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On December 29, 1995, Commissioner Conlon issued an Assigned Commissioner's Ruling in Rulemaking 94-04-031/Investigation 94-04-032 (R.94-04-031/I.94-04-032) which proposed corrections of clerical errors and certain inadvertent errors in Decision (D.) 95-12-063. At this time, we adopt these corrections. In addition, the decision has been modified to correct formatting errors throughout the text. Attached to this order is a copy of D.95-12-063, as modified by this decision. The December 20, 1995 effective date of D.95-12-063 remains unchanged.

At the regularly scheduled meeting on December 6, 1995, we unanimously voted to impose a prohibition on ex parte communications in this proceeding. Now that we have issued our policy decision in electric restructuring, it is reasonable to lift this prohibition.

Finding of Fact

Certain clerical and inadvertent errors exist in D.95-12-063, which must be corrected.

Conclusions of Law

  1. It is reasonable to adopt the corrections to D.95-12-063 proposed in the Assigned Commissioner Ruling, issued December 29, 1995.
  2. It is reasonable to lift the prohibition on ex parte communications in R.94-04-031/I.94-04-032.
  3. This decision should be effective today in order to allow these corrections to be made expeditiously.

  1. Decision 95-12-063 shall be conformed to reflect the following corrections:
a. Page 1, footnote 1, line 9, change "Utiliity" to "Utility".

b. Page 37, line 8, change "must run" to "must take".

c. Page 55, line 1 and footnote, line 1, correct spelling.

d. Page 65, line 18, change "As of" to "Not later than". Line 21, change "subject only to the limitations of technology" to "at that time and we expect all customers to have that option within five years".

e. Page 66, Line 11, delete "With those caveats," and add "In the absence of agreement for earlier implementation,".

f. Page 67, footnote, line 1: change reference to "Section IX" to "Section VIII".

g. Page 69, change the last paragraph to read as follows (which continues at the top of page 70):

"Parties should carefully consider whether our minimum phase-in schedule is necessary or whether eligibility can be held open to all electricity consumers after the twelve- month initial phase. If a phase-in schedule is deemed necessary, we ask parties to recommend an eligibility phase- in schedule for direct access beyond the initial phase, but not later than the five year minimum schedule already stated. We do not favor restrictions beyond those necessary due to technical obstacles, though we recognize that some parties may have additional concerns. Modifications to an adopted phase-in schedule will be subject to any changes found necessary in the Commission's review of the initial phase and the parties' recommendations." h. Page 70, line 17, add "After a five year transition period,".

i. Page 78, line 5, change "on" to "not later than".

j. Page 85, line 2, change "Under current regulatory structure" to "Under the current regulatory structure".

k. Page 86, line 15, change "" to "assign, mortgage".

l. Page 115, lines 15 and 16, change "QFS" to "QFs".

m. Page 131, lines 5 and 7, change "QFS" to "QFs".

n. Page 139, line 18, change "transactions" to "transition".

o. Page 145, delete footnote 54, retain numbering.

p. Page 150, line 6, change "Section VII" to "Section VIII".

q. Page 164, delete "and" in footnote.

r. Page 204, line 14, change "customerrs" to "customers".

s. Page 207, Conclusion of Law (COL) 40, change to "The calculation of transition costs should account for prepaid and unpaid deferred taxes related to generating assets."

t. Page 208, COL 48, change to "It is fair to pay shareholders a lower rate of return which appropriately reflects the reduced risk for generating assets."

u. Page 210, COL 66, change to "It is reasonable to adopt 90% of the embedded cost of debt as a reasonable rate of return on the equity portion of the net book value of fossil fueled generation units to reflect the reduced risk. It is reasonable to provide an incentive to the utilities to voluntarily divest their fossil fueled generation assets by granting an increase in the rate of return for the equity component of up to 10 basis points for each 10% of fossil generating capacity divested, provided we have resolved any locational market power concerns associated with the unit and authorize the transfer pursuant to { 851."

v. Page 212, COL 75, change to "Utilities should be allowed to earn a premium, related to the transition costs of fossil plants, based on fossil plants that are sold or spun off to unaffiliated entities."

w. Page 224, OP 19, line 2, add "and" and delete "and SDG&E".

x. Page 225, Ordering Paragraph 24, line 22, delete "for".

y. Page 226, OP 25, line 1, change "50%" to "100%" and line 2, change " non-nuclear generation plant" to "their fossil-fueled generation units".

z. Page 226, OP 27, line 4, add "and the CTC balancing account" to the end of the sentence.

aa. Page 226, OP 28, line 6, add "Consistent with Conclusion of Law 54, each Direct Access customer shall sign an agreement to pay their share of transition costs and thereby waive any jurisdictional objection they might otherwise raise in any forum."

2. The prohibition on ex parte communications in Rulemaking 94-04-031/Investigation 94-04-032 shall be lifted as of this date.

This order is effective today.

Dated January 10, 1996, at San Francisco, California.



Vote: 3-2 on Ordering Paragraph 1 P. GREGORY CONLON


Vote: 5-0 on Ordering Paragraph 2 HENRY M. DUQUE



We will file a joint written dissent.




I will file a concurring opinion.




Last Modified: 1/10/2008

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