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Power Charge Indifference Adjustment ("PCIA")
R. 17-06-026
January 28, 2022

Commission Approved Decision on ERRA Timing Issues

The decision adopts CalCCA's proposal to change the PCIA market price benchmark release date to October 1 and orders the IOUs to file ERRA forecast applications no later than May 15 each year. The decision also adopts party proposals to establish a policy for disposition of the year-end balance in the ERRA account and to modify the calculation of the ERRA trigger point and threshold. Finally, the PD implements procedural measures to address inconsistencies in confidential treatment amongst the IOUs.

The Decision ("D.") 22-01-023 addresses the following issues:

  • Should the Commission modify deadlines or requirements of Energy Resource Recovery Account (ERRA) and PCIA related submittals and reports?
  • Should the Commission adopt a methodology for crediting or charging customers who depart from the utility service during an amortization period and who are responsible for a balance in the PCIA Undercollection Balancing Account, the Energy Resource Recovery Account, or any other bundled generation account?
  • Should the Commission consider any other changes necessary to ensure efficient implementation of PCIA issues within ERRA proceedings?

MPB Release Date/ ERRA Forecast Filings
  • The MPB date will be changed from November 1 to October 1 each year.
  • SCE, PG&E and SDG&E are directed to file their ERRA forecast applications no later than May 15th each year. As a result, SDG&E's traditional April ERRA forecast submission date will be pushed forward one month.
  • The assigned Commissioner and ALJ in each ERRA forecast proceeding may direct utilities to file supplemental updates to increase the accuracy of utility forecasts prior to the October Update.
  • Commission staff will prepare an analysis of the impact of changing the PCIA MPB release date on forecast accuracy by March 1, 2024.

Year-End ERRA Balances and PABA Accounts
  • The Joint IOUs’ proposal to place year-end ERRA balances in the corresponding subaccount of the Portfolio Allocation Balancing Account (PABA) each year is adopted.

Confidential Data
  • With respect to data confidentiality, the PD emphasizes that inconsistencies in confidential treatment among the utilities is due to a misinterpretation of the requirements of D.06-06-066.
  • The correct process in formal proceedings is not a declaration, it’s a motion for leave to file these materials under seal under Rules 11.4 and 11.5.  Parties opposing confidentiality claims may file responses to the motion within 10 days after the motion to file under seal is made.
  • Issues over confidentiality designations should be addressed in the proceeding in which the request for confidential treatment is or was made. The Commission will thoroughly and efficiently review utility requests for confidential designations of data in the 2022 ERRA forecast proceedings.
  • Each utility shall (a) meet and confer with parties to its 2022 ERRA forecast proceeding to discuss the application of D.06-06-066 and other Commission decisions to the designations of ERRA and PABA data as public or confidential prior to making a motion in its 2022 ERRA forecast proceeding for confidential treatment of data, and (b) report on the outcomes of the meet-and-confer process in its first motion in its 2022 ERRA forecast proceeding for confidential treatment of data.

The Commission will address these remaining Phase 2 issues in a subsequent decision:
  • Are GHG-free resources under-valued in the PCIA, and if so, should the Commission adopt a GHG-free adder or allocation mechanism?
  • Should the Commission adopt a new method (to be proposed by the Commission’s staff as required by D.19- 10-001) to include long-term fixed-price transactions in calculating the RPS Adder?
  • In addition, as noted above, the PD notes the Commission will consider modifying the calculation of the PCIA energy index market price benchmark concurrently with the review of the remaining issues in this phase. (PD at 12.)

Update Links
D. 21-01-023
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