PUC

Introduction

Petitioner Southern California Edison Company (SCE) sought a writ of review of Public Utilities Commission (PUC or Commission) Decision No. 99-11-057 and Resolution E-3606, both denying SCE the ability to establish a “memorandum account” effective January 1, 1999. We issued the writ. SCE urges the PUC abused its discretion and failed to proceed in the manner required by law insofar as it failed to recognize the memorandum account came into existence by operation of law on January 1, 1999. We agree.

SCE filed with the PUC an advice letter, attaching a tariff, which established a memorandum account to track its financing costs on fuel oil reserves. A memorandum account is used by utilities to track various expenses. Expenses so recorded may in the future be reviewed by the PUC for possible inclusion in rates. Unless expenses are included in such accounts, a utility may not seek to pass them on to customers later. SCE’s tariff purported to establish its memorandum account effective January 1, 1999. The PUC’s Resolution E-3606 allowed SCE to establish the memorandum account, but with an effective date of August 5, 1999. The PUC’s action effectively precluded…