This decision makes several changes to utility regulatory accounting mechanisms, either eliminating them or replacing them. It does not, however, change any regulatory accounts in a way that would affect utility risk, and we do not herein make any changes which would affect the operation of existing utility ratemaking programs. Thus, although we eliminate the utilities' ECAC accounts, their fuel costs remain in a balancing account (the TCBA) except to the extent they will be recovered by revenues from sales made through the PX. Although we eliminate PG&E's ERAM, its distribution revenue requirement is still recovered on a dollar-for-dollar basis notwithstanding sales levels. SDG&E's and Edison's PBR ratemaking schemes are similarly unchanged. As we have stated, other proceedings are more appropriate forums for considering major changes to ratemaking programs.
Based on the foregoing discussion, we list the following principles and policies resolved in this decision:
· Except as expressly set forth in AB 1890, the electric utilities may not change rates during or after the rate freeze period to reflect costs incurred or revenues received during the rate period.
· The utilities shall eliminate ECAC and ERAM effective January 1, 1998.
· The utilities shall retain the regulatory accounts relating to DSM, CARE, and RD&D programs for the purpose of assuring that costs allocated to a specific program or function are spent on that program or function, consistent with relevant Commission orders.
· Nothing in this decision authorizes any change to the PBR mechanisms of SDG&E or Edison, or the method applied to PG&E for recovering distribution revenue requirement by way of a general rate case and associated reconciliation of forecasted revenues with actual revenues. Changes to PBR mechanisms or PG&E's regulatory regime are the topics of other proceedings.
· The utilities may retain any existing memorandum or tracking account for the purpose of identifying costs incurred and revenues collected during the rate freeze period but not for the purpose of affecting regulated rates at any time except as expressly provided in AB 1890 and authorized by the Commission. They may eliminate any regulatory account beginning January 1, 1998 which is not required for the funding or administration of DSM, RD&D, or CARE programs or which has not been the subject of a Commission order addressing transition cost recovery. In their first RAP applications, the utilities shall submit a listing of the regulatory accounts they eliminate and those they propose to retain and justify the purpose of each.
· Nothing in this proceeding directs or implies any changes in cost allocations that were established or continued by D.97-08-056 or subsequent Commission orders.
· During the rate freeze period, all other regulatory accounts that are retained may be used for the limited purpose of tracking costs and revenues and, if subsequently so ordered by the Commission, for the purpose of facilitating ratemaking for costs incurred and revenues collected following the rate freeze period.
