Details for: 3927-E (Part 1 of 1).pdf


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

December 21, 2018
ADVICE 3927-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
SUBJECT:

Establishment of the Officer Compensation Memorandum
Account Pursuant to Resolution E-4963

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 and are attached hereto.
PURPOSE
In compliance with Resolution E-4963 (Resolution) and Senate Bill (SB) 901, this advice
letter establishes Preliminary Statement Part N.20, Officer Compensation Memorandum
Account (OCMA), allowing SCE to track: (1) compensation for SCE officers authorized
in SCE’s 2018 General Rate Case (GRC) Application (A.)16-09-001,1 and (2) all
compensation paid to SCE officers as defined by Public Utilities Code (PUC) Section
706, as revised by SB 901.2
DISCUSSION
On August 31, 2018, the California Legislature passed SB 901, and Governor Edmund
Brown Jr. signed it into law on September 21, 2018. SB 901 repeals the language in
Public Utilities Code (PUC) Section 706 and adds new language prohibiting IOUs from
recovering from customers “any annual salary, bonus, benefits, or other consideration of
any value, paid to an officer of an electrical corporation,” and requires that
compensation instead be funded solely by shareholders of the utility. The law takes

1

2

Although the Resolution indicates that the IOUs are to “track[] both compensation for
officers authorized in GRCs and resolutions as well as compensation as defined by Public
Utilities Code Section 706” (Resolution, p. 6, emphasis added), SCE did not receive, and is
not anticipating receiving, authorization for officer compensation outside of its general rate
cases.
For the purposes of the OCMA, the term “officer” is defined as those employees of SCE in
positions with titles of Vice President or above who are Rule 3b-7 officers of SCE under the
Securities Exchange Act.

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





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ADVICE 3927-E (U 338-E) -2- December 21, 2018 effect on January 1, 2019 during the pendency of SCE’s 2018 General Rate Case, where SCE has sought recovery for some officer compensation from customers. Pursuant to Ordering Paragraph (OP) 1 of the Resolution, SCE shall establish an Officer Compensation Memorandum Account so that customer funding for officer compensation authorized in SCE’s 2018 GRC can be refunded to customers consistent with the new law. As discussed in the Resolution and provided in the draft tariff language provided in Appendix A of the Resolution, the memorandum account will track both compensation for officers authorized in SCE’s 2018 GRC as well as compensation paid to officers as defined by PUC Section 706 (as modified by SB 901). SCE will then refund to customers revenues collected in rates that the Commission had authorized for officer compensation. PROPOSED TARIFF CHANGES Pursuant to the Resolution and as discussed above, SCE is establishing the OCMA to track, effective January 1, 2019: (1) compensation for SCE officers authorized in the 2018 GRC A.16-09-001; and (2) all compensation paid to SCE officers as defined by PUC Section 706. SCE’s Preliminary Statements are revised to include the addition of the OCMA as Part N, Memorandum Accounts, Section 20. The attached Preliminary Statement is substantially similar to the sample Appendix A attached to the Resolution. 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. SCE anticipates that the officer compensation amounts authorized by the Commission in the 2018 GRC decision will be refunded to customers when SCE implements the 2019 Post-Test Year revenue requirement in rates either on a stand-alone basis or through its first consolidated revenue requirement and rate change advice letter submitted in 2019. TIER DESIGNATION Pursuant to OP 2 of Resolution E-4963, this Advice Letter is submitted with a Tier 1 designation. EFFECTIVE DATE This advice letter will become effective January 1, 2019, pursuant to OP 2a of Resolution E-4963. 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:
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ADVICE 3927-E (U 338-E) -3- December 21, 2018 CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue, 4th Floor San Francisco, California 94102 Facsimile: (415) 703-2200 E-mail: EDTariffUnit@cpuc.ca.gov Copies of protests should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest 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: AdviceTariffManager@sce.com 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: Karyn.Gansecki@sce.com 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 General Order (GO) 96-B, SCE is serving copies of this advice letter to the interested parties shown on the attached GO 96-B and A.16-09-001 and R.18-10-007 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 302-3719. For changes to all other service lists, please contact the CPUC’s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov.
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ADVICE 3927-E (U 338-E) -4- December 21, 2018 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 CPUC, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters. For questions, please contact Kimwuana Blebu at (626) 302-2403 or by electronic mail at Kimwuana.Blebu@sce.com. Southern California Edison Company /s/ Gary A. Stern Gary A. Stern, Ph.D. GAS:kb:cm Enclosures
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ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Southern California Edison Company (U 338-E) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Darrah Morgan Phone #: (626) 302-2086 E-mail: Darrah.Morgan@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 3927-E Subject of AL: Establishment of the Officer Compensation Memorandum Account Pursuant to Resolution E-4963 Keywords (choose from CPUC listing): Compliance, Memorandum Account AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Resolution E-4963 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 No If 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: 1/1/19 No. of tariff sheets: -4- 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: See Attachment A Service affected and changes proposed1: Pending advice letters that revise the same tariff sheets: 3923-E 1 Discuss in AL if more space is needed. Clear Form
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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: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Email: EDTariffUnit@cpuc.ca.gov Name: Gary A. Stern, Ph.D. Title: Managing Director, State Regulatory Operations Utility Name: Southern California Edison Company Address: 8631 Rush Street City: Rosemead Zip: 91770 State: California Telephone (xxx) xxx-xxxx: (626) 302-9645 Facsimile (xxx) xxx-xxxx: (626) 302-6396 Email: advicetariffmanager@sce.com Name: Laura Genao c/o Karyn Gansecki Title: Managing Director, State Regulatory Affairs Utility Name: Southern California Edison Company Address: 601 Van Ness Avenue, Suite 2030 City: San Francisco State: California Zip: 94102 Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: (415) 929-5544 Email: karyn.gansecki@sce.com Clear Form
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ENERGY Advice Letter Keywords Affiliate Direct Access Preliminary Statement Agreements Disconnect Service Procurement Agriculture ECAC / Energy Cost Adjustment Qualifying Facility Avoided Cost EOR / Enhanced Oil Recovery Rebates Balancing Account Energy Charge Refunds Baseline Energy Efficiency Reliability Bilingual Establish Service Re-MAT/Bio-MAT Billings Expand Service Area Revenue Allocation Bioenergy Forms Rule 21 Brokerage Fees Franchise Fee / User Tax Rules CARE G.O. 131-D Section 851 CPUC Reimbursement Fee GRC / General Rate Case Self Generation Capacity Hazardous Waste Service Area Map Cogeneration Increase Rates Service Outage Compliance Interruptible Service Solar Conditions of Service Interutility Transportation Standby Service Connection LIEE / Low-Income Energy Efficiency Storage Conservation LIRA / Low-Income Ratepayer Assistance Street Lights Consolidate Tariffs Late Payment Charge Surcharges Contracts Line Extensions Tariffs Core Memorandum Account Taxes Credit Metered Energy Efficiency Text Changes Curtailable Service Metering Transformer Customer Charge Customer Owned Generation Mobile Home Parks Name Change Transition Cost Transmission Lines Decrease Rates Non-Core Transportation Electrification Demand Charge Non-firm Service Contracts Transportation Rates Demand Side Fund Nuclear Undergrounding Demand Side Management Oil Pipelines Voltage Discount Demand Side Response PBR / Performance Based Ratemaking Wind Power Deposits Portfolio Withdrawal of Service Depreciation Power Lines Clear Form
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Public Utilities Commission 3927-E Cal. P.U.C. Sheet No. Title of Sheet Attachment A Cancelling Cal. P.U.C. Sheet No. Revised 65676-E Revised 65677-E Revised 65678-E Preliminary Statement Part N Preliminary Statement Part N Preliminary Statement Part N Revised 65541-E Revised 61171-E Revised 42856-E Revised 65679-E Table of Contents Revised 65514-E 1
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised PRELIMINARY STATEMENT Cal. PUC Sheet No. Cal. PUC Sheet No. 65676-E 65541-E Sheet 2 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued) d. Specified Project (Continued) Section No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32) (33) * Interest Bearing Memorandum Account* Specified Project Purpose – Not a Specified Project Definitions – Not a Specified Project Self-Generation Program Incremental Cost (SGPIC) Yes Memorandum Account Catastrophic Event Yes Wheeler North Reef Expansion Project Memorandum Account Yes NEM Online Application System Memorandum Account Yes (NEMOASMA) Demand Response Load Shift Working Group Memorandum Account (DRLSWGMA) Yes Result Sharing Memorandum Account (RSMA) Yes Plug-In Electric Vehicle Submetering Pilot Memorandum Account Yes (PEVSPMA) Research, Development, and Demonstration Royalties Yes Distributed Resources Plan Memorandum Account (DRPMA) Yes Emergency Customer Protections Memorandum Account (ECPMA) Yes California Power Exchange Wind-Up Charge Memorandum Yes Account (PXWUC) Income Tax Component of Contribution Yes Memorandum Account GRC Revenue Requirement Memorandum Account (GRCRRMA) Yes Yes DWR Franchise Fee Obligation Memorandum Account Yes Integrated Resource Planning Costs Memorandum Account Yes Power Charge Indifference Adjustment Memorandum Account (PCIAMA) Yes Building Benchmarking Data Memorandum Account Yes Officer Compensation Memorandum Account (OCMA) Yes Nuclear Claims Memorandum Account (NCMA) Yes Memorandum Account (DFG Memorandum Account) Disadvantaged Communities - Single-family Solar Homes Memorandum Account (DACSASHMA) Yes San Joaquin Valley Data Gathering Plan Memorandum Account (SJVDGPMA) Yes Agricultural Account Aggregation Study Memorandum Account Yes Marine Corps Air Ground Combat Center Memorandum Account Yes (MCAGCCMA) Energy Data Request Program Memorandum Account Yes Not Used Energy Settlements Memorandum Account (ESMA) Yes Affiliate Transfer Fee Memorandum Account Yes Avoided Cost Calculator Memorandum Account (ACCMA) Yes Nuclear Fuel Cancellation Incentive Memorandum Account Yes Integrated Distributed Energy Resources Administrative Costs Memorandum Account (iDERACMA) Yes Mitsubishi Net Litigation Memorandum Account Yes (P) (P) (N) (P) (P) (P) Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance. (Continued) (To be inserted by utility) Advice 3927-E Decision 2D6 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Submitted Dec 21, 2018 Effective Resolution E-4963
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised Cal. PUC Sheet No. Cal. PUC Sheet No. PRELIMINARY STATEMENT 65677-E 61171-E Sheet 22 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 20. Officer Compensation Memorandum Account (OCMA) a. Purpose The Officer Compensation Memorandum Account (OCMA) is established pursuant to Public Utilities Code (PUC) Section 706, as enacted by Senate Bill 901 (2018, Dodd). PUC Section 706 requires, among other things, that all forms of compensation for officers of SCE be paid solely by shareholders. The purpose of the OCMA is to track (1) compensation for SCE officers authorized in the 2018 General Rate Case (GRC); and (2) all compensation for SCE officers as defined by PUC Section 706. (1) Definitions a. Officer The term “officer” shall be defined as those employees of SCE in positions with titles of Vice President or above who are Rule 3b-7 officers of SCE under the Securities Exchange Act. As of the date of this filing, SCE’s officers for purposes of this OCMA are its: (1) Chief Executive Officer, (2) President, (3) Senior Vice President (SVP) & Chief Financial Officer, (4) SVP & General Counsel, (5) SVP Customer and Operational Services, (6) SVP Transmission and Distribution, and (7) SVP Regulatory Affairs. b. Authorized Compensation Sub-Account The Authorized Compensation Sub-Account tracks salaries, bonuses, benefits, and all other consideration of any value for officers in rates as authorized in SCE’s 2018 General Rate Case. c. Total Compensation Sub-Account The Total Compensation Sub-Account tracks salaries, bonuses, benefits, and all other consideration of any value paid to officers, including: i. ii. iii. iv. Salaries: Base pay. Bonuses: Annual bonus. Benefits: Employer portion of health and welfare premiums; employer contribution to 401(k) plan; disability and other benefits. Other Consideration: Long-term incentives; executive perquisites; other periodic or one-time payments. (N) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (N) (Continued) (To be inserted by utility) Advice 3927-E Decision 22D8 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Submitted Dec 21, 2018 Effective Resolution E-4963
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised Cal. PUC Sheet No. Cal. PUC Sheet No. PRELIMINARY STATEMENT 65678-E 42856-E Sheet 23 (Continued) N. MEMORANDUM ACCOUNTS (Continued) 20. Officer Compensation Memorandum Account (OCMA) (Continued) b. Operation of the OCMA On a monthly basis (or annually if monthly data is not available), entries to each sub-account shall be determined as follows: (1) Authorized Compensation Sub-Account: A credit entry equal to salaries, bonuses, benefits, and all other consideration for officers in rates as authorized in SCE’s 2018 General Rate Case (annual authorized amount divided by 12) Interest shall accrue monthly to the Au th o r i z e d C o m p e n s a ti o n Su b - Ac c o u n t b a l a n c e b y applying onetwelfth of the three-month Commercial Paper Rate – NonFinancial, from Federal Reserve Statistical Release H.15 (expressed as an annual rate), to the average monthly balance in the Authorized Compensation Sub-Account. If in any month a non-financial Rate is not published, SCE shall use the Federal Reserve three-month Commercial Paper Rate – Financial. (2) Total Compensation Sub-Account: a. c. A debit entry equal to salaries, bonuses, benefits, and all other consideration of any value paid to officers. Disposition and Review Procedures The OCMA is effective January 1, 2019 until closed at the direction of the Commission. SCE anticipates that the officer compensation amounts authorized by the Commission in the 2018 GRC decision, for 2019, will be refunded to customers when SCE implements the 2019 Post-Test Year revenue requirement in rates either on a stand-alone basis or through its first consolidated revenue requirement and rate change advice letter submitted in 2019. 21. (N) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (N) Nuclear Claims Memorandum Account (NCMA) The purpose of the NCMA is to record assessments, retroactive premiums, and costs associated with claims by workers and/or third parties, including, but not limited to, allegation of exposure to nuclear radiation and/or electric and magnetic fields (EMF) associated with incidents or exposures at any location or relating to SONGS 2&3 nuclear plant decommissioning. Entries shall be made to the NCMA at the end of each month. The monthly debit entry shall be made to the NCMA to record the costs associated with claims discussed above. The monthly credit entry shall be made to the NCMA to record any insurance proceeds received by SCE associated with these claims, less any fees paid to outside legal counsel incurred to obtain payment. Interest shall accrue monthly to the NCMA by applying the interest rate to the average of the beginning and ending balance. SCE may request recovery of the balance in the NCMA in the Revenue Adjustment Proceeding (RAP), or any other proceeding deemed appropriate by the Commission. (Continued) (To be inserted by utility) Advice 3927-E Decision 23D7 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Submitted Dec 21, 2018 Effective Resolution E-4963
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Southern California Edison Rosemead, California (U 338-E) Cancelling Revised Revised TABLE OF CONTENTS Cal. PUC Sheet No. Cal. PUC Sheet No. 65679-E 65514-E Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES ....65679-64842-65130-65100-65066-65067-65068-E ........................................................................................................... 65515-65070-65071-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 65071-E TABLE OF CONTENTS - RULES ............................................................................................ 64043-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 58961-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 59608-61801-61576-61817-63318-61631-E ........................................................................................................... 64044-61971-63296-E (T) PRELIMINARY STATEMENT: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Territory Served ......................................................................................................... 22909-E Description of Service ................................................................................................ 22909-E Procedure to Obtain Service ..................................................................................... 22909-E Establishment of Credit and Deposits ....................................................................... 22909-E General .......................................................................... 45178-45179-45180-53818-45182-E Symbols ..................................................................................................................... 45182-E Gross Revenue Sharing Mechanism .......26584-26585-26586-26587-27195-27196-54092-E .................................................................................................. 51717-53819-27200-27201-E Baseline Service ........................................................... 52027-52028-52029-52030-52031-E Charge Ready Program Balancing Account ................................................... 65510-65511-E Not In Use ............................................................................................................................. -E Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E Purchase Agreement Administrative Costs Balancing Account ........... 55207-51922-55208-E Income Tax Component of Contributions ....................................................... 58419-58420-E Memorandum Accounts.... 21344-65676-61164-58221-49492-61165-61166-61167-53821-E ........ 50418-42841-61168-64869-64870-44950-44951-44952-44953-42849-42850-42851-E ........ 65677-65678-55623-61171-42856-61172-61173-52033-50419-55048-61174-42863-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 California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E .................................................................................................. 36472-38847-56788-64913-E Not In Use ................................................................................. 27670-27671-27673-27674-E (T) (T) | (Continued) (To be inserted by utility) Advice 3927-E Decision 1D4 Issued by Caroline Choi Senior Vice President (To be inserted by Cal. PUC) Date Filed Dec 21, 2018 Effective Resolution E-4963
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