PUBLIC UTILITIES COMMISSION OF THE STATE OF ......Renewables Portfolio Standard (RPS) Value, as defined below; and (3) the Resource Adequacy (RA) Value, as defined below. 2. Definitions

P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-9645 Fax (626) 302-6396

Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations

October 1, 2020

ADVICE 4306-E (U 338-E)

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

SUBJECT: Bioenergy Market Adjusting Tariff Non-Bypassable Charge Rate Design and Implementation Plan and Establishment of the BioMAT Non-Bypassable Charge Balancing Account

In compliance with California Public Utilities Commission (Commission or CPUC) Decision (D.) 20-08-043 (or the Decision), Southern California Edison Company (SCE) hereby submits the following changes to its tariff schedules. The revised tariffs are listed on Attachment A and are attached hereto. PURPOSE In accordance with Ordering Paragraph (OP) 3 of D.20-08-043, the purpose of this advice letter is to submit SCE’s proposed Bioenergy Market Adjusting Tariff (BioMAT) Non-Bypassable Charge rate design and implementation plan and to establish the BioMAT Non-Bypassable Charge Balancing Account (BMNBCBA) as Preliminary Statement, Part UU. SCE also proposes modifications to Preliminary Statement, Part ZZ, Energy Resource Recovery Account (ERRA) Balancing Account (BA), Preliminary Statement, Part P, Tree Mortality Non-Bypassable Charge Balancing Account (TMNBCBA), and Preliminary Statement, Part FF, Public Purpose Programs Adjustment Mechanism (PPPAM), to fully effectuate the requirements of the Decision in SCE’s tariffs. BACKGROUND On September 1, 2020, the Commission issued D.20-08-043, which adopts revisions to California’s BioMAT program.1 In pertinent part, the Decision modifies cost allocation 1 Senate Bill (SB) 1122 (Rubio, 2012) created a new bioenergy feed-in tariff within the

procurement programs of the Renewables Portfolio Standard (RPS) program and required the investor-owned utilities to procure an additional 250 megawatts (MW) of renewable feed-in-tariff resources from small-scale bioenergy projects that commence operation on or after June 1, 2013 (BM Resources or Contracts).

ADVICE 4306-E (U 338-E) - 2 - October 1, 2020

for the BioMAT program by allocating BioMAT program costs through a Non-Bypassable Charge (NBC) to all customers in each investor-owned utility’s (IOU)2 service territory and collecting the new NBC as part of the IOU’s Public Purpose Programs (PPP) charge.3 Currently, BioMAT program costs are recovered from bundled service customers and departing load customers on a vintage basis via the Power Charge Indifference Adjustment (PCIA) rates, with customer revenues and BioMAT costs recording to the applicable sub-accounts of the Portfolio Allocation Balancing Account (PABA). To effectuate the adopted cost allocation, the Decision requires the following:

(1) The BioMAT NBC (BM-NBC) is to be modeled after the Tree Mortality Non-Bypassable Charge (TM-NBC) adopted in D.18-12-003 (TM Decision).4 Regarding the Resource Adequacy (RA) and RPS attributes associated with the BM Resources, the TM-NBC allocates these attributes, along with the costs, to all customers.5 SCE finds the Decision ambiguous on whether the Commission, using its broad authority in adopting the NBC for BioMAT,6 authorizes the IOUs to allocate the RA and RPS attributes as well as the costs to all customers. This is because the Decision, in dicta, finds both PG&E’s and SCE’s proposals on the NBC reasonable, and PG&E proposed that the IOUs should retain the RA and RPS attributes of BioMAT pursuant to the BioMAT statute.7 SCE does not believe the BioMAT statute precludes the Commission from authorizing the

2 The IOUs include SCE, Pacific Gas and Electric Company (PG&E), and San Diego Gas &

Electric Company (SDG&E). 3 Decision, p. 11. 4 Decision, pp. 11, 14. 5 See generally D.18-12-003, directing the IOUs to seek to monetize these attributes on

behalf of all benefitting customers and recovering the nets costs through the TM-NBC. 6 See Decision, p. 13, stating “[t]he Commission has broad statutory authority from Pub. Util. Code § 701 and can exercise the authority to establish a non-bypassable charge.” 7 See Decision, p. 14.


allocation of the benefits as well as the costs of BioMAT to all customers.8 9 However, the issue is not clearly addressed in the Decision. Thus, SCE has taken the more conservative approach in this advice letter of proposing that the IOUs retain the RA and RPS attributes associated with the BM Resources for use toward their compliance obligations and the costs to be recovered via the new NBC would be offset through the imputed revenues for those attributes from bundled service customers.10 This is the approach proposed by PG&E, as referenced in the Decision. However, SCE finds it consistent with the language of the Decision to model the allocation of the RA and RPS attributes more consistently with the approach adopted in the TM-NBC Decision.11 Under that construct, the RA and RPS attributes would be offered for sale and monetized, with any resulting revenues recording to the BMNBCBA. If SCE was unable to monetize the RA and RPS attributes via sales and no LSE was able to use them for compliance purposes, then the recorded value would be zero. Given the ambiguity in the Decision, SCE is proposing the more conservative approach, but does not want to foreclose the allocation of the costs and benefits associated with the RA and RPS attributes to other LSEs if the Commission intended or would allow for such an outcome.

8 With respect to RPS attributes, Section 399.20 provides that “[e]very kilowatthour of

electricity purchased from an electric generation facility shall count toward meeting the electrical corporation’s renewables portfolio standard annual procurement targets for purposes of paragraph (1) of subdivision (b) of Section 399.15.” (emphasis added). Under the BM-NBC, the electrical corporations’ (the IOUs’) bundled service customers will purchase their load-share of the kilowatthours of electricity from BioMAT Resources, and other load serving entities’ (LSEs’) customers will purchase their load shares. Thus, the RPS benefits should be allocated based on the load shares of BioMAT electricity customers purchase through the NBC. This language need not be read to preclude a fair allocation of the RPS attributes under the BM-NBC. 9 With respect to RA attributes, Section 399.20 provides that “[t]he physical generating capacity of an electric generation facility shall count toward the electrical corporation’s resource adequacy requirement for purposes of Section 380.” (emphasis added). Pursuant to Section 380, the IOUs purchase reliability RA resources on behalf of all customers and allocate their net costs and benefits to customers through their Cost Allocation Mechanisms (CAM). See Section 380(g). The BioMAT statute does not preclude this same allocation mechanism for the BioMAT RA attributes.

10 Decision, p. 14. 11 e.g., Decision, p. 14: “Accordingly, the administration of the BioMAT non-bypassable

charge should be modeled off the tree mortality non-bypassable charge, established in D.18-12-003.”


(2) Each IOU must establish a BMNBCBA that must be used for recording the net costs for BioMAT-related procurement;12 The TM Decision defines “net costs” as the cost of the procurement contracts less (1) revenues received by the IOU through the sale of energy and ancillary services; (2) the value of the Renewable Energy Credits (RECs); and, (3) the value of the RA capacity.13 SCE is applying this same “net cost” construct to the BM Contracts for the purposes of determining the BM-NBC revenue requirement.

(3) Each IOU must design its BM-NBC rate by using the then-current 12-month

coincident peak (12-CP) demand basis for revenue allocation that is used for the CAM, set on a per kilowatt-hour (kWh) basis for each customer group, and added to the other components of the PPP charge for billing;14 and,

(4) Each IOU must submit its BM-NBC rate design and implementation plan along with its request to establish a BMNBCBA via a Tier 2 advice letter within 30 days of the issuance of the Decision.15

Once a utility’s BM-NBC rate design, implementation plan and BMNBCBA are approved by the Commission, all future BioMAT costs must be allocated to all customers.16

DISCUSSION

1. Establishment of the BMNBCBA

The BMNBCBA will record the actual costs, energy and ancillary services revenues, RPS Value, and RA Value of the BM Contracts (i.e., the net costs). Additionally, the BMNBCBA will record the BM-NBC revenues received from customers.

a. RPS Value

On a monthly basis, the RPS Value is determined by multiplying the RECs associated with the BM Contracts by the Forecast RPS Adder published by the Commission’s Energy Division pursuant to D.19-10-001. This amount is subject to true-up at the end of each year based on the Final RPS Adder published by the Commission’s Energy Division pursuant to D.19-10-001. The RPS Value is

12 Decision, p. 15. 13 TM Decision, p. 2. 14 Decision, p. 15. 15 Decision, p. 15 and OP 3. 16 Decision, p. 16.


reflected as a credit in the BMNBCBA and as a corresponding debit in the ERRA BA.

b. RA Value

On a monthly basis, the RA Value is determined by multiplying the RA capacity associated with the BM Contracts by the Forecast RA System Adder published by the Commission’s Energy Division pursuant to D.19-10-001. This amount is subject to true-up at the end of each year based on the Final RA System Adder published by the Commission’s Energy Division pursuant to D.19-10-001. The RA Value is reflected as a credit in the BMNBCBA and as a corresponding debit in the ERRA BA.

The Commission will review the recorded operation of the BMNBCBA in SCE’s annual ERRA Review proceeding to ensure that entries made in the BMNBCBA are stated correctly and consistent with applicable Commission decisions.

2. Description of BM-NBC Ratemaking Process

SCE will forecast the annual net costs of the BM Contracts in its annual ERRA Forecast proceeding to set the BM-NBC on a forecast basis. SCE will then record the actual net costs of the BM Contracts, along with the billed BM-NBC customer revenues, in the BMNBCBA. Any year-end over- or undercollections in the BMNBCBA will be reflected in the BM-NBC the following year.

As described below, the BM-NBC will be added to the PPP rate for billing. Customers will be charged a single PPP rate that collects three distinct sets of costs: (1) PPP-authorized costs and expenses as recorded in the Public Purpose Programs Adjustment Mechanism (PPPAM); (2) TM-NBC net costs as recorded in the TMNBCBA; and, (3) BM-NBC net costs as recorded in the BMNBCBA. This structure requires that the billed (and unbilled) PPP revenues received from customers’ PPP rates be allocated between the PPPAM, TMNBCBA, and BMNBCBA. SCE proposes to allocate billed and unbilled customer revenues across the three balancing accounts based on the revenue requirement of each account.17 For example, if the PPPAM revenue requirement is $300 million, the TMNBCBA revenue requirement is $80 million and the BMNBCBA revenue requirement is $20 million, then PPP revenues will be allocated as follows:18

• PPPAM: 75 percent ($300 million / $400 million) • TMNBCBA: 20 percent ($80 million / $400 million) • BMNBCBA: 5 percent ($20 million / $400 million)

17 This is consistent with the allocation methodology approved by the Commission in Advice

3955-E/E-A. 18 These are illustrative revenue requirements and are not meant to be interpreted as

reflecting the actual revenue requirements associated with these accounts.


3. BM-NBC Rate Design

An illustrative example of SCE’s proposed BM-NBC rate design to comply with the requirements of the Decision outlined above is shown in Table 1.

SCE will first apply the then-current 12-CP allocation factors to allocate the BMNBCBA revenue requirement to each of SCE’s 14 customer groups. The allocated customer group-specific BMNBCBA revenue requirements will then be divided by the forecasted annual sales of each customer group to arrive at the customer group-specific BM-NBC rate factor. These BM-NBC factors are added to each customer group’s PPP charge factor to recover the BMNBCBA revenue requirement.

4. Implementation Plan

SCE proposes to implement the new BM-NBC as part of its 2021 ERRA Forecast rates. On November 9, 2020, SCE will serve its November Update testimony and accompanying workpapers (November Update) in its 2021 ERRA Forecast proceeding (Application (A.) 20-07-004). In the November Update, SCE proposes to remove recovery of the BM Contracts from the PABA and the PCIA and instead reflect recovery via the new BMNBCBA and the PPP charge. The actual calculation of the BM-NBC will

$ 20,000,000

(b) (c) = (a) x (b) (d) (e) = (c) / (d)

Rate Group 12-CP Factors BMNBCBA ($)

2021 ERRA System Sales

Forecast (GWh)

BM-NBC Rate ($/kWh)

Domestic 43.06% $ 8,611,213 26,477 $ 0.00033 TOU-GS-1 7.43% $ 1,485,235 5,520 $ 0.00027 TC-1 0.05% $ 9,572 56 $ 0.00017 TOU-GS-2 16.52% $ 3,303,315 12,402 $ 0.00027 TOU-GS-3 8.60% $ 1,719,893 6,915 $ 0.00025 TOU-8-SEC 8.61% $ 1,721,939 7,594 $ 0.00023 TOU-8-PRI 5.59% $ 1,117,980 5,120 $ 0.00022 Tou-8-SUB 6.34% $ 1,267,016 5,917 $ 0.00021 TOU-8-SEC-Standby 0.09% $ 17,417 183 $ 0.00009 TOU-8-PRI-Standby 0.19% $ 37,223 626 $ 0.00006 TOU-8-SUB-Standby 0.39% $ 77,464 2,463 $ 0.00003 TOU-PA-2 1.57% $ 313,987 1,777 $ 0.00018 TOU-PA-3 1.21% $ 241,599 1,458 $ 0.00017 Street Lighting 0.38% $ 76,147 553 $ 0.00014 System 100% $ 20,000,000 77,064 $ 0.00026

Table 1Illustrative BM-NBC Rate Design

(a) BMNBCBA Revenue Requirement (illustrative )


be included in the advice letter implementing the final decision in SCE’s 2021 ERRA Forecast proceeding based on the final revenue requirement adopted by the Commission; the actual BM-NBC will be implemented in rates as part of the consolidated rate change that implements SCE’s 2021 ERRA Forecast rates. This is consistent with SCE’s approach in implementing the TM-NBC.19

PROPOSED TARIFF CHANGES

In accordance with the Decision and the discussion above, SCE proposes the following changes to its tariffs:

Preliminary Statement Part UU – BMNBCBA

• SCE proposes to establish Preliminary Statement Part UU, the BMNBCBA, to recover the net costs of the BM Resources and to record the BM-NBC revenues.

Preliminary Statement Part P – TMNBCBA

• Section 2.b – SCE proposes to modify the definition of “Total Authorized Public Purpose Programs Charge Revenue Requirement” to include the current Commission-adopted BM-NBC revenue requirement.

Preliminary Statement Part PP – PPPAM

• Section 2.3 – SCE proposes to add a footnote to the definition of “Authorized PPP Revenue Requirement” to reference the BMNBCBA and TMNBCBA.

Preliminary Statement Part ZZ – ERRA BA

• Section 3 – SCE proposes to add two debit entries to the Operation of the ERRA BA to record the RPS Value and RA Value from the BM Resources.

No cost information is required for this advice letter.

Except as otherwise described above, this advice letter will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule.

TIER DESIGNATION

Pursuant to OP 3 of the Decision, this advice letter is submitted with a Tier 2 designation.

19 See Advice 4168-E and Advice 4172-E.


EFFECTIVE DATE

This advice letter will become effective on October 31, 2020, the 30th calendar day after the date submitted.

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 San Francisco, California 94102 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:

Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770

Telephone: (626) 302-9645 Facsimile: (626) 302-6396 E-mail: [email protected] Diana Gallegos Senior Advisor, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 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 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 letter to the interested parties shown on the attached GO 96-B, R.18-07-003,


R.17-06-026 and A.20-07-004 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to [email protected] or at (626) 302-4039. 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].

Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by submitting and keeping the advice letter at SCE’s corporate headquarters. To view other SCE advice letters submitted with the Commission, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.

For questions, please contact Erin Pulgar at (626) 302-2509 or by electronic mail at [email protected].

Southern California Edison Company /s/ Gary A. Stern, Ph.D. Gary A. Stern, Ph.D.

GAS:ep:jm Enclosures

ADVICE LETTER S U M M A R YENERGY UTILITY

Company name/CPUC Utility No.:

Utility type:Phone #:

EXPLANATION OF UTILITY TYPE

ELC GAS

PLC HEAT

MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Advice Letter (AL) #:

WATERE-mail: E-mail Disposition Notice to:

Contact Person:

ELC = ElectricPLC = Pipeline

GAS = GasHEAT = Heat WATER = Water

(Date Submitted / Received Stamp by CPUC)

Subject of AL:

Tier Designation:

Keywords (choose from CPUC listing):AL Type: Monthly Quarterly Annual One-Time Other:If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #:

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 NoIf 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: No. of tariff sheets:

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 proposed1:

Pending advice letters that revise the same tariff sheets:

1Discuss in AL if more space is needed.

CPUC, Energy DivisionAttention: Tariff Unit505 Van Ness AvenueSan Francisco, CA 94102 Email: [email protected]

Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx:Facsimile (xxx) xxx-xxxx:Email:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx:Email:

Zip:

Zip:

mailto:EDTariffUnit%40cpuc.ca.gov?subject=

ENERGY Advice Letter Keywords

Affiliate Direct Access Preliminary StatementAgreements Disconnect Service ProcurementAgriculture ECAC / Energy Cost Adjustment Qualifying FacilityAvoided Cost EOR / Enhanced Oil Recovery RebatesBalancing Account Energy Charge RefundsBaseline Energy Efficiency ReliabilityBilingual Establish Service Re-MAT/Bio-MATBillings Expand Service Area Revenue AllocationBioenergy Forms Rule 21Brokerage Fees Franchise Fee / User Tax RulesCARE G.O. 131-D Section 851CPUC Reimbursement Fee GRC / General Rate Case Self GenerationCapacity Hazardous Waste Service Area MapCogeneration Increase Rates Service OutageCompliance Interruptible Service SolarConditions of Service Interutility Transportation Standby ServiceConnection LIEE / Low-Income Energy Efficiency StorageConservation LIRA / Low-Income Ratepayer Assistance Street LightsConsolidate Tariffs Late Payment Charge SurchargesContracts Line Extensions TariffsCore Memorandum Account TaxesCredit Metered Energy Efficiency Text ChangesCurtailable Service Metering TransformerCustomer Charge Mobile Home Parks Transition CostCustomer Owned Generation Name Change Transmission LinesDecrease Rates Non-Core Transportation ElectrificationDemand Charge Non-firm Service Contracts Transportation RatesDemand Side Fund Nuclear UndergroundingDemand Side Management Oil Pipelines Voltage DiscountDemand Side Response PBR / Performance Based Ratemaking Wind PowerDeposits Portfolio Withdrawal of ServiceDepreciation Power Lines

Public Utilities Commission 4306-E Attachment A

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

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

1

Revised 69736-E Preliminary Statements P Original 65929-E Revised 69737-E Preliminary Statements FF Revised 64840-E Original 69738-E Preliminary Statements UU Original 69739-E Preliminary Statements UU Original 69740-E Preliminary Statements UU Revised 69741-E Preliminary Statements ZZ Revised 69496-E Revised 69742-E Table of Contents Revised 67482-ERevised 69743-E Table of Contents Revised 69081-ERevised 69744-E Table of Contents Revised 69312-E

Southern California Edison Revised Cal. PUC Sheet No. 69736-E Rosemead, California (U 338-E) Cancelling Original Cal. PUC Sheet No. 65929-E

PRELIMINARY STATEMENT Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4306-E Carla Peterman Date Submitted Oct 1, 2020 Decision 20-08-043 Senior Vice President Effective 1P8 Resolution

P. TREE MORTALITY NON-BYPASSABLE CHARGE BALANCING ACCOUNT

1. Purpose The purpose of the Tree Mortality Non-Bypassable Charge (TM-NBC) Balancing Account (TMNBCBA) is to record the “net costs,” as defined in Decision (D.)18-12-003, of biomass generation procured pursuant to Resolution E-4470 and Resolution E-4805 (Tree Mortality Resources). Pursuant to D.18-12-003, the “net costs” that are to be recovered through the TM-NBC from all of SCE’s customers shall be the cost of the biomass generation, less (1) the California Independent System Operator (CAISO) revenue received through the sales of its energy and ancillary services; (2) the value of its renewable energy credits (RECs), as determined by the sales of these RECs in the marketplace (or a benchmark value if such sales are impossible); and (3) the value of its resource adequacy (RA) capacity as determined by the sales of the RA capacity (or a benchmark value if such sales are impossible).

2. Definitions

a. Total Authorized TM-NBC Revenue Requirement

Total Authorized TM-NBC Revenue Requirement shall be the current Commission-adopted TM-NBC revenue requirement.

b. Total Authorized Public Purpose Programs Charge Revenue Requirement

Total Authorized Public Purpose Programs Charge (PPPC) Revenue Requirement shall be the sum of the current Commission-adopted Public Purpose Programs Adjustment Mechanism revenue requirement, the current Commission-adopted BioMAT Non-Bypassable Charge (BM-NBC) revenue requirement, and the current Commission-adopted TM-NBC revenue requirement.

c. TM-NBC Revenues

TM-NBC Revenues shall be determined as follows: A / B x Billed PPPC Revenues Where: A = Total Authorized TM-NBC Revenue Requirement B = Total Authorized PPPC Revenue Requirement

d. Net California Independent System Operator (CAISO) Market Revenues

Energy and ancillary services revenues earned by the Tree Mortality Resources, less any CAISO expenses (e.g., forward scheduling, market usage, bid transaction, and system operation charges) incurred for the Tree Mortality Resources.

(T) | (T)

Southern California Edison Revised Cal. PUC Sheet No. 69737-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 64840-E


(Continued)


FF. PUBLIC PURPOSE PROGRAMS ADJUSTMENT MECHANISM (Continued)

2. Definitions (Continued)

e. Authorized PPP Revenue Requirement:

The Total Authorized PPP Revenue Requirement shall reflect the revenue requirement in rate levels authorized by the Commission for all Public Purpose Programs.1

f. PPP Billed Revenues:

Total recorded billed Public Purpose Programs revenues, adjusted to remove the CARE surcharge.

g. PPP Unbilled Revenues:

Unbilled Revenues are accrued (“earned” as revenue for financial statement purposes) Other PPP revenues associated with electric customer kWh usage that has not yet been billed by SCE. (PPP Unbilled Revenues will be allocated using the same percentage as used to determine the PPP Billed Revenue.)

h. PPP Revenue:

(1) PPP Billed Revenue; (2) Plus: the change (plus or minus) in the amount of PPP Unbilled

Revenues (i.e., the reversal of prior month’s estimate, plus the current month’s estimate);

(3) Less: a provision for FF&U.

i. Interest Rate:

The Interest Rate shall be the most recent monthly interest rate on Commercial Paper (prime, three months), published in the Federal Reserve Statistical Release, H.15. Should publication of the interest rate on Commercial Paper (prime, three months) be discontinued, interest shall so accrue at the rate of the most recent monthly interest rate on Commercial Paper that most closely approximates the rate that was discontinued, and which is published in the Federal Reserve Statistical Release H.15, or its successor publication.

3. Operation of the PPPAM

SCE shall maintain the PPPAM commencing on the date authorized by the CPUC. Entries to the PPPAM shall be made on a monthly basis.

1. See also Preliminary Statement Part P, Tree Mortality Non-Bypassable Charge Balancing Account (TMNBCBA), and Preliminary Statement Part UU, BioMAT Non-Bypassable Charge Balancing Account (BMNBCBA).

(T)

(N) (N)

Southern California Edison Original Cal. PUC Sheet No. 69738-E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No.



UU. BIOMAT NON-BYPASSABLE CHARGE BALANCING ACCOUNT (BMNBCBA)

1. Purpose

The purpose of the Bioenergy Market Adjusting Tariff (BioMAT) Non-Bypassable Charge Balancing Account (BMNBCBA) is to record the net costs of generation procured from bioenergy projects (BioMAT Resources/Contracts) pursuant to the requirements of Schedule BioMAT in accordance with Public Utilities Code Section 399.20 and California Public Utilities Commission (CPUC or Commission) Decisions (D.) 14-12-081, 15-09-004, 16-10-025 and 20-08-043. The BMNBCBA will also record BM-NBC Revenues, as defined below.

Pursuant to D.20-08-043, the net costs that are to be recovered through the BM-NBC from all customers shall be the cost of the BioMAT Resources, less (1) Net California Independent System Operator (CAISO) Revenues, as defined below; (2) the Renewables Portfolio Standard (RPS) Value, as defined below; and (3) the Resource Adequacy (RA) Value, as defined below.

2. Definitions

a. Total Authorized BM-NBC Revenue Requirement

The current Commission-adopted BM-NBC revenue requirement.

b. Total Authorized Public Purpose Programs Charge (PPPC) Revenue

Requirement

The sum of the current Commission-adopted Public Purpose Programs Adjustment Mechanism (PPPAM) revenue requirement, the current Commission-adopted Tree Mortality Non-Bypassable Charge (TM-NBC) revenue requirement, and the Total Authorized BM-NBC Revenue Requirement.

c. BM-NBC Revenues

BM-NBC Revenues shall be determined as follows: A / B x Billed and Unbilled PPPC Revenues Where:

A = Total Authorized BM-NBC Revenue Requirement B = Total Authorized PPPC Revenue Requirement



(Continued)


UU. BIOMAT NON-BYPASSABLE CHARGE BALANCING ACCOUNT (BMNBCBA) (Continued) 2. Definitions (Continued)

d. Net CAISO Market Revenues

Energy and ancillary services revenue earned by the BioMAT Resources, less any CAISO expenses (e.g., forward scheduling, market usage, bid transaction, system operation charges) incurred for the BioMAT Resources.

e. RPS Value

On a monthly basis, the RPS Value is determined by multiplying the Renewable Energy Credits (RECs) associated with the BM Resources by the Forecast RPS Adder published by the Commission’s Energy Division pursuant to D.19-10-001. This amount is subject to true-up at the end of each year based on the Final RPS Adder published by the Commission’s Energy Division pursuant to D.19-10-001. The RPS Value is reflected as a credit in the BMNBCBA and as a corresponding debit in the Energy Resource Recovery Account Balancing Account (ERRA BA).

f. RA Value

On a monthly basis, the RA Value is determined by multiplying the RA capacity associated with the BM Resources by the Forecast RA System Adder published by the Commission’s Energy Division pursuant to D.19-10-001. This amount is subject to true-up at the end of each year based on the Final RA System Adder published by the Commission’s Energy Division pursuant to D.19-10-001. The RA Value is reflected as a credit in the BMNBCBA and as a corresponding debit in the ERRA BA.

g. Interest Rate

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.

h. Franchise Fees and Uncollectibles (FF&U) Expense

FF&U expense shall be the Commission-authorized rate derived from SCE’s most recent General Rate Case (GRC) decision.



(Continued)


UU. BIOMAT NON-BYPASSABLE CHARGE BALANCING ACCOUNT (BMNBCBA) (Continued)

3. Operation of the BMNBCBA

Entries to the BMNBCBA shall be determined as follows (on a monthly, quarterly, or annual basis as recorded data is available):

i. A debit entry equal to the costs of the BioMAT Contracts; ii. A credit entry equal to the Net CAISO Market Revenues; iii. A credit entry equal to the RPS Value; iv. A credit entry equal to the RA Value; v. A credit entry equal to the BM-NBC Revenues; and vi. An entry to record interest expense by applying the Interest Rate to the

average monthly balance in the BMNBCBA.

4. BMNBBA Review Procedures SCE will include the recorded operation of the BMNBCBA for the previous year in

SCE’s annual ERRA Review applications. The review of the BMNBCBA will ensure that the entries made in the BMNBCBA are stated correctly and are consistent with applicable Commission decisions.

5. Rate Changes

Pursuant to D.20-08-043, the BM-NBC rate shall be added to the other components of the PPPC rate for billing. SCE will update its PPPC rate levels to reflect the Total Authorized BM-NBC Revenue Requirement authorized in SCE’s annual ERRA Forecast proceeding. The balance forecast to be recorded in the BMNBCBA (either overcollected or undercollected on December 31 of the current year, plus an amount for FF&U) will be included in the BM-NBC revenue requirement to either be returned to, or recovered from, SCE’s retail electric customers in PPPC rate levels. Prior to implementing consolidated Commission-authorized revenue requirements and rate levels, the BMNBCBA balance will be updated to reflect the latest recorded balance available.



(Continued)


ZZ. ENERGY RESOURCE RECOVERY ACCOUNT (Continued) 3. Operation of the ERRA (Continued): Entries to the ERRA shall be made on a monthly basis as follows: (Continued)

v. A debit entry equal to costs incurred for Aggregator Managed Portfolio Program energy costs pursuant to D.08-03-017, D.13-01-024, D.14-05-025, and D.16-06-029.

w. A debit entry equal to SCE’s share of costs incurred for the Energy Storage Procurement evaluation program, pursuant to D.14-10-045.

x. A credit entry (monthly, quarterly or annually as recorded data is available) in the amount of the Green Tariff Shared Renewables (GTSR) Renewable Power Rate (RPR)-related costs recorded in the GTSR Balancing Account related to the cost of contracts in the Interim Green Rate Pool plus any other credit entries associated with costs recorded in the GTSR Balancing Account, if required.

y. A debit or credit entry equal to the allocated share of gas-related indirect costs, including but not limited to: pipeline expenses, imbalance penalties, and gains or losses related to the sale of excess gas;

z. A debit entry equal to the allocated share of credit and collateral expenses; aa. A debt entry to record the RPS Value from BioMAT Resources, as defined in

the BioMAT Non-Bypassable Charge Balancing Account (BMNBCBA); bb. A debit entry to record the RA Value from BioMAT Resources, as defined in the BMNBCBA; and cc. An entry to annually record the transfer of the December 31st balance in the

Residential Uncollectibles Balancing Account (RUBA) ERRA BA-Related Uncollectibles Sub-Account to be recovered from or returned to bundled service customers.

The sum of (a) through (cc) equals the activity recorded in the ERRA each month.

Interest shall accrue monthly to the ERRA by applying the Interest Rate to the average of the beginning and ending monthly ERRA balances.

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TABLE OF CONTENTS Sheet 1


Cal. P.U.C. Sheet No.

TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES .... 69742-69743-69744-67341-67342-67343-67344-E ........................................................................................................... 67467-67346-67468-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 66863-E TABLE OF CONTENTS - RULES ................................................................................. 67469-64043-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 62213-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 62213-64447-61576-65710-63318-61631-E

........................................................................................................... 67483-61971-63296-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 .......................................................................... 45178-45179-45180-53818-45182-E F. Symbols ..................................................................................................................... 45182-E G. Gross Revenue Sharing Mechanism ....... 26584-26585-26586-26587-27195-27196-54092-E

.................................................................................................. 51717-53819-27200-27201-E H. Baseline Service ........................................................... 52027-52028-52029-52030-52031-E I. Charge Ready Program Balancing Account ................................................... 65510-65511-E J. Not In Use ............................................................................................................................. -E K. Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E L. Purchase Agreement Administrative Costs Balancing Account ........... 55207-51922-55208-E M. Income Tax Component of Contributions ....................................................... 58419-58420-E N. Memorandum Accounts .... 21344-65676-61164-58221-49492-61165-61166-61167-53821-E

........ 50418-42841-61168-64869-64870-44950-44951-44952-44953-42849-42850-42851-E ........ 65677-65678-55623-61171-42856-61172-61173-52033-50419-55048-61174-42863-E ........ 42864-56204-56205-51235-45920-51236-61175-50209-42872-42873-50421-46539-E ........ 42876-42877-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ........ 53321-53322-61176-52551-52552-49928-56235-56236-56237-55144-55145-44029-E

........ 53016-57156-57157-51163-51164-51165-51166-51167-51168-51169-51170-51171-E ................................ 51244-55806-56393-56394-56395-56396-56397-56398-56399-58978E O. California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E .................................................................................................. 36472-38847-56788-67026-E P. Tree Mortality Non-Bypassable Charge Balancing Account……….. .69736-65930-65931-E

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PRELIMINARY STATEMENT: (Continued) Q. Power Charge Indifference Adjustment Undercollection Balancing Account (PUBA) .68068-E

…………………………………………………………………………………...60869-68070-68071-E R. Historical Procurement Charge Balancing Account .................................. 63262-63263-63264-E S. Procurement Energy Efficiency Balancing Account ........................................... 68436-68437-E T. Electric and Magnetic Fields Measurement Program ............................... 64853-18320-18321-E U. California Solar Initiative Program Balancing Account .................. 56677-49280-56678-56679-E V. Hazardous Substance Cleanup Cost Recovery Mechanism ............................... 18853-22174-E ........................ 27264-49536-31527-31528-18857-22175-18859-27681-27682-27683-18863-E W. Departing Load and Customer Generation Departing Load Cost Responsibility . 33558-67964-E ............. 33560-39863-33562-58676-33564-33565-53824-53825-33568-33569-33570-33571-E ....................................................................................................... 33572-33573-33574-33575-E X. Rule 20A Balancing Account (Rule 20A-BA) .................................................................. 67625-E Y. Demand Response Program Balancing Account .... 62826-62827-62828-62829-68452-63607-E ............................................................................................ 62832-64715-64716-64717-64718-E Z. Rule 21 Balancing Account (R21BA)…………………………………………………………67625-E AA. California Alternate Rates for Energy (CARE) Balancing Account 44454-68187-58226-68188-E BB. Greenhouse Gas Revenue Balancing Account ............................. 54108-63265-64150-56255-E CC. Statewide Marketing, Education & Outreach Balancing Account (SME&OBA) ... 68497-65083-E ......................................................................................................................................... 68498-E DD. Cost Of Capital Trigger Mechanism ................................... 31356-35497-31358-35498-31360-E EE. Electric Deferred Refund Account ........................................................................ 21212-26600-E FF. Public Purpose Programs Adjustment Mechanism ............ 49319-63220-51593-68453-69737-E ....................................................................................................... 66064-66065-69077-69078-E GG. Not In Use .................................................................................................................................. -E HH. Low Income Energy Efficiency Program Adjustment Mechanism ............. 68189-62840-55766-E II. Bond Charge Balancing Account .............................................................. 32855-32234-32235-E JJ. Direct Access Cost Responsibility Surcharge Tracking Account .............. 40656-40657-40658-E KK. Not In Use ................................................................................................................................. -E LL. Reliability Investment Incentive Mechanism ........... 57965-57966-57967-57968-57969-57970-E .............................................................................................................................. 68387-68388-E MM. Mobilehome Park Master Meter Balancing Account (MMMBA) ........................... 55093-66874-E NN. Not In Use .................................................................................................................................. -E OO. Pension Costs Balancing Account ............................................................ 57972-44968-44969-E PP. Post Employment Benefits Other Than Pensions Costs Balancing Account ....... 57973-57974-E QQ. Not In Use .................................................................................................................................. -E

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PRELIMINARY STATEMENT: (Continued) RR. New System Generation Balancing Account ................................ 68389-57976-64244-64245-E SS. Not In Use .................................................................................................................................. -E ................................................................................................................................................... -E TT. Not In Use .................................................................................................................................. -E UU. BioMAT Non-Bypassable Charge Balancing Account (BMNBCBA .......... 69738-69739-69740-E VV. Medical Programs Balancing Account ....................................................... 60662-57978-44979-E WW. Portfolio Allocation Balancing Account…………….65241-65242-69094-68390-65245-67030-E …………………………………………………………………………………………65247-65248-65249-E XX. Low Carbon Fuel Standard Revenue Balancing Account .................................... 56447-56448-E YY. Base Revenue Requirement Balancing Account .......................... 68391-65251-54112-51724-E .................................... 65252-65253-65254-65255-66067-68159-68160-57984-58088-57986-E ZZ. Energy Resource Recovery Account .......... 65259-65260-65261-65262-66628-65264-69741-E ................................................................................. 68600-68072-68484-55221-56259-55223-E AAA. Post Test Year Ratemaking Mechanism. ................................................ 57988-60665-57990-E BBB. Not In Use ................................................................................................................................ -E CCC. Cost of Capital Mechanism ...................................................................... 68392-68393-62453-E DDD. 2010-2012 On Bill Financing Balancing Account .......................................................... 55859-E EEE Not in Use ................................................................................................................................ -E FFF Electric Program Investment Charge Balancing Account-California Energy Commission .......... ............................................................................................................................ 50176-50177-E GGG Electric Program Investment Charge Balancing Account-Southern California Edison ............... ............................................................................................................................ 50178-50179-E HHH Electric Program Investment Charge Balancing Account-California Public Utilities Commission ....................................................................................................................................... 50180-E III New Solar Homes Partnership(NSHP) Program Balancing Account (NSHPPBA)……..59581-E JJJ Not Used……………………………………………………………....69307-69308-69309-69310-E ……………………………………………………………………………………...…...59849-59850-E RRR Integrated Distributed Energy Resources Shareholder Incentive Award Balancing Account (iDERSIABA)……………………………………………………………………………...……61284-E LLL Integrated Distributed Energy Resources Contract Costs Balancing Account (iDERCCBA)…… ……………………………………………………………………………………….………….61285-E MMM Distributed Resources Plan Demonstration Balancing Account (DRPDBA)……61982-61983-E NNN Transportation Electrification Portfolio Balancing Account (TEPBA)…….64055-64056-64057-E ………………………………………………………………………………………….64058-64059-E OOO Aliso Canyon Energy Storage Balancing Account (ACESBA)…………………....64073-64074-E PPP Disadvantaged Communities-Green Tariff Balancing Account (DACGTBA)……64152-64153-E VVV Community Solar Green Tariff Balancing Account (CSGTBA)……………………64154-64155-E WWW Disadvantaged Communities - Single-family Solar Homes Balancing Account (DACSASHBA) …………………………………………………………………………………………..64733-64734-E XXX Statewide Energy Efficiency Balancing Account (SWEEBA)……………………………..68438-E ZZZ Net Energy Metering Measurement and Evaluation Balancing Account (NEMMEBA)…65128-E

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Documents

PUBLIC UTILITIES COMMISSION OF THE STATE OF ......Renewables Portfolio Standard (RPS) Value, as defined below; and (3) the Resource Adequacy (RA) Value, as defined below. 2. Definitions