PUBLIC UTILITIES COMISSION OF THE STATE OF CALIFORNIA

ENERGY DIVISION					RESOLUTION E-3670
   MAY 18, 2000

RESOLUTION

Advice Letter 1438-E.  Resolution approving the Southern California Edison Company’s (Edison) Deviation from Base Period Usage (BPU).

By Advice Letter 1438-E, Filed on March 10, 2000.

SUMMARY

Advice Letter 1438-E requests approval of a deviation from the BPU of Schedule TOU-8-CR-1 based on installation of energy efficient lighting.  

This Resolution approves Edison’s request, since energy efficient lighting lowers Nabisco’s electric energy consumption by 3 percent.  This revision allows Edison to benefit from the energy savings of new energy efficient lighting.  

No protests were filed.

BACKGROUND

In June 1996, Edison entered into an Incremental Service Rate (ISR) agreement with Nabisco.  At the same time Nabisco agreed to purchase energy efficient equipment and lighting, which would be installed in two phases.  The first phase included improvements to its air conditioning system, its process line, and its pumping and ice water facilities.  

Under an ISR agreement Nabisco must pay for its BPU whether or not it uses that BPU.  Amounts used in excess if the BPU are charged at an incremental rate established monthly.  
Resolution E-3495, dated July 16, 1997, granted Edison a deviation from BPU provisions of Schedule TOU-8-CR-1, General Service – Large Contract Rate 1, Incremental Sales, and Section I.A. of the associated ISR Agreement with Nabisco for service rendered to its Buena Park facility.  Edison estimated that the energy efficient equipment would, had it been implemented during the time period used to compute BPU, have achieved a 12 percent reduction in Nabisco’s annual kilowatt-hour consumption.   

Under Schedule TOU-8-CR-1, Edison bills BPU at Schedule TOU-8 regardless of Nabisco’s usage.  Edison bills Incremental Usage, the usage in excess of BPU, at Incremental Sales Agreement rates.  

Decision no. 99-09-025, (slip opinion p. 20), ordered Edison’s ISR extended until the end of the rate freeze period, unless the Commission further ordered otherwise.  

Advice Letter 1438-E requests another deviation from the BPU provision of Schedule TOU-8-CR–1, ISR agreement with Nabisco for service rendered at its Buena Park facility.  

Edison reviewed Nabisco’s energy efficient lighting program and determined that if that program had been implemented during the time period used to compute the original BPU, Nabisco’s annual kilowatt-hour (kwh) consumption used to establish its BPU would have been lower by an additional three percent.  The entire lighting conservation project resulted in reportable energy savings totaling 333,274 kwh per year.  

Edison requests an addendum to include an additional 3 percent reduction due to the lighting retrofit.  Edison requests that the addendum be kept confidential under PU Code 583.  

Edison states that without this requested adjustment to BPU, customers such as Nabisco would be discouraged from making similar improvements under the ISR.  

NOTICE

Notice of AL 2884-G was made by publication in the Commission’s calendar and by mailing copies of the filing to adjacent utilities and interested parties.  

PROTESTS

No party protested this Advice Letter.

DISCUSSION

The ISR provides rate benefits to customers, such as Nabisco, that expand its operations in California.  With the proposed amendment to the ISR agreement Nabisco can benefit from the energy savings of its completed lighting installation.  Changing the BPU in the ISR is a reasonable method of adjusting the ISR to reflect Nabisco’s energy

COMMENTS

Edison waived the 30 day requirement under PU Code 311(g).  Accordingly, pursuant to PU Code section 311(g)(2) this matter will be placed on the Commission’s agenda directly for prompt action.

FINDINGS

1.	Resolution E-3495, dated July 16, 1997, granted Edison a deviation from BPU provisions of Schedule TOU-8-CR-1, General Service – Large Contract Rate 1, Incremental Sales, and the associated Incremental Sales Rate Agreement with Nabisco for a 12 percent reduction in energy consumption due to installation of energy efficient equipment.  

2.	AL 1438-E requests another deviation from the BPU provision of Schedule TOU-8-CR-1, Incremental Sales, and the associated ISR Agreement for Nabisco, Inc. for service rendered at its Buena Park Facility.  

3.	Edison reviewed Nabisco’s energy efficient lighting program and determined that if that program had been implemented during the time period used to compute the original BPU, Nabisco’s annual (kwh) consumption used to establish its BPU would have been lower by an additional three percent. 

4.	In support of AL 1438-E Edison filed a revised addendum that includes an additional 3 percent reduction due to the lighting retrofit.  

5.	It is reasonable to keep that addendum confidential under PU Code 583.  

6.	Edison states that without this requested adjustment to BPU, customers such as Nabisco would be discouraged from making similar improvements under the ISR.  

7.	Edison’s request is reasonable and should be approved.

THEREFORE IT IS ORDERED that:

1.	Advice Letter 1438-E is approved.  

2.	This resolution is effective today.  

I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on May 18, 2000; the following Commissioners voted favorably thereon:

							_______________________
							WESLEY M. FRANKLIN
						Executive Director

							LORETTA M. LYNCH
								President
							HENRY M. DUQUE
							JOSIAH L. NEEPER
							RICHARD A. BILAS
							CARL W. WOOD
							     Commissioners