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.

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 Services (a subsidiary of the Golden State Water Company), Liberty (CalPeco) and PacifiCorp.

Note:  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.