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PUBLIC UTILITIES COMMISSION OF THE STATE OF … · (CMTA), Agricultural Energy Consumers Association (AECA), California Farm Bureau ... the SRBA due to the implementation of the Capital

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P.O. Box 800 2244 Walnut Grove Ave. Rosemead, California 91770 (626) 302-3630 Fax (626) 302-4829

Akbar Jazayeri Director of Revenue and Tariffs

July 15, 2003

ADVICE 1721-E (U 338-E)

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

SUBJECT: Elimination of Ratemaking Accounts in Accordance with Decision 03-07-029

Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariff schedules. The revised tariff sheets are listed on Attachment A and are attached hereto.

PURPOSE

In compliance with Ordering Paragraph 8 of Decision (D.) 03-07-029 (Decision), this advice filing eliminates various ratemaking accounts that are no longer needed due to the full recovery forecast of the Procurement Related Obligations Account (PROACT) balance. As such, this advice filing describes each ratemaking mechanism that SCE is eliminating and, where applicable, sets forth the recorded operation of the account as well as disposition of any remaining balance at July 31, 2003.1 The information provided in this advice filing will assist Energy Division’s final review of the operation of each account to ensure that all entries have been recorded and correctly stated and are consistent with applicable California Public Utilities Commission (Commission) decisions and resolutions.2

1 SCE is providing estimated July 1, 2003 account balances in this filing since SCE projects

full recovery of the PROACT as of month-end July. All estimated balances will be replaced with recorded balances and provided to the Commission’s Energy Division as part of its last compliance PROACT report.

2 On a monthly basis, SCE has provided PROACT-related reports to the Commission’s Energy Division in support of SCE’s Surplus determination (i.e., retail revenues and Recoverable Costs).

- 2 - July 15, 2003

BACKGROUND

On January 17, 2003, in anticipation of full recovery of the PROACT balance in the third quarter of 2003, SCE filed Application (A.) 03-01-019 proposing a procedure for the determination that the PROACT balance has been recovered as well as the establishment of the rate design and ratemaking structure necessary to be in place once the PROACT balance is fully recovered. On July 10, 2003, in D.03-07-029, the Commission approved the post-PROACT Settlement Agreement in order to resolve the issues in A.03-01-019.3 Pursuant to the Commission-adopted post-PROACT Settlement Agreement, SCE shall forecast the date of full PROACT recovery based upon the prior month’s recorded PROACT balance and a forecast of the Surplus revenues for the current month. Based on this forecast method, SCE has projected that it will fully recover the PROACT balance by July 31, 2003.4 Thus, beginning August 1, 2003, rate levels will be modified for all SCE retail customers consistent with the terms of the post-PROACT Settlement Agreement and post-PROACT period ratemaking mechanisms will become effective.5 In addition, beginning August 1, 2003, SCE will not need to determine monthly Surplus and, therefore, both the PROACT and SRBA are no longer necessary and can be eliminated. However, Ordering Paragraph 8 of D.03-07-029 requires SCE to file an advice letter with the Energy Division prior to eliminating those regulatory accounts that will no longer be needed due to the full recovery of the PROACT balance and implementation of post-PROACT rate levels. Thus, in accordance with D.03-07-029, SCE is eliminating the following Preliminary Statements with this advice filing.

Preliminary Statement, Part Z - Settlement Rates Balancing Account (SRBA)

! The purpose of the SRBA is to determine the difference between SCE’s revenues from Settlement Rates6 and authorized Recoverable Costs.7 This difference is defined as Surplus (either positive or negative) and is

3 The post-PROACT Settlement Agreement was entered into by and among SCE, The Utility

Reform Network (TURN), Office of Ratepayer Advocates (ORA), California Large Energy Consumer Association (CLECA), California Manufacturers and Technology Association (CMTA), Agricultural Energy Consumers Association (AECA), California Farm Bureau Federation (CFBA), California City-County Street Light Association, and Federal Executive Agencies.

4 The recorded June 30, 2003 PROACT balance is $84 million undercollected. SCE estimates a PROACT overcollected balance of $60 million at month-end July 2003.

5 Pursuant to Ordering Paragraph 8 of D.03-07-029, SCE filed Advice 1722-E on July 15, 2003, to implement post-PROACT rate levels and ratemaking mechanisms.

6 Gross retail electric rates (including surcharges). 7 The amounts SCE is authorized by the Commission to recover in retail electric rates.

- 3 - July 15, 2003

transferred monthly to the PROACT. The SRBA was established in accordance with Resolution E-3765.8

⇒ Balance at July 31, 2003: Zero, because the SRBA activity is transferred to the PROACT at the end of each month.

⇒ Disposition of Account Balance: Not applicable.

⇒ Operation of Account: Appendix 1 to this filing sets forth the operation of the SRBA from September 1, 2001 through July 31, 2003.

Preliminary Statement, Part MM - Procurement Related Obligations Account (PROACT)

! The purpose of the PROACT is to provide for the recovery of certain wholesale electricity procurement costs and other related indebtedness. The PROACT was established in accordance with Section 2.1 of the Litigation Settlement9 and Resolution E-3765.

⇒ Balance at July 31, 2003: $60 Million overcollection (estimated).

⇒ Disposition of Account Balance: In accordance with the post-PROACT Settlement Agreement approved by the Commission in D.03-07-029, if the recorded PROACT balance at the end of July 2003 is overcollected, SCE will transfer such an overcollection to the Energy Resource Recovery Account (ERRA) for return to customers through the operation of that account. If the recorded PROACT balance is undercollected, SCE will first use any remaining balance in the Catch-Up Surcharge Revenue Memorandum Account (CUSRMA) to eliminate such undercollection. Any then-remaining undercollected PROACT balance will be transferred to the ERRA.

⇒ Recorded Operation of Account: Appendix 2 to this filing sets forth the operation of the PROACT from September 1, 2001 through July 31, 2003.

8 On February 4, 2002, SCE filed Advice 1586-E-A in compliance with Resolution E-3765.

On March 7, 2002, the Commission approved Advice 1586-E-A, effective September 1, 2001.

9 October 2, 2001 Litigation Settlement between the Commission and SCE.

- 4 - July 15, 2003

Memorandum/Tracking Accounts

Preliminary Statement, Part N.7 - Capital Additions Tracking Account

! The purpose of the Capital Additions Tracking Account is to track the recorded amount of capital expenditures (up to $900 million per calendar year) that exceeds the level of capital expenditures reflected in currently authorized Commission rates, in accordance with Section 2.6 of the Litigation Settlement, Resolution E-3765, and Advice 1622-E. Pursuant to the Commission-approved implementation of the Capital Additions provision of the Litigation Settlement, to the extent that recorded capital expenditures exceed the amount included in rate levels on an annual basis, such amount will be converted to a revenue requirement and recorded as a Recoverable Cost in the SRBA. SCE performed this calculation for calendar year 2002 and recorded capital expenditures were slightly less than the amounts included in rate levels. Therefore, no Recoverable Costs were recorded in the SRBA due to the implementation of the Capital Additions provision of the Litigation Settlement.

⇒ Balance at July 31, 2003: Not applicable because this tracking account requires a calendar year calculation consistent with the Commission-adopted methodology approved in Advice 1622-E.

⇒ Disposition of Account Balance: Not applicable.

⇒ Operation of Account: Appendix 3 to this filing sets forth the operation of the Capital Additions Tracking Account for calendar year 2002.

Preliminary Statement, Part N.8 - CDWR Charges & Net Short Tracking Account

! The purpose of the CDWR (California Department of Water Resources or DWR) Charges & Net Short Tracking Account is to track the difference between (1) Stabilized CDWR Charges, and (2) the sum of SCE’s Net Short Procurement Costs and CDWR Charges, in accordance with Section 1.1.w. of the Litigation Settlement and Resolution E-3765. In accordance with D.02-12-045, beginning January 1, 2003, SCE determines through the operation of this tracking account the amount of reduced Surplus caused by increased procurement costs (both DWR and SCE-related). The resultant reduced Surplus amount determines the amount of Catch-Up Surcharge Revenue to be transferred from the CUSRMA to the PROACT.

⇒ Balance at July 31, 2003: Not applicable – used for tracking purposes only.

- 5 - July 15, 2003

⇒ Disposition of Account Balance: Not applicable.

⇒ Recorded Operation of Account: Appendix 4 to this filing sets forth the operation of the CDWR Charges & Net Short Tracking Account from January 1, 2003 through July 31, 2003.10

Preliminary Statement, Part N.9 - Commission Directed Tracking Account

! The purpose of the Commission Directed Tracking Account is to track the Recoverable Costs that were incurred by SCE as directed by the Commission in accordance with Section 2.1.d. of the Litigation Settlement in order to determine when Settlement Rates may be changed. Since such costs were to be debited to the SRBA on a monthly basis as incurred. This account was established pursuant to Resolution E-3765.

⇒ Balance at July 31, 2003: Not applicable – used for tracking purposes only.

⇒ Disposition of Account Balance: Not applicable.

⇒ Operation of Account: Not applicable due to the fact that the Commission did not authorize SCE to incur any Recoverable Costs in accordance with Section 2.1.d. of the Litigation Settlement.

Preliminary Statement, Part N.11 – Interruptible Bill Limiter Memorandum Account (IBLMA)

! The purpose of the IBLMA is to track, on a monthly basis, the revenue (surplus) impact caused by reinstating the Interruptible Bill Limiter pursuant to D.03-01-080.

⇒ Balance at July 31, 2003: $11.598 million under-collection (estimated).

⇒ Disposition of Account Balance: SCE proposes to transfer the July 31, 2003 recorded IBLMA balance to the Other Distribution Adjustment Mechanism (ODAM), since this amount will be recovered from customers in post-PROACT distribution rate levels as approved by the Commission in D.03-07-029.

⇒ Operation of Account: Appendix 5 to this filing sets forth the operation of the IBLMA from April 1, 2003 through July 1, 2003.

10 Since prior to January 1, 2003, there was no difference between Stabilized CDWR charges

and recorded CDWR charges, SCE did not record amounts in this Tracking Account.

- 6 - July 15, 2003

Preliminary Statement, Part N.76 - Catch-Up Surcharge Revenue Memorandum Account (CUSRMA)

! The purpose of the CUSRMA is to record on a monthly basis the total revenue that SCE receives after June 2, 2002, associated with amortization of that portion of the three-cents-per-kWh rate increase authorized by the Commission in D.01-05-064 for unrecovered surcharge revenues over the period from March 27, 2001 to June 3, 2001. In addition, pursuant to D.02-12-045, SCE was authorized to transfer amounts from the CUSRMA, as determined in the CDWR Charges & Net Short Tracking Account, to the PROACT.

⇒ Balance at July 31, 2003: $60 Million overcollection (estimated).

⇒ Disposition of Account Balance: In accordance with the post-PROACT Settlement Agreement approved by the Commission in D.03-07-029, any remaining balance recorded in the CUSRMA will be transferred to the ERRA.

⇒ Operation of Account: Appendix 6 to this filing sets forth the operation of the CUSRMA from June 1, 2002 through July 31, 2003.

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.

EFFECTIVE DATE

In accordance with Ordering Paragraph 8 of D.03-07-029, this advice filing is effective on 30 days’ notice, which is August 14, 2003, subject to review and approval by the Energy Division.

NOTICE

Anyone wishing to protest this advice filing may do so by letter 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:

- 7 - July 15, 2003

IMC Program Manager c/o Jerry Royer Energy Division California Public Utilities Commission 505 Van Ness Avenue, Room 4002 San Francisco, California 94102 Facsimile: (415) 703-2200 E-mail: [email protected]

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:

Akbar Jazayeri Director of Revenue and Tariffs Southern California Edison Company 2244 Walnut Grove Avenue, Quad 3D Rosemead, California 91770 Facsimile: (626) 302-4829 E-mail: [email protected]

Bruce Foster Vice President of Regulatory Operations c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2040 San Francisco, California 94102 Facsimile: (415) 673-1116 E-mail: [email protected]

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 III, Paragraph G, of General Order No. 96-A, SCE is furnishing copies of this advice filing to the interested parties shown on the attached service list. Address change requests to the attached GO 96-A Service List should be directed to [email protected] or (626) 302-3985. For changes to all other service lists, please contact the Commission’s Process Office at (415) 703-2021 or by electronic mail at [email protected].

- 8 - July 15, 2003

Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing open for public inspection at SCE’s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE’s web site at http://www.sce.com/adviceletters.

For questions, please contact Debbie Nunes at (626) 302-1717 or by electronic mail at [email protected].

Southern California Edison Company

Akbar Jazayeri

AJ:dan Enclosures

Public Utilities Commission 1721-E Attachment A

Cal. P.U.C. Sheet No. Title of Sheet

Cancelling Cal. P.U.C. Sheet No.

1

Revised 34412-E Preliminary Statement Part N Revised 33411-E Revised 34413-E*** Preliminary Statement Part N Revised 33947-E* Revised 34414-E Preliminary Statement Part N Revised 31499-E Revised 34415-E Preliminary Statement Part N Revised 32674-E

Revised 31499-E Revised 34416-E Preliminary Statement Part N Revised 30253-E Revised 34417-E Preliminary Statement Part N Revised 30254-E* Revised 34418-E Preliminary Statement Part N Revised 30255-E Revised 34419-E Preliminary Statement Part N Revised 32960-E* Revised 34420-E Preliminary Statement Part N Revised 32675-E Revised 34421-E Table of Contents Revised 33781-E

Southern California Edison Revised Cal. PUC Sheet No. 34412-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 33411-E

PRELIMINARY STATEMENT Sheet 2

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 2H20 Resolution

N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued)

d. Specified Project (Continued)

Section Interest Bearing No. Specified Project Memorandum Account*

(1) Not Used (2) Not Used (3) Demand Reduction and Self-Generation Program Yes Incremental Cost (DRSGPIC) Memorandum Account (4) Catastrophic Event Yes (5) Not Used (6) Local Area Revenue Mechanism Yes (7) Not Used (8) Not Used (9) Not Used (10) Research, Development, and Demonstration Royalties Yes (11) Not Used (12) Advanced Metering and Demand Response Yes (13) Not Used (14) Income Tax Component of Contribution Yes

Memorandum Account (15) Demand Side Management Earnings Yes

Memorandum Account (16) Not Used (17) Electric Vehicle Memorandum Account Yes (18) Independent System Operator Memorandum Account Yes

(ISO Memorandum Account) (19) Power Exchange Memorandum Account Yes

(PX Memorandum Account) (20) Transition Cost Audit Memorandum Account Yes

(TCA Memorandum Account) (21) Divestiture of Fossil Generation Yes

Memorandum Account (DFG Memorandum Account) (22) Telecommunication Lease Revenue Memorandum Yes

Account (TLR Memorandum Account) (23) Competition Transition Charge Exemption Yes

Memorandum Account (CTCE Memorandum Account) (24) Industry Restructuring Memorandum Account Yes

(IR Memorandum Account) (25) PBR Distribution Revenue Sharing Memorandum Account Yes (26) PBR Distribution Rate Performance Memorandum Account Yes

(PDRPMA) (27) Secondary Land Use Revenue Memorandum Account Yes

(SLUR Memorandum Account) (28) Not Used (29) Reduced Return On Equity Memorandum Account Yes

(RROE Memorandum Account) (30) Rate Reduction Bond Memorandum Account Yes

(RRB Memorandum Account) (31) Risk Management Tools Memorandum Account Yes

(RMTMA Memorandum Account) (32) Flexible Pricing Options (FPO)/Competition

Transition Charge (CTC) Memorandum Account Yes (FPO/CTC Memorandum Account)

(33) Not Used

* Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance.

(D) | (D) (D)

Southern California Edison Revised Cal. PUC Sheet No. 34413-E*** Rosemead, California Cancelling Revised Cal. PUC Sheet No. 33947-E*

PRELIMINARY STATEMENT Sheet 4

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 4H28 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

2. Definitions. (Continued)

Specified Project (Continued)

Section Interest Bearing No. Specified Project Memorandum Account*

(68) Distributed Energy Resources Memorandum Account (DERMA) Yes (69) Electric Energy Transaction Administration Yes Memorandum Account (EETAMA) (70) Not In Use (71) Pending (72) Real Time Energy Metering (RTEM) Memorandum Account Yes (73) Risk Management Memorandum Account Yes (74) DWR Franchise Fee Obligation Memorandum Account Yes (75) Utility Retained Generation Income Tax Memorandum Account (URGITMA) Yes (76) Not Used (77) Net Energy Metering Memorandum Account (NEMMA) Yes (78) California Power Exchange Wind-Up Charge Memorandum

Account (PXWUC) Yes (79) Surcharge Revenue Memorandum Account (SRMA) Yes (80) Distributed Generation Implementation Cost Memorandum Account (DGICMA) Yes (81) GRC Revenue Requirement Memorandum Account (GRC RRMA) Yes

* Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance.

** Interest shall accrue monthly to credit balances only. See specific memorandum

accounts for more information.

(D)

Southern California Edison Revised Cal. PUC Sheet No. 34414-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 31499-E

PRELIMINARY STATEMENT Sheet 7

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 7H15 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

5. Not Used

6. Local Area Revenue Mechanism (LARM) Memorandum Account.

The Company shall maintain a Local Area Revenue Mechanism Memorandum Account as authorized by Resolution E-3143. The Authorization Date shall be April 12, 1989. The purpose of the LARM Memorandum Account is to record all costs resulting from the gas user's tax assessed by the City of El Segundo for gas purchased by the Company to generate electricity at the El Segundo Generating Station. Such costs shall include, but not be limited to, the utility gas user's taxes recorded by the Company and recorded administrative and general expense associated with implementing the gas user's tax.

Disposition of amounts in this account shall be determined in the annual Revenue Adjustment Proceeding (RAP) or other proceeding expressly authorized by the Commission.

(D)(L)

Southern California Edison Revised Cal. PUC Sheet No. 34415-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 34139-E 31499-E

PRELIMINARY STATEMENT Sheet 8

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 8H20 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

7. Not Used.

(D)(L)

Southern California Edison Revised Cal. PUC Sheet No. 34416-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 30253-E

PRELIMINARY STATEMENT Sheet 9

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 9H24 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

8. Not Used.

(D)

Southern California Edison Revised Cal. PUC Sheet No. 34417-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 30254-E*

PRELIMINARY STATEMENT Sheet 10

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 10H18 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

9. Not Used.

(D) (D)

Southern California Edison Revised Cal. PUC Sheet No. 34418-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 30255-E

PRELIMINARY STATEMENT Sheet 11

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 11H25 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

10. Research, Development, and Demonstration Royalties (RDDR) Memorandum Account.

The Company shall maintain a Research, Development, and Demonstration Royalties (RDDR) Memorandum Account as authorized by Decision No. 91-12-076 and modified by Resolution E-3484. The purpose of the RDDR Memorandum Account is to record the ratepayers' share of all royalties, licensing and other revenues attributable to the Company's Research, Development, and Demonstration programs as authorized by Resolution E-3484.

Entries to the RDDR Memorandum Account shall be made at the end of each month. The monthly entry shall include the ratepayers share of all royalties, licensing fees, and other revenues resulting from the Company's Research, Development, and Demonstration programs. Interest shall accrue to the Memorandum Account by applying the Interest Rate to the average of the beginning and ending balance. Disposition of amounts in this account shall be determined in the annual Revenue Adjustment Proceeding (RAP) or other proceeding expressly authorized by the Commission.

(D)

Southern California Edison Revised Cal. PUC Sheet No. 34419-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 32960-E*

PRELIMINARY STATEMENT Sheet 12

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 12H20 Resolution

N. MEMORANDUM ACCOUNTS (Continued) 11. Not Used.

(T)

Southern California Edison Revised Cal. PUC Sheet No. 34420-E* Rosemead, California Cancelling Revised Cal. PUC Sheet No. 34140-E

PRELIMINARY STATEMENT Sheet 109

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 109H29 Resolution

N. MEMORANDUM ACCOUNT (Continued) 76. Not Used.

(D)

Southern California Edison Revised Cal. PUC Sheet No. 34421-E Rosemead, California Cancelling Revised Cal. PUC Sheet No. 33781-E

TABLE OF CONTENTS Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1721-E John R. Fielder Date Filed Jul 15, 2003 Decision 03-07-029 Senior Vice President Effective Aug 14, 2003 1H13 Resolution

Cal. P.U.C. Sheet No.

TITLE PAGE ..................................................................................................................................11431-E TABLE OF CONTENTS - RATE SCHEDULES .................34420-33782-33628-33497-33498-33499-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ......................................33547-E TABLE OF CONTENTS - RULES ................................................................................................32320-E TABLE OF CONTENTS - BASELINE REGIONS ........................................................................33629-E TABLE OF CONTENTS - SAMPLE FORMS ......... 33630-31856-27787-31900-32765-32137-32138-E

.......................................................................................................................................27618-E PRELIMINARY STATEMENT:

A. Territory Served ...............................................................................................................22909-E B. Description of Service ......................................................................................................22909-E C. Procedure to Obtain Service ...........................................................................................22909-E D. Establishment of Credit and Deposits .............................................................................22909-E E. General...................................................................................................... 22909-24193-24194-E F. Symbols ............................................................................................................................24194-E G. Gross Revenue Sharing Mechanism ......... 26584-26585-26586-26587-26588-26589-26590-E

........................................................................................................26591-26592-26593-27050-E H. Baseline Service ............................................................... 11457-31455-11880-11881-31679-E I. Baseline Balancing Account.................................................................................31457-31458-E J. Employee-Related Balancing Account.............................................................................30246-E K. Nuclear Decommissioning Adjustment Mechanism ............................................30247-30248-E L. Performance-Based Ratemaking Exclusions Distribution Adjustment Mechanism ...............................................................................................................................30249-30250-E M. Income Tax Component of Contributions ...........................................................16039-24573-E N. Memorandum Accounts....... 21344-34412-28740-34413-28276-31526-34414-34415-34416-E

........... 34417-34418-34419-33412-33413-27639-27640-22374-27641-27642-26595-27643-E ........... 27644-27645-27646-27647-27648-27649-27650-27651-27652-27653-27654-27655-E ........... 27656-31327-26596-26005-21960-22046-30256-22546-27658-23703-27465-29774-E ........... 29775-29776-29777-27663-27664-27665-30057-30058-30059-30060-26484-26485-E ........... 23212-28280-24197-29470-26486-29471-24199-29472-23221-23222-23223-24200-E ........... 26487-29473-23227-28281-28282-24244-24477-24812-22380-28283-22621-22622-E ........... 24272-27015-30257-27476-26007-26757-26996-26735-26314-27500-27424-27425-E 27477-29778-28408-29789-29488-28874-29419-32988-31138-31156-34420-31665-31936-E ...........................................................................................................................................32936-E

O. California Alternative Rates for Energy (CARE) Adjustment Clause .................................................................................30258-30259-30260-30261-30262-30263-E

P. Optional Pricing Adjustment Clause (OPAC).................... 20625-20626-24169-22165-20629-E

(T) (T) (T) (T)

October 28, 2003

California Public Utilities Commission 505 Van Ness Avenue, Room 4005 San Francisco, CA 94102

Attn: Jerry Royer Energy Division

Re: Substitute Sheets for Advice Letter 1721-E

Dear Mr. Royer: Enclosed are an original and six copies of Attachment A and substitute Sheet Nos. 34413-E* and 34420-E*1 for Advice Letter 1721-E. Sheet No. 34413-E* has been updated to include revised tariff language and reflect a change in the Cal. PUC canceling sheet number resulting from the approval by the commission of another advice filing affecting this sheet that became effective after Advice 1721-E was filed. Additionally, Sheet No. 34420-E* is revised to reflect the resulting change in the Cal. PUC canceling sheet number. The modifications provided within these substitute sheets help to ensure that all appropriate, approved, and effective revisions are contained in Advice 1721-E. Please replace the enclosed sheets in your master Advice Letter 1721-E file. If you have any questions, please contact Ruby Galvan at (626) 302-2010.

Sincerely,

Enclosures 1721-Esub.doc

1 Asterisk denotes a substituted sheet.

December 18, 2003

California Public Utilities Commission 505 Van Ness Avenue, Room 4005 San Francisco, CA 94102

Attn: Jerry Royer Energy Division

Re: Substitute Sheets for Advice 1721-E

Dear Mr. Royer: Enclosed are an original and six copies of Attachment A and substitute Sheet No. 34413-E**1 for Advice 1721-E. The enclosed substitute sheet is revised to include a previously approved revision to Preliminary Statement, Part N that added Section No. (80) “Distributed Generation Implementation Cost Memorandum Account (DGICMA)” to Part N, which was effective on May 14, 2003 upon the approval of Advice 1698-E. This substitute sheet is necessary to ensure that all appropriate, approved revisions are contained in affected tariff sheets for Advice 1721-E. Please replace the enclosed sheets in your master Advice 1721-E file. If you have any questions, please contact Ruby Galvan at (626) 302-2010.

Sincerely,

Enclosures 1721-ESub2.doc

1 Asterisk denotes a substitute sheet.

January 8, 2004

California Public Utilities Commission 505 Van Ness Avenue, Room 4005 San Francisco, CA 94102

Attn: Jerry Royer Energy Division

Re: Substitute Sheets for Advice 1721-E

Dear Mr. Royer: Enclosed are an original and six copies of Attachment A and substitute Sheet No. 34413-E***1 for Advice 1721-E. Sheet No. 34413-E*** is necessary due to advice letters becoming effective out of order.2 Please replace the enclosed sheets in your master Advice 1721-E file. If you have any questions, please contact Rosie Yocupicio at (626) 302-2077.

Sincerely,

Enclosures 1721-ESub3.doc

1 Asterisk denotes a substitute sheet. 2 Specifically, the above tariff sheet was revised by both Advice 1721-E and Advice 1758-E. Although Advice 1758-E was filed after Advice 1721-E, Advice 1758-E’s approved effective date is prior to that of Advice1721-E, thus making this substitute sheet for Advice 1721-E necessary to incorporate the approved tariff revisions of Advice 1758-E.