Table of Contents

• INTERIM OPINION
• 1. Summary
• 2. Background and Procedural History
• 3. Assembly Bill 1890 and Transition Costs
• 4. Issues Addressed in Phase 1
• 5. Balancing Account Issues
  • 5.1. Joint Recommendation on Employee Transition Costs and Balancing Account Issues
  • 5.2. PG&E’s Proposal
  • 5.3. Edison’s Proposal
  • 5.4. SDG&E’s Proposal
  • 5.5. TURN et al.
  • 5.6. ORA
  • 5.7. FEA’s Recommendations
  • 5.8. CIU et al.
  • 5.9. EPUC/CAC
  • 5.10. CUE
  • 5.11. Farm Bureau
• 6. Discussion
  • 6.1. The Joint Recommendation Is Not a Settlement and Is Accorded Appropriate Weight
  • 6.2. The Joint Recommendation Addresses Issues Beyond The Scope of This Proceeding
  • 6.3. Statutory Interpretation
  • 6.4. Shareholder and Ratepayer Interests Should Be Aligned
  • 6.5. It is Premature to Assume that Regulatory Assets Are At Risk
  • 6.6. The Rate Restructuring Settlement and Section 368
  • 6.7. Should Employee-Related Transition Costs Receive Special Treatment?
  • 6.8. Interaction with Rate Reduction Bonds
  • 6.9. Adopted Guidelines in Acceleration of Recovery and Application of Revenues to Transition Cost Recovery
  • 6.10. Tracking Revenues According to Disaggregated Rate Levels
• 7. Federal Jurisdictional Issues and Western Contract 2948-A Arrangements
  • 7.1. Discussion
• 8. Stipulations and Tariff Issues Related to Terms and Conditions
  • 8.1. Stipulation Regarding Market Rate Forecasts
  • 8.2. Energy Division Workshops
    • 8.2.1. Billing Determinants, Metering, and Rate Basis
  • 8.3. Applicability of CTC
  • 8.4. Exemptions from CTC
  • 8.5. Fire Wall and Exemptions
  • 8.6. Issues Regarding Exemptions
    • 8.6.1. Dispute Resolution
  • 8.7. CTC-Related Penalties
    • 8.7.1. Failure to Provide Notice of Departure
    • 8.7.2. Failure to Pay CTC
    • 8.7.3. The Lump-Sum Payment as Penalty
    • 8.7.4. Final Departing Load Customer Lump-Sum Payment in 2001
  • 8.8. Procedural Mechanisms to Update Terms and Conditions Tariffs
• 9. Comments on Proposed Decision and Alternate Decision
• Findings of Fact
• Conclusions of Law
• INTERIM ORDER