ARNOLD SCHWARZENEGGER, Governor
STATE OF CALIFORNIA
PUBLIC UTILITIES COMMISSION
SAN FRANCISCO, CA 94102-3298
October 1, 2007
Advice Letter 2155-E
Akbar Jazayeri
Vice President, Revenue and Tariffs
Southern California Edison Company
P O Box 800
Rosemead, CA 91770
Subject: Modification of Preliminary Statement, Part N.30, Rate
Reduction Bond Memorandum Account
Dear Mr. Jazayeri:
Advice Letter 2155-E is effective September 26, 2007.
Sincerely,
Sean H. Gallagher, Director
Energy Division
Akbar Jazayeri
Vice President of Regulatory Operations
August 27, 2007
ADVICE 2155-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
Modification of Preliminary Statement, Part N.30, Rate
Reduction Bond Memorandum Account
SUBJECT:
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
The purpose of this advice filing is to modify the Rate Reduction Bond (RRB)
Memorandum Account to appropriately record the Trust Transfer Amount (TTA) lagged
revenue and all other refunds from SCE Funding LLC (Bond Issuer).
BACKGROUND
Assembly Bill (AB) 1890, signed into law on September 23, 1996, mandated a 10% rate
reduction for residential and small commercial customers. In Decision (D.) 97-09-056,
the California Public Utilities Commission (Commission) established a nonbypassable
rate, the TTA1, to collect revenues from residential and small commercial customers,
required to repay the RRBs. Pursuant to D.97-09-056, residential and small commercial
customers pay the TTA as a usage based, cents-per-kilowatt-hour component of their
monthly bills. In addition, in compliance with D.97-09-056, SCE established Preliminary
Statement, Part N.30, the RRB Memorandum Account to ensure that customers receive
all the benefits of the RRB transaction net of any incremental costs.
The right to receive payments in respect of the TTA charge was sold to SCE Funding
LLC (LLC) as part of the original RRB transaction. All TTA revenue collected is remitted
to the LLC in order to repay the bonds on prescribed payment dates. SCE anticipates
1
The TTA is also known as the Fixed Transition Amount Charge (FTAC).
P.O. Box 800
2244 Walnut Grove Ave.
Rosemead, California 91770
(626) 302-3630
Fax (626) 302-4829
ADVICE 2155-E
(U 338-E)
-2-
August 27, 2007
that the RRBs will be fully repaid on December 26, 2007. SCE is proposing in
Application (A.) 07-08-004 (2008 Energy Resource Recovery Account (ERRA) Forecast
Proceeding) to eliminate the TTA rate component on or soon after January 1, 2008
coincident with all other consolidated rate changes that will be implemented pursuant to
a final Commission decision in that proceeding.2
MODIFICATION TO THE RRB MEMORANDUM ACCOUNT
Currently, SCE’s Preliminary Statement, Part N.30, RRB Memorandum Account,
records financed tax credits, over-collateralization not needed to discharge the RRBs,
servicing fees, and interest earned on cash flow timing differences, less incremental
costs associated with servicing activities, and any other related costs. Pursuant to
Preliminary Statement, Part N.30, amounts recorded in the RRB Memorandum Account
are transferred to the Base Revenue Requirement Balancing Account (BRRBA) each
month. The balance recorded in the BRRBA at the end of each year is amortized in
rates during the subsequent year.3
SCE proposes to modify Preliminary Statement Part N.30, RRB Memorandum Account
due to the maturity of the RRBs and the expected termination of the TTA rate component
for residential and small commercial customers. However, the purpose will remain the
same (i.e. to ensure that such customers receive all the benefits of the RRB transaction
net of any incremental costs).
The RRB Memorandum Account is being modified to specify that SCE will credit to
residential and small commercial customers any TTA-related revenue (less
uncollectibles) that SCE bills or has billed residential and small commercial customers in
excess of amounts required to repay the RRBs. Examples of such revenue include any
over-collected balance in the LLC’s Over-collateralization and Reserve sub-accounts
that will be refunded to SCE after the final payment is made to bondholders. SCE
estimates that the December 24, 2007 balance in the Over-collateralization sub-account
will be over-collected by $12.3 million. The balance in the Reserve sub-account is
currently over-collected by approximately $4.0 million.4 In addition, due to billing lag,
revenue from the TTA rate component recorded after the RRBs have been repaid will
be refunded to customers through an entry to the RRB Memorandum Account.5
2
3
4
5
Associated rate change issues (i.e., impact of the elimination of the TTA rate component) are set forth
in A.07-08-004.
The year-end balance recorded in the BRRBA is consolidated in rate levels in SCE’s annual ERRA
Forecast proceeding. Any balance in the RRB Memorandum Account transferred to BRRBA is only
reflected in the residential and small commercial customers’ rates.
This over-collection amount will change due to kWh usage during the remainder of the year
Even though the billing of the TTA rate component will cease on January 1, 2008, some TTA billing will
occur after that date for: 1) usage that occurred prior to the TTA elimination date, but was billed in
2008, and 2) billing adjustments.
ADVICE 2155-E
(U 338-E)
-3-
August 27, 2007
SCE will continue to record any incremental costs associated with the RRB transaction
in the RRB Memorandum Account. For example, there will be expenses incurred to
dissolve LLC (e.g. fees to Delaware counsel, and filing fees). There may also be fees
paid to Price Waterhouse Coopers in connection with a final audit.
DISPOSITION OF OVER-COLLECTED AMOUNTS
The monthly balance recorded in the RRB Memorandum Account will continue to be
transferred to the BRRBA each month. Upon consolidation of the December 31, 2008
balance recorded in the BRRBA, SCE will assign the portion of the BRRBA balance
associated with amounts transferred from the RRB Memorandum Account to
Residential and Small Commercial customers, since this over-collection (i.e. refund) is
owed to those customers. Pursuant to SCE’s Preliminary Statement, Part YY, BRRBA,
entries recorded in the BRRBA are reviewed annually in SCE’s April ERRA
Reasonableness application.
ELIMINATION OF ANNUAL TTA TRUE-UP MECHANISM ADVICE FILING
Since the TTA charge will be eliminated on or soon after January 1, 2008 as part of
SCE’s next consolidated rate change, additional adjustments to the TTA charge will no
longer be necessary.6 Therefore, SCE will not file another Annual TTA True-up
Mechanism advice letter.
No cost information is required for this advice filing.
This advice filing will not increase any rate or charge, cause the withdrawal of service,
or conflict with any other schedule or rule.
TIER DESIGNATION
Pursuant to D.07-01-024, Energy Industry Rule 5.2(2), this Advice Letter is submitted
with a Tier 2 classification.
EFFECTIVE DATE
This advice filing will become effective on the 30th calendar day after the date filed,
which is September 26, 2007.
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 no later than 20 days after the date of
this advice filing. Protests should be mailed to:
6
The TTA rate component and the explanatory note regarding TTA that SCE is required to place on
customers’ bills will be eliminated at the same time.
ADVICE 2155-E
(U 338-E)
-4-
August 27, 2007
CPUC, Energy Division
Attention: Tariff Unit
505 Van Ness Avenue
San Francisco, California 94102
E-mail: jnj@cpuc.ca.gov and mas@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:
Akbar Jazayeri
Vice President of Regulatory Operations
Southern California Edison Company
2244 Walnut Grove Avenue
Rosemead, California 91770
Facsimile: (626) 302-4829
E-mail: AdviceTariffManager@sce.com
Bruce Foster
Senior Vice President, Regulatory Affairs
c/o Karyn Gansecki
Southern California Edison Company
601 Van Ness Avenue, Suite 2040
San Francisco, California 94102
Facsimile: (415) 673-1116
E-mail: 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 No. 96-B, SCE is serving copies of this
advice filing to the interested parties shown on the attached GO 96-B service list.
Address change requests to the GO 96-B service list should be directed by electronic
mail to AdviceTariffManager@sce.com 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 Process_Office@cpuc.ca.gov.
Further, in accordance with Public Utilities Code Section 491, notice to the public is
hereby given by filing and keeping the advice filing at SCE’s corporate headquarters.
To view other SCE advice letters filed with the Commission, log on to SCE’s web site at
http://www.sce.com/AboutSCE/Regulatory/adviceletters.
ADVICE 2155-E
(U 338-E)
-5-
August 27, 2007
For questions, please contact Douglas Snow at (626) 302-2035 or by electronic mail at
Douglas.Snow@sce.com.
Southern California Edison Company
Akbar Jazayeri
AJ:ds:mm
Enclosures
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER FILING SUMMARY
ENERGY UTILITY
MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)
Company name/CPUC Utility No.: Southern California Edison Company (U 338-E)
Utility type:
Contact Person: James Yee
! ELC
" GAS
" PLC
" HEAT
Phone #: (626) 302-2509
" WATER
E-mail: James.Yee@sce.com
E-mail Disposition Notice to: AdviceTariffManager@sce.com
EXPLANATION OF UTILITY TYPE
ELC = Electric
PLC = Pipeline
GAS = Gas
HEAT = Heat
Advice Letter (AL) #:
Subject of AL:
(Date Filed/ Received Stamp by CPUC)
WATER = Water
2155-E
Tier Designation:
2
Modification of Preliminary Statement, Part N.30, Rate Reduction Bond Memorandum Account
Keywords (choose from CPUC listing):
Compliance, Memorandum Account
AL filing type: " Monthly " Quarterly " Annual ! One-Time " Other
If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #:
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 AL1:
Confidential treatment requested? " Yes ! No
If yes, please see the attached declaration for specific
information.
Confidential information will be made available to those who execute a nondisclosure agreement.
Name and contact information to request nondisclosure agreement /access to confidential information:
Resolution Required? " Yes ! No
Requested effective date:
9/26/07
No. of tariff sheets:
3
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:
Preliminary Statement Part N and Table of Contents
Service affected and changes proposed1:
Pending advice letters that revise the same tariff sheets:
1
Discuss in AL if more space is needed.
2151-E
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 Ave.,
San Francisco, CA 94102
jnj@cpuc.ca.gov and mas@cpuc.ca.gov
Akbar Jazayeri
Vice President of Regulatory Operations
Southern California Edison Company
2244 Walnut Grove Avenue
Rosemead, California 91770
Facsimile: (626) 302-4829
E-mail: AdviceTariffManager@sce.com
Bruce Foster
Senior Vice President, Regulatory Affairs
c/o Karyn Gansecki
Southern California Edison Company
601 Van Ness Avenue, Suite 2040
San Francisco, California 94102
Facsimile: (415) 673-1116
E-mail: Karyn.Gansecki@sce.com
Public Utilities Commission
2155-E
Cal. P.U.C.
Sheet No.
Title of Sheet
Attachment A
Cancelling Cal.
P.U.C. Sheet No.
Revised 42921-E*
Revised 42922-E*
Preliminary Statement Part N
Preliminary Statement Part N
Revised 42865-E
Revised 42866-E
Revised 42923-E
Table of Contents
Revised 42813-E
1
Southern California Edison
Rosemead, California
(U 338-E)
Cancelling
Revised
Revised
Cal. PUC Sheet No.
Cal. PUC Sheet No.
PRELIMINARY STATEMENT
42921-E*
42865-E
Sheet 35
(T)
(Continued)
N.
MEMORANDUM ACCOUNTS (Continued)
30.
Rate Reduction Bond Memorandum Account (RRB Memorandum Account)
Edison originally maintained the RRB Memorandum Account to record the difference
between the Rate Reduction Bond Savings Amount and the Ten Percent Rate
Reduction Amount provided to residential and small commercial customers in
accordance with Decision 97-09-056. This RRB Memorandum Account now records
financed tax credits, overcollateralization not needed to discharge the Rate Reduction
Bonds, TTA revenue billed in excess of bond payment obligations, refunds received
from SCE Funding LLC, servicing fees, and interest earned on cash flow timing
differences, less incremental costs associated with servicing activities, and any other
related costs.
a.
(T)
(T)
Definitions
(1)
Rate Reduction Bonds:
Rate Reduction Bonds, as authorized by the Commission in
Decision 97-09-056 which provide for a ten percent rate reduction
compared to June 10, 1996 rate levels.
(2)
Rate Reduction Bond Savings Amount:
The Rate Reduction Bond Savings Amount shall include items such
as the avoided revenue requirements, transition cost financed tax
credit, overcollaterization not needed to discharge the Rate
Reduction Bonds, servicing fees, interest earnings on Fixed
Transition Amount Charge held prior to remittance to bondholders,
less the principal and interest payments and other related fees
(including Franchise Fees and Uncollectibles) associated with the
repayment of the Rate Reduction Bonds and other related costs.
(3)
Ten Percent Rate Reduction Amount:
The Ten Percent Rate Reduction Amount shall be the difference
between the residential and small commercial customer revenues
actually billed and the residential and small commercial customer
revenues that would have been billed absent the ten percent rate
reduction.
(Continued)
(To be inserted by utility)
Advice
2155-E
Decision 97-09-056
35H17
Issued by
Akbar Jazayeri
Vice President
(To be inserted by Cal. PUC)
Date Filed Aug 27, 2007
Effective
Sep 26, 2007
Resolution
Southern California Edison
Rosemead, California
(U 338-E)
Cancelling
Revised
Revised
Cal. PUC Sheet No.
Cal. PUC Sheet No.
PRELIMINARY STATEMENT
42922-E*
42866-E
Sheet 36
(T)
(Continued)
N.
MEMORANDUM ACCOUNTS (Continued)
30.
Rate Reduction Bond Memorandum Account (RRB Memorandum Account)
(Continued)
b.
Calculations.
Entries shall be made to the RRB Memorandum Account at the end of each
month equal to the monthly financed tax credit, overcollaterization not needed
to discharge the Rate Reduction Bonds, TTA revenue billed (less
uncollectible amounts) in excess of bond payment obligations, refunds
received from SCE Funding LLC, servicing fees, interest earnings on Fixed
Transition Amount Charge held prior to remittance to bondholders and other
related fees.
(T)
|
(T)
If the resulting amount is positive, a debit entry shall be recorded in the RRB
Memorandum Account. If the resulting amount is a negative amount, a credit entry
shall be recorded in the RRB Memorandum Account. Amounts included in the RRB
Memorandum Account shall transfer to the ODAM each month.
SCE shall maintain the RRB Memorandum Account until the Rate Reduction Bond
obligations are discharged.
(Continued)
(To be inserted by utility)
Advice
2155-E
Decision 97-09-056
36H17
Issued by
Akbar Jazayeri
Vice President
(To be inserted by Cal. PUC)
Date Filed Aug 27, 2007
Effective
Sep 26, 2007
Resolution
Southern California Edison
Rosemead, California
(U 338-E)
Cancelling
Revised
Revised
TABLE OF CONTENTS
Cal. PUC Sheet No.
Cal. PUC Sheet No.
42923-E
42813-E
Sheet 1
Cal. P.U.C.
Sheet No.
TITLE PAGE ..................................................................................................................................11431-E
TABLE OF CONTENTS - RATE SCHEDULES ..... 42923-42542-42728-42729-42730-42731-42732-E
TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ......................................42732-E
TABLE OF CONTENTS - RULES ................................................................................................41807-E
TABLE OF CONTENTS - BASELINE REGIONS ........................................................................41372-E
TABLE OF CONTENTS - SAMPLE FORMS .....................42193-40644-37804-40593-41217-40645-E
.......................................................................................................................................36854-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....................................................................22909-27629-38292-37165-37166-37167-E
F. Symbols ............................................................................................................................37168-E
G. Gross Revenue Sharing Mechanism ......... 26584-26585-26586-26587-27195-27196-27197-E
........................................................................................................27198-27199-27200-27201-E
H. Baseline Service ............................................................... 11457-31455-11880-11881-31679-E
I. Advanced Metering Infrastructure Balancing Account (AMIBA) ......................... 42811-42812-E
J. Employee-Related Balancing Account.............................................................................36295-E
K. Nuclear Decommissioning Adjustment Mechanism ............................................ 36582-36583-E
M. Income Tax Component of Contributions ........................................................... 37202-27632-E
N. Memorandum Accounts...................21344-41773-42054-42035-42036-41775-41730-41654-E
........... 39307-39308-39309-39310-39311-39312-39313-39314-39315-39316-39317-39318-E
........... 40709-39320-41776-39322-39323-41777-41778-41779-39327-39328-39329-39330-E
........... 39331-42921-42922-41780-39335-39336-39337-42179-41781-41782-41783-41784-E
........... 41785-41786-41787-41788-41633-41634-41635-41636-41253-41637-42055-42010-E
............................................................................................ 41640-41641-42068-42069-42070-E
O. California Alternative Rates for Energy (CARE) Adjustment Clause
............................................................................................ 34705-41902-36472-38847-40999-E
P. Optional Pricing Adjustment Clause (OPAC).................... 27670-27671-27672-27673-27674-E
(T)
(T)
(Continued)
(To be inserted by utility)
Advice
2155-E
Decision 97-09-056
1H7
Issued by
Akbar Jazayeri
Vice President
(To be inserted by Cal. PUC)
Date Filed Aug 27, 2007
Effective
Sep 26, 2007
Resolution
Lisa Vellanoweth
Manager of Tariffs
November 27, 2007
California Public Utilities Commission
505 Van Ness Avenue, Room 4005
San Francisco, CA 94102
Attn:
Honesto Gatchalian
Energy Division
Re:
Substitute Sheet for Advice 2155-E
Dear Mr. Gatchalian:
Enclosed are an original and four copies of Attachment A, and Substitute Sheet Nos. 42921-E* and 42922-E*
for Advice 2155-E. This Substitute Sheet is necessary to correct the canceling sheet numbers, the sheet
numbers of the tariffs, and to reflect the most up to date, approved information. This substitute sheet will
ensure that all appropriate revisions are contained in the affected tariff sheets.
Please replace the enclosed sheets in your master Advice 2155-E, and if you have any questions, contact Lisa
Foulds at (626) 302-2010.
Sincerely,
Enclosures
2155-ESub.doc
cc: GO 96-A
* Asterisk denotes a substituted sheet.