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P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-9645 Fax (626) 302-6396 Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations June 19, 2019 ADVICE 4022-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of the Wildfire Mitigation Plan Memorandum Account Pursuant to Senate Bill 901 and Decision 19-05-038 Southern California Edison Company (SCE) hereby submits for approval by the California Public Utilities Commission (Commission) the following changes to its tariffs. The revised tariffs are listed on Attachment A. PURPOSE In compliance with Commission Decision (D.)19-05-038 (Decision) Ordering Paragraph (OP) 18 and Public Utilities (P.U.) Code Section 8386(e), this advice letter establishes Preliminary Statement Part N.27, the Wildfire Mitigation Plan Memorandum Account (WMPMA). The purpose of the WMPMA is to track costs incurred to implement SCE’s Wildfire Mitigation Plan (WMP) that are not currently reflected in revenue requirements being paid by customers in rates (e.g., in Commission-approved General Rate Case (GRC) base rates revenue requirements), and that are also not being tracked in an another existing Commission-authorized memorandum account (e.g., in SCE’s Fire Hazard Prevention Memorandum Account (FHPMA)). Upon establishment of the WMPMA, the costs of approved WMP-related activities previously tracked in the Fire Risk Mitigation Memorandum Account (FRMMA) 1 will be transferred to the WMPMA. The FRMMA, which will no longer include any costs related to the approved WMP, will remain open to track the costs of wildfire mitigation activities—if any—that are not included in the approved annual WMP or otherwise authorized or tracked in another ratemaking account. BACKGROUND On September 21, 2018, former Governor Brown signed Senate Bill (SB) 901, which set in motion wide-ranging activities to strengthen California’s ability to prevent and recover 1 Established in Advice 3936-E-A.

Gary A. Stern, Ph.D. - library.sce.com · Pursuant to the Decision, SCE is establishing Preliminary Statement Part N.27, WMPMA, to track the costs of SCE’s approved WMP that are

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P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-9645 Fax (626) 302-6396

Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations

June 19, 2019

ADVICE 4022-E (U 338-E)

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

SUBJECT: Establishment of the Wildfire Mitigation Plan Memorandum Account Pursuant to Senate Bill 901 and Decision 19-05-038

Southern California Edison Company (SCE) hereby submits for approval by the California Public Utilities Commission (Commission) the following changes to its tariffs. The revised tariffs are listed on Attachment A.

PURPOSE

In compliance with Commission Decision (D.)19-05-038 (Decision) Ordering Paragraph (OP) 18 and Public Utilities (P.U.) Code Section 8386(e), this advice letter establishes Preliminary Statement Part N.27, the Wildfire Mitigation Plan Memorandum Account (WMPMA). The purpose of the WMPMA is to track costs incurred to implement SCE’s Wildfire Mitigation Plan (WMP) that are not currently reflected in revenue requirements being paid by customers in rates (e.g., in Commission-approved General Rate Case (GRC) base rates revenue requirements), and that are also not being tracked in an another existing Commission-authorized memorandum account (e.g., in SCE’s Fire Hazard Prevention Memorandum Account (FHPMA)).

Upon establishment of the WMPMA, the costs of approved WMP-related activities previously tracked in the Fire Risk Mitigation Memorandum Account (FRMMA)1 will be transferred to the WMPMA. The FRMMA, which will no longer include any costs related to the approved WMP, will remain open to track the costs of wildfire mitigation activities—if any—that are not included in the approved annual WMP or otherwise authorized or tracked in another ratemaking account.

BACKGROUND

On September 21, 2018, former Governor Brown signed Senate Bill (SB) 901, which set in motion wide-ranging activities to strengthen California’s ability to prevent and recover

1 Established in Advice 3936-E-A.

ADVICE 4022-E (U 338-E) - 2 - June 19, 2019

from catastrophic wildfires. In addition to measures directed at other entities, SB 901 requires electric utilities to prepare and submit WMPs that describe the utilities’ plans to prevent, combat, and respond to wildfires. The Commission opened Rulemaking (R.)18-10-007 (SB 901 OIR) on October 25, 2018 to implement this provision of SB 901.

On January 18, 2019 and March 12, 2019, SCE submitted Advice 3936-E and Advice 3936-E-A, respectively, proposing the establishment of the Fire Risk Mitigation Memorandum Account (FRMMA), in compliance with P.U. Code 8386(j). As described in Advice 3936-E:

SB 901 authorizes SCE to establish two separate memorandum accounts to track incremental costs SCE incurs to mitigate wildfire risk. One memorandum account, which SCE proposes to establish in this advice letter, is intended to “track costs incurred for fire risk mitigation that are not otherwise covered in the electrical corporation’s revenue requirement.”2 The second memorandum account, which is to be established upon approval of SCE’s 2019 WMP, is intended to “track costs incurred to implement the plan.”3

The Commission approved Advice 3936-E-A on March 12, 2019, and approved an effective date for the FRMMA of January 18, 2019.

On June 4, 2019, the Commission issued D.19-05-038, approving SCE’s 2019 WMP. This Decision also authorized SCE to “open the memorandum account described in P.U. Code Section 8386(e), which provides: “At the time it approves each [WMP], the [C]ommission shall authorize the utility to establish a memorandum account to track costs incurred to implement the plan.”4 In authorizing this 8386(e) memorandum account, the Commission specified that SCE could not “seek or obtain double recovery of the costs tracked in its P.U. Code 8386(e) memorandum account in any other account, including the [FRMMA].”5

Pursuant to OPs 18 and 19 of the Decision, SCE is establishing the WMPMA to track costs incurred to implement SCE’s approved WMP that are: (1) not currently reflected in other Commission revenue requirements being paid by customers in rates (e.g., in Commission-approved GRC base rates revenue requirements); (2) not pending approval by the Commission via a separate SCE proposal (e.g., in SCE’s pending Grid Safety and Resiliency Program (GSRP) Application (A.)18-09-002); and (3) not being tracked in an existing Commission-authorized memorandum account (e.g., in SCE’s Fire Hazard Prevention Memorandum Account (FHPMA), or Catastrophic Event Memorandum Account (CEMA)). As described in Advice 3936-E, upon approval of this Advice Letter, SCE will transfer the balance in the FRMMA associated with approved WMP-related activities to the WMPMA, and will track the going-forward costs of the approved activities in the WMPMA. The costs in the WMPMA will then be presented to 2 P.U. Code Section 8386(j). 3 P.U. Code Section 8386(e). 4 D.19-05-038, Ordering Paragraph 18. 5 D.19-05-038, Ordering Paragraph 19.

ADVICE 4022-E (U 338-E) - 3 - June 19, 2019

the Commission for review of reasonableness and recovery in a future General Rate Case application (including in SCE’s upcoming 2021 GRC application to be filed in the fall of 2019), consistent with P.U. Code Section 8386(g).

The FRMMA, which will no longer include any costs related to the approved WMP, will remain open to track the costs of wildfire mitigation activities—if any—that are not included in the approved annual WMP or otherwise authorized or tracked in another ratemaking account.6

PROPOSED TARIFF CHANGES

Pursuant to the Decision, SCE is establishing Preliminary Statement Part N.27, WMPMA, to track the costs of SCE’s approved WMP that are incremental to costs requested and/or approved for recovery in SCE’s GRC and GSRP Application, and not otherwise recorded in another ratemaking account.

No cost information is required for this advice letter.

This advice letter will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule.

TIER DESIGNATION

Pursuant to General Order (GO) 96-B, Energy Industry Rule 5.1, this advice letter is submitted with a Tier 1 designation.

EFFECTIVE DATE

SCE requests that this Tier 1 advice letter be effective upon submittal.

NOTICE

Anyone wishing to protest this advice letter may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice letter. Protests should be submitted to:

CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: [email protected]

Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above).

6 SCE will seek review and recovery of the 2018-2020 costs recorded in the FRMMA in its

forthcoming 2021 GRC proceeding.

ADVICE 4022-E (U 338-E) - 4 - June 19, 2019

In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:

Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770

Telephone (626) 302-9645 Facsimile: (626) 302-6396 E-mail: [email protected] Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: [email protected]

There are no restrictions on who may submit a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above.

In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice letter to the interested parties shown on the attached GO 96-B and R.18-10-007 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to [email protected] or at (626) 302-3719. For changes to all other service lists, please contact the Commission’s Process Office at (415) 703-2021 or by electronic mail at [email protected].

Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by submitting and keeping the advice letter at SCE’s corporate headquarters. To view other SCE advice letters submitted with the Commission, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.

ADVICE 4022-E (U 338-E) - 5 - June 19, 2019

For questions, please contact Desiree Wong at (626) 302-1421 or by electronic mail at [email protected].

Southern California Edison Company

/s/ Gary A. Stern Gary A. Stern, Ph.D.

GAS:dw:cm Enclosures

ADVICE LETTER S U M M A R YENERGY UTILITY

Company name/CPUC Utility No.:

Utility type:Phone #:

EXPLANATION OF UTILITY TYPE

ELC GAS

PLC HEAT

MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Advice Letter (AL) #:

WATERE-mail: E-mail Disposition Notice to:

Contact Person:

ELC = ElectricPLC = Pipeline

GAS = GasHEAT = Heat WATER = Water

(Date Submitted / Received Stamp by CPUC)

Subject of AL:

Tier Designation:

Keywords (choose from CPUC listing):AL Type: Monthly Quarterly Annual One-Time Other:If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #:

Does AL replace a withdrawn or rejected AL? If so, identify the prior AL:

Summarize differences between the AL and the prior withdrawn or rejected AL:

Confidential treatment requested? Yes NoIf yes, specification of confidential information:Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information:

Resolution required? Yes No

Requested effective date: No. of tariff sheets:

Estimated system annual revenue effect (%):

Estimated system average rate effect (%):

When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting).

Tariff schedules affected:

Service affected and changes proposed1:

Pending advice letters that revise the same tariff sheets:

1Discuss in AL if more space is needed.

CPUC, Energy DivisionAttention: Tariff Unit505 Van Ness AvenueSan Francisco, CA 94102 Email: [email protected]

Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx:Facsimile (xxx) xxx-xxxx:Email:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx:Email:

Zip:

Zip:

ENERGY Advice Letter Keywords

Affiliate Direct Access Preliminary StatementAgreements Disconnect Service ProcurementAgriculture ECAC / Energy Cost Adjustment Qualifying FacilityAvoided Cost EOR / Enhanced Oil Recovery RebatesBalancing Account Energy Charge RefundsBaseline Energy Efficiency ReliabilityBilingual Establish Service Re-MAT/Bio-MATBillings Expand Service Area Revenue AllocationBioenergy Forms Rule 21Brokerage Fees Franchise Fee / User Tax RulesCARE G.O. 131-D Section 851CPUC Reimbursement Fee GRC / General Rate Case Self GenerationCapacity Hazardous Waste Service Area MapCogeneration Increase Rates Service OutageCompliance Interruptible Service SolarConditions of Service Interutility Transportation Standby ServiceConnection LIEE / Low-Income Energy Efficiency StorageConservation LIRA / Low-Income Ratepayer Assistance Street LightsConsolidate Tariffs Late Payment Charge SurchargesContracts Line Extensions TariffsCore Memorandum Account TaxesCredit Metered Energy Efficiency Text ChangesCurtailable Service Metering TransformerCustomer Charge Mobile Home Parks Transition CostCustomer Owned Generation Name Change Transmission LinesDecrease Rates Non-Core Transportation ElectrificationDemand Charge Non-firm Service Contracts Transportation RatesDemand Side Fund Nuclear UndergroundingDemand Side Management Oil Pipelines Voltage DiscountDemand Side Response PBR / Performance Based Ratemaking Wind PowerDeposits Portfolio Withdrawal of ServiceDepreciation Power Lines

Public Utilities Commission 4022-E Attachment A

Cal. P.U.C. Sheet No. Title of Sheet

Cancelling Cal. P.U.C. Sheet No.

1

Revised 67565-E Preliminary Statement Part N Revised 66994-E Revised 67566-E Preliminary Statement Part N Revised 61174-E Revised 67567-E Table of Contents Revised 67338-E

Southern California Edison Revised Cal. PUC Sheet No. 67565-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 66994-E

PRELIMINARY STATEMENT Sheet 2

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4022-E Kevin Payne Date Submitted Jun 19, 2019 Decision 19-05-038 Chief Executive Officer Effective 2P5 Resolution

N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued)

d. Specified Project (Continued)

Section Interest Bearing No. Specified Project Memorandum Account*

(1) Purpose – Not a Specified Project (2) Definitions – Not a Specified Project (3) Self-Generation Program Incremental Cost (SGPIC) Yes Memorandum Account (4) Catastrophic Event Memorandum Account (CEMA) Yes (5) Wheeler North Reef Expansion Project Memorandum Account Yes (6) NEM Online Application System Memorandum Account Yes (NEMOASMA) (7) Demand Response Load Shift Working Group Memorandum Account

(DRLSWGMA) Yes (8) Short Term Incentive Program Memorandum Account (STIPMA) Yes

(9) Plug-In Electric Vehicle Submetering Pilot Memorandum Account Yes (PEVSPMA)

(10) Research, Development, and Demonstration Royalties Yes (11) Distributed Resources Plan Memorandum Account (DRPMA) Yes (12) Emergency Customer Protections Memorandum Account (ECPMA) Yes (13) California Power Exchange Wind-Up Charge Memorandum Yes Account (PXWUC) (14) Income Tax Component of Contribution Yes

Memorandum Account (15) GRC Revenue Requirement Memorandum Account (GRCRRMA) Yes Yes

(16) DWR Franchise Fee Obligation Memorandum Account Yes (17) Integrated Resource Planning Costs Memorandum Account Yes

(18) Power Charge Indifference Adjustment Memorandum Account (PCIAMA) Yes (19) Building Benchmarking Data Memorandum Account Yes (20) Not Used (21) Nuclear Claims Memorandum Account (NCMA) Yes

Memorandum Account (DFG Memorandum Account) (22) Disadvantaged Communities - Single-family Solar Homes Memorandum Account (DACSASHMA) Yes (23) San Joaquin Valley Data Gathering Plan Memorandum Account (SJVDGPMA) Yes (24) Agricultural Account Aggregation Study Memorandum Account Yes (25) Marine Corps Air Ground Combat Center Memorandum Account Yes (MCAGCCMA) (26) Energy Data Request Program Memorandum Account Yes (27) Wildfire Mitigation Plan Memorandum Account (WMPMA) Yes (28) Energy Settlements Memorandum Account (ESMA) Yes (29) Affiliate Transfer Fee Memorandum Account Yes (30) Avoided Cost Calculator Memorandum Account (ACCMA) Yes (31) Nuclear Fuel Cancellation Incentive Memorandum Account Yes (32) Distribution Deferral Administrative Costs Memorandum

Account (DDACMA) Yes Yes

(33) Mitsubishi Net Litigation Memorandum Account Yes * Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate

to the average of the beginning and ending balance.

(P) (N)

Southern California Edison Revised Cal. PUC Sheet No. 67566-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 61174-E

PRELIMINARY STATEMENT Sheet 29

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4022-E Kevin Payne Date Submitted Jun 19, 2019 Decision 19-05-038 Chief Executive Officer Effective 29S8 Resolution

N. MEMORANDUM ACCOUNTS (Continued)

27. Wildfire Mitigation Plan Memorandum Account

a. Purpose

Pursuant to California Public Utilities Commission Decision (D.)19-05-038 and Public Utilities Code § 8386(e), the purpose of the Wildfire Mitigation Plan Memorandum Account (WMPMA) is to track costs incurred to implement SCE’s Wildfire Mitigation Plan (WMP) that are not otherwise covered in SCE’s revenue requirements or tracked in another ratemaking account. Costs tracked in the WMPMA will not include costs approved for recovery in SCE General Rate Cases (GRCs) or costs recorded to other memorandum accounts, such as SCE’s Catastrophic Event Memorandum Account (CEMA), Fire Hazard Prevention Memorandum Account (FHPMA), Grid Safety and Resiliency Program Memorandum Account (GSRPMA), and the Fire Risk Mitigation Memorandum Account (FRMMA), as provided in Public Utilities Code § 8386(j).

b. Operation of the WMPMA

Monthly entries to the WMPMA shall be determined as follows: 1) A one-time debit entry to record the transfer of the WMP-related

balance previously tracked in the FRMMA; 2) A debit entry equal to the expenses incurred related to WMP; 3) A debit or credit entry equal to the revenue requirement based on the

incremental recorded capital costs related to fire risk mitigation work. Capital revenue requirements include depreciation expense, return on investment, federal and state income taxes, and property taxes associated with the costs of installed equipment;

4) A credit entry to record the transfer of amounts to or from other regulatory accounts as authorized by the Commission; and

5) Interest shall accrue monthly to the WMPMA by applying one-twelfth of the three-month Commercial Paper, as reported by the Federal Reserve, to the average monthly balance in the WMPMA.

c. Disposition and Review Procedures

. The costs tracked in the WMPMA shall be presented to the Commission for review of reasonableness and recovery in a future GRC application, consistent with Public Utilities Code Section 8386(g). Costs tracked in the WMPMA may be recovered in rates only after a request by SCE, a showing of reasonableness, and approval by the Commission.

(N)

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (N)

Southern California Edison Revised Cal. PUC Sheet No. 67567-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 67338-E

TABLE OF CONTENTS Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4022-E Kevin Payne Date Filed Jun 19, 2019 Decision 19-05-038 Chief Executive Officer Effective 1P4 Resolution

Cal. P.U.C. Sheet No.

TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES .... 67567-67339-67340-67341-67342-67343-67344-E ........................................................................................................... 67345-67346-67347-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 66863-E TABLE OF CONTENTS - RULES ................................................................................. 65313-64043-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 62213-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 62213-64447-61576-65710-63318-61631-E

........................................................................................................... 64044-61971-63296-E

PRELIMINARY STATEMENT:

A. Territory Served ......................................................................................................... 22909-E B. Description of Service ................................................................................................ 22909-E C. Procedure to Obtain Service ..................................................................................... 22909-E D. Establishment of Credit and Deposits ....................................................................... 22909-E E. General .......................................................................... 45178-45179-45180-53818-45182-E F. Symbols ..................................................................................................................... 45182-E G. Gross Revenue Sharing Mechanism ....... 26584-26585-26586-26587-27195-27196-54092-E

.................................................................................................. 51717-53819-27200-27201-E H. Baseline Service ........................................................... 52027-52028-52029-52030-52031-E I. Charge Ready Program Balancing Account ................................................... 65510-65511-E J. Not In Use ............................................................................................................................. -E K. Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E L. Purchase Agreement Administrative Costs Balancing Account ........... 55207-51922-55208-E M. Income Tax Component of Contributions ....................................................... 58419-58420-E N. Memorandum Accounts .... 21344-67565-61164-58221-49492-61165-61166-61167-53821-E

........ 50418-42841-61168-64869-64870-44950-44951-44952-44953-42849-42850-42851-E ........ 65677-65678-55623-61171-42856-61172-61173-52033-50419-55048-67566-42863-E ........ 42864-56204-56205-51235-45920-51236-61175-50209-42872-42873-50421-46539-E ........ 42876-42877-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ........ 53321-53322-61176-52551-52552-49928-56235-56236-56237-55144-55145-44029-E

........ 53016-57156-57157-51163-51164-51165-51166-51167-51168-51169-51170-51171-E ................................ 51244-55806-56393-56394-56395-56396-56397-56398-56399-58978E O. California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E .................................................................................................. 36472-38847-56788-67026-E P. Tree Mortality Non-Bypassable Charge Balancing Account………...65929-65930-65931-E

(T)

(T)

(T)