The CTC collects the above-market costs of SCE’s resources that were procured or built prior to 2001, while the PCIA collects the above-market costs of the generation resources procured or built after 2001. The SO4 PPA was procured on February 1, 1985, and thus its Early Termination Payment should be recovered through the CTC, while the Coso Clean Energy PPA was procured on November 15, 2006 and thus its Early Termination Payment should be recovered through the PCIA. SCE asserts its proposed treatment is consistent with the Current Methodology for calculating above-market costs for the PCIA. SCE acknowledges that at the time of filing this Application, the Commission was considering potential revisions to the Current Methodology, and proposes to use the CTC and vintaged PCIA, “or their successor charges,” to collect Coso Termination Agreement costs from departing load customers. SCE further asserts its proposed treatment is consistent with the Consensus Protocol, intended to ensure “the PCIA continues to achieve bundled [service] customer indifference.” No party disputes SCE’s proposed cost recovery from all responsible customers, or its claim that the proposal is consistent with the Direct Access Customer Ratemaking Consensus Protocol for San Onofre Nuclear Generating Station (SONGS), which provides equitable and symmetrical rate treatment of SONGS retirement costs between bundled service and departing load customers. In D.18-10-019 the Commission revised the inputs to the market price benchmark that is used to calculate the PCIA, effective as of January 1, 2019. The Commission also adopted an annual trueup mechanism, and a cap that will limit the change of the PCIA rate from one year to the next. SCE should collect departing load customers’ share of the Early Termination Payment pursuant to D.18-10-019 and any subsequent Commission decision regarding cost recovery
The CTC collects the above-market costs of SCE’s resources that were procured or built prior to 2001, while the PCIA collects the above-market costs of the generation resources procured or built after 2001. The SO4 PPA was procured on February 1, 1985, and thus its Early Termination Payment should be recovered through the CTC, while the Coso Clean Energy PPA was procured on November 15, 2006 and thus its Early Termination Payment should be recovered through the PCIA. SCE asserts its proposed treatment is consistent with the Current Methodology for calculating above-market costs for the PCIA. SCE acknowledges that at the time of filing this Application, the Commission was considering potential revisions to the Current Methodology, and proposes to use the CTC and vintaged PCIA, “or their successor charges,” to collect Coso Termination Agreement costs from departing load customers. SCE further asserts its proposed treatment is consistent with the Consensus Protocol, intended to ensure “the PCIA continues to achieve bundled [service] customer indifference.” No party disputes SCE’s proposed cost recovery from all responsible customers, or its claim that the proposal is consistent with the Direct Access Customer Ratemaking Consensus Protocol for San Onofre Nuclear Generating Station (SONGS), which provides equitable and symmetrical rate treatment of SONGS retirement costs between bundled service and departing load customers. In D.18-10-019 the Commission revised the inputs to the market price benchmark that is used to calculate the PCIA, effective as of January 1, 2019. The Commission also adopted an annual trueup mechanism, and a cap that will limit the change of the PCIA rate from one year to the next. SCE should collect departing load customers’ share of the Early Termination Payment pursuant to D.18-10-019 and any subsequent Commission decision regarding cost recovery