The settlement is comprehensive; it includes specific provisions that: 1) authorize SCE and the Port to proceed with the electrification and expansion projects, specifically the Clean Air Program and Shore Power program planned for the Port, that are expected to yield significant diesel fuel-switching and related air emissions reductions from shipping vessels and cargo handling at the Port; 2) offer rate and infrastructure charge discounts to Maritime Entities to incentivize load growth at the Port while addressing ORA’s objections; 3) include periodic updates to the marginal distribution and marginal energy costs used to calculate the discount for new load; 4) require that the CTM be positive in order for the Maritime Entities to receive the discount; and 5) include other rate adjustments, periodic updates of various inputs to the rates applicable to Maritime Entities, and specific ratemaking treatment of Maritime Entity revenues to apply to non-bypassable charge recovery first. SCE, the Port and the ratepayers will all benefit from load growth at the Port anticipated to result from the Settlement Agreement (and the companion agreement, the 2012 SCE/POLB SOC adopted in Resolution E-4573 on May 13, 2013.) The Commission’s future oversight is preserved through advice letter filings every other SCE GRC after the first six years of the Settlement Agreement to continue or adjust the rate discounts, the MGCC factor in the event of new need for generating capacity in SCE’s service territory and through additional periodic reporting on the progress of electrification and environmental remediation at the Port. The Settlement Agreement proposed a provision that would allow an automatic substitution of a “standard economic development rate (EDR)” discount methodology for the discount methodology in Appendix A adopted
The settlement is comprehensive; it includes specific provisions that: 1) authorize SCE and the Port to proceed with the electrification and expansion projects, specifically the Clean Air Program and Shore Power program planned for the Port, that are expected to yield significant diesel fuel-switching and related air emissions reductions from shipping vessels and cargo handling at the Port; 2) offer rate and infrastructure charge discounts to Maritime Entities to incentivize load growth at the Port while addressing ORA’s objections; 3) include periodic updates to the marginal distribution and marginal energy costs used to calculate the discount for new load; 4) require that the CTM be positive in order for the Maritime Entities to receive the discount; and 5) include other rate adjustments, periodic updates of various inputs to the rates applicable to Maritime Entities, and specific ratemaking treatment of Maritime Entity revenues to apply to non-bypassable charge recovery first. SCE, the Port and the ratepayers will all benefit from load growth at the Port anticipated to result from the Settlement Agreement (and the companion agreement, the 2012 SCE/POLB SOC adopted in Resolution E-4573 on May 13, 2013.) The Commission’s future oversight is preserved through advice letter filings every other SCE GRC after the first six years of the Settlement Agreement to continue or adjust the rate discounts, the MGCC factor in the event of new need for generating capacity in SCE’s service territory and through additional periodic reporting on the progress of electrification and environmental remediation at the Port. The Settlement Agreement proposed a provision that would allow an automatic substitution of a “standard economic development rate (EDR)” discount methodology for the discount methodology in Appendix A adopted