Calif. Draft Would Set Deadline for Modification of Power Charge Indifference Amount Upon New Methodology

A draft California PUC decision (A. 11-06-004) would require Pacific Gas and Electric to file a petition for modification of the decision establishing its Power Charge Indifference Amount (PCIA) for 2012 within 60 days of the issuance of a decision in R.07-05-025, where changes to the methodology used to determine the PCIA are being addressed.

The draft order concerns PG&E's application to establish its 2012 electric procurement cost revenue requirement, consisting of an Energy Resources Recovery Account (ERRA) revenue requirement forecast of $3.515 billion; an Ongoing Competition Transition Charge (CTC) revenue requirement forecast of $409.2 million; a PCIA credit forecast of $21.4 million; and a Cost Allocation Methodology (CAM) revenue requirement of $86.9 million.

The Power Charge Indifference Amount credit (e.g. revenue received by PG&E offsetting its revenue requirement) reflects the revenue received by PG&E under the Power Charge Indifference Adjustment charge paid to PG&E by competitively served load, reflecting costs of pre-2003 procurements made by PG&E on behalf of such load.

Parties noted that the methodology to calculate the PCIA is currently being addressed in R.07-05-025, where a draft order is pending.

Given that the new methodology is not in place yet, the proposed order concerning the 2012 PCIA would use the current methodology, but would require PG&E to file a petition for modification of the decision establishing the 2012 PCIA within 60 days of issuance of the final decision in R.07-05-025 that addresses the methodology used to determine the PCIA.

In its petition for modification, PG&E shall provide updated PCIA calculations and shall propose ratemaking treatment for incorporating the results of the updated calculations into PG&E's 2012 rates.