public utilities commission of the state of california ... · • the introduction section is...

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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 August 14, 2020 ADVICE 4273-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Modifications to Southern California Edison Company’s Generation-Related Balancing Accounts to Implement Local Resource Adequacy Central Procurement Entity Cost Recovery in Accordance with Decision 20-06-002 Southern California Edison Company (SCE) hereby submits to the California Public Utilities Commission (Commission or CPUC) the following changes to its tariffs. The revised tariff sheets are listed on Attachment A and are attached hereto. PURPOSE The purpose of this advice letter is to establish the Centralized Local Procurement Sub- Account (CLPSA) in SCE’s existing New System Generation Balancing Account (NSGBA) to facilitate cost recovery using the Cost Allocation Mechanism (CAM) for the costs and benefits associated with SCE’s procurement of local Resource Adequacy (RA) products to meet its obligations as the Central Procurement Entity (CPE) for its distribution service area beginning with the 2023 RA compliance year. This advice letter also proposes modifications to SCE’s Portfolio Allocation Balancing Account (PABA) to reflect the vintaging rules for resources that may transition from the PABA to the CLPSA and back to the PABA, and to SCE’s Power Charge Indifference Adjustment (PCIA) Undercollection Balancing Account (PUBA) to reflect exclusions from the PCIA rate cap, as discussed below. BACKGROUND On June 17, 2020, the Commission issued Decision (D.)20-06-002 (or the Decision) to adopt the implementation details for the central procurement of multi-year local RA products beginning with the 2023 RA compliance year for SCE and Pacific Gas and Electric Company (PG&E). 1 The Decision identifies SCE and PG&E as the CPEs for their respective distribution service areas and adopts a hybrid central procurement 1 The Decision declined to adopt a central procurement framework for the San Diego Gas & Electric Company (SDG&E) distribution service area at this time.

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Page 1: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

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

August 14, 2020

ADVICE 4273-E (U 338-E)

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

SUBJECT: Modifications to Southern California Edison Company’s Generation-Related Balancing Accounts to Implement Local Resource Adequacy Central Procurement Entity Cost Recovery in Accordance with Decision 20-06-002

Southern California Edison Company (SCE) hereby submits to the California Public Utilities Commission (Commission or CPUC) the following changes to its tariffs. The revised tariff sheets are listed on Attachment A and are attached hereto.

PURPOSE

The purpose of this advice letter is to establish the Centralized Local Procurement Sub-Account (CLPSA) in SCE’s existing New System Generation Balancing Account (NSGBA) to facilitate cost recovery using the Cost Allocation Mechanism (CAM) for the costs and benefits associated with SCE’s procurement of local Resource Adequacy (RA) products to meet its obligations as the Central Procurement Entity (CPE) for its distribution service area beginning with the 2023 RA compliance year. This advice letter also proposes modifications to SCE’s Portfolio Allocation Balancing Account (PABA) to reflect the vintaging rules for resources that may transition from the PABA to the CLPSA and back to the PABA, and to SCE’s Power Charge Indifference Adjustment (PCIA) Undercollection Balancing Account (PUBA) to reflect exclusions from the PCIA rate cap, as discussed below.

BACKGROUND

On June 17, 2020, the Commission issued Decision (D.)20-06-002 (or the Decision) to adopt the implementation details for the central procurement of multi-year local RA products beginning with the 2023 RA compliance year for SCE and Pacific Gas and Electric Company (PG&E).1 The Decision identifies SCE and PG&E as the CPEs for their respective distribution service areas and adopts a hybrid central procurement

1 The Decision declined to adopt a central procurement framework for the San Diego Gas &

Electric Company (SDG&E) distribution service area at this time.

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ADVICE 4273-E (U 338-E) - 2 - August 14, 2020

framework.2 OP 16 of the Decision adopts the CAM methodology as the cost recovery mechanism for SCE and PG&E to recover procurement costs incurred in serving the central procurement function, including administrative costs associated with the central procurement function. Further, OP 17 of the Decision directs SCE and PG&E to each establish a CLPSA in their NSGBA to facilitate the adopted cost recovery framework.

OP 12 of the Decision addresses the reclassification of investor-owned utility (IOU)3 resources that are procured by the CPE. Specifically, IOU resources procured by the CPE should be reclassified from their existing cost recovery mechanism designations to the CAM for the duration of the contract/multi-year obligation with the CPE. After that time, the IOU resources should be reclassified back to their existing cost recovery mechanism designation.4 When this requirement is applied to resources that are otherwise eligible for recovery via the PCIA mechanism,5 a resource that is being reclassified back as PCIA-eligible after its CPE obligation has expired will be excluded from the calculation of the PCIA rate cap adopted in D.18-10-019.6

Finally, OP 26 of the Decision specifies that the CPE shall have discretion to defer procurement of a local resource to the California Independent System Operator’s backstop mechanisms, rather than through the solicitation process, if bid costs are deemed unreasonably high.

PROPOSED TARIFF CHANGES

SCE proposes the following modifications to its applicable generation-related balancing accounts to effectuate the cost allocation and recovery provisions adopted in the Decision, as outlined above.

Preliminary Statement Part RR – NSGBA

• The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA) is added to establish the new sub-account and

outline the specific debit and credit entries to be recorded therein. A specific reference to greenhouse gas (GHG) costs is included to specify that any GHG costs associated with the CLPSA-eligible resources will be recorded in the CLPSA.7

2 See Ordering Paragraphs (OPs) 2, 3 and 4 of the Decision. 3 The IOUs include SCE, PG&E and SDG&E. 4 Decision, p. 48. See also pp. 79-80. For example, if a resource procured by the CPE has

an existing 2018 PABA Resource Vintage, the resource will continue to be classified as a 2018 PABA Resource Vintage when its CPE obligation has expired.

5 PCIA cost recovery is facilitated via the PABA. 6 Decision, pp. 48-49. See also p. 80. The calculation of the annual PCIA rate cap is

described in the PUBA. 7 Decision, p. 50 (“If the CPE procures dispatch rights, allocation of any GHG emissions shall

be allocated as they currently are for other CAM resources.”). See also p. 79.

Page 3: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

ADVICE 4273-E (U 338-E) - 3 - August 14, 2020

• Section 2.j is added to incorporate the debit or credit entry from the CLPSA to the overall total balance of the NSGBA.

• Other minor, non-substantive changes are made throughout the preliminary statement to correct grammatical, abbreviation and other formatting items.

The summation of the entries recorded in the CLPSA will be recovered from customers as part of the revenue requirement associated with the existing New System Generation Charge (NSGC), which is recovered from all customers via Delivery Rates. The NSGC is the mechanism used today to implement the CAM in customer rates.

Preliminary Statement WW – PABA

• Section 2.a (Definitions – Resource Vintage) is modified to include the reclassification provisions described above.

Preliminary Statement Q – PUBA

• Section 2.b (Definitions – PCIA Rate Cap) is modified to include the PCIA rate cap exclusion described above.

No cost information is required for this advice letter.

Except as 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 the Decision,8 this advice letter is submitted with a Tier 2 designation.

EFFECTIVE DATE

This advice letter will become effective on September 13, 2020, the 30th day after submittal.

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:

8 Decision, p. 55.

Page 4: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

ADVICE 4273-E (U 338-E) - 4 - August 14, 2020

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] Laura Genao Managing Director, 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.17-09-020, R.19-11-009 and R.17-06-026 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.

Page 5: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

ADVICE 4273-E (U 338-E) - 5 - August 14, 2020

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

Page 6: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

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.

Page 7: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

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:

Page 8: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

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

Page 9: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Public Utilities Commission 4273-E Attachment A

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

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

1

Revised 69455-E Preliminary Statements Q Original 68069-E Revised 69456-E Preliminary Statements RR Revised 68389-ERevised 69457-E Preliminary Statements RR Revised 57976-ERevised 69458-E Preliminary Statements RR Revised 64244-ERevised 69459-E Preliminary Statements RR Revised 64245-E Revised 69460-E Preliminary Statements WW Revised 69323-E Revised 69461-E Table of Contents Revised 69311-ERevised 69462-E Table of Contents Revised 69081-ERevised 69463-E Table of Contents Revised 69312-E

Page 10: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69455-E Rosemead, California (U 338-E) Cancelling Original Cal. PUC Sheet No. 68069-E

PRELIMINARY STATEMENT Sheet 2

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 2P7 Resolution

Q. Power Charge Indifference Adjustment Undercollection Balancing Account (PUBA) (Continued)

2. Definitions (Continued)

a. PCIA Rate Cap:

Beginning in 2020, a cap on any upward movement in vintage PCIA rates is set at 0.5 cents / kWh from the final cumulative System Average Rate by Customer Vintage implemented as a result of a final decision in the previous year’s ERRA Forecast proceeding (e.g., for the 2020 ERRA Forecast proceeding, the comparison is between (1) the PCIA rates proposed via Advice 3972-E on March 19, 2019 and implemented via Advice 4006-E on June 1, 2019 (i.e., the 2019 ERRA Forecast Proceeding final as-implemented rates in accordance with D.19-02-024) and (2) the PCIA rates proposed in SCE’s 2020 ERRA Forecast Proceeding (including the November Update)). In accordance with D.20-06-002, a resource that is being reclassified back as PCIA-eligible after its local resource adequacy Central Procurement obligation has expired (i.e., no longer eligible for the Cost Allocation Mechanism (CAM) via the Centralized Local Procurement Sub-Account (CLPSA) of the New System Generation Balancing Account (NSGBA)) will be excluded from the calculation of the annual PCIA Rate Cap.

b. System Average Rate:

The “system average rate” associated with a balancing account is defined as

follows: System Average Rate = Authorized Balancing Account Revenue Requirement / Forecast kWh Sales of All Customers Responsible for the Costs in that Particular Balancing Account.

3. Operation The PUBA consists of multiple DL Customer Vintage subaccounts, starting with the PCIA 2009 Customer Vintage. A separate DL Customer Vintage subaccount is added for each subsequent year through the current year. PCIA obligations that accrue as the result of capped PCIA rates by Customer Vintage are tracked and recorded in the PUBA DL Customer Vintage subaccounts.

The PUBA also includes a BSF subaccount to record the amount of the PCIA undercollection that is financed by bundled service customers, with interest. The year-end BSF subaccount balance is returned, in its entirety, to the customers who provided the “loan” through a transfer of the BSF subaccount balance to the applicable vintage subaccount of the Portfolio Allocation Balancing Account (PABA), for amortization in the next year’s rates (e.g., the year-end 2020 PUBA BSF subaccount balance is returned, in its entirety, to 2020 bundled service customers through a transfer of the 2020 PUBA BSF subaccount balance to the 2020 vintage subaccount of PABA, for amortization in 2021 rates).

(N) | | | | (N)

Page 11: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69456-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 68389-E

PRELIMINARY STATEMENT Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 1P8 Resolution

RR. NEW SYSTEM GENERATION BALANCING ACCOUNT (NSGBA)

The purpose of the New System Generation Balancing Account (NSGBA) is to record the benefits and costs of Power Purchase Agreements (PPAs) and SCE owned peaker generation unit associated with new generation resources pursuant to Decision (D.) 07-09-044, D.06-07-029, and D.09-03-031,and the Sutter PPA pursuant to Resolution E-4471. Sub-accounts shall be established in the NSGBA for each PPA associated with a new generation resource. Additionally, the NSGBA includes the Centralized Local Procurement Sub-Account (CLPSA) to record the costs and benefits associated with SCE’s procurement of local Resource Adequacy (RA) products to meet its obligations as the Central Procurement Entity (CPE) for its distribution service area beginning with the 2023 RA compliance year, pursuant to D.20-06-002. 1. Definitions:

a. Authorized Peaker Generation Revenue Requirement (APGRR)

2009 APGRR ($000): $63,643 Effective: January 1, 2009: 2010 APGRR ($000) $66,348 Effective January 1, 2010 2011 APGRR ($000) $69,234 Effective January 1, 2011 2012 APGRR ($000) $64,593 Effective January 1, 2012* 2013 APGRR ($000) $58,736 Effective January 1, 2013* 2014 APGRR ($000) $61,070 Effective January 1, 2014* 2014 APGRR ($000) $76,337 Effective July 1, 2014* 2015 APGRR ($000) $57,905 Effective January 1, 2015 2016 APGRR ($000) $57,635 Effective January 1, 2016 2017 APGRR ($000) $56,525 Effective January 1, 2017 2018 APGRR ($000) $56,938 Effective January 1, 2018

2019 APGRR ($000) $56,639 Effective January 1, 2019

2020 APGRR ($000) $56,963

Effective January 1, 2020

(T)

(N) | |

(N)

*Revenue requirements before revision in August 2014 were ($000), $64,730 for 2012, $58,838 for 2013, $ 61,054 for January 1, 2014, and $76,318 for July 1, 2014

Page 12: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69457-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 57976-E

PRELIMINARY STATEMENT Sheet 2

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 2P8 Resolution

RR. NEW SYSTEM GENERATION BALANCING ACCOUNT (NSGBA) (CONTINUED)

1. Definitions:

b. Monthly Distribution Percentages (MDPs)

MDPs are the estimated monthly billed and unbilled distribution rate revenues as a percentage of annual New System Generation Charge (NSGC) revenues. NSGC MDPs: January 8.25% February 7.46% March 7.94% April 7.41% May 7.53% June 8.28% July 9.14% August 9.65% September 9.64% October 8.84% November 7.77% December 8.09% Total 100.00%

c. Franchise Fees and Uncollectibles Accounts Expense: Franchise Fees and Uncollectibles Accounts Expense (FF&U) shall be the CPUC-authorized rate derived from SCE’s most recent General Rate Case (GRC) decision to provide for FF&U.

d. Centralized Local Procurement Sub-Account (CLPSA):

The CLPSA records the costs and benefits associated with SCE’s procurement of local RA products to meet its obligations as the CPE for its distribution service area beginning with the 2023 RA compliance year, pursuant to D.20-06-002. Monthly entries to the CLPSA shall be determined as follows: 1. A debit entry equal to the contract costs of resources eligible for the CLPSA,

including greenhouse gas (GHG) costs (if applicable); and any resource costs for utility-owned generation contracted by the CPE including fuel and GHG costs;

2. A credit entry equal to actual energy and/or ancillary revenues, if any, associated with resources eligible for the CLPSA;

3. A debit or credit entry equal to actual miscellaneous CIASO charges or credits the CLPSA resource receives through the CAISO settlement process; and,

4. A debit entry to record actual administrative costs incurred by SCE in serving the CPE function.

(T) (N) | | | | | | | | | | | | | | | | (N)

Page 13: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69458-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 64244-E

PRELIMINARY STATEMENT Sheet 3

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 3P8 Resolution

RR. NEW SYSTEM GENERATION BALANCING ACCOUNT (NSGBA) (Continued)

2. Entries to the NSGBA shall be made as follows:

a. A debit entry equal to the monthly amount of the APGRR calculated by multiplying the applicable MDP (as determined above) to the annual APGRR, less a provision for FF&U.

b. Credit and debit entries to record the net revenues associated with the SCE-owned peaker generation units, pursuant to D.06-07-029, D.07-09-044, D.09-03-031, and D.11-05-005, including: 1. Debit entry to record the SCE-owned peaker generation units fuel costs; 2. Credit entry to record the SCE-owned peaker generation units energy and

ancillary service revenues; and 3. Credit (or debit) entry to record the net revenues associated with the SCE-

owned peaker generation units recorded in the NSGBA account and the net revenues as calculated using the Joint Party Proposal (JPP) Proxy method established in D.07-09-044.

c. A debit entry to record costs associated with PPA contracts, including:

1. Capacity and energy costs, including QF/CHP Program contracts that are eligible for net capacity cost recovery,

2. Applicable energy and fuel costs.

d. Credit entries to record:

1. Energy and ancillary service revenues during periods in which the generating facility is not subject to an energy auction contract;

2. Recorded billed and unbilled revenue from a non-bypassable wires charge applicable to all benefiting customers.1

3. Energy revenues for QF/CHP Program contracts that are eligible for net capacity cost recovery.

e. One-time transfer of amounts recorded in the New System Generation

Memorandum Account, consistent with Resolution E-4115. f. A debit or credit entry to record the monthly transfer from the NSG Sub-account of

the Local Capacity Requirements Products Balancing Account (LCRPBA). g. A debit entry to record the annual December 31st transfer from the Aliso Canyon

Energy Storage Balancing Account (ACESBA). h. A credit (or debit) entry to record the difference between the net capacity costs

recorded in the NSGBA account and the net capacity costs as calculated using the JPP Proxy method established in D. 07-09-044.

(T)

(T)

(T)

1 “Benefiting customers” are defined in D.06-07-029 as all Bundled Service Customers, Direct Access Customers, Community Choice Aggregation Customers, and customers who are located or locate within the distribution territory of an investor-owned utility but take service from a local publicly-owned utility subsequent to the date that the new generation goes into service.

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Southern California Edison Revised Cal. PUC Sheet No. 69459-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 64245-E

PRELIMINARY STATEMENT Sheet 4

(Continued)

(To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 4P11 Resolution

RR. NEW SYSTEM GENERATION BALANCING ACCOUNT (Continued):

2. Entries to the NSGBA shall be made as follows: (Continued)

h. A debit entry to record GHG-compliance and locational adder costs associated with PPA contracts procured under Assembly Bill 1613, pursuant to D.09-12-042.

i. A debit entry to record capacity replacement costs, pursuant to D.14-06-050. j. A monthly debit or credit entry equal to the amount in the CLPSA, as defined

herein. Interest expense shall accrue monthly by applying an applicable interest rate to the average monthly NSGBA balance. The interest rate shall be one-twelfth of the Federal Reserve three-month Commercial Paper Rate – Non-financial, from the Federal Reserve Statistical Release H.15. If in any month a non-financial rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate – Financial. New System Generation Rate Level Changes: SCE shall update its New System Generation rate levels to reflect the most current Commission-adopted revenue requirements in its Energy Resource Recovery Account (ERRA) Forecast application. The balance forecast to be recorded in the NSGBA (either over-collected or under-collected on December 31 of the current year), plus an amount for FF&U, shall be included in the New System Generation revenue requirement to either be returned to, or recovered from, SCE’s retail electric customers in New System Generation rate levels. Prior to implementing consolidated Commission-authorized revenue requirements and rate levels, the NSGBA balance will be updated to reflect the latest recorded balance available. Review Procedures: The recorded operation of the NSGBA for the Record Period (previous calendar year 12-month period) shall be reviewed by the Commission in SCE’s annual ERRA Review application to ensure that the entries made in the NSGBA are stated correctly and are consistent with Commission decisions. SCE shall provide a monthly report showing the activity in the NSGBA to the Energy Division within 30 days of the end of each month.

(N) (N) (T) (T) (T)

Page 15: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69460-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 69323-E

PRELIMINARY STATEMENT Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 1P7 Resolution

WW. Portfolio Allocation Balancing Account (PABA)

1. Purpose

The Portfolio Allocation Balancing Account (PABA) is established pursuant to D.18-10-019. The purpose of the PABA is to determine and pro-ratably recover from responsible bundled service and departing load customers the “above-market” costs ofall generation resources that are eligible for cost recovery through the Competition Transition Charge (CTC) and Power Charge Indifference Adjustment (PCIA) rates.i The PABA will have a subaccount for each vintaged portfolio that records the costs (debits), market revenues (credits), and imputed market revenues (credits) of all generation resources (contracted and utility owned) executed or approved by the Commission for cost recovery for the subject portfolio.ii The billed revenues collected from bundled service and departing load customers (credits) will also be recorded in the PABA subaccounts on a vintaged basis.

2. Definitions

a. Resource Vintage: Each generation resource will be assigned a Resource Vintage based on the calendar year the resource was originally executed (contracts) or approved by the Commission for cost recovery (utility-owned generation). The PABA will have a sub-account for each Resource Vintage year that records the costs and revenues of all resources assigned to that Resource Vintage year.However, all New QF SOC generation resources will be assigned to the New QF SOC Resource Vintage regardless of contract execution date.

b. In accordance with D.20-06-002, a generation resource procured by theCentral Procurement Entity (CPE) to satisfy local RA CPE obligations will be reclassified from its existing PABA Resource Vintage cost recovery mechanism designation to the Centralized Local Procurement Sub-Account of the New System Generation Balancing Account (for recovery via the Cost Allocation Mechanism (CAM)) for the duration of the generation resource’s obligation with the CPE. After that time, the generation resource will be reclassified back to its prior PABA Resource Vintage for recovery via the PCIA, and not the CAM.

i Beginning with SCE’s 2020 ERRA Forecast proceeding, vintage-specific billing determinants are used as the denominator to set the vintage PCIA rates.

ii Specifically, the PABA has the following vintaged sub-accounts: CTC-Eligible, One-Time Refunds and Costs, Legacy UOG (i.e., UOG installed before 2002), 2004-2009, and an individual sub-account for each calendar year after 2009. The PABA also has a non-vintaged New QF SOC sub-account for costs related to the “New Standard Offer Contract (SOC) for Qualifying Facilities (QFs) of 20 Megawatts (MW) or Less” (“New QF SOC”), including the costs associated with the as-available energy price to be paid at the time of delivery where a QF has opted to sell as-available energy to SCE without a contract. See D.20-05-006. Additionally, the PABA has a Department of Water Resources (DWR) Energy Credit sub-account that records the DWR Energy Credits revenue distributed to departing load customers through the cent-per-kilowatt hour reduction to their PCIA. See D.11-12-005.

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Southern California Edison Revised Cal. PUC Sheet No. 69461-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 69311-E

TABLE OF CONTENTS Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 1P5 Resolution

Cal. P.U.C. Sheet No.

TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES .... 69461-69462-69463-69225-69226-69227-69228-E ........................................................................................................... 69228-68014-69230-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 69230-E TABLE OF CONTENTS - RULES ................................................................................. 68373-64043-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 62213-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 62213-68473-61576-67878-67879-61631-E

........................................................................................................... 67880-67881-63296-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 ........................................ 68156-68157-68158-E J. Pole Loading and Deteriorated Pole Program Balancing Account ....... 68384-67495-68385-E ......................................................................................................................... 68386-67498-E K. Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E L. Not Used ................................................................................. 69296-69297-96298-69299--E M. Income Tax Component of Contributions ....................................................... 58419-58420-E N. Memorandum Accounts .... 21344-69300-69301-58221-49492-61165-61166-61167-53821-E

........ 50418-42841-61168-64869-64870-44950-44951-44952-44953-42849-42850-42851-E ........ 65677-65678-55623-61171-69302-61172-61173-52033-50419-55048-61174-42863-E ........ 42864-67639-67640-51235-45920-51236-61175-50209-42872-42873-69303-69304-E ........ 69305-69306-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ........ 53321-53322-61176-52551-52552-49928-56235-56236-56237-55144-55145-44029-E

........ 53016-57156-57157-51163-51164-51165-51166-67414-51168-51169-51170-51171-E ................................ 51244-55806-56393-56394-56395-56396-56397-56398-56399-58978E O. California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E ....................................................................................... 36472-38847-56788-68625-69093-E P. Tree Mortality Non-Bypassable Charge Balancing Account………...65929-65930-65931-E

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Page 17: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69462-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 69081-E

TABLE OF CONTENTS Sheet 2

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 2P5 Resolution

Cal. P.U.C. Sheet No.

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

…………………………………………………………………………………...69455-68070-68071-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 ............ 49319-63220-51593-68453-51595-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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Page 18: PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ... · • The introduction section is modified to include reference to the new CLPSA. • Section 1.d (Definitions – CLPSA)

Southern California Edison Revised Cal. PUC Sheet No. 69463-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 69312-E

TABLE OF CONTENTS Sheet 3

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4273-E Carla Peterman Date Submitted Aug 14, 2020 Decision 20-06-002 Senior Vice President Effective 3P5 Resolution

Cal. P.U.C. Sheet No.

PRELIMINARY STATEMENT: (Continued) RR. New System Generation Balancing Account ................................ 69456-69457-69458-69459-E SS. Not In Use .................................................................................................................................. -E ................................................................................................................................................... -E TT. Not In Use .................................................................................................................................. -E UU. Not In Use .................................................................................................................................. -E VV. Medical Programs Balancing Account ....................................................... 60662-57978-44979-E WW. Portfolio Allocation Balancing Account…………….69460-65242-69094-68390-65245-67030-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 .......... 65259-65260-65261-65262-66628-65264-65265-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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