What is an Energy Resource Recovery Account (ERRA) Proceeding?

 Energy Resource Recovery Account (ERRA) proceedings are used to determine fuel and purchased power costs which can be recovered in rates.  The utilities do not earn a rate of return on these costs, and only recover actual costs.  The costs are forecast for the year ahead.  If the actual costs are lower than forecast, then the utility gives money back, and vice versa.

 

The ERRA regulatory process includes two proceedings: 

1.) An annual ERRA Forecast proceeding to adopt a forecast of the utility’s electric procurement cost revenue requirement and electricity sales for the coming year. 

2.) An annual ERRA Compliance proceeding to review the utility’s compliance in the preceding year regarding energy resource contract administration, least-cost dispatch, fuel procurement, and the ERRA balancing account,  

The Commission has also established an ERRA “Trigger” mechanism which allows for the utility to file an expedited application requesting an adjustment to rates, if the ERRA balance reaches 4% in excess of prior year’s annual fuel and power purchase costs.  On April 1st of every year the utilities file a Trigger advice letter (AL) with the Commission specifying their coming year trigger/threshold amount.  Then the IOUs file an application for expedited Commission approval when the ERRA balance reaches the trigger/threshold amount previously calculated in the Trigger AL. 

The amount of money under review in ERRA proceedings is large. Typical amounts for PG&E and SCE are very roughly $4 billion, while for SDG&E they are roughly $1.3 billion.

The tables below provide links to current and historical ERRA proceedings categorized by proceeding type.

ERRA Forecast Applications

 ERRA Forecast Applications

 

 

Utility

 

Record Year   Application  Docket  Decision 
PG&E 2016 A.15-06-001  Docket D.15-12-022 
PG&E 2015 A.14-05-024  Docket D.14-12-023 
PG&E 2014 A.13-05-015  Docket D.13-12-043 
PG&E 2013 A.12-06-002  Docket D.12-12-008 
SCE 2016 A.15-05-077  Docket D.15-12-033 
SCE 2015 A.14-06-011  Docket D.15-10-037 
SCE 2014 A.13-08-004  Docket D.14-05-003 
SCE 2013 A.12-08-001  Docket D.13-10-052 
SDG&E 2017 A.16-04-018  Docket -
SDG&E 2016 A.15-04-014  Docket D.15-12-032 
SDG&E 2015 A.14-04-015  Docket D.15-01-004 
SDG&E 2014 A.13-09-017  Docket D.14-05-022 
SDG&E 2013 A.12-10-002  Docket

D.13-10-053 

 

ERRA Compliance Applications

 ERRA Compliance Applications

 

 

Utility

 

Record Year   Application  Docket  Decision 
PG&E 2015 A.16-02-019  Docket -
PG&E 2014 A.15-02-023  Docket -
PG&E 2013 A.14-02-008  Docket -
PG&E 2012 A.13-02-023  Docket D.16-04-006 
SCE 2015 A.16-04-001  Docket -
SCE 2014 A.15-04-002  Docket -
SCE 2013 A.14-04-006  Docket D.15-11-011 
SCE 2012 A.13-04-001  Docket D.14-05-023 
SDG&E 2015 A.16-06-002  Docket -
SDG&E 2014 A.15-06-002  Docket -
SDG&E 2013 A.14-05-026  Docket D.15-06-046 
SDG&E 2012 A.13-05-016  Docket D.15-05-015 

 

ERRA Trigger Applications

 ERRA Trigger Applications

 

 

Utility

 

Record Year   Application  Docket  Decision 
PG&E 2014 A.14-08-023  Docket D.14-12-053 
PG&E 2009 A.09-08-005  Docket D.09-10-021 
PG&E 2008 A.08-06-010  Docket D.08-08-011 
PG&E 2008 A.08-01-014  Docket D.08-09-003 
SCE 2013 A.13-08-022  Docket D.14-02-023 
SCE 2008 A.08-12-022  Docket D.09-03-005 
SCE 2006 A.06-09-001  Docket D.06-11-014 
SCE 2013 A.13-04-017  Docket D.14-02-022 
SDG&E 2012 A.12-10-017  Docket D.12-12-022 
SDG&E 2012 A.12-04-003  Docket D.12-08-007 
SDG&E 2010 A.10-04-033  Docket D.10-08-020
SDG&E 2009 A.09-08-002  Docket D.09-09-042 
SDG&E 2007 A.07-10-007  Docket D.07-12-042 
SDG&E 2007 A.07-02-018  Docket D.07-05-008 

 

 The Small Multi-Jurisdictional Utilities do not have ERRA proceeding. Instead they have Energy Cost Adjustment Clause (ECAC) or Power Purchase Adjustment Clause (PPAC) costs approval requests as a part of their rate case proceedings. For more information see decisions and applications on the following GRC webpages - Bear Valley Electric Servoces (a subsidiary of the Golden State Water Comapny), Liberty (CalPeco) and PacifiCorp.

*ERRA was established Pursuant to California Public Utilities Code Section 454.5(d), Rules 2.1 and 3.2 of the Rules of Practice and Procedure of the California Public Utilities Commission (“Commission”), and Commission Decision (“D.”) 02-10-062.