BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Joint Application of San Diego Gas & Electric Company and Southern California Gas Company (E-3921) for: Adoption of Their Residential Electric and Gas Line Extension Allowance Methodologies and its Monthly Ownership Charge Methodology. A.05-09-019 (Filed September 14, 2005) Application of Pacific Gas and Electric Company in Response to Resolution E-3921, Proposing Revisions to Line Extension Allowance and Related Matters. (U 39M) A.05-10-016 (Filed October 13, 2005) Application of Southern California Edison Company (U 338-E) Regarding Residential Line and Service Extension Allowances. A.05-10-019 (Filed October 14, 2005) SOUTHERN CALIFORNIA EDISON COMPANY'S OPENING COMMENTS TO PROPOSED DECISION OF ALJ O'DONNELL MICHAEL D. MONTOYA MARICRUZ PRADO Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-6943 Facsimile: (626) 302-6974 E-mail: [email protected] Dated: June 04, 2007 LAW #1367792 v1 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Joint Application of San Diego Gas & Electric Company and Southern California Gas Company (E-3921) for: Adoption of Their Residential Electric and Gas Line Extension Allowance Methodologies and its Monthly Ownership Charge Methodology. A.05-09-019 (Filed September 14, 2005) Application of Pacific Gas and Electric Company in Response to Resolution E-3921, Proposing Revisions to Line Extension Allowance and Related Matters. (U 39M) A.05-10-016 (Filed October 13, 2005) Application of Southern California Edison Company (U 338-E) Regarding Residential Line and Service Extension Allowances. A.05-10-019 (Filed October 14, 2005) SOUTHERN CALIFORNIA EDISON COMPANY'S OPENING COMMENTS TO PROPOSED DECISION OF ALJ O'DONNELL Pursuant to Rule 14.3 of the California Public Utilities Commission’s (Commission) Rules of Practice and Procedure, Southern California Edison Company (SCE) hereby submits the following comments on the proposed decision of ALJ O’Donnell (Proposed Decision), mailed on May 10, 2007. On May 29, 2007, ALJ O’Donnell granted the parties to this proceeding an extension to file comments to the Proposed Decision from May 30, 2007, to June 4, 2007, thus, these comments are timely filed. I. COMMENTS The Proposed Decision refines the calculation of line extension allowances, and the cost of ownership (COO) charges applicable to refundable costs in excess of the line extension -1- allowance, for Pacific Gas and Electric Company (PG&E), SCE, San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SCG). SCE supports the Proposed Decision and requests that the Commission issue the Proposed Decision with the following technical changes: • Page 8, first and second line and Page 33, middle of second full paragraph: The Proposed Decision states, respectively, “The COO charge is deducted from the refundable amount.” and “The monthly COO charge is deducted from the amount of refundable line extension costs.” These statements do not accurately describe SCE’s method of collecting COO charges. SCE does not know whether such statements accurately describe the methods used by PG&E and SDG&E to collect COO charges. The following sentences should be added to the pages at issue: “When SCE determines that the applicant is owed a refund and COO charges have been assessed against the applicant, rather than trading checks in the mail, SCE simply deducts the COO charges from the refund due to the applicant and sends the applicant a check for the difference. When no refunds are owed to the applicant and COO charges have been assessed, SCE directly bills the applicant the COO charges due.” • SCE requests that the following clarifications be made with respect to the impact of electric rate discounts on the electric net revenue calculation, consistent with the discussion found on page 20 of the Proposed Decision: o Page 3, second bullet point: The phrase “the revenue effect of the discount shall be excluded from the calculation of average distribution revenue per residential customer” should be revised so that the complete bullet point reads as follows: “If the cost of an electric distribution rate discount is not included in residential electric distribution rates, but recovered separately from residential customers through a surcharge, the revenue reduction due to the discount shall -2- be excluded from the calculation of average distribution revenue per residential customer.” o Page 53, Conclusions of Law # 5: The phrase “the discount should be excluded from the electric net revenue calculation” should be revised so that Conclusions of Law #5 reads as follows: “Since residential rate discounts are usually paid for by other residential customers, if the cost of a discount is not included in residential rates, but recovered separately from residential customers through a surcharge, the revenue reduction due to the discount should be excluded from the electric net revenue calculation.” o Page 56, Ordering Paragraph #3: The phrase “the revenue effect of the discount shall be excluded from the calculation of average electric distribution revenue per residential customer” should be revised so that the complete Ordering Paragraph #3 reads as follows: “If the cost of an electric distribution rate discount is not included in residential electric distribution rates, but recovered separately from residential customers through a surcharge, the revenue reduction due to the discount shall be excluded from the calculation of average electric distribution revenue per residential customer.” • Page 19, fourth line: This line contains a typographical error. The word “that” should be replaced with the word “than.” • Page 35, second sentence of second full paragraph: This sentence contains a typographical error. The phrase “utility-financed” should be replaced with the phrase “customer-financed.” The new sentence should read as follows: “SCE’s COO calculation assumes the facilities will be customer-financed with replacement at additional cost to the customer.” -3- II. CONCLUSION For the foregoing reasons, SCE respectfully requests that the Proposed Decision be modified to incorporate the changes requested herein. Respectfully submitted, MICHAEL D. MONTOYA MARICRUZ PRADO By: /s/ Maricruz Prado Maricruz Prado Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-6943 Facsimile: (626) 302-6974 E-mail: [email protected] June 04, 2007 -4- CERTIFICATE OF SERVICE I hereby certify that, pursuant to the Commission’s Rules of Practice and Procedure, I have this day served a true copy of SOUTHERN CALIFORNIA EDISON COMPANY'S OPENING COMMENTS TO PROPOSED DECISION OF ALJ O'DONNELL on all parties identified on the attached service list(s). Service was effected by one or more means indicated below: Transmitting the copies via e-mail to all parties who have provided an e-mail address. First class mail will be used if electronic service cannot be effectuated. Executed this 4th day of June, 2007, at Rosemead, California. __/s/__Melissa Schary_________________________ MELISSA SCHARY PROJECT ANALYST SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 A.05-10-019 Monday, June 4, 2007 A.05-10-019 GEORGETTA J. BAKER ATTORNEY AT LAW SAN DIEGO GAS & ELECTRIC/SOCAL GAS 101 ASH STREET, HQ 13 SAN DIEGO, CA 92101 DAN L. CARROLL ATTORNEY AT LAW DOWNEY BRAND LLP 555 CAPITOL MALL, 10TH FLOOR SACRAMENTO, CA 95814 SEAN CASEY SAN FRANCISCO PUBLIC UTILITIES COMMISSIO 1155 MARKET STREET, 4TH FLOOR SAN FRANCISCO, CA 94103 CASE ADMINISTRATION SOUTHERN CALIFORNIA EDISON COMPANY 2244 WALNUT GROVE AVENUE ROSEMEAD, CA 91770 A.05-10-019 SHEILA DEY WESTERN MANUFACTURED HOUSING COMMUNITIES 455 CAPITOL MALL STE 800 SACRAMENTO, CA 95814 A.05-10-019 LYNN HAUG ELLISON, SCHNEIDER & HARRIS, LLP 2015 H STREET SACRAMENTO, CA 95816 A.05-10-019 CHRISTOPHER J. MAYER MODESTO IRRIGATION DISTRICT 1231 11TH STREET MODESTO, CA 95354 A.05-10-019 JACQUELINE P. MINOR ATTORNEY AT LAW CITY AND COUNTY OF SAN FRANCISCO CITY HALL, ROOM 375 SAN FRANCISCO, CA 94102 A.05-10-019 Page 1 of 2 A.05-10-019 A.05-10-019 DAN GEIS THE DOLPHIN GROUP 925 L STREET, SUITE 800 SACRAMENTO, CA 95814 A.05-10-019 Gregory Heiden CALIF PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE ROOM 5039 SAN FRANCISCO, CA 94102-3214 A.05-10-019 RICHARD MCCANN, PH.D M.CUBED 2655 PORTAGE BAY, SUITE 3 DAVIS, CA 95616 A.05-10-019 STEPHEN A. S. MORRISON ATTORNEY AT LAW CITY AND COUNTY OF SAN FRANCISCO 1 DR. CARLTON B. GOODLETT PLACE, RM 234 SAN FRANCISCO, CA 94102 A.05-10-019 DANIEL M. BERMAN CALIF PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE ROOM 4209 SAN FRANCISCO, CA 94102 A.05-10-019 Christopher Danforth CALIF PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE ROOM 4209 SAN FRANCISCO, CA 94102-3214 A.05-10-019 HOWARD V. GOLUB NIXON PEABODY LLP 2 EMBARCADERO CENTER, STE. 2700 SAN FRANCISCO, CA 94111 A.05-10-019 CARL C. LOWER THE POLARIS GROUP 717 LAW STREET SAN DIEGO, CA 92109-2436 A.05-10-019 KAREN MILLS CALIFORNIA FARM BUREAU FEDERATION 2300 RIVER PLAZA DRIVE SACRAMENTO, CA 95833 A.05-10-019 JUDI MOSLEY ATTORNEY AT LAW PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, B30A SAN FRANCISCO, CA 94105 A.05-10-019 A.05-10-019 Monday, June 4, 2007 JEFF NAHIGIAN JBS ENERGY, INC. 311 D STREET WEST SACRAMENTO, CA 95605 A.05-10-019 JEFFREY P. O'DONNELL ADMINISTRATIVE LAW JUDGE CALIF PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE ROOM 5111 SAN FRANCISCO, CA 94102-3214 A.05-10-019 EDWARD G. POOLE ATTORNEY AT LAW ANDERSON & POOLE 601 CALIFORNIA STREET, SUITE 1300 SAN FRANCISCO, CA 94108-2818 A.05-10-019 JAMES D. SQUERI ATTORNEY AT LAW GOODIN, MACBRIDE, SQUERI, RITCHIE & DAY 505 SANSOME STREET, SUITE 900 SAN FRANCISCO, CA 94111 ROXANNE PICCILLO REGULATORY ANALYSIS PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, B8R SAN FRANCISCO, CA 94105 A.05-10-019 MARICRUZ PRADO ATTORNEY AT LAW SOUTHERN CALIFORNIA EDISON COMPANY 2244 WALNUT GROVE AVENUE ROSEMEAD, CA 91770 Rashid A. Rashid CALIF PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE Legal Division ROOM 4107 SAN FRANCISCO, CA 94102-3214 A.05-10-019 A.05-10-019 NINA SUETAKE THE UTILITY REFORM NETWORK 711 VAN NESS AVE., STE 350 SAN FRANCISCO, CA 94102 ANN L. TROWBRIDGE DAY CARTER MURPHY LLC 3620 AMERICAN RIVER DRIVE, SUITE 205 SACRAMENTO, CA 95864 A.05-10-019 A.05-10-019 A.05-10-019 JOY A. WARREN ATTORNEY AT LAW MODESTO IRRIGATION DISTRICT 1231 11TH STREET MODESTO, CA 95354 A.05-10-019 Page 2 of 2 GREGGORY L. 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