs of implementing the voluntary program to convert the electric master-meter/submeter service to direct service at Mobilehome Parks (MHP) and manufactured housing communities, pursuant to Decision (D.) The costs associated with the entries in the MMMBA shall include incremental incurred expenses for both to the meter and beyond the meter capitalized costs and ongoing incremental Operation and Maintenance (Q&M) expenses. Actual construction costs for each MHP conversion shall be entered into a balancing account and recovered in the year immediately following service cut over for that MHP. 2. Operation of MMMBA Entries to the MMMBA shall be made monthly, and shall be determined as follows: a. A debit entry equal to the recorded incremental (O&M) expenses, including applicable payroll taxes and benefits on SCE labor; b A debit entry equal to the incremental capital-related revenue requirement, excluding associated Franchise Fees and Uncollectibles (FF&U) expenses related to the to the meter capital costs incurred. The capital-related revenue requirement shall include depreciation expense, return on rate base at thecurrently authorized rate of return on rate base and applicable taxes, such as income and ad valorem taxes; c. A debit entry equal to the revenue requirement on the regulatory asset, excluding FF&U, related to the beyond the meter costs incurred. The revenue requirement shall include amortization expense, return on investment at the-currently authorized rate of return on rate base, and applicable taxes, such as income and ad valorem taxes associated with the costs of installed equipment. The beyond the meter costs will be amortized over ten years; d. A credit entry to transfer the December 31 st balance to the distribution sub-account of the Base Revenue Requirement Balancing Account. Interest shall accrue monthly to the MMMBA by applying the interest rate to the average of the beginning-of-month and end-of-month balances recorded in the MMMBA. The Interest Rate shall be one-twelfth of the Federal Reserve three-month Commercial Paper Rate Non-Financial, from Federal Reserve Statistical Release H.15 (expressed as an annual rate). If in any month a non-financial rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate Financial. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3072-E Megan Scott-Kakures Date Filed Jul 9, 2014 Decision Vice President Effective Aug 8, H21 Resolution
10 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. Sheet 2 MM. Mobilehome Park Master Meter Balancing Account (MMMBA) 3. Disposition SCE will file an annual advice letter in December to recover the December 31 st recorded balance through rates for completed conversions in the year immediately following the cut over of service. 4. Review SCE is authorized to fully recover in distribution rates the costs of the conversion program, subject to reasonableness review. Review for reasonableness of to the meter costs and beyond the meter costs will occur in the first General Rate Case (GRC) proceeding where conversation costs are included into GRC rate base for the MHPs that have had service cut over completed. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3072-E Megan Scott-Kakures Date Filed Jul 9, 2014 Decision Vice President Effective Aug 8, H16 Resolution
11 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 9 YY. Base Revenue Requirement Balancing Account (BRRBA) 4. Distribution Sub-account: (19) Debit entry to record SCE s share of 21 st Century Energy Systems research project (CES-21) expenses, not to exceed $10.5 million annually over a fiveyear period. (20) Debit entry to record Customer Data Privacy and Security Practices independent audit costs. (21) Debit entry to record Reliability Investment Incentive Mechanism (RIIM) independent audit costs. (22) Credit entry to record fees paid by customers participating in the CAISO s NGR market pilot program (23) Debit entry to record Customer Data Access (CDA) Project revenue requirements. (24) Debit entry to annually record the transfer of the December 31 st balance from the Mobilehome Park Master Meter Balancing Account (MMMBA) (N) (N) The sum of (1) through (24) equals the activity recorded in the Distribution Sub-account of the BRRBA. Interest Expense shall be calculated monthly by applying the Interest Rate to the average balance of the beginning-of-month and the end-of-month balances in the Distribution Sub-account. 5. Generation Sub-account: The purpose of the Generation Sub-account of the BRRBA is to record on a monthly basis SCE s: (1) BRRBA Generation Revenue; (2) Authorized Generation Base Revenue Requirement (AGBRR), and other authorized revenue requirements, (e.g., Demand Response and SONGS Steam Generator Replacement Program (SGRP) Removal and Disposal Costs); and (3) other authorized costs and transfers approved by the Commission. A. Operation of the Generation Sub-account: Entries to the Generation Sub-account shall be made on a monthly basis, and shall be calculated as follows: (1) Credit entry equal to the BRRBA Generation Revenue; (2) Debit entry equal to the monthly amount of the AGBRR calculated by multiplying the applicable MDP (as determined in Section 2 above) to the annual AGBRR without an amount for refueling (as shown in Table C), less a provision for FF & U; (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3072-E Megan Scott-Kakures Date Filed Jul 9, 2014 Decision Vice President Effective Aug 8, H16 Resolution
12 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 (T) 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. Not In Use... -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 O. California Alternate Rates for Energy (CARE) Adjustment Clause E E P. Optional Pricing Adjustment Clause (OPAC) E (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3072-E Megan Scott-Kakures Date Filed Jul 9, 2014 Decision Vice President Effective Aug 8, H8 Resolution
13 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 2 PRELIMINARY STATEMENT: Cal. P.U.C. Sheet No. Q. NOT IN USE... -E R. NOT IN USE... -E S. Procurement Energy Efficiency Balancing Account E T. Electric and Magnetic Fields Measurement Program E U. California Solar Initiative Program Balancing Account E V. Hazardous Substance Cleanup Cost Recovery Mechanism E E W. Departing Load and Customer Generation Departing Load Cost Responsibility E E X. Research, Development and Demonstration Adjustment Clause E Y. Demand Response Program Balancing Account E E Z. Songs 2&3 Steam Generator Replacement Balancing Account E E AA. California Alternate Rates for Energy (CARE) Balancing Account E BB. Greenhouse Gas (GHG) Revenue Balancing Account (GHGRBA) E CC. Statewide Marketing, Education & Outreach Balancing Account (SME&OBA) E E DD. Cost Of Capital Trigger Mechanism E EE. Electric Deferred Refund Account E FF. Public Purpose Programs Adjustment Mechanism E E GG. Not In Use... -E HH. Low Income Energy Efficiency Program Adjustment Mechanism E II. Bond Charge Balancing Account E JJ. Direct Access Cost Responsibility Surcharge Tracking Account E KK. Not In Use... -E LL. Reliability Investment Incentive Mechanism E MM. Mobilehome Park Master Meter Balancing Account (MMMBA) E NN. Mohave Balancing Account E OO. Pension Costs Balancing Account E PP. Post Employment Benefits Other Than Pensions Costs Balancing Account E QQ. Edison SmartConnect Balancing Account E (N) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3072-E Megan Scott-Kakures Date Filed Jul 9, 2014 Decision Vice President Effective Aug 8, H14 Resolution
14 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 3 PRELIMINARY STATEMENT: Cal. P.U.C. Sheet No. RR. New System Generation Balancing Account E SS. Songs 2&3 Steam Generator Removal And Disposal Balancing Account E E TT. NOT IN USE... -E UU. Solar PV Program Balancing Account E VV. Medical Programs Balancing Account E WW. Community Choice Aggregation Cost Responsibility... Surcharge Tracking Account E XX. NOT IN USE... -E YY. Base Revenue Requirement Balancing Account E E ZZ. Energy Resource Recovery Account E E AAA. Post Test Year Ratemaking Mechanism E BBB. Not In Use... -E CCC. Cost of Capital Mechanism E DDD On Bill Financing Balancing Account E EEE Not In Use...-E FFF Electric Program Investment Charge Balancing Account-California Energy Commission E GGG Electric Program Investment Charge Balancing Account-Southern California Edison.. (EPICBA-SCE) E HHH Electric Program Investment Charge Balancing Account-California Public Utilities Commission (EPICBA-CPUC) E (T) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3072-E Megan Scott-Kakures Date Filed Jul 9, 2014 Decision Vice President Effective Aug 8, H10 Resolution
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