future CEMA applications. TURN’s litigation position also recommends disallowing $16.7 million in expense and $14.9 million in capital expenditures associated with straight-time labor, and disallowing $1.0 million for overhead costs associated with straight-time labor. 5. Settlement Agreement The parties agree to and ask the Commission to adopt the following terms and conditions of the settlement agreement: PG&E’s total CEMA revenue requirement shall be reduced by $28.8 million, from $145.8 million to $117.0 million. PG&E’s CEMA revenue requirement of $117.0 million shall include $110.6 million for electric distribution ($105.8 million for 2018, $4.8 million for 2019), $5.1 million for gas distribution ($5.1 million for 2018), and $1.3 million for gas transmission ($1.3 million for 2018). CEMA costs will be recovered in the same manner as other electric distribution, gas distribution, and gas transmission costs are recovered in rates, using existing methodologies for revenue allocation and rate design. PG&E’s CEMA revenue requirement for 2018 will be recovered through rates beginning January 1, 2018, or as soon thereafter as practicable following a final decision in this proceeding. PG&E’s CEMA revenue requirement for 2019 will be recovered through rates beginning January 1, 2019. PG&E’s CEMA revenue requirement for 2020 onward shall be recovered through base revenues via PG&E’s 2020 General Rate Case. In future CEMA applications, PG&E shall provide a showing to demonstrate the reasonableness of costs requested in the application as set forth in Appendix A to the Settlement Agreement, which for Electric Distribution activities includes work-related metrics at the event level and metrics for a similar event type (e.g., storms, fires,
future CEMA applications. TURN’s litigation position also recommends disallowing $16.7 million in expense and $14.9 million in capital expenditures associated with straight-time labor, and disallowing $1.0 million for overhead costs associated with straight-time labor. 5. Settlement Agreement The parties agree to and ask the Commission to adopt the following terms and conditions of the settlement agreement: PG&E’s total CEMA revenue requirement shall be reduced by $28.8 million, from $145.8 million to $117.0 million. PG&E’s CEMA revenue requirement of $117.0 million shall include $110.6 million for electric distribution ($105.8 million for 2018, $4.8 million for 2019), $5.1 million for gas distribution ($5.1 million for 2018), and $1.3 million for gas transmission ($1.3 million for 2018). CEMA costs will be recovered in the same manner as other electric distribution, gas distribution, and gas transmission costs are recovered in rates, using existing methodologies for revenue allocation and rate design. PG&E’s CEMA revenue requirement for 2018 will be recovered through rates beginning January 1, 2018, or as soon thereafter as practicable following a final decision in this proceeding. PG&E’s CEMA revenue requirement for 2019 will be recovered through rates beginning January 1, 2019. PG&E’s CEMA revenue requirement for 2020 onward shall be recovered through base revenues via PG&E’s 2020 General Rate Case. In future CEMA applications, PG&E shall provide a showing to demonstrate the reasonableness of costs requested in the application as set forth in Appendix A to the Settlement Agreement, which for Electric Distribution activities includes work-related metrics at the event level and metrics for a similar event type (e.g., storms, fires,
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