s02v02p01 - app...southern california edison company (sce) owns and operates five operating...

An EDISON INTERNATIONAL® Company

(U 338-E)

2015 General Rate Case APPLICATION

Workpapers

GenerationPeakersSCE-02 Volume 09

N ovem ber 2013

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Workpaper - Southern California Edison / 2015 GRC - APPLICATION

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I.

INTRODUCTION

Southern California Edison Company (SCE) owns and operates five operating gas-fired peaker

power plants (Peakers) that provide an aggregate o f 245 MW o f efficient, reliable power. Peakers serve

the electrical grid by starting and ramping to full load very rapidly, including the capability o f starting

and stopping more than once during a day. Each Peaker can reach full load within 10 minutes after

start-up and have relatively low start-up costs. In addition, these Peakers can provide “black-start”

capability in the event o f a system black-out. WP 1 & 23 WP 94-95SCE forecasts Test Year 2015 O&M expenses o f $10.450 million (2012$) to operate the five

Peakers. SCE’s capital expenditure forecast for 2013-2017 is $13.775 million (nominal dollars) for

work on the Peakers. Funding these O&M and capital forecasts will enhance the five gas-fired Peakers’

ability to: (1) provide efficient, reliable service to our customers; (2) comply with applicable laws and

regulations; and (3) maintain safe operations. This testimony supports SCE’s Test Year 2015 Peaker

O&M expense and capital expenditure forecasts.

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Exhibit No. SCE-02 / Generation / Vol. 09Witnesses: A. Kurpakus and S. Messer

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II.

BACKGROUND AND OPERATIONAL ROLE OF THE PEAKERS

A. History Of The Peakers

In the summer o f 2006, California experienced an unprecedented heat wave. Temperatures were

higher than those recorded in the weather model used by the CAISO based on the most relevant 30-year

history. The CAISO had predicted prior to summer 2006 that the state’s grid could accommodate

demand in excess o f 48,000 MW. However, the actual peak demand during the heat wave was 51,000

MW. CAISO did meet the demands during the heat wave; however, grid stability was a serious concern

throughout this heat wave.

In August 2006, CAISO made recommendations to the Commission about how it could meet

future demands during similar heat storms, assuming high growth in overall power demand (a situation

particularly severe in Southern California).1 Because there was no time to develop new large generation

projects, CAISO recommended that the Commission direct investor-owned utilities to develop new

generation with quick-start capability to meet peak load demands and to improve local grid stability

during critical demand periods. In response, in an August 15, 2006 directive,2 Commission President

Michael Peevey directed SCE to develop five new Peakers to be operational by summer 2007. The full

Commission approved and confirmed President Peevey’s directive on November 9, 2006 in Resolution

E-4031.3 SCE proceeded with the engineering, procurement, and construction o f the five Peakers.

These five Peakers were designed to quickly start and have “black-start” capability. The Peakers are

readily dispatchable and provide local voltage support4 to the power grid.

B. The Purpose Of Black-Start

Typically, when a power plant unit is in a start-up mode, the power grid supplies the electricity

required to operate the plant’s auxiliary equipment to facilitate starting the generating unit. However,

during a complete blackout, such as the Northeast Blackout o f 1965, no external source o f high voltage

power is available to restart the affected power plants. W ithout external power for the fans, pumps, and

See workpapers for the letter from Yakout Mansour, President and Chief Executive Officer o f CAISO, to Michael R. Peevey, President o f California Public Utilities Commission, dated August 9, 2006, which is attached to the August 15, 2006 Assigned Commissioner’s Ruling in R.05-12-013/R.06-02-013. WP 116Ibid.

A copy o f Resolution E-4031 is in the workpapers. WP 117-1274 Local voltage support is an ancillary service to maintain adequate voltage on the grid.

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other power plant auxiliary equipment, most generating units are not able to start-up.5 As a result, the

plants cannot begin to start producing electricity until an external power source becomes available.

The process of starting a generating unit without an external power source is commonly referred

to as “black-starting.” Black-start capable generating stations typically receive their back-up electrical

supply from an auxiliary generator located on-site. Such auxiliary generators are usually much smaller

than the main power generating units at the generating station, and are typically fueled by natural gas or

diesel fuel. Black-starting an electrical system occurs because: (1) all local generation has “tripped” off

line; and (2) there is no means o f accessing electricity from outside o f the area. Black-start capable

generating stations are re-started first, and then these running power generating stations are reconnected

to the system grid. Power produced by the black-start capable plants (i.e., that are brought back on-line

after black-starting) is then routed to other power plants that are not black-start capable to assist in their

start-up. In this manner, CAISO can sequentially restore the grid to full power. As the generation

capacity increases, load is systematically connected to the grid and power restored to all customers.

A utility grid will typically include a number o f power plant units that have black-start

capability. Some o f SCE’s hydroelectric units are black-start capable. Prior to divestiture o f the SCE

gas-fired power plants in 1997 and 1998, SCE maintained four 130 M W Peaker units with black-start

capability. SCE divested the older Peaker units along with all o f its oil/gas fired generating units. The

black-start capability o f the older Peakers was not maintained by the new owners after divestiture and,

therefore, new black-start sources needed to be developed for SCE’s local grid system. This need was

identified in the Commission's Resolution E-4031. WP 117-127C. SCE Peaker Power Plant Locations and Technology

Each o f the five Peakers has a nominal capacity o f 49 MW. Figure II-1 below shows the

location o f the Peakers. The Peaker Division o f the Power Production Department is comprised o f the

five Peaker Units, their centralized control center and support facilities, and the employees who operate,

maintain, and manage these assets. The first four Peakers, Barre, Center, Grapeland, and Mira Loma,

began commercial operation in August 2007. Due to permitting delays the McGrath Peaker did not

begin commercial operation until November 2012.

5 It takes an external source of electricity for a power plant to start-up, before that plant can begin producing its own electricity to meets its internal plant requirements.

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Figure II-1 Primary Peaker Locations

1 Each Peaker Power Plant uses a state-of-the-art, simple-cycle combustion turbine generator set,

2 operated with Selective Catalytic Reduction (SCR) for nitrogen oxide (NOx) air pollution reduction.6

3 Each Peaker includes one General Electric (GE) LM6000 SPRINT™ (SPRay INTercooling)7 natural gas

4 turbine generator set and associated auxiliary equipment.8

5 Figure II-2 below illustrates the power plant package including many accessories that are

6 required to provide efficient, safe, and reliable operation.

6 NOx are Nitrogen Oxide air pollutants.

7 General Electric's SPRINT option includes equipment which allows water to be injected directly into the combustion turbine HP or LP compressor sections, which increases the turbine’s power output.

8 See Figure II-2 for further discussion o f the operational characteristics for the five Peakers.

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Figure II-2 Typical Peaker Design

The gas-fired combustion turbine drives an electrical generator, producing electricity. The

turbine consumes natural gas, air, and water, each o f which needs to be conditioned prior to use. The

local gas pipeline provides natural gas, and an 800-hp electric gas compressor is used to increase gas

pressure for injection into the combustion turbine. A portable demineralizer, consisting o f water

softening followed by ion exchange, treats water to a very high purity. Nitrous oxides (NOX) emission

controls require treated water to be injected into the turbine. The Sprint System also increases the power

output o f the turbine. The combustion turbine inlet air conditioning also uses treated water and

increases the power output o f the turbine. A self-cleaning filter removes suspended matter from the inlet

air prior to use to minimize the damage foreign matter can cause to the turbine blades.

Exhaust gases from the combustion turbine are routed to an 80-foot tall exhaust stack. Water

injection into the turbine, a Selective Catalytic Reduction (SCR) system, and an additional layer o f

catalyst in the exhaust gas ducting for the control o f organic compounds rigorously control air

emissions. The SCR system reduces NOx emissions from 25 parts per million (PPM) down to 2.5 PPM

by injecting ammonia into the exhaust gas, which is stored in a 10,000 gallon storage tank. A

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Continuous Emissions Monitoring System (CEMS) measures and reports on the effectiveness o f the air

pollution control equipment to SCE and appropriate agencies.

Each Peaker has an electric motor-driven gas compressor to raise the natural gas pressure from

the gas pipeline pressure to the required pressure for combustion turbine operation. Each Peaker has a

645 kW auxiliary electric generator driven by a natural gas-fired reciprocating engine. These auxiliary

generators provide each Peaker with black-start capability by generating the initial power to operate

turbine start-up related equipment and other auxiliary equipment required for black-starting.

D. Expected Peaker Dispatch, Service Conditions, and Operational Limits

Peakers serve the electrical grid by starting and ramping to full load very rapidly, including

starting and stopping more than once in a day if needed. From off-line status, each Peaker can attain full

load within 10 minutes o f a start instruction. The Peakers also have relatively low start-up costs.

Utilization is based on each Peakers start-up and operating costs as compared to other resource options

and contemporary market prices, and system needs. Because o f their fast-start capability, the Peakers

can also fulfill off-line operating reserve requirements, standing ready to meet additional generation

needs caused by a sudden unanticipated loss o f generating capacity elsewhere in the system, unexpected

demand, or the power output variability o f renewable resources such as solar and wind.

The Peakers averaged approximately 20,000 total gross MW h per year, from 2008 through 2011.

Production levels then increased, as a result o f market conditions and system needs. In 2012 the Peakers

(excluding McGrath, which began commercial operation in November 2012) produced 96,494 gross

megawatt hours. During 2013, Peaker dispatch has continued to trend upward and future annual

operating levels are expected to exceed that recorded in 2012.

Renewable energy resources, such as solar and wind generation, are susceptible to large

variations in generation output. Local wind velocities peak and ebb unpredictably during the course of

the day. Likewise, solar power output varies depending on cloud cover and other weather conditions.

With their fast-start capability, the Peakers can be used to assist in leveling grid generation output when

renewable generation resources experience unpredictable variations in generation output.

The first four Peakers located in Los Angeles, Orange, and San Bernardino Counties operate

under air permits granted by the South Coast Air Quality Management District (SCAQMD). The strict

emission limitation effectively limits the allowable run hours during a 12-month period. Also the annual

number o f fired starts is limited to 200. There are many emission criteria that influence the maximum

allowable run hours, which result in a maximum annual operating level that varies from approximately

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700 hours to 1,096 hours per site during a 12-month period. There are daily, monthly, and annual

emission limits for NOX, as well as monthly and annual limits for sulfur oxides (SOX). The emission

limit for SOX, which varies for each site, is the criteria that generally limit the number o f allowable

operation hours. The hours indicated are estimated according to the pounds per year o f SOX expected to

be produced at each site. The actual maximum permissible run hours at each site is determined through

measurement throughout the year o f the pollutants produced, which must be kept below maximum

permissible levels.

Inherent in the Peaker’s design, air emissions produced during the start-up o f a Peaker will

account for an appreciable percentage o f total annual emissions. The quantity o f 200 starts per year is

the maximum allowable according to the operation permits for the first four Peakers. Prior to 2012 the

starts per year did not appear to be a significant c onstraint. However, during 2012 market conditions

resulted in the Peakers starting more frequently, but having less run hours per start. Therefore, SCE is

working on additional flexibility within the existing permit constraints with SCAQMD. SCE expects a

response during 2013 and, if approved, may gain an increased number o f allowed starts per year.

Because the total annual emissions from a given unit will not be increased, an increase in the number of

starts will cause a reduction to the maximum allowable run hours. The Peakers will continue to be

dispatched in a manner that ensures the combination o f generation, starts, and service hours in any given

year will not result in any exceedences o f the air permit limits.

The McGrath Peaker in Ventura County operates under an air permit granted by the Ventura

County Air Pollution Control District (VCAPCD). Like the permits granted by SCAQMD, the

VCAPCD granted a permit to operate under strict emission limits. This air permit allows for unlimited

starts, but limits the run hours to 2,000 hours per year.

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III.

PEAKER POWER PLANT O&M EXPENSE FORECAST

Labor expenses consist o f labor for all Peaker Division employees plus overtime labor for certain

Peaker staff, as well as the labor for certain support activities provided by other SCE work groups. N on

labor expenses consist o f all other costs, including repair parts, materials, chemicals, lubricants and other

expendables, contractor support, rental equipment, utilities, waste water treatment, information

technology support, vehicles, and O&M support provided to the Peakers by other SCE divisions.

The first four Peakers entered into commercial service in August 2007. The McGrath Peaker

began commercial service on November 1, 2012. SCE analyzed recorded costs for 2008-2012 to

develop a forecast for labor and non-labor O&M expense for 2015. The 2008 through 2012 recorded

O&M expense, the 2013 and 2014 forecasts, and the 2015 Test Year forecast are summarized by labor

and non-labor expenses in Figure III-3 below.

Figure III-3Recorded And Adjusted 2008-2012/Forecast 2013-2015

($000 Constant 2012$)

12,000

10,000

8,000

6,000

4.000

2.000

02008

I I I I2009 2010 2011 2012 2013 2014 2015

□ Labor (std esd) ■ Non-Labor (std escl) □ Other (not esd)

Labor 3,988 4,274 4,812 5,086 4,865 5,333 5,333 5,333

Non-Labor 5,248 5,374 4.106 4,026 4,209 5,117 5,117 5,117

Other 0 0 0 0 0 0 0 0

Total 9,236 9,648 8,918 9,112 9,074 10,450 10,450 10,450

Forecast

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A. O&M Expense Increases Resulting From The McGrath Peaker

SCE experienced significant delays in obtaining ministerial permits for construction o f the

McGrath Peaker. As discussed previously, the first four Peakers began commercial operation in August

2007, and McGrath became operational in November 2012. The addition o f the McGrath Peaker will

cause an increase to the Peaker organization O&M expenses as compared to 2012 recorded expense.

Increased expenses include labor costs to perform operations and maintenance o f the McGrath Peaker.

The McGrath Peaker is much farther away from the Peaker Control Centers than the other four Peakers,

and as a result, the McGrath Peaker incurs higher costs than the other four units given the additional

time spent transporting staff and materials to the site. Increased non-labor expenses that result from

McGrath becoming operational include permit fees, air quality monitoring expenses, reporting and

testing expenses, chemicals and other consumables, water, water treatment and waste water disposal,

repair parts, and other items.

As discussed above in Chapter II, the McGrath Peaker encountered permitting delays and did not

begin commercial service until November 1, 2012. The McGrath Peaker construction began in

December 2011 and continued through September 2012. Throughout most o f 2012 the McGrath costs

were assigned to a capital work order for construction o f the peaker project. In September the Peaker

began operation and during September and October 2012 it operated primarily for testing purposes.

Therefore, 2012 recorded expense reflects only a fraction o f the annual incremental cost for McGrath

O&M.

To forecast the incremental cost o f a full year o f McGrath O&M expense, we reviewed the

McGrath recorded expenses during 2012. The majority o f O&M expense for McGrath occurred when

the peaker began operation in October, and commercial operation on November 1, 2012. Therefore we

attribute the McGrath recorded O&M expenses in 2012 to the equivalent o f three months o f expense.

As such, the appropriate adjustment to the 2012 recorded expense that is needed to account for a full

year o f operation is the addition o f nine months o f equivalent expense. The recorded labor expense for

three months was $99,148 with 30 percent o f that total being for operation expense and 70 percent for

maintenance expense. The recorded non-labor expense for three months was $302,786, with 50 percent

for operation expense and 50 percent for maintenance expense. These expenses were multiplied by

three to produce a forecast adjustment for the 2015 Test Year forecast (i.e., three times the three months

o f recorded expense yields an adjustment o f nine months o f additional O&M).

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1 This results in a total upward adjustment o f $1.206 million to account for a full year o f McGrath

2 O&M in our 2015 Test Year forecast as discussed in further detail below.9

9 See workpapers for adjustments made to the operations and maintenance accounts for the 2015 Test Year.

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IV.

PEAKER O&M EXPENSE BY FERC ACCOUNT

A. Introduction

This chapter forecasts Peaker O&M expenses for Test Year 2015 by FERC account. SCE

records Peaker O&M expenses in FERC accounts 546 through 554, with the exception o f FERC

accounts 547 and 552. We have summarized the operations accounts 546, 548, 549, and 550 into FERC

account 549, Miscellaneous Other Power Generation Expenses. We have summarized the maintenance

accounts 551, 552, 553, and 554 into FERC account 554, Maintenance o f Miscellaneous Other Power

Generation Plant.

B. Peaker Power Plants O&M Expense FERC Account Analysis

1. FERC Account 549 - Miscellaneous Other Power Generation Expenses

This account includes a summary o f FERC accounts 546, 548, 549, and 550, as

mentioned above. Following are detailed descriptions o f those accounts. It is reasonable to combine

these four accounts due to their similar operational expenses.

a) Account 546 - Operation Supervision and Engineering

This account includes labor and non-labor expenses incurred in the general

supervision o f power generating stations. Labor expenses include the O&M manager and the O&M

supervisor, who supervises the control operators, and operator mechanics, who oversee the daily plant

operation. Labor expenses also include a portion o f the salaries o f the PPD home office employees who

support the Peakers and other SCE power plants. The PPD home office staff provides support for

budgets, accounting, administrative activities, environmental health & safety compliance, regulatory

compliance, long-range planning, and other activities. Non-labor expenses include reimbursed

employee expenses, SCE corporate support for various air, water, hazardous waste, and similar

regulatory activities, and miscellaneous fees. This account also includes expenses for preliminary

engineering studies, water quality and waste water laboratory analyses, and other general engineering

support.

b) Account 548 - Generation Expenses

This account includes the cost o f labor, materials and expenses incurred in

operating prime movers, generators and electric equipment at power generating stations up to the point

where electricity is delivered to the distribution system. It includes the labor costs o f the control

operators and operator mechanics that directly operate and control station equipment, as well as that o f

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the Chemical Technicians who work throughout PPD, monitoring and resolving water chemistry

problems. This account also records the costs o f chemicals, as well as for water used for turbine

injection and turbine inlet air cooling, including costs to purify and treat that water prior to usage. It

also includes the costs o f air emissions control, other expenses for environmental monitoring and

reporting, and environmental permits and fees. X[7- |W P 1 -2 2

c) Account 549 - Miscellaneous Other Power Generation Expenses

This account includes labor and non-labor costs that are not readily assignable to

other operating accounts. This includes the Peaker Division management, communications and

computing equipment expenses, office supplies, labor relations expenses, reimbursable employee

expenses, safety and training costs, and Peaker facilities’ janitorial, and PPD home office support.

d) Account 550 - Rents WP 60-67This account includes the cost o f rents o f property used in connection with other

power generation.

2. Development Of Test Year Estimate for Account 549 WP 1The 2015 forecast for this account is $6.390 million, including $3.689 million for labor

expense and $2.701 million for non-labor expense. As discussed below, we use last recorded year to

forecast labor and non-labor, plus adjustments due to the start-up o f the new McGrath Peaker in late

2012. The 2008 through 2012 recorded expense history and our forecasts for 2013 through 2015 for this

account are summarized in Figure IV-4 below.

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Figure IV-4 FERC Account 549 - Peakers

Misc. Other Power Generation Expenses Recorded And Adjusted 2008-2012/Forecast 2013-2015

($000 Constant 2012$)

WP 5

7.000

6.000

5.000

4.000

3.000

2.000

1,000

■ ■ ■ ■ ■ I I I2009 2010

□ Labor (std escl)

2011 2012 2013 2014

I Non-Labor (std escl) □ Other (not escl)

Labor 2,593 2,810 3,364 3,520 3,598 3,689 3,689 3,689

Non-Labor 3,566 2,407 2,141 2,143 2,248 2,701 2,701 2,701

Other 0 0 0 0 0 0 0 0

Total 6,159 5,217 5,505 5,663 5,846 6,390 6,390 6,390

a) Analysis Of Recorded and Forecast Labor Expense

From 2008 to 2012, labor expense increased by approximately 39 percent. The

first several years o f Peaker operation led to the conclusion that additional staff was needed to promote

safe and reliable Peaker operations. In particular, the additional staff was needed to assist in complying

with the Peakers’ environmental permits and other regulatory requirements, including the first set of

newly-adopted NERC Reliability Standards. Existing staffing levels in 2012 most closely match those

required for future operation o f the Peakers, other than the adjustment needed to forecast a full year of

O&M for the McGrath Peaker. Also, in D.04-07-022 and D.89-12-057, the CPUC stated that if costs

have shown a trend in a certain direction over three or more years, the last year recorded is an

appropriate base estimate. The 2008-2012 years indicate an increasing trend for labor, suggesting use of

last recorded year. Also for this account, labor costs for 2010-2012 have been relatively stable, so the

last recorded year expense o f $3.598 million provides our base for estimating Test Year 2015. To that

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base we add a forecast adjustment o f $0.091 million labor expense for the McGrath Peaker addition as

discussed in Chapter III above.

b) Analysis Of Recorded and Forecast Non-Labor Expense

From 2008 to 2012, non-labor expense decreased by approximately 37 percent.

The expense in 2008 was over $1 million higher than the following years due to higher costs

encountered for startup expenses for the first four peakers. Following a slight decrease from 2009, the

expenses were stable from 2010 through 2012. In D.04-07-022 and D.89-12-057, the CPUC stated that

if recorded expenses in an account have been relatively stable for three or more years, the last recorded

year is an appropriate base estimate. For this account, non-labor expenses for 2010-2012 have been

relatively stable, so the last recorded year expense o f $2.248 million provides our base for estimating

Test Year 2015. To that base we add a forecast adjustment o f $0.453 million non-labor expense for the

McGrath Peaker addition as discussed in Chapter III above. ^ W P 23-443. FERC Account 554 - Maintenance Of Miscellaneous Other Power Generation

This account includes a summary o f FERC Accounts 551, 552, 553, and 554, as

mentioned above. Following are detailed descriptions o f those accounts. It is reasonable to combine

these four accounts due to their similar maintenance expenses.

a) Description Of Account 551 WP 68-75This account includes labor and non-labor expenses incurred in the general

supervision, direction, and engineering needed to support Peaker maintenance activities. Non-labor

costs that record to this account include maintenance o f certain Peaker auxiliary equipment, including

security monitoring equipment required for NERC-CIP compliance. The account also includes the

management and control o f hazardous materials, such as the ammonia used by the Peakers for emissions

control.

b) Description Of Account 552

This account includes the cost o f labor, material, contractor services, and other

expenses necessary to maintain and repair faciliti es used in power generation.

c) Description Of Account 553

FERC Account 553 includes the cost o f labor, material, contractor services, and

other expenses necessary to maintain and repair the combustion turbine, generator, and accessory

electric equipment. This includes most o f the labor costs o f the maintenance journeymen employed in

the Peaker Division.

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d) Description Of Account

Account 554 includes the labor and non-labor expenses incurred to maintain and

repair the compressed air system, the fire suppression equipment, and certain other plant systems, as

well as station maintenance equipment such as lathes, drill presses, and other shop equipment. This

account also includes maintenance training expense, vehicle expense (i.e., work trucks and small cranes)

and consumable supplies.

Development Of Test Year Estimate for Account 5544. WP 23-44The 2015 forecast for this account is $4.060 million, including $1.644 million for labor

expense and $2.416 million for non-labor expense. As discussed below, we use a 4-year average to

forecast labor and last recorded year to forecast non-labor, plus adjustments due to the start-up o f the

new McGrath Peaker in late 2012. The 2008 through 2012 recorded expense history and our forecasts

for 2013 through 2015 for this account are summarized as Figure IV-5 below.

Figure IV-5 FERCAccount 554 - Peakers

Maintenance of Miscellaneous Other Power Generation Plant Recorded and Adjusted 2008-2012/Forecast 2013-2015

($000 Constant 2012$)

WP 27

4 .5004 .0003 .5003 .0002 .5002.0001.500 1,000

5000

■jhuugy y t□ Labor (std escl) I Non-Labor (std escl) □ Other (not escl)

Labor 1,395 1,465 1,448 1,567 1,267 1,644 1,644 1,644

Non-Labor 1,682 2,966 1,964 1,883 1,961 2,416 2,416 2,416

Other 0 0 0 0 0 0 0 0

Total 3,077 4,431 3,412 3,450 3,228 4,060 4,060 4,060

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a) Analysis Of Recorded and Forecast Labor Expense

The recorded labor expense increased in 2009 due to filling positions for a

maintenance supervisor and a technical specialist. Labor expenses increased in 2009 due to engineering

and project activities relating to improvements done to the Peaker sites. Labor expense in 2010

remained relatively flat as in 2009, and then slightly increased in 2011 with the addition o f a Peaker

Technical Manager. Labor expenses were lower in 2012 due to construction and start-up activities at the

McGrath site, which required some labor to record to capital accounts. Maintenance labor, including

overtime costs, also fluctuated from year to year depending on equipment repair work load. In D.04-07-

022 and D.89-12-057, the CPUC stated that for those accounts which have significant fluctuations in

recorded expenses from year to year, an average o f recorded expenses is appropriate. Recorded labor

costs in this account have fluctuated from year-to-year from 2008-2012, so an average is an appropriate

base forecast. We eliminate 2008 from the average because that year did not employ the level o f

personnel required for maintenance, and therefore we use a 4-year average o f 2009-2012 for forecasting

the 2015 Test Year base forecast. To the $1.437 million base we add an adjustment o f $0.207 million

labor expense for the McGrath Peaker addition as discussed in Chapter III above.

b) Analysis Of Recorded and Forecast Non-Labor Expense

Non-labor costs recorded to this account increased significantly in 2009 due

primarily to increased contract costs related to facilities upgrades, mechanical services, and

improvements to the Peaker information systems. Non-labor remained consistent from 2010 through

2012. In D.04-07-022 and D.89-12-057, the CPUC stated that if recorded expenses in an account have

been relatively stable for three or more years, the last recorded year is an appropriate base estimate. For

this account, non-labor expenses for 2010-2012 have been relatively stable, so the last recorded year

expense o f $1.961 million is an appropriate base forecast. To that base we add an adjustment o f $0.455

million non-labor expense for the McGrath Peaker addition as discussed in Chapter III above.

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V.

PEAKER POWER PLANTS CAPITAL EXPENDITURE FORECAST

Forecast Peaker Capital Expenditures

The capital expenditure forecast for Peakers for 2013-2017 is $13.755 million. The first several

years o f operating experience with the Peakers indicated that further capital improvements would be

beneficial for SCE customers. These beneficial projects have largely been completed at the Barre,

Center, Grapeland, and Mira Loma sites. The McGrath peaker site, completed in 2012, has yet to

receive these improvement projects, and therefore, the 2013-2017 forecast includes these McGrath

improvements. In addition, the forecast includes funding for a few additional improvements at all five

Peakers, as well as funding for an assumed overhaul o f one o f the Peaker turbines. All o f these Peaker

capital projects are summarized below in Figure V-6.

Figure V-6Peaker Forecast Capital Expenditures 2013-2017

($000 Nominal)

Capital ProjectCGO

Number2013 2014 2015 2016 2017 Total: 2013 - 2017

M cG rath Spare Gas C om pressor C G O -114 1,000 2,500 - - - 3,500

M cG rath Multipurpose Building C G O -115 - - 2,600 - - 2,600

Turbine Overhaul C G O -124 - - - - 2,600 2,600

Variable IG V Upgrade C G O -123 - - - 2,000 600 2,600

Various Projects less than $1M M C G O -103 4 6 426 415 1,146 150 2,183

Blanket W ork O rders Various 28 28 28 94 94 272

Totals = 1,074 2,954 3,043 3,240 3,444 13,755

Capital expenditures are assessed by Peaker management based on business needs. These

expenditures are reviewed by Power Production Department management, and if approved, are

submitted as part o f the department’s annual budget request. See Hydro testimony in SCE-2, Vol. 7,

Part 2 for further discussion o f SCE’s capital budgeting process.

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i—IWP 98-100, CONF. 6-7 V ---------------------------------

1. Installation Of Back-Up Gas Compressors At McGrath Peaker Site

In order to promote reliability for both emergency and non-emergency load requirements,

a second Gas Compressor was installed at the other four Peaker locations and is now planned for the

McGrath Peaker. As part o f original construction, each Peaker location only included a single,

reciprocating type gas compressor. W henever that compressor requires overhaul or repair, Peaker

generation is unavailable at that site. It has been the Industry’s experience that reciprocating

compressors require frequent maintenance, including overhauls, and experience a higher rate o f in

service failures than rotary-screw compressors. However, the reciprocating type was selected by

General Electric as a part o f G E’s standard Peaker plant design as it is readily available at a relative low

purchase price. As explained in Chapter I, the Commission directive to SCE to install the Peakers

required the SCE Peaker plants to be procured, designed, and constructed within an extremely

compressed project schedule. Therefore, SCE procured GE’s standard design.

The compressor funded by this capital project is that same as that installed at the other

four Peakers. It is o f the rotary screw design, which has higher reliability and lower maintenance cost

than the existing reciprocating compressor. Once installed, the new compressor will be used as the

primary compressor, and the existing reciprocating compressor will become the back-up or stand-by

compressor for McGrath. The rotary compressor will improve peaker reliability as the stand-by

compressor will be available for immediate service should the primary compressor require routine

maintenance or experience a failure. Having a redundant compressor at McGrath ready for service will

facilitate availability during routine compressor maintenance so that the peaker can continue to provide a

high level o f reliability in its grid support, rapid start, and black-start roles. An economic benefit to cost

analysis was performed demonstrating the economic viability o f this project with a B/C ratio o f 1.1. For

further information and details o f the analyses, refer to the workpapers that accompany this section. The

forecast cost o f this project is $3.5 million, with $1.0 million in 2013, and $2.5 million in 2014.

2. Construct Multi-Purpose Building At McGrath Peaker Site WP 115To facilitate outage maintenance, parts storage, and routine O&M functions, a

multipurpose building was constructed at the four original Peaker sites. The basis for this cost estimate

is the amount o f the Purchase Order awarded to the architect and construction contractors supporting

this work, plus SCE’s estimate for other related work and materials. The McGrath Peaker building

construction is planned after the building permit has been received. The multi-purpose building includes

a small instrument test shop and a maintenance bay for inspection and repair o f plant equipment. The

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building also provides a modest lunchroom, a res troom facility, and a small parts storage room. The

forecast cost o f this project is $2.600 million, with construction planned in 2015.

3. Major Overhaul Of One Combustion Turbine

The Peaker capital forecast predicts that one major turbine overhaul will be needed for

the five Peakers within the next five years. Major turbine replacement parts are recorded as capital

expenditures in accordance with SCE’s accounting procedures. For purposes o f the forecast, this

expenditure is assumed to occur in 2017. The forecast cost o f the overhaul is $2.600 million, based on

information furnished by General Electric. To reduce outage time, SCE’s Peaker spare combustion

turbine, purchased in 2007, would be installed while the combustion turbine needing repair is being

overhauled. W ith a fleet o f five Peakers, four o f them having entered service in 2007, SCE concludes it

is reasonable to assume that at least one Peaker will require a major overhaul by 2017 year end.

4. Install Variable Inlet Guide Vanes On Four Peakers WP 101This project funds the upgrade for four o f the Peaker combustion turbines. The upgrades

consist o f the installation o f variable inlet guide vanes (VIGV) to better control inlet air flow to the

turbine. Such an upgrade will allow the Peakers to be operated at lower MW power output loads with

greater efficiency than currently capable (General Electric estimates an efficiency increase o f 2 percent).

The turbine upgrades would be installed beginning in 2016. The forecast includes the cost o f upgrading

four Peakers for a total expenditure o f $2.600 million. This cost is based on information provided by

General Electric.

The VIGV will be installed in the air intake o f the gas turbine to direct and control

airflow into the engine. These vanes act like a throttle to control the fuel-to-air ratio into the gas turbine,

much like the function o f a carburetor on a car engine. The modulation o f the fuel-to-air ratio results in

increased efficiency and provides for more efficient operation at lower loads, thereby resulting in a

generating resource that functions over a wider load range. This enhanced operating range improves

Peaker dispatch and provides for more flexibility in grid generation resource planning.

W ith the installation o f Variable IGVs, the Peakers can be more readily dispatched

because o f greater flexibility o f operations. The Peaker MW output can be quickly and remotely

modulated to better support bulk generation planning and dispatch, local grid voltage support, and black-

start operations.

The precise benefit o f such improvements is hard to quantify at this time because o f the

inherent difficulty o f quantifying small incremental improvements to unit dispatchability and

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controllability. However, SCE’s assessment is that the improvements noted above will become

increasingly valuable as additional renewable resources are added to the grid. SCE plans to install the

upgrade on the first turbine in 2016. SCE will then test and continue to evaluate the benefits and

performance demonstrated by this first installation, in order to determine the value o f proceeding with

the upgrade on additional units. If the evaluation yields positive results, then three additional units will

be upgraded.

5. Peaker Various Small Projects

This category o f projects funds numerous small capital projects, each o f which cost less

than $1.0 million. Forecast projects include a back-up air compressor for McGrath ($0.250 million),

spare transformers ($1,015 million), and other small projects ($0.918 million) with a total cumulative

forecast o f $2.183 million for 2013-2017. The capital cost estimate for each item is based on a variety

o f factors, including vendor estimates o f equipment costs and SCE’s experience with prior similar

projects. The larger individual projects are briefly discussed below.

a) Back-Up Air Compressor for McGrath Peaker

General Electric's standard Peaker design included a single air compressor for

each Peaker. However, operating experience with the first four Peakers highlighted the need to install a

second air compressor at each site so that the Peaker could still be operated whenever the compressor

was undergoing routine preventative or repair maintenance. Redundant air compressors were then

installed at the four original peaker sites. This capital forecast is to install an identical unit at McGrath.

The capital forecast for the project is $0.250 million. An economic benefit to cost analysis was

performed demonstrating the viability o f this project with a B/C ratio o f 6.4. For further information

and details o f the analyses, refer to the workpapers that accompany this section.

b) Spare Transformers for Back-Up Reliability Of All Five Peakers

W ith the completion o f the fifth Peaker in 2012, SCE reassessed its Peaker spare

part inventory, and concluded that spare transformers should be purchased for the Peaker fleet.

Historically, SCE PPD maintains common spare transformers for generating units in case o f a failure. If

any o f the three transformers located at each Peaker site were to fault, that Peaker would be out of

service until repairs were completed or another transformer was purchased and installed. Typically,

transformer lead times run 6 to 24 months. The reliability o f the Peakers will be enhanced by

purchasing one each o f a spare 66kV/13.8kV Step-Up Transformer, a spare 13.8kV/4.16kV Auxiliary

Transformer, and a spare 13.8kV/0.48kV Auxiliary Transformer. The capital forecast for purchasing the

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1 three transformers is $1.015 million. An economic benefit to cost analysis was performed

2 demonstrating the viability o f this project with a B/C ratio o f 1.8.

3 6. Blanket Work Orders (Spare Parts, Tools, & Furniture) —

4 Blanket W ork Orders are established capital expenditure accounts

5 annually recurring additions and replacements o f office furniture, equipment such as tools, and capital

6 spare parts. The capital expenditure forecast for 2013-2017 for Peaker Blanket W ork Orders is $0.272

7 million. This forecast is based on the experience gained during the prior years o f Peaker operation.

WP 94, 102-108to record costs for

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VI.

PEAKER POWER PLANTS 2008 TO 2012 RECORDED CAPITAL EXPENDITURES

Figure VI-7 below summarizes Peaker recorded capital expenditures during 2008 through 2012,

including M cGrath construction. This figure also shows forecast expenditures for 2013 through 2017,

and the 2009 and 2012 forecasts adopted by the Commission in our 2009 GRC and 2012 GRC.

Figure VI-7Peaker Recorded And Authorized Capital And Forecast Expenditures

($000 Nominal)

WP 96

~ 3 ~

DescriptionRecorded and Authorized C apital Expenditu res Forecast Capital Expenditures

2008 | 2009 | 2010 | 2011 | 2012 2013 2014 2015 2016 2017

Authorized Expenditures 20,000 22,040

Recorded & Forecast Expenditures 10,370 18,844 12,846 7,397 30,301 1,074 2,954 3,043 3,240 3,444

Total Expenditures 79,758 13,755

35,000

Recorded, Authorized and Forecast Expenditures Graph

25.000 ■

20.000 ■

-6,000 ■ ■

_ I ■

■ ■ I -

■ I I I ^ n n n n2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Reco rd ed | | A ut horize Forecast

As shown above in Figure VI-7, our total forecast for 2013-2017 is substantially less than

recorded expenditures during 2008-2012. This is primarily because M cGrath construction is now

complete. Also, this reflects necessary enhancements that were not addressed during the initial

expedited construction o f Peakers. These enhancements have now been completed, except for the

McGrath Peaker. The enhancements include installing a second gas compressor for improving

reliability and constructing a multipurpose building at each Peaker site for facilitating future O&M, as

discussed in section V, sub-paragraph A.2.

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SCE recorded 2009 expenditures are slightly lower than adopted in the 2009 GRC, largely

because o f the delays in constructing McGrath as discussed in section III, sub-paragraph A. However,

this was partially offset by accelerating other capital work on the other four Peakers during 2009.

SCE recorded 2012 expenditures higher than adopted in the 2012 GRC, primarily due to the

McGrath project. McGrath Peaker 2012 expenditures were higher than forecasted because o f additional

legal fees associated with the city o f Oxnard’s challenge o f the McGrath Peaker construction, and

project delay costs experienced because o f these challenges. The Commission is currently reviewing the

reasonableness o f McGrath's construction cost in A.12-12-028. Our 2012 expenditures for the other

four Peakers has also slightly exceeded the adopted amount due to emerging issues. These issues

include the Grapeland Peaker Back-Up Power Supply, W estminster Emergency Generator, Control

Room Upgrades, and the McGrath Peaker Radio Base.

23


2015 General Rate Case - APPLICATION INDEX OF WORKPAPERS

EXHIBIT SCE-02, Vol 9 / Generation - Peakers

DOCUMENT PAGE(S)

PEAKER O&M ACCOUNTS:Account 549: Miscellaneous Other Power Generation Expenses 1-22Account 554: Maintenance of Miscellaneous Other Power Generation Plant 23-442012 Recorded O&M for McGrath 44 aAccount 546, 548, 550, 551, 552, 553 45-91

PEAKER CAPITAL:Capital Expenditures Forecast 93-95Project Detail Worksheets 97-115

Other:August 9, 2006 letter from Y. Mansour (CAISO) to M. Peevy (CPUC)

116

CPUC Resolution E-4031 117-127CPUC Decision No. 04-07-002 127 a-c

Workpaper - Southern California Edison / 2015 GRC - APPLICATION1

Beginning of Workpapers for:

FERC A cco u n t: 549 M iscellaneous O ther Power G eneration Expenses

A c tiv ity : 549 - GAS TURBINE PEAKER

W itness : Anthony J. Kurpakus

Forecast Method Chosen

2012$ (000)

Recorded2012

Forecast2015

Labor Last Recorded Year Adj. 3,598 3,689Non-Labor Last Recorded Year Adj. 2,248 2,701Other N/A 0 0Total 5,846 6,390

Description of Activity:

This activity shall include the cost of labor, materials used and expenses incurred in the operation of Gas Turbine Peaker generating stations which are not specifically provided for or are not readily assignable to other generation expense accounts.

See Appendix C for Final Cost Centers included in this activity.


2Workpaper - Southern California Edison / 2015 GRC - APPLICATION

FERC A cco u n t: 549 M iscellaneous O ther Power Generation Expenses


W itness : A nthony J. Kurpakus

DETERMINATION OF RECORDED/ADJUSTED

I Recorded Period$ (000)

2008 2009 2010 2011 2012

FERC Form 1 Recorded (Nominal $)Labor 576 863 920 936 886

Non-Labor 1,480 1,262 754 1,023 887

Other 0____________ 0_____________0____________ 0____________ 0

Total 2,056 2,125 1,674 1,959 1,773

Adjustments- (Nominal $) - see Appendix B for additional detailLabor 1,696 1,675 2,224 2,472 2,712

N on-Labor 1,797 964 1,258 1,067 1,361

O ther 0 0 0 0 0

Total 3,493 2,639 3,482 3,539 4,073

Recorded/Adjusted (Nominal $)Labor 2,272 2,538 3,144 3,408 3,598

N on-Labor 3,277 2,226 2,012 2,090 2,248

O ther 0 0 0 0 0

Total 5,549 4,764 5,156 5,498 5,846

Escalation:Labor 1.1414 1.1070 1.0701 1.0327 1.0000

N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

Other 10000 1.0000 1.0000 1.0000 1.0000

Recorded/Adjusted (Constant 2012$)

Labor 2.593 2,810 3,364 3,520 3,598

Non-Labor 3,566 2,407 2,141 2,143 2,248

Other 0 0 0 0 0Total 6,159 5,217 5,505 5,663 5,846

7.000

6.000

5.000

4.000

3.000

2.000

1,000

0

□ Labor (std escl) M Non-Labor (std escl) □ Other (not escl)

Recorded Adjusted 2008-2012 (2012$)

I2008 2009 2010 2011 2012






Fo reca s ting M ethods - S um m ary o f R esu lts o f a ll M e thods S tud ied - 2012$ (000)

2 R ecorded Years (2011 - 2012):Results o f Averaging (A2)

2013 2014 2015 sd** Chosen

Labor 3,559 3,559 3,559 39 no

Non-Labor 2,196 2,196 2,196 52 no

Other 0 0 0 0 noTotal 5,755 5,755 5,755 n/a n/a

3 R ecorded Years (2010 -2012):

Results o f Linear Trending (T3) Results o f Averaging (A3)

2013 | 2014 | 2015 | r2* | Chosen 2013 2014 2015 sd** Chosen

Labor 3,728 3,845 3,961 0.97 no 3,494 3,494 3,494 97 no

Non-Labor 2,284 2,338 2,391 0.76 no 2,177 2,177 2,177 50 noOther 0 0 0 0.00 no 0 0 0 0 no

Total 6,012 6,183 6,352 n/a n/a 5,671 5,671 5,671 n/a n/a

4 R ecorded Years (2009 - 2012):

Results o f Linear Trending (T4) Results o f Averaging (A4)

LaborNon-LaborOther

Total

2013 2014 2015 r2* Chosen 2013 2014 2015 sd** Chosen3,953 4,205 4,457 0.84 no

2,116 2,068 2,021 0.24 n0 0 0 0 0.00 no

3,323 3,323 3,323 308 no 2,235 2,235 2,235 109 no

0 0 0 0 no6,069 6,273 6,478 n/a n/a 5,558 5,558 5,558 n/a n/a

5 R ecorded Years (2008 - 2012):Results o f Linear Trending (T5) Results o f Averaging (A5)

2013 2014 2015 r2* Chosen 2013 2014 2015 sd** Chosen

Labor 3,993 4,265 4,537 0.92 no 3,177 3,177 3,177 401 no


Total 5,624 5,606 5,588 n/a n/a 5,678 5,678 5,678 n/a n/a

O th e r M ethods:

Last Recorded Year (LRY) Itemized Forecast (IF)

LaborNon-LaborOther

Total

2013 | 2014 | 2015 | | Chosen 2013 | 2014 | 2015 | | Chosen3,598 3,598 3,598 yes 0 0 0 no2,248 2,248 2,248 yes 0 0 0 no

0 0 0 no 0 0 0 no5,846 5,846 5,846 n/a 0 0 0 n/a

F o recast A d ju s tm e n ts :Base Forecast Method Adjustments*'

LaborNon-LaborOther

Total

Method 2013 2014 2015 2013 2014 2015LRY 3,598 3,598 3,598 LRY 2,248 2,248 2,248 N/A 0 0 0

91 91 91 453 453 453

0 0 05,846 5,846 5,846 544 544 544

r2 - R Squared (Based on recorded years data) sd = standard deviation (Based on recorded years data) See Appendix B For Additional Detail


*





R esu lts :

F o recas ting R esults

Method Selected 2013 | 2014 | 2015 | |Labor Last Recorded Year Adj. 3,689 3,689 3,689

Non-Labor Last Recorded Year Adj. 2,701 2,701 2,701

Other N/A 0 0 0

Total 6,390 6,390 6,390

A n a lys is o f F o recas ting M ethods

Analysis of Linear Trending Method:In D. 04-07-022 and D. 89-12-057, the CPUC stated that if costs have shown a trend in a certain direction overthree or more years, the last year recorded is an appropriate base estimate. The 2008-2012 years indicate an increasing trend for labor, and non-labor has been relatively stable for the 2010-2012 period, suggesting use of last year recorded. See analysis of last recorded year below.

Analysis of Averaging Method:In D. 04-07-022 and D. 89-12-057, the CPUC stated that forthose accounts which have significant fluctuations in recorded expenses from year to year, an average of recorded expenses is appropriate. Recorded labor and non-labor costs in this account have not fluctuated significantly from 2010-2012, so an average is not an appropriate base forecast.

Analysis of Last Recorded Year (2012):In D. 04-07-022 and D. 89-12-057, the CPUC stated that if recorded expenses in an account have been relatively stable or have shown a trend for three or more years, the last recorded year is an appropriate base estimate. Labor costs have shown an increasing trend in 2008-2012 and non-labor costs have been relatively stable from 2010-2012, providing the last recorded year as the appropriate base for estimating the Test Year 2015 forecast. To those bases we add adjustments for McGrath Peaker addition, discussed elsewhere in these workpapers and ourtestimony.

Analysis of Itemized Forecast Method:Not applicable.






Recorded 2008-2012 / Forecast 2013-2015 2012$ (000)

7,000

2,000

1,000

02008 2009 2010 2011 2012 2013 2014 2015

□ Labor (std escl) ■ Non-Labor (std escl) □ Other (not escl)

R ecorded P eriod$(000)

Forecast Expenses (constant 2012$) 2008 | 2009 | 2010 | 2011 | 2012 2013 | 2014 | 2015Labor (standard escalation) 2,593 2,810 3,364 3,520 3,598 3,689 3,689 3,689Non-Labor (standard escalation) 3,566 2,407 2,141 2,143 2,248 2,701 2,701 2,701Other (not escalatable) 0 0 0 0 0 0 0 0Total 6,159 5,217 5,505 5,663 5,846 6,390 6,390 6,390

Labor Prior year Total 3,598 3,689 3,689

Change 91 0 0

Total 3,598 3,689 3,689 3,689

Non-Labor Prior year Total 2,248 2,701 2,701

Change 453 0 0

Total 2,248 2,701 2,701 2,701

Other Prior year Total 0 0 0

Change 0 0 0

Total 0 0 0 0

Total ChangeLabor 91 0 0

Non-Labor 453 0 0

Other 0 0 0

Total N/A 544 0 0



FERC A c co u n t: 549 M iscellaneous O ther Power Generation Expenses



This page shows the changes in Labor, Non-Labor, and Other expenditures forecast during 2013 through 2015, including reasons for the addition of personnel (labor), increased office supplies required due to an increase in activity (non-labor).

2012 -2013

Labor: 91

Includes increased labor costs for the McGrath Peaker.

Non-Labor: 453


Other: 0

Not applicable.







2013 -2014

Labor: 0

Not applicable.

Non-Labor: 0

Not applicable.

Other: 0

Not applicable.







2 0 1 4 -2 0 1 5_______________

Labor: 0

Not applicable.

Non-Labor: 0

Not applicable.

Other: 0

Not applicable.



FERC A cco u n t:

A c tiv ity :

W itness:

549 M iscellaneous O ther Power Generation Expenses

549 - GAS TURBINE PEAKER

A nthony J. Kurpakus

APPENDIX A

Detail Description of Final Cost Centers Included in This Activity




Activity: 549 - GAS TURBINE PEAKER


Description of Final Cost Centers included in this activity:

* See Appendix C for Summary Final Cost Centers______________________________

•SUM M ARY G R APELAND 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f Gas Turbine Peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, tra ining and grounds m anagement.

•SUM M ARY MIRA LOM A 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f Gas Turbine Peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, tra ining and grounds m anagement.

•SUM M ARY MOUNTAINVIEW & PEAKER CORPORATE A D JUSTM ENT - 546, 548, 549, 550 AND 553OPERATIONS SUPPORT AND ENGINEERINGDirect entries for cost elem ent mapping made by Corporate Regulatory Accounting .

F201229 F INANC IAL SERVICES PEAKER 546 OPERATION SUPPORT & ENGINEERINGIncludes labor, material, contract, and other costs incurred in connection w ith operation, supervision, and adm inistration not specifica lly applicable to o ther operation function activities. Tasks include annual budget developm ent, budget m onitoring/contro l/forecasting, payroll and labor reporting, personnel/benefits adm inistration and staff adm inistra tive support services.

F201231 F INANC IAL SERVICES PEAKER 549 M ISCELLANEOUS GENERATION EXPENSEIncludes labor, material, contract, and other costs incurred in connection w ith adm inistra tion not specifica lly applicable to other operation function activities. Tasks include annual budget developm ent, budget m onitoring/control/forecasting, payroll and labor reporting, personnel/benefits adm inistra tion and sta ff adm inistrative support services.

F201242 OPERATIONS SUPPORT & PERFORMANCE IMPROVEMENT - PEAKER 546 OPERATIONSUPERVISION & ENGINEERINGIncludes labor, material, contract, and other costs incurred in connection w ith operation, supervision and engineering not specifica lly applicable to o ther operation function activities. O ther tasks include, annual budget developm ent, coordinate departm ent goal setting and perform ance tracking, prepare departm ent business plan and long-range m aintenance plan, coordinate departm ental workforce attrition planning, manage departm ent partic ipation in regulatory proceedings, coordinate departm ental regulatory and safety com pliance activities, evaluate im pacts o f potential changes to SCE fossil and hydro generating, m aintain departm ent policies, and coordinate departm ental participation in com pany - workers union activities (e.g., contract negotiations). This final cost cen ter is applicable to Steam, Hydroelectric, Coal and other power generation.

F201248 W ESTM INSTER 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f gas turb ine peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, tra ining and grounds m anagement. Expenses recorded under th is final cost center have been transferred to/from another activity.







* See Appendix C for Summary Final Cost Centers_____________________________

F201249 W ESTM INSTER 550 RENTSThis account includes all rents o f property o f o thers used, occupied, o r operated in connection w ith Gas Turbine power generation. Expenses recorded under th is final cost cen ter have been transferred to/from another activity.

F201252 W ESTM INSTER 546 OPERATION SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f gas turb ine peaker power generating stations. Th is includes operations supervision and engineering not specifica lly charged to other accounts. This includes business planning, perform ance tracking and engineering activities such as analysis o f equipm ent problems.

F201253 W ESTM INSTER 548 GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in operating prime movers, generators and electric equipm ent in gas turb ine peaker power generating stations to the point where e lectricity leaves for conversion fo r transm ission or distribution. Th is includes w ater chem istry m anagem ent, environm ental a ir com pliance, equipm ent monitoring and developing operating procedures in relation to the prime movers, genera tor and auxiliary electrical systems.

F201257 BARRE 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f gas turb ine peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to other generation expense accounts. This includes general m anagem ent and adm inistration, safety, noise and w ate r compliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, tra ining and grounds management.

F201262 CENTER M AINTENANCE 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f gas turb ine peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to other generation expense accounts. This includes general m anagem ent and adm inistration, safety, noise and w ate r compliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, tra ining and grounds management.

F201287 BARRE 546 OPERATION SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f G as Turbine Peaker power generating stations. Th is includes operations supervision and engineering not specifica lly charged to other accounts. This includes business planning, perform ance tracking and engineering activities such as analysis o f equipm ent problems. Expenses recorded under th is final cost center have been transferred to/from another activity.

F201288 BARRE 548 GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in operating prime movers, generators and e lectric equipm ent in Gas Turbine Peaker power generating stations to the point where e lectricity leaves for conversion fo r transm ission or distribution. Th is includes w ate r chem istry m anagem ent, environm ental a ir com pliance, equipm ent m onitoring and developing operating procedures in relation to the prime movers, generator and auxilia ry electrical systems.

F201289 BARRE 550 RENTSThis account includes all rents o f property o f o thers used, occupied, o r operated in connection w ith Gas Turbine power generation.








F201290 CENTER 546 OPERATION SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f G as Turbine Peaker power generating stations. Th is includes operations supervision and engineering not specifica lly charged to o ther accounts. Th is includes business planning, perform ance tracking and engineering activities such as analysis o f equipm ent problems.

F201291 CENTER 548 GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in operating prime movers, generators and electric equipm ent in Gas Turbine Peaker power generating stations to the point where e lectricity leaves for conversion fo r transm ission or distribution. Th is includes w ate r chem istry m anagem ent, environm ental a ir com pliance, equipm ent m onitoring and developing operating procedures in relation to the prime movers, generator and auxilia ry electrical systems.

F201292 CENTER 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f Gas Turbine Peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, training and grounds management. Expenses recorded under th is final cost center have been transferred to/from another activity.

F201293 G R APELAND 546 OPERATION SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f G as Turbine Peaker power generating stations. Th is includes operations supervision and engineering not specifica lly charged to o ther accounts. Th is includes business planning, perform ance tracking and engineering activities such as analysis o f equipm ent problems. Expenses recorded under th is final cost center have been transferred to/from another activity.

F201294 G R APELAND 548 GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in operating prime movers, generators and electric equipm ent in Gas Turbine Peaker power generating stations to the point where e lectricity leaves for conversion fo r transm ission or distribution. Th is includes w ate r chem istry m anagem ent, environm ental a ir com pliance, equipm ent m onitoring and developing operating procedures in relation to the prime movers, generator and auxilia ry electrical systems.

F201297 MCGRATH 548 GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in operating prime movers, generators and electric equipm ent in Gas Turbine Peaker power generating stations to the point where e lectricity leaves for conversion fo r transm ission or distribution. Th is includes w ate r chem istry m anagem ent, environm ental a ir com pliance, equipm ent m onitoring and developing operating procedures in relation to the prime movers, generator and auxilia ry electrical systems.

F201298 MCGRATH OPERATIONS 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f gas turbine peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, training and grounds management.







* See Appendix C for Summary Final Cost Centers____________________

F201299

F201300

F201302

F201353

F513245

F513246

F516580

F525046

F525452

MIRA LOM A 546 OPERATION SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f G as Turbine Peaker power generating s ta tio n s . Th is includes operations supervision and engineering not specifica lly charged to o ther accounts. Th is includes business planning, perform ance tracking and engineering activities such as analysis o f equipm ent problems. Expenses recorded under th is final cost center have been transferred to/from another activity.

MIRA LOM A 548 GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in operating prime movers, generators and e lectric equipm ent in Gas Turbine Peaker power generating stations to the point where e lectric ity leaves for conversion fo r transm ission or distribution. This includes w ate r chem istry m anagem ent, environm ental a ir com pliance, equipm ent monitoring and developing operating procedures in relation to the prime movers, generator and auxilia ry electrical systems.

GOLETA 546 OPERATION SUPERVISION 8. ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f G as Turbine Peaker power generating s ta tio n s . Th is includes operations supervision and engineering not specifica lly charged to o ther accounts. Th is includes business planning, perform ance tracking and engineering activities such as analysis o f equipm ent problems.

MIRA LOM A 550 RENTSThis final cost cen ter includes all rents o f property o f others used, occupied, o r operated in connection w ith Gas Turbine power generation.

CENTER 550 RENTSThis account includes all rents o f property o f others used, occupied, o r operated in connection w ith Gas Turbine power generation.

G R APELAN D 550 RENTSThis account includes all rents o f property o f others used, occupied, o r operated in connection w ith Gas Turbine power generation.

MISCELLANEOUS OTHER POW ER GENERATION EXPENSE - OPERATIONSThis account includes the cost o f labor, materials used and expenses incurred in the operation o f Gas Turbine Peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, training and grounds management.

MCGRATH OPERATIONS 550 RENTSThis account includes all rents o f property o f others used, occupied, o r operated in connection w ith Gas Turbine power generation. Expenses recorded under th is final cost cen ter have been transferred to/from another activity.

W ESTM INSTER OPERATIONS 549 M ISCELLANEOUS GENERATION EXPENSEThis account includes the cost o f labor, materials used and expenses incurred in the operation o f Gas Turbine Peaker power generating stations which are not specifica lly provided fo r o r are not readily assignable to o ther generation expense accounts. Th is includes general m anagem ent and adm inistration, safety, noise and w ate r com pliance, labor re lations costs, com m unity information technology costs, re liability and effic iency expenses, training and grounds management.







* See Appendix C for Summary Final Cost Centers______________________________

F525453 W ESTMINSTER OPERATIONS 550 RENTSThis account includes all rents o f property o f others used, occupied, o r operated in connection w ith Gas Turbine power generation.

F526238 BUSINESS PLANNING & DEVELOPMENT - PEAKER 546 OPERATION SUPERVISION &ENGINEERINGIncludes labor, material, contract, and other costs incurred in connection w ith operation, supervision and engineering not specifica lly applicable to o ther operation function activities. O ther tasks include, annual budget developm ent, coordinate departm ent goal setting and perform ance tracking, prepare departm ent business plan and long-range m aintenance plan, coordinate departm ental w orkforce attrition planning, manage departm ent participation in regulatory proceedings, coordinate departm ental regulatory and safety com pliance activities, evaluate im pacts o f potential changes to Southern California Edison (SCE) power generating, maintain departm ent policies, and coordinate departmental participation in com pany - workers union activ ities (e.g., contract negotiations).

F528535 548 A IR Q UALITY/EM ISSIONS COMPLIANCEIncludes labor, materials used and expenses incurred in operating rooftop so lar photovoltaic system s at SPVP S ites 2, 3, 5, 6, 7, 8, 9, 11, 12, 13, 16, 22 and 26. Activ ities include: operations craft labor and expenses, environm ental com pliance costs, perm its and fees, and o ther expenses related to generation.

F528547 548 SUPPORTIncludes labor, materials used and expenses incurred in operating rooftop so lar photovoltaic system s at SPVP S ites 2, 3, 5, 6, 7, 8, 9, 11, 12, 13, 16, 22 and 26. Activ ities include: operations craft labor and expenses, environm ental com pliance costs, perm its and fees, and o ther expenses related to generation.






Recorded/Adjusted (Constant 2012$ By Final Cost Center

$ (000)* See Appendix C for Summary Final Cost Centers 2008 2009 2010 2011 2012

•SUMMARY GRAPELAND 549 MISCELLANEOUS GENERATION EXPENSE

4 203 63 138 120

•SUMMARY MIRA LOMA 549 MISCELLANEOUS GENERATION EXPENSE

33 141 52 113 98

•SUMMARY MOUNTAINVIEW& PEAKER CORPORATE ADJUSTMENT - 546, 548, 549, 550 AND 553 OPERATIONS SUPPORT AND ENGINEERING

23 (1) 0 0 0

F201229 FINANCIAL SERVICES PEAKER 546 OPERATION SUPPORT & ENGINEERING

460 378 396 385 437

F201231 FINANCIAL SERVICES PEAKER 549 MISCELLANEOUS GENERATION EXPENSE

7 7 0 0 0

F201242 OPERATIONS SUPPORT & PERFORMANCE IMPROVEMENT - PEAKER 546 OPERATION SUPERVISION & ENGINEERING

228 175 9 0 0

F201248 WESTMINSTER 549 MISCELLANEOUS GENERATION EXPENSE

187 1,601 1,500 1,483 1,291

F201249 WESTMINSTER 550 RENTS (5) 0 1 (1) 0

F201252 WESTMINSTER 546 OPERATION SUPERVISION & ENGINEERING

307 428 354 297 297

F201253 WESTMINSTER 548 GENERATION EXPENSE 1,334 15 17 99 113

F201257 BARRE 549 MISCELLANEOUS GENERATION EXPENSE

157 178 74 119 98

F201262 CENTER MAINTENANCE 549 MISCELLANEOUS GENERATION EXPENSE

0 0 0 0 0

F201287 BARRE 546 OPERATION SUPERVISION & ENGINEERING

(2) 49 86 42 2

F201288 BARRE 548 GENERATION EXPENSE 345 348 359 368 459

F201289 BARRE 550 RENTS 12 63 31 47 10

F201290 CENTER 546 OPERATION SUPERVISION & ENGINEERING

71 34 99 24 (8)

F201291 CENTER 548 GENERATION EXPENSE 221 322 354 381 502

F201292 CENTER 549 MISCELLANEOUS GENERATION EXPENSE

7 108 89 141 112

F201293 GRAPELAND 546 OPERATION SUPERVISION & ENGINEERING

(2) 111 76 36 2

F201294 GRAPELAND 548 GENERATION EXPENSE 179 285 309 382 481






Recorded/Adjusted (Constant 2012$) By Final Cost Center


F201297 MCGRATH 548 GENERATION EXPENSE 0 0 0 1 143

F201298 MCGRATH OPERATIONS 549 MISCELLANEOUS GENERATION EXPENSE

0 0 0 19 30

F201299 MIRA LOMA 546 OPERATION SUPERVISION & ENGINEERING

(2) 47 74 42 2

F201300 MIRA LOMA 548 GENERATION EXPENSE 178 254 479 341 392

F201302 GOLETA 546 OPERATION SUPERVISION & ENGINEERING

17 0 0 0 0

F201353 MIRA LOMA 550 RENTS 54 16 43 55 1

F513245 CENTER 550 RENTS 91 54 23 70 14

F513246 GRAPELAND 550 RENTS 60 38 62 24 3

F516580 MISCELLANEOUS OTHER POWER GENERATION EXPENSE - OPERATIONS

1,251 45 0 0 0

F525046 MCGRATH OPERATIONS 550 RENTS 0 0 0 0 8

F525452 WESTMINSTER OPERATIONS 549 MISCELLANEOUS GENERATION EXPENSE

863 37 8 1 24

F525453 WESTMINSTER OPERATIONS 550 RENTS 75 1 0 0 0

F526238 BUSINESS PLANNING & DEVELOPMENT- PEAKER 546 OPERATION SUPERVISION & ENGINEERING

0 279 947 1,054 1,213

F528535 548 AIR QUALITY/EMISSIONS COMPLIANCE 0 0 0 0 1

F528547 548 SUPPORT 0 0 0 0 1

Total 6,153 5,216 5,505 5,661 5,846

** Due to rounding, totals may not tie to other workpaper pages.



FERC A cco u n t:

A c tiv ity :

W itness:

549 M iscellaneous O ther Power Generation Expenses



APPENDIX B

Detail of Total Company Adjustments to Recorded






D eta il o f Total C om pany A d ju s tm e n ts to R ecorded E xpenses

|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor 1,696 1,675 2,224 2,472 2,712 91 91 91

Non-Labor 1,797 964 1,258 1,067 1,361 453 453 453

Other 0 0 0 0 0 0 0 0

Total 3,493 2,639 3,482 3,539 4,073 544 544 544

O rganizational Unit A d justm ent 1

Th is ad justm ent transfers costs from FERC 546, 548, and 550 to FERC 549.

Labor 1,570 1,674 2,224 2,472 N on-Labor 1,797 964 1,258 1,067 O ther 0 0 0 0

G BU -CPT-O U-PEAKER ROLL UP TO 549

2,712 0 0 0 1,361 0 0 0

0 0 0 0

Total 3,367 2,638 3,482 3,539 4,073 0 0 0

O rganizational Unit A d justm ent 2 GBU -C PT-O U-FYA PEAKER MCGRATH ADJ

Th is future yea r adjustm ent adds costs fo r the McGrath Peaker in 2013-2015.

Labor 0 0 0 0 0 91 91 91

N on-Labor 0 0 0 0 0 453 453 453

O ther 0 0 0 0 0 0 0 0

Total 0 0 0 0 0 544 544 544

O rganizational Unit A d justm ent 3 G BU -C PT-O U-PEAKER MAPPING A DJUSTM ENT

This ad justm ent corrects an error for costs from FERC 550 to Peaker operations FERC 546, 549, and 553.

Labor 85 0 0 0 0 0 0 0

N on-Labor 0 0 0 0 0 0 0 0

O ther 0 0 0 0 0 0 0 0

Total 85 0 0 0 0 0 0 0

O rganizational Unit A d justm ent 4 G BU-C PT-O U-PEAKER LABOR A DJUSTM ENT

Labor w as incorrectly recorded in activity FERC 550 - Peakers that should have recorded to FERC 549 - Peakers. Thisad justm ent corrects the error.

Labor 41 1 0 0 0 0 0 0

N on-Labor 0 0 0 0 0 0 0 0

O ther 0 0 0 0 0 0 0 0

Total 41 1 0 0 0 0 0 0



FERC A cco u n t:

A c tiv ity :

W itness :

549 M iscellaneous O ther Power G eneration Expenses



APPENDIX C

Final Cost Centers Included in This Activity






Final Cost Centers included in this activity:

‘ Summary Final Cost Centers:

G R APELAN D 549 M ISCELLANEOUS GENERATION EXPENSE

F201267 F201295

MIRA LOM A 549 M ISCELLANEOUS GENERATION EXPENSE

F201277 F201301

MOUNTAINVIEW & PEAKER CORPORATE AD JUSTM ENT - 546, 548, 549, 550 A N D 553 OPERATIONS SUPPORT A N D ENGINEERINGF900546 F900548 F900549 F900550






Individual Final Cost Centers:

F201229 F201231 F201242 F201248 F201249 F201252 F201253 F201257 F201262 F201287

F201288 F201289 F201290 F201291 F201292 F201293 F201294 F201297 F201298 F201299

F201300 F201302 F201353 F513245 F513246 F516580 F525046 F525452 F525453 F526238

F528535 F528547



End of Workpapers for:

FERC A c co u n t: 549 M iscellaneous O ther Power G eneration Expenses






FERC A cco u n t: 554 Maintenance o f M iscellaneous O ther Power G eneration Plant




2012$ (000)

Recorded2012

Forecast2015

Labor Fou r Year Average Adj. 1,267 1,644Non-Labor Last Recorded Year Adj. 1,961 2,416Other N/A 0 0Total 3,228 4,060


This activity shall include the cost of labor, materials, used and expenses incurred in maintenance of Gas Turbine Peaker plant and the book cost of which is includible in Miscellaneous Power Plant Equipment.








i Recorded Period$ (000)

2008 200 9 2010 2011 2012


Non-Labor 845 383 246 478 489

Other 0_____________0____________ 0____________ 0____________ 0

Total 956 489 405 767 707

Adjustments- (Nominal $) - see Appendix B fo r additional detailLabor 1,111 1,217 1,194 1,228 1,049

N on-Labor 701 2,360 1,600 1,358 1,472

O ther 0 0 0 0 0

Total 1,812 3,577 2,794 2,586 2,521

Recorded/Adjusted (Nominal $)Labor 1,222 1,323 1,353 1,517 1,267

N on-Labor 1,546 2,743 1,846 1,836 1,961

O ther 0 0 0 0 0

Total 2,768 4,066 3,199 3,353 3,228


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

Other 1 0000 1.0000 1.0000 1.0000 1.0000


Labor

N on-Labor

O ther

Total

1,395 1,465 1,448 1,567 1,267

1,682 2,966 1,964 1,883 1,961

o o o o o

3,077 4,431 3,412 3 ,450 3,228

4.500

4.000

3.500

3.000

2.500

2.000

1.500

1,000

500

0


1 1 11 I2008 2009 2010 2011 2012

□ Labor (std escl) ■ Non-Labor (std escl) □ Cither (not escl)



FE R C A ccou nt: 5 5 4 M aintenance of M iscellaneous O ther Pow er G eneration Plant

A ctiv ity : 554 - G A S TU R B IN E P E A K E R

W itn ess : Anthony J. Kurpakus

Fo recastin g M ethod s - S u m m ary o f R esu lts o f all M e thod s S tu d ied - 2012$ (000)

2 R eco rd ed Y ears (2011 - 2012):

Results of Averaging (A2)

2013 2014 2015 sd** Chosen

_abor 1,417 1,417 1,417 150 no

''Jon-Labor 1,922 1,922 1,922 39 no

Other 0 0 0 0 noTotal 3,339 3,339 3,339 n/a n/a

3 R ecorded Y ears (2010 - 2012):

Results of Linear Trending (T3) Results of Averaging (A3)

2013 | 2014 | 2015 | r2* | Chosen 2013 2014 2015 sd** Chosen

_abor 1,246 1,156 1,066 0.36 no 1,427 1,427 1,427 123 no

'Jon-Labor 1,933 1,931 1,929 0.00 no 1,936 1,936 1,936 38 noOther 0 0 0 0.00 no 0 0 0 0 no

Total 3,179 3,087 2,995 n/a n/a 3,363 3,363 3,363 n/a n/a

4 R eco rd ed Y ears (2009 - 2012):



Labor 1,318 1,271 1,223 0.24 no 1,437 1,437 1,437 108 yes

Non-Labor 1,419 1,109 800 0.60 no 2,194 2,194 2,194 447 noOther 0 0 0 0.00 no 0 0 0 0 no

Total 2,737 2,380 2,023 n/a n/a 3,631 3,631 3,631 n/a n/a

5 R eco rd ed Y ears (2008 - 2012):



Labor 1,382 1,367 1,351 0.05 no 1,428 1,428 1,428 98 no


Total 3,315 3,248 3,179 n/a n/a 3,519 3,519 3,519 n/a n/a

O th e r M ethods:

Last Recorded Year (LRY) Itemized Forecast (IF)

LaborNon-LaborOther

Total

2013 | 2014 | 2015 | | Chosen 2013 | 2014 | 2015 | | Chosen1,267 1,267 1,267 no 0 0 0 no1,961 1,961 1,961 yes 0 0 0 no

0 0 0 no 0 0 0 no3,228 3,228 3,228 n/a 0 0 0 n/a

F o re c a st A d ju stm en ts :

Base Forecast Method Adjustments*'

LaborNon-LaborOther

Total

Method 2013 2014 2015 2013 2014 2015A4 1,437 1,437 1,437

LRY 1,961 1,961 1,961 N/A 0 0 0

207 207 207 455 455 455

0 0 03,398 3,398 3,398 662 662 662

* r2 = R Squared (Based on recorded years data)** sd = standard deviation (Based on recorded years data)*** See Appendix B For Additional Detail



FERC A cco u n t: 554 M aintenance o f M iscellaneous O ther Power G eneration Plant



R esu lts :

Fo reca s ting R esu lts

Method Selected 2013 | 2014 | 2015 | |Labor Four Year Average Adj. 1,644 1,644 1,644

Non-Labor Last Recorded Year Adj. 2,416 2,416 2,416

Other N/A 0 0 0

Total 4,060 4,060 4,060

A n a lys is o f F o recas ting M ethods

Analysis of Linear Trending Method:In D. 04-07-022 and D. 89-12-057, the CPUC stated that if costs have shown a trend in a certain direction over three or more years, the last year recorded is an appropriate base estimate. The 2010-2012 years do not show a trend for labor or non-labor. See analysis of averaging for labor and analysis of last recorded year for non-labor below.

Analysis of Averaging Method:In D. 04-07-022 and D. 89-12-057, the CPUC stated that for those accounts which have significant fluctuations in recorded expenses from year to year, an average of recorded expenses is appropriate. Recorded labor costs in this account have fluctuated year to year from 2008-2012, so an average is an appropriate base forecast. We exclude 2008 from our averaging analysis and use a four year average (2009-2012) because that year did not employ the number of personnel required for maintenance. To that base we add the adjustment for McGrath Peaker addition, discussed elsewhere in these workpapers and our testimony.

Analysis of Last Recorded Year (2012):In D. 04-07-022 and D. 89-12-057, the CPUC stated that if recorded expenses in an account have been relatively stable for three or more years, the last recorded year is an appropriate base estimate. Non-labor costs have been stable from 2010-2012, providing an appropriate base forecast for non-labor. To that base we add adjustments for McGrath Peaker addition, discussed elsewhere in these workpapers and our testimony.

Analysis of Itemized Forecast Method:Not applicable.



FERC A cco u n t: 554 Maintenance o f M iscellaneous O ther Power Generation Plant



4,500

4 000

Recorded 2008-2012 / Forecast 2013-2015 2012 $ (000)

3.500

3.000 -

2.500 -

2.000 -

1.500

1,000

500Q

■ I I I ! I I F2008 2009 2010 2 0 i1 2 0 i 2 2 0 i3 20


14 2015

R ecorded P eriod

$(000)Forecast Expenses (constant 2012$) 2008 | 2009 | 2010 | 2011 | 2012 2013 | 2014 | 2015Labor (standard escalation) 1,395 1,465 1,448 1,567 1,267 1,644 1,644 1,644

Non-Labor (standard escalation) 1,682 2,966 1,964 1,883 1,961 2,416 2,416 2,416Other (not escalatable) 0 0 0 0 0 0 0 0Total 3,077 4,431 3,412 3,450 3,228 4,060 4,060 4,060

Labor Prior year Total 1,267 1,644 1,644

Change 377 0 0

Total 1,267 1,644 1,644 1,644

Non-Labor Prior year Total 1,961 2,416 2,416

Change 455 0 0

Total 1,961 2,416 2,416 2,416

Other Prior year Total 0 0 0

Change 0 0 0

Total 0 0 0 0

Total ChangeLabor 377 0 0

Non-Labor 455 0 0

Other 0 0 0

Total N/A 832 0 0



FERC A cco u n t: 554 Maintenance o f M iscellaneous O ther Power Generation Plant




2012 -2013

Labor: 377

Includes increased labor costs for the McGrath Peaker and increased labor from a 4-year average forecast.

Non-Labor: 455


Other: 0

Not applicable.



FERC A c co u n t: 554 Maintenance o f M iscellaneous O ther Power G eneration Plant




2013 -2014

Labor: 0

Not applicable.

Non-Labor: 0

Not applicable.

Other: 0

Not applicable.



FERC A c co u n t: 554 M aintenance o f M iscellaneous O ther Power G eneration Plant




2014 -2015______________

Labor: 0

Not applicable.

Non-Labor: 0

Not applicable.

Other: 0

Not applicable.



FERC A cco u n t:

A c tiv ity :

W itness :

554 Maintenance o f M iscellaneous O ther Power Generation Plant



APPENDIX A









•SUM M ARY MOUNTAINVIEW & PEAKER CORPORATE ADJUSTM ENT - 546, 548, 549, AND 550OPERATIONS SUPPORT A N D ENGINEERINGEntries for cost elem ent mapping made by Corporate Regulatory A ccoun ting .

•SUM M ARY PEAKERS STATION EXPENSESIncludes payroll, autom otive, and other expenses incurred in perform ing routine operation and m aintenance on peaker generating units.

•SUM M ARY W ESTM INSTER 551 M AINTENANCE SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f the m aintenance o f gas turb ine power generating stations. Includes other costs such as hazardous-m ateria ls control and disposal. Expenses recorded under th is final cost center have been transferred to/from another activity.

F201251 W ESTM INSTER M ANAGEM ENT 554 MAINTENANCE OF M ISCELLANEOUS PLAN TIncludes labor, material, contract, and o ther costs o f sh ift supervisors and operating foreman incurred in connection w ith supervision o f station operation not specifica lly applicable to other operation function activities. Expenses recorded under th is final cost cen ter have been transferred to/from another activity.

F201256 W ESTM INSTER 553 M AINTENANCE GENERATION & ELECTRICALTh is account includes the cost o f labor, materials used and expenses incurred in maintenance of gas turb ine peaker plant and the book cost o f which is includible in Prime Movers, Generators, and A ccessory Electric Equipm ent. This includes costs such as corrective m aintenance on auxiliary electrical system s, fue l-conveying/processing system s, C ontinuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance.

F201258 BARRE 551 M AINTENANCE SUPERVISION 8. ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f the m aintenance o f gas turb ine power generating stations. Includes other costs such as hazardous-m ateria ls control and disposal.

F201259 BARRE 553 M AINTENANCE GENERATION & ELECTRICALTh is account includes the cost o f labor, materials used and expenses incurred in maintenance of gas turb ine peaker plant and the book cost o f which is includible in Prime Movers, Generators, and A ccessory Electric Equipm ent. This includes costs such as corrective m aintenance on auxiliary electrical system s, fue l-conveying/processing system s, C ontinuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance. Expenses recorded under th is final cost center have been transferred to/from another activity.

F201263 CENTER 551 MAINTENANCE SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f the m aintenance o f Gas Turbine power generating sta tions. Includes other costs such as hazardous-m ateria ls control and disposal. Expenses recorded under th is final cost center have been transferred to/from another activity.

F201264 CENTER 553 MAINTENANCE GENERATION & ELECTRICALTh is account includes the cost o f labor, materials used and expenses incurred in maintenance of Gas Turbine Peaker plant and the book cost o f w hich is includible in Prime M o ve rs , Generators, and A ccessory Electric Equipm ent. This includes costs such as corrective m aintenance on auxiliary electrical system s, fue l-conveying/processing system s, C ontinuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance.








F201265

F201268

F201269

F201273

F201274

F201275

F201278

CENTER 554 M AINTENANCE M ISCELLANEOUS GENERATION PLANTThis account includes the cost o f labor, materials used and expenses incurred in maintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipment. Includes other costs such as maintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, maintenance tra ining expenses, and vehicle management.

G R APELAN D 551 M AINTENANCE SUPERVISION 8. ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f the m aintenance o f Gas Turbine power generating s ta tio n s . Includes other costs such as hazardous-m ateria ls control and disposal. Expenses recorded under th is final cost center have been transferred to/from another activity.

G R APELAN D 553 M AINTENANCE GENERATION & ELECTRICALTh is account includes the cost o f labor, materials used and expenses incurred in maintenance of Gas Turbine Peaker plant and the book cost o f w hich is includible in Prime M o ve rs , Generators, and A ccessory E lectric Equipm ent. This includes costs such as corrective maintenance on auxiliary electrical system s, fuel-conveying/processing system s, Continuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality maintenance. Expenses recorded under th is final cost center have been transferred to/from another activity.

MCGRATH M AINTENANCE 551 MAINTENANCE SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f the m aintenance o f Gas Turbine power generating s ta tio n s . Includes other costs such as hazardous-m ateria ls control and disposal. Expenses recorded under th is final cost center have been transferred to/from another activity.

MCGRATH 553 M AINTENANCE GENERATION & ELECTRICALTh is account includes the cost o f labor, materials used and expenses incurred in maintenance of Gas Turbine Peaker plant and the book cost o f w hich is includible in Prime M o ve rs , Generators, and A ccessory E lectric Equipm ent. This includes costs such as corrective maintenance on auxiliary electrical system s, fuel-conveying/processing system s, Continuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality maintenance. Expenses recorded under th is final cost center have been transferred to/from another activity.

MCGRATH M AINTENANCE 554 MAINTENANCE MISCELLANEOUS GENERATION PLANTThis account includes the cost o f labor, materials used and expenses incurred in maintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipment. Includes other costs such as maintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, maintenance tra ining expenses, and vehicle management.

M IRA LOM A 551 MAINTENANCE SUPERVISION & ENGINEERINGThis account includes the cost o f labor and expenses incurred in the general supervision and direction o f the m aintenance o f Gas Turbine power generating s ta tio n s . Includes other costs such as hazardous-m ateria ls control and disposal. Expenses recorded under th is final cost center have been transferred to/from another activity.








F201279

F516582

F516584

F525051

F525455

F525457

F525458

MIRA LOM A 553 M AINTENANCE GENERATION 8. ELEC TRIC ALThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory E lectric Equipm ent. Th is includes costs such as corrective maintenance on auxiliary electrical system s, fuel-conveying/processing system s, Continuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality maintenance. Expenses recorded under th is final cost center have been transferred to/from another activity.

W ESTM INSTER - 553 MAINTENANCE OF GENERAL AND ELECTRONIC EQUIPMENTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory E lectric Equipm ent. Th is includes costs such as corrective maintenance on auxiliary electrical system s, fuel-conveying/processing system s, Continuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality maintenance.

W ESTM INSTER - 554 MAINTENANCE OF M ISCELLANEOUS POW ER GENERATION PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipm ent. Includes other costs such as m aintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, maintenance tra ining expenses, and vehicle management.

W ESTM INSTER 553 MAINTENANCE GENERATION & ELECTRIC PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory E lectric Equipm ent. Th is includes costs such as corrective maintenance on auxiliary electrical system s, fuel-conveying/processing system s, Continuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality maintenance.

W ESTM INSTER 554 MAINTENANCE M ISCELLANEOUS GENERATION PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipm ent. Includes other costs such as m aintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, maintenance tra ining expenses, and vehicle m anagem ent. Expenses recorded under th is final cost center have been transferred to/from another activity.

BARRE 553 M AINTENANCE GENERATION AND ELECTRIC PLAN TThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory E lectric Equipm ent. Th is includes costs such as corrective maintenance on auxiliary electrical system s, fuel-conveying/processing system s, Continuous Em issions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality maintenance.

BARRE 554 M AINTENANCE M ISCELLANEOUS GENERATION PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipm ent. Includes other costs such as m aintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, maintenance tra ining expenses, and vehicle m anagem ent. Expenses recorded under th is final cost center have been transferred to/from another activity.



FERC A c co u n t: 554 Maintenance o f M iscellaneous O ther Power G eneration Plant

A c t iv i t y : 554 - GAS TURBINE PEAKER




F525460

F525462

F525463

F525465

F525467

F525468

F525514

CENTER 553 MAINTENANCE GENERATION AND ELECTRIC PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory Electric Equipm ent. Th is includes costs such as corrective maintenance on auxilia ry electrical system s, fuel-conveying/processing system s, Continuous Emissions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance.

GR APELAND 553 MAINTENANCE GENERATION AND ELECTRIC PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory Electric Equipm ent. Th is includes costs such as corrective maintenance on auxilia ry electrical system s, fuel-conveying/processing system s, Continuous Emissions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance.

GR APELAND 554 MAINTENANCE M ISCELLANEOUS GENERATION PLAN TThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipm ent. Includes other costs such as m aintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, m aintenance training expenses, and vehicle m anagem ent. Expenses recorded under th is final cost cen ter have been transferred to/from another activity.

MCGRATH 553 MAINTENANCE GENERATION & ELEC TRIC AL PLAN TThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory Electric Equipm ent. Th is includes costs such as corrective maintenance on auxilia ry electrical system s, fuel-conveying/processing system s, Continuous Emissions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance.

MIRA LOM A 553 M AINTENANCE GENERATION AND ELECTRIC PLAN TThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker plant and the book cost o f which is includible in Prime M o ve rs , Generators, and A ccessory Electric Equipm ent. Th is includes costs such as corrective maintenance on auxilia ry electrical system s, fuel-conveying/processing system s, Continuous Emissions Monitoring System s (CEMS) calibration, w ater treatm ent system s and a ir quality m aintenance.

MIRA LOM A 554 M AINTENANCE M ISCELLANEOUS GENERATION PLANTThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipm ent. Includes other costs such as m aintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, m aintenance training expenses, and vehicle m anagem ent. Expenses recorded under th is final cost cen ter have been transferred to/from another activity.

MCGRATH 554 MAINTENANCE M ISCELLANEOUS GENERATION PLAN TThis account includes the cost o f labor, materials used and expenses incurred in m aintenance of Gas Turbine Peaker power generation plant, the book cost o f which is includible M iscellaneous Power Plant Equipm ent. Includes other costs such as m aintenance associated w ith the balance o f plant system s, m iscellaneous consum able materials, a ir com pressors and fire systems, m aintenance training expenses, and vehicle m anagem ent. Expenses recorded under th is final cost cen ter have been transferred to/from another activity.








F526506 CENTER M AINTENANCE 552 MAINTENANCE OF STRUCTURESIncludes labor, material, contract and other expenses used and incurred in the maintenance of facilities used in O ther Power G eneration Assets. Includes field O&M facility maintenance, landscaping and graffiti removal at Peaker sites.

F526507 MIRA LOM A MAINTENANCE 552 MAINTENANCE OF STRUCTURESIncludes labor, material, contract and other expenses used and incurred in the maintenance of facilities used in O ther Power G eneration Assets. Includes field O&M facility maintenance, landscaping and graffiti removal at Peaker sites.

F526508 G R APELAND M AINTENANCE 552 MAINTENANCE OF STRUCTURESIncludes labor, material, contract and other expenses used and incurred in the maintenance of facilities used in O ther Power G eneration Assets. Includes field O&M facility maintenance, landscaping and graffiti removal at Peaker sites.

F526509 W ESTM INSTER MAINTENANCE 552 MAINTENANCE OF STRUCTURESIncludes labor, material, contract and other expenses used and incurred in the maintenance of facilities used in O ther Power G eneration Assets. Includes field O&M facility maintenance, landscaping and graffiti removal at Peaker sites.

F526702 MCGRATH MAINTENANCE 552 MAINTENANCE OF STRUCTURESIncludes labor, material, contract and other expenses used and incurred in the maintenance of facilities used in O ther Power G eneration Assets. Includes field O&M facility maintenance, landscaping and graffiti removal at Peaker sites.

F528527 551 PEAKER TEC HN IC AL SUPPORTIncludes labor, material, contract and other costs related to environm ental com pliance related for hazardous materials. Includes hazardous m aterials perm its/fees, storage and removal o f hazardous wastes, etc.

F900553 MOUNTAINVIEW & PEAKER CORPORATE ADJUSTM ENT - 546, 548, 549, 550 AND 553OPERATIONS SUPPORT AND ENGINEERINGEntries fo r cost elem ent mapping made by Corporate Regulatory A ccoun ting .



FERC A c co u n t: 554 M aintenance o f M iscellaneous O ther Power Generation Plant





•SUMMARY MOUNTAINVIEW& PEAKER CORPORATE ADJUSTMENT - 546, 548, 549, AND 550 OPERATIONS SUPPORT AND ENGINEERING

(23) 0 0 0 0

•SUMMARY PEAKERS STATION EXPENSES 0 128 38 208 328

•SUMMARY WESTMINSTER 551 MAINTENANCE SUPERVISION & ENGINEERING

267 1,106 747 748 644

F201251 WESTMINSTER MANAGEMENT 554 MAINTENANCE OF MISCELLANEOUS PLANT

67 304 396 536 305

F201256 WESTMINSTER 553 MAINTENANCE GENERATION & ELECTRICAL

704 1 0 0 0

F201258 BARRE 551 MAINTENANCE SUPERVISION & ENGINEERING

(2) 90 2 71 0

F201259 BARRE 553 MAINTENANCE GENERATION & ELECTRICAL

4 605 436 381 380

F201263 CENTER 551 MAINTENANCE SUPERVISION & ENGINEERING

(5) 40 0 72 0

F201264 CENTER 553 MAINTENANCE GENERATION & ELECTRICAL

229 673 522 298 291

F201265 CENTER 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

228 61 12 44 62

F201268 GRAPELAND 551 MAINTENANCE SUPERVISION & ENGINEERING

(5) 36 0 96 0

F201269 GRAPELAND 553 MAINTENANCE GENERATION & ELECTRICAL

3 443 533 428 372

F201273 MCGRATH MAINTENANCE 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 3 2

F201274 MCGRATH 553 MAINTENANCE GENERATION & ELECTRICAL

6 1 0 12 195

F201275 MCGRATH MAINTENANCE 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

0 0 0 1 12

F201278 MIRA LOMA 551 MAINTENANCE SUPERVISION & ENGINEERING

(2) 45 2 70 0

F201279 MIRA LOMA 553 MAINTENANCE GENERATION & ELECTRICAL

22 340 606 435 390

F516582 WESTMINSTER - 553 MAINTENANCE OF GENERAL AND ELECTRONIC EQUIPMENT

0 0 0 0 0

F516584 WESTMINSTER - 554 MAINTENANCE OF MISCELLANEOUS POWER GENERATION PLANT

69 0 0 0 0

F525051 WESTMINSTER 553 MAINTENANCE GENERATION & ELECTRIC PLANT

0 472 117 21 200



FERC A c co u n t: 554 M aintenance o f M iscellaneous O ther Power Generation Plant



Recorded/Adjusted (Constant 2012$) By Final Cost Center


F525455 WESTMINSTER 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

293 14 (16) 0 0

F525457 BARRE 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

285 (11) 0 0 0

F525458 BARRE 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

110 12 0 0 0

F525460 CENTER 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

171 17 0 0 0

F525462 GRAPELAND 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

147 4 0 0 0

F525463 GRAPELAND 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

107 29 0 0 0

F525465 MCGRATH 553 MAINTENANCE GENERATION & ELECTRICAL PLANT

12 0 0 0 0

F525467 MIRA LOMA 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

232 37 0 0 0

F525468 MIRA LOMA 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

108 0 2 0 0

F525514 MCGRATH 554 MAINTENANCE MISCELLANEOUS GENERATION PLANT

98 (16) 0 0 0

F526506 CENTER MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 5 12 7

F526507 MIRA LOMA MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 4 7 10

F526508 GRAPELAND MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 4 5 10

F526509 WESTMINSTER MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 1 1 (2)

F526702 MCGRATH MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 0 0 11

F528527 551 PEAKER TECHNICAL SUPPORT 0 0 0 0 11

F900553 MOUNTAINVIEW& PEAKER CORPORATE ADJUSTMENT - 546, 548, 549, 550 AND 553 OPERATIONS SUPPORT AND ENGINEERING

(49) 0 0 0 0

Total 3,076 4,431 3,411 3,449 3,228




FERC A cco u n t:

A c tiv ity :

W itness:

554 Maintenance o f M iscellaneous O ther Power Generation Plant



APPENDIX B







D eta il o f Total C om pany A d ju s tm e n ts to R ecorded Expenses

|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor 1,111 1,217 1,194 1,228 1,049 207 207 207

N on-Labor 701 2,360 1,600 1,358 1,472 455 455 455

Other 0 0 0 0 0 0 0 0

Total 1,812 3,577 2,794 2,586 2,521 662 662 662

O rganizational Unit A djustm ent 1 G BU -C PT-O U -PEAKER ROLL UP TO FERC 554


Labor 1,111 1,217 1,194 1,228 1,049 0 0 0

N on-Labor 701 2,360 1,600 1,358 1,472 0 0 0

Other 0 0 0 0 0 0 0 0

Total 1,812 3,577 2,794 2,586 2,521 0 0 0

O rganizational Unit A djustm ent 2 G BU-CPT-OU-FYA PEAKER MCGRATH ADJ

Th is future yea r ad justm ent adds costs fo r the McGrath Peaker in 2013-2015.

Labor 0 0 0 0 0 207 207 207

N on-Labor 0 0 0 0 0 455 455 455

Other 0 0 0 0 0 0 0 0

Total 0 0 0 0 0 662 662 662



FERC A cco u n t:

A c tiv ity :

W itness:

554 M aintenance o f M iscellaneous O ther Power G eneration Plant



APPENDIX C

Final Cost Centers Included in This Activity



FERC A cco u n t: 554 M aintenance o f M iscellaneous O ther Power Generation Plant



Final Cost Centers included in this activity:

‘ Summary Final Cost Centers:

MOUNTAINVIEW & PEAKER CORPORATE A D JUSTM ENT - 546, 548, 549, AND 550 OPERATIONS SUPPORT A N D ENGINEERINGF900551 F900554

PEAKERS STATION EXPENSES

F201260 F201270 F201280

W ESTM INSTER 551 M AINTENANCE SUPERVISION & ENGINEERING

F201250 F525454






Individual Final Cost Centers:

F201251 F201256 F201258 F201259 F201263 F201264 F201265 F201268 F201269 F201273

F201274 F201275 F201278 F201279 F516582 F516584 F525051 F525455 F525457 F525458

F525460 F525462 F525463 F525465 F525467 F525468 F525514 F526506 F526507 F526508

F526509 F526702 F528527 F900553


Exhibit No. SCE-02 / Generation / Vol. 09 Witnesses: A. Kurpakus and S. Messer

2012

Rec

orde

d O

&M

for

McG

rath

(20

12$)

FE

RC

Acc

ount

Labo

rN

on-L

abor

Ope

ratio

ns54

831

,004

112,

137

549

(818

)31

,215

550

357,

724

Mai

nten

ance

551

1,45

41,

126

552

346

11,4

4955

359

,488

135,

614

554

7,63

93,

521

Tot

al99

,148

302,

786

Labo

rN

on-L

abor

Tot

alO

pera

tions

For

ecas

t for

Oct

.-D

ec.

30,2

2215

1,07

618

1,29

8x

3x

3O

pera

tions

For

ecas

t Adj

ustm

ent f

or N

ine

Mon

ths

(FE

RC

548

, 54

9, 5

50)

$ 90

,666

$ 45

3,22

9$

543,

895

Labo

rN

on-L

abor

Tot

alM

aint

enan

ce F

orec

ast

O&

M f

or O

ct.-

Dec

.68

,926

151,

710

220,

636

x 3

x 3

Mai

nten

ance

For

ecas

t Adj

ustm

ent f

or N

ine

Mon

ths

(FE

RC

551

, 55

2, 5

53,

554)

$ 20

6,77

8$

455,

129

$ 66

1,90

8

| T

otal

O&

M F

orec

ast A

djus

tmen

t for

Nin

e M

onth

s |

$ 29

7,44

4 |

$ 90

8,35

8 |

$ 1,

205,

802

|

0)




FERC A c co u n t: 546 Operation Supervision and Engineering




2012$ (000)

Recorded2012

Forecast2015

Labor N/A 0 0Non-Labor N/A 0 0Other N/A 0 0Total 0 0


This activity shall include the cost of labor and expenses incurred in the general supervision and direction of the operation of Gas Turbine Peaker power generating stations. This activity package has zero dollars; all costs have been transferred to other activities.

Final Cost Centers included in this activity (See Appendix A for additional detail):

F201229 F201242 F201252 F201287 F201290 F201293 F201299 F201302 F526238 F900546








2008 2009 2010 2011 2012

FERC Form 1 Recorded (Nominal $)Labor 587 885 1,325 1,402 1,608

N on-Labor 287 632 699 503 337

O ther 0 0 0 0 0

Total 874 1,517 2,024 1,905 1,945

Adjustments- (Nominal $) - see Appendix B for additional detailLabor (587) (885) (1,325) (1,402) (1,608)

N on-Labor (287) (632) (699) (503) (337)

O ther 0 0 0 0 0

Total (874) (1,517) (2,024) (1,905) (1,945)

Recorded/Adjusted (Nominal $)L ab o r 0 0 0 0 0

N on-Labor 0 0 0 0 0

O ther 0 0 0 0 0

Total 0 0 0 0 0


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

O ther 1.0000 1.0000 1.0000 1.0000 1.0000


Labor 0 0 0 0 0


O ther 0 0 0 0 0

Total 0 0 0 0 0


6 -------------------------------------------------------------------------------------------------4 ----------------------------------------------------------------------------------------------------------------------------------------------------

2 -------------------------------------------------------------------------------------------------------------------------------------------

0 -------------------------------------------------------------------------------------------------2 -------------------------------------------------------------------------------------------------------------------------------------------

■4 ----------------------------------------------------------------------------------------------------------------------------------------------------

-6 , , , ,------2008 2009 2010 2011 2012




FERC A cc o u n t

A c tiv ity :

W itness:

546 Operation Supervision and Engineering



APPENDIX A




FERC A cco u n t: 546 O peration Supervision and Engineering



Recorded/Adjusted (Constant 2012$) By Final Cost Center$ (000)

2008 2009 2010 2011 2012

F201229 FINANCIAL SERVICES PEAKER 546 OPERATION SUPPORT & ENGINEERING

0 0 0 0 0

F201242 OPERATIONS SUPPORT & PERFORMANCE IMPROVEMENT- PEAKER 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F201252 WESTMINSTER 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F201287 BARRE 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F201290 CENTER 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F201293 GRAPELAND 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F201299 MIRA LOMA 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F201302 GOLETA 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0

F526238 BUSINESS PLANNING & DEVELOPMENT - PEAKER 546 OPERATION SUPERVISION & ENGINEERING

0 0 0 0 0


0 0 0 0 0

Total 0 0 0 0 0




FERC A cco u n t:

A c tiv ity :

W itness :

546 Operation Supervision and Engineering



APPENDIX B








|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor (587) (885) (1,325) (1,402) (1,608) 0 0 0

Non-Labor (287) (632) (699) (503) (337) 0 0 0

Other 0 0 0 0 0 0 0 0

Total (874) (1,517) (2,024) (1,905) (1,945) 0 0 0

O rganizational Unit A djustm ent 1 G BU -C PT-O U-PEAKER MAPPING A DJUSTM ENT

Th is ad justm ent corrects an erro r fo r costs from FERC 550 to Peaker operations FERC 546, 549, and 553.

Labor 200 0 0 0 0 0 0 0 Non-Labor 0 0 0 0 0 0 0 0 O ther 0 0 0 0 0 0 0 0

Total 200 0 0 0 0 0 0 0

O rganizational Unit A djustm ent 2 A&G FINC -RSL.CPT-O U X-C NTR LS-XFER TO GBU

This ad justm ent transfers labor recorded in Financial Services M iscellaneous Expenses 930 to FERC accounts 500,535 and 546.

Labor 14 0 0 0 0 0 0 0

Non-Labor 0 0 0 0 0 0 0 0

O ther 0 0 0 0 0 0 0 0

Total 14 0 0 0 0 0 0 0

O rganizational Unit A djustm ent 3 GBU -CPT.LM M -O UX-G P&S 557

Th is ad justm ent transfers integrated planning expenses from G eneration FERC 500, 501, 506, 535 and 546 to FERC557 fo r historical consistency and w here they are being forecast.

Labor (97) (110) (73) (57) 0 0 0 0

Non-Labor (27) (38) (41) (25) 0 0 0 0

O ther 0 0 0 0 0 0 0 0

Total (124) (148) (114) (82) 0 0 0 0

O rganizational Unit A djustm ent 4 G BU -CPT-O U -PEAKER ROLL UP TO 549


Labor (704) (775) (1,252) (1,345) (1,608) 0 0 0

Non-Labor (261) (594) (658) (478) (337) 0 0 0

O ther 0 0 0 0 0 0 0 0

Total (965) (1,369) (1,910) (1,823) (1,945) 0 0 0




FERC A cco u n t: 548 Generation Expenses




2012$ (000)

Recorded2012

Forecast2015



This activity shall include the cost of labor, materials used and expenses incurred in operating prime movers, generators and electric equipment in Gas Turbine Peaker power generating stations, to the point where electricity leaves for conversion for transmission and distribution. This activity package has zero dollars; all costs have been transferred to other activities.


F201253 F201288 F201291 F201294 F201297 F201300 F528535 F528547 F900548








2008 2009 2010 2011 2012

FERC Form 1 Recorded (Nominal $)Labor 866 899 972 1,127 1,102

N on-Labor 1,227 212 450 399 990

O ther 0 0 0 0 0

Total 2,093 1,111 1,422 1,526 2,092

Adjustments- (Nominal $) - see Appendix B for additional detailLabor (866) (899) (972) (1,127) (1,102)

N on-Labor (1,227) (212) (450) (399) (990)

O ther 0 0 0 0 0

Total (2,093) (1,111) (1,422) (1,526) (2,092)

Recorded/Adjusted (Nominal $)Labor 0 0 0 0 0


O ther 0 0 0 0 0

Total 0 0 0 0 0


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

O ther 1.0000 1.0000 1.0000 1.0000 1.0000


Labor 0 0 0 0 0


O ther 0 0 0 0 0

Total 0 0 0 0 0


6 -------------------------------------------------------------------------------------------------4 ----------------------------------------------------------------------------------------------------------------------------------------------------

2 -------------------------------------------------------------------------------------------------------------------------------------------

0 -------------------------------------------------------------------------------------------------2 -------------------------------------------------------------------------------------------------------------------------------------------

■4 ----------------------------------------------------------------------------------------------------------------------------------------------------

-6 , , , ,------2008 2009 2010 2011 2012




THIS PAGE INTENTIONALLY LEFT BLANK



FERC A c c o u n t

A c tiv ity :

W itness:

548 G eneration Expenses


Anthony J. Kurpakus

APPENDIX A




FERC A c co u n t: 548 G eneration Expenses




2008 2009 2010 2011 2012

F201253 WESTMINSTER 548 GENERATION EXPENSE

0 0 0 0 0

F201288 BARRE 548 GENERATION EXPENSE 0 0 0 0 0

F201291 CENTER 548 GENERATION EXPENSE 0 0 0 0 0

F201294 GRAPELAND 548 GENERATION EXPENSE 0 0 0 0 0

F201297 MCGRATH 548 GENERATION EXPENSE 0 0 0 0 0

F201300 MIRA LOMA 548 GENERATION EXPENSE 0 0 0 0 0

F528535 548 AIR QUALITY/EMISSIONS COMPLIANCE

0 0 0 0 0

F528547 548 SUPPORT 0 0 0 0 0


0 0 0 0 0

Total 0 0 0 0 0




FERC A cco u n t

A c tiv ity :

W itness:

548 Generation Expenses


Anthony J. Kurpakus

APPENDIX B








|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor (866) (899) (972) (1,127) (1,102) 0 0 0

Non-Labor (1,227) (212) (450) (399) (990) 0 0 0

O ther 0 0 0 0 0 0 0 0

Total (2,093) (1,111) (1,422) (1,526) (2,092) 0 0 0

Organizational Unit A djustm ent 1 G BU-C PT-O U-PEAKER ROLL UP TO 549


Labor (866) (899) (972) (1,127) (1,102) 0 0 0

Non-Labor (1,227) (212) (450) (399) (990) 0 0 0

O ther 0 0 0 0 0 0 0 0

Total (2,093) (1,111) (1,422) (1,526) (2,092) 0 0 0




FERC A cco u n t:

A c tiv ity :

W itness:

548 G eneration Expenses


Anthony J. Kurpakus




FERC A c co u n t: 550 Rents




2012$ (000)

Recorded2012

Forecast2015



This activity shall include all rents of property of others used, occupied, or operated in connection with Gas Turbine Peaker Generation. This activity package has zero dollars; all costs have been transferred to other activities.


F201249 F201289 F201353 F513245 F513246 F525046 F525453 F900550








2008 2009 2010 2011 2012


N o n-Labor 309 158 150 190 34

O the r 0______________ 0______________0______________0_____________ 0

Total 350 159 150 190 36

Adjustments- (Nominal $) - see Appendix B for additional detailLabor (41) (1) 0 0 (2)

N on-Labor (309) (158) (150) (190) (34)

O ther 0 0 0 0 0

Total (350) (159) (150) (190) (36)



O ther 0 0 0 0 0

Total 0 0 0 0 0


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

O ther 1.0000 1.0000 1.0000 1.0000 1.0000


Labor 0 0 0 0 0


O ther 0 0 0 0 0

Total 0 0 0 0 0


6 -------------------------------------------------------------------------------------------------

4 --------------------------------------------------------------------------------------------------------------------------------------------------------------------

2 -------------------------------------------------------------------------------------

0 -------------------------------------------------------------------------------------------------2 -------------------------------------------------------------------------------------------------------------------------------------------

4 ------------------------------------------------------------------------------------------------4 , , , :--------------------------

2008 2009 2010 2011 2012




FERC A cc o u n t

A c tiv ity :

W itness :

550 Rents


Anthony J. Kurpakus

APPENDIX A








2008 2009 2010 2011 2012

F201249 WESTMINSTER 550 RENTS 0 0 0 0 0

F201289 BARRE 550 RENTS 0 0 0 0 0

F201353 MIRA LOMA 550 RENTS 0 0 0 0 0

F513245 CENTER 550 RENTS 0 0 0 0 0

F513246 GRAPELAND 550 RENTS 0 0 0 0 0

F525046 MCGRATH OPERATIONS 550 RENTS 0 0 0 0 0

F525453 WESTMINSTER OPERATIONS 550 RENTS 0 0 0 0 0


0 0 0 0 0

Total 0 0 0 0 0




FERC A cco u n t

A c tiv ity :

W itness:

550 Rents


Anthony J. Kurpakus

APPENDIX B







D etail o f Total C om pany A d ju s tm e n ts to R ecorded Expenses

|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor (41) (1) 0 0 (2) 0 0 0

Non-Labor (309) (158) (150) (190) (34) 0 0 0

Other 0 0 0 0 0 0 0 0

Total (350) (159) (150) (190) (36) 0 0 0

O rganizational Unit A djustm ent 1 G BU-C PT-O U-PEAKER LABOR ADJUSTM ENT

Labor was incorrectly recorded in activ ity FERC 550 - Peakers that should have recorded to FERC 549 - Peakers. This ad justm ent corrects the error.

Labor (41) (1) 0 0 0 0 0 0Non-Labor 0 0 0 0 0 0 0 0O ther 0 0 0 0 0 0 0 0

Total (41) (1) 0 0 0 0 0 0

O rganizational Unit A djustm ent 2 G BU -C PT-O U -PEAKER ROLL UP TO 549

This ad justm ent transfers costs from FERC 546, 548, and 550 to FERC 549.

Labor 0 0 0 0 (2) 0 0 0

Non-Labor (309) (158) (150) (190) (34) 0 0 0

Other 0 0 0 0 0 0 0 0

Total (309) (158) (150) (190) (36) 0 0 0




FERC A cco u n t:

A c tiv ity :

W itness :

550 Rents






FERC A c co u n t: 551 Maintenance Supervision and Engineering




2012$ (000)

Recorded2012

Forecast2015



This activity shall include the cost of labor and expenses incurred in the general supervision and direction of the maintenance of Gas Turbine Peaker power generating stations. This activity package has zero dollars; all costs have been transferred to other activities.




FERC A cco u n t: 551 Maintenance Supervision and Engineering




Recorded Period$ (000)

2008 2009 2010 2011 2012


N on-Labor 64 997 449 716 261

O ther 0 0 0 0 0

Total 233 1,213 704 1,032 657

Adjustments- (Nominal $) see Appendix B fo r additional detailLabor (169) (216) (255) (316) (396)

N on-Labor (64) (997) (449) (716) (261)

O ther 0 0 0 0 0

Total (233) (1,213) (704) (1,032) (657)



O ther 0 0 0 0 0

Total 0 0 0 0 0


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

O ther 1.0000 1.0000 1.0000 1.0000 1.0000


Labor 0 0 0 0 0


O ther 0 0 0 0 0

Total 0 0 0 0 0


6

4

2

0

-2

■4

-62008 2009 2010 2011 2012




FERC A cc o u n t

A c tiv ity :

W itness :

551 Maintenance Supervision and Engineering


Anthony J. Kurpakus

APPENDIX A









•SUM M ARY WESTMINSTER 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 0 0

F201258 BARRE 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 0 0

F201263 CENTER 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 0 0

F201268 GRAPELAND 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 0 0

F201273 MCGRATH MAINTENANCE 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 0 0

F201278 MIRA LOMA 551 MAINTENANCE SUPERVISION & ENGINEERING

0 0 0 0 0

F528527 551 PEAKER TECHNICAL SUPPORT 0 0 0 0 0

F900551 MOUNTAINVIEW& PEAKER CORPORATE ADJUSTMENT - 546, 548, 549, AND 550 OPERATIONS SUPPORT AND ENGINEERING

0 0 0 0 0

Total 0 0 0 0 0




FERC A cco u n t:

A c tiv ity :

W itness:

551 Maintenance Supervision and Engineering


Anthony J. Kurpakus

APPENDIX B




FERC A cco u n t: 551 M aintenance Supervision and Engineering




|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor (169) (216) (255) (316) (396) 0 0 0

Non-Labor (64) (997) (449) (716) (261) 0 0 0

O ther 0 0 0 0 0 0 0 0

Total (233) (1,213) (704) (1,032) (657) 0 0 0

Organizational Unit A djustm ent 1 G BU -C PT-O U -PEAKER ROLL UP TO FERC 554


Labor (169) (216) (255) (316) (396) 0 0 0

Non-Labor (64) (997) (449) (716) (261) 0 0 0

O ther 0 0 0 0 0 0 0 0

Total (233) (1,213) (704) (1,032) (657) 0 0 0




FERC A cco u n t: 552 Maintenance o f Structures




2012$ (000)

Recorded2012

Forecast2015



This activity package has zero dollars; all costs have been transferred to other activities.


F526506 F526507 F526508 F526509 F526702



FERC A cco u n t: 552 Maintenance of S tructures




Recorded Period$ (000)

2008 2009 2010 2011 2012FERC Form 1 Recorded (Nominal $)

Labor 0 0 0 0 1

N on-Labor 0 0 14 25 35

O ther 0 0 0 0 0

Total 0 0 14 25 36

Adjustments- (Nominal $) - see Appendix B for additional detailL ab o r 0 0 0 0 (1)

N on-Labor 0 0 (14) (25) (35)

O ther 0 0 0 0 0

Total 0 0 (14) (25) (36)



O ther 0 0 0 0 0

Total 0 0 0 0 0


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

O ther 1.0000 1.0000 1.0000 1.0000 1.0000


Labor

N on-Labor

O ther

Total


2008 2009 2010 2011 2012

□ Labor (std escl) I Non-Labor (std escl) □ Other (not escl)

0 0 0

6



FERC A cco u n t

A c tiv ity :

W itness :

552 Maintenance o f Structures



APPENDIX A




FERC A c co u n t: 552 M aintenance o f S tructures




2008 2009 2010 2011 2012

F526506 CENTER MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 0 0 0

F526507 MIRA LOMA MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 0 0 0

F526508 GRAPELAND MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 0 0 0

F526509 WESTMINSTER MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 0 0 0

F526702 MCGRATH MAINTENANCE 552 MAINTENANCE OF STRUCTURES

0 0 0 0 0

Total 0 0 0 0 0




FERC A cco u n t:

A c tiv ity :

W itness:

552 Maintenance o f S tructures



APPENDIX B




FERC A cco u n t: 552 Maintenance o f S tructures




|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

Labor 0 0 0 0 (1) 0 0 0

Non-Labor 0 0 (14) (25) (35) 0 0 0

Other 0 0 0 0 0 0 0 0

Total 0 0 (14) (25) (36) 0 0 0

O rganizational Unit A djustm ent 1 G BU-CPT-OU -PEAKER ROLL UP TO FERC 554


Labor 0 0 0 0 (1) 0 0 0

Non-Labor 0 0 (14) (25) (35) 0 0 0

Other 0 0 0 0 0 0 0 0

Total 0 0 (14) (25) (36) 0 0 0




FERC A cco u n t:

A c tiv ity :

W itness :

552 Maintenance o f S tructures






FERC A c co u n t: 553 Maintenance o f G enerating and Electric P lant




2012$ (000)

Recorded2012

Forecast2015



This activity shall include the cost of labor, materials used and expenses incurred in maintenance of Gas Turbine Peaker plant and the book cost which is includible in Prime Movers, Generators, Accessory Electric Equipment. This activity package has zero dollars; all costs have been transferred to other activities.


F201256 F201259 F201264 F201269 F201274 F201279 F516582 F525051 F525457 F525460

F525462 F525465 F525467 F900553



FERC A cco u n t: 553 M aintenance o f Generating and Electric Plant





2008 2009 2010 2011 2012

FERC Form 1 Recorded (Nominal $)Labor 742 1,001 939 912 652

Non-Labor 637 1,363 1,137 617 1,176

Other 0____________ 0_____________0____________ 0___________ 0

Total 1,379 2,364 2,076 1,529 1,828

Adjustments- (Nominal $) - see Appendix B for additional detailLabor (742) (1,001) (939) (912) (652)

N on-Labor (637) (1,363) (1,137) (617) (1,176)

O ther 0 0 0 0 0

Total (1,379) (2,364) (2,076) (1,529) (1,828)



O ther 0 0 0 0 0

Total 0 0 0 0 0


N on-Labor 1.0881 1.0814 1.0642 1.0254 1.0000

O ther 1.0000 1.0000 1.0000 1.0000 1.0000


Labor 0 0 0 0 0


O ther 0 0 0 0 0

Total 0 0 0 0 0


6 ----------------------------------------------------------------------------------------------------------------------

4 ----------------------------------------------------------------------------------------------------------------------------------------------------

2 ------------------------------------------------------------------------------------------------------------------------------------------------------------

0 ----------------------------------------------------------------------------------------------------------------------

-2 ---------------------------------------------------------------------------------------------------------------------------------------------------------------

•A ----------------------------------------------------------------------------------------------------------------------------------------------------

-6 : :-----------------------------------------

2008 2009 2010 2011 2012

□ Labor (std escl) | | Non-Labor (std escl) □ Cither (not escl)



FERC A cco u n t:

A c tiv ity :

W itness :

553 Maintenance o f Generating and Electric Plant


Anthony J. Kurpakus

APPENDIX A




FERC A cco u n t: 553 M aintenance o f Generating and Electric Plant




2008 2009 2010 2011 2012

F201256

F201259

F201264

F201269

F201274

F201279

F516582

F525051

F525457

F525460

F525462

F525465

F525467

F900553

Total

WESTMINSTER 553 MAINTENANCE GENERATION & ELECTRICAL

BARRE 553 MAINTENANCE GENERATION & ELECTRICAL

CENTER 553 MAINTENANCE GENERATION & ELECTRICAL

GRAPELAND 553 MAINTENANCE GENERATION & ELECTRICAL

MCGRATH 553 MAINTENANCE GENERATION & ELECTRICAL

MIRA LOMA 553 MAINTENANCE GENERATION & ELECTRICAL

WESTMINSTER - 553 MAINTENANCE OF GENERAL AND ELECTRONIC EQUIPMENT

WESTMINSTER 553 MAINTENANCE GENERATION & ELECTRIC PLANT

BARRE 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

CENTER 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

GRAPELAND 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

MCGRATH 553 MAINTENANCE GENERATION & ELECTRICAL PLANT

MIRA LOMA 553 MAINTENANCE GENERATION AND ELECTRIC PLANT

MOUNTAINVIEW& PEAKER CORPORATE ADJUSTMENT - 546, 548, 549, 550 AND 553 OPERATIONS SUPPORT AND ENGINEERING

* Due to rounding, totals may not tie to other workpaper pages.

0 0 0 0 0



FERC A cco u n t:

A c tiv ity :

W itness:

553 Maintenance o f Generating and Electric Plant



APPENDIX B



90Workpaper - Southern California Edison / 2015 GRC - APPLICATION___________________

FERC A c co u n t: 553 Maintenance of Generating and Electric Plant




|A d js - (N om ina l $) $ (000)2008 2009 2010 2011 2012 2013 2014 2015

LaborNon-LaborOther

(742)(637)

0

(1,001)

(1,363) 0

(939)(1,137)

0

(912)(617)

0

(652)(1,176)

0

000

0 0 0 0 0 0

Total (1,379) (2,364) (2,076) (1,529) (1,828) 0 0 0

O rganizational Unit A djustm ent 1 G BU -CPT-O U-PEAKER MAPPING AD JUSTM ENT

This ad justm ent corrects an error for costs from FERC 550 to Peaker operations FERC 546, 549, and 553.

Labor 200 0 0 0 0 0 0 0

Non-Labor 0 0 0 0 0 0 0 0

Other 0 0 0 0 0 0 0 0

Total 200 0 0 0 0 0 0 0

O rganizational Unit A djustm ent 2 G BU -CPT-O U -PEAKER ROLL UP TO FERC 554

This ad justm ent transfers costs from FERC 551, 552, and 553 to FERC 554.

Labor (942) (1,001) (939) (912) (652) 0 0 0

Non-Labor (637) (1,363) (1,137) (617) (1,176) 0 0 0

Other 0 0 0 0 0 0 0 0

Total (1,579) (2,364) (2,076) (1,529) (1,828) 0 0 0




FERC A cco u n t: 553 Maintenance o f Generating and Electric Plant





CAPITAL EXPENDITURES FORECAST



Southern California Edison Company

CAPITAL WORKPAPERS - 2015 GRC

OPERATING UNIT SUMMARY (Nominal $000)

Operating Unit Sum m ary: GEN - Peakers

(1) O PERATING UNIT FO RECAST CAPITAL EXPENDITUR ES: 2015 GRC

Item Testimony DescriptionForecast Capital Expenditures

2013 2014 2015 2016 2017 Total

1 Betterment Projects 1,000 2,500 C 2,000 600 6,100

2 Blanket 26 26 26 74 74 226

3 Furniture & Equipment Blanket 2 2 20 20 46

4 Generation 0 C C 0 2,600 2,600

5 Other Capital Projects 46 426 415 1,146 150 2,183

6 Structures and Improvements 0 0 2,60C 0 0 2,600

Total 1,074 2,954 3,043 3,240 3,444 13,755



Southern California Edison Company

CAPITAL WORKPAPERS - 2015 GRC

OPERATING UNIT SUMMARY (Nominal $000)

Operating Unit Summary: GEN - Peakers

(2) OPERATING UNIT RECORDED AND AUTHORIZED CAPITAL AND FORECAST EXPENDITURES: 2015 GRC

DescriptionRecorded and Authorized Capital Expenditures Forecast Capital Expenditures

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Authorized Expenditures 20,000 22,040

Recorded & Forecast Expenditures 10,370 18,844 12,846 7,397 30,301 1,074 2,954 3,043 3,240 3,444

Total Expenditure 79,758 13,755

Recorded, A u tho rized and Forecast E xpenditures Graph

35.000

30.000

25.000

20.000

15.000

10.000

5 ,000

0

— ■ _ r1 1 l a l ,— , i i i i i i i i

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

d h



PROJECT DETAIL W ORKSHEETS



Southern California Edison Company CAPITAL WORKPAPERS - 2015 GRC

PROJECT DETAIL WORKSHEET: MCGRATH SPARE GAS COMPRESSOR

Organizational Unit Summary: GEN - Peakers Testimony Summary: SCE-02, Volume 9, Chapter 5 Major Program: Betterment Projects Category: BlanketDetail: McGrath Spare Gas Compressor Database ID: 1138 / RO Model ID: 270

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

GENERAL-PEAKERS

6496

CG0-00-PP-PK-000114

Select one

Compliance: Safety, Environmental, Licenses

Replacements in Kind

Upgrades

Blanket: FE, Tools, Spare Parts, Lab, Computer Equip

Select one

Customer Growth

Load Growth

Reliability

Capitalized Software

Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

11/1/2014

N/A

20 15 GRC - C a p i t a l E x p e n d i t u r e s F o r e c a s t

2013 2014 2015 2016 2017

7. COST ESTIMATES (NOMINAL $000)

Yr SCE $2013 1,000

2014 2,500

2015 0

2016 0

2017 0

Total 3,500

X

7 (a). SYSTEM SHORT TEXT Various Peaker Gas Compresssor

7 (b). DETAILED DESCRIPTION McGrath Peaker - Install Second (Redundnat) Gas Compressor of rotary screw type to function asthe primary compressor to imporve McGrath Peaker reliability and minimize compressor maintenance costs. Other four Peakers had rotary screw gas compressors installed during 2012 General Rate Case.

8. SCOPE Consists of McGrath Peaker receiving an additional rotary screw type gas compressor and theoriginal reciprocating type compressor becoming the back-up gas compressor.

9. JUSTIFICATION The Gas Compressor being funded by this capital project is of the rotary screw type which havehigher reliailbity and less maintenance cost than the existing reciprocating compressor. Once installed, the new Gas Compressor will be used as the primary Gas Compressor and the existing reciprocating Gas Compressor will become the back-up or stand-by reserve Gas Compressor for McGrath Peaker. The rotary Gas Compressor will improve McGrath Peaker's reliability, as the stand-by Gas Compressor will be available for immediate service should the primary Gas Compressor require routine maintenance or experience a failure. Having a redundant Gas Compressor at McGrath Peaker will assure McGrath Peaker reamins availalbe during routine Gas Compressor maintenance, so that McGrath Peaker can continue to provide a high level of grid support, rapid starting and black-starting capability. The other four Peakers had same type of roatry screw Gas Compressor installed at each site during 2012 General Rate Case.



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PROJECT DETAIL WORKSHEET: VARIABLE IGV UPGRADE

Organizational Unit Summary: GEN - PeakersTestimony Summary: SCE-02, Volume 9, Chapter 5Major Program: Betterment ProjectsCategory: Turbine UpgradeDetail: Variable IGV UpgradeDatabase ID: 1555 / RO Model ID: 276

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

(NOT SPECIFIED)

NOT SPECIFIED

6496

CG0-00-PP-PK-000123

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

11/1/2017

N/A


Yr SCE $2013 0

2014 0

2015 0

2016 2,000

2017 600

Total 2,600

7(a). SYSTEM SHORT TEXT

7 (b). DETAILED DESCRIPTION

8. SCOPE

9. JUSTIFICATION

Turbine Upgrade

Specific - Variable Inlet Guide Vanes contains the costs for the purchases and installation of four variable inlet guide vane systems on four Peakers. Variable inlet guide vanes provide for improved Peaker control at lower loads.

Consists of the installation of four variable inlet guide vane systems. Each inlet guide vane system consists of the acutal air inlet vanes to direct the air flow and a computer sotware to provide cane control during operation.

The variable inlet guide vanes act like a throttle to contol the fuel-to-air ratio of the gas turbine, much like the function of a carburetor on a car engine. The modulation of the fuel-to-air ratio results in increased efficiency and provides for more stable operation at lower loads, thereby resulting in a generating resource that can function over a wider load range. This enhanced operating range improves unit dispatch and provides for more flexibility in grid generation resouce planning. The two addiional gas turbines will be upgraded in 2018 after this General Rate Case.




PROJECT DETAIL WORKSHEET: LAB/TEST& TECH TOOLS BLANKET

Organizational Unit Summary: GEN - Peakers Testimony Summary: SCE-02, Volume 9, Chapter 5 Major Program: Blanket Category: BlanketDetail: Lab/Test& Tech Tools Blanket Database ID: 1141 / RO Model ID: 273

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

BLANKET-PEAKERS

6496

CG0-00-PP-PK-000117

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A

2015 GRC - C ap ita l E xpenditu res Forecast

2013 2014 2015 2016 2017


Yr SCE $2013 10

2014 10

2015 10

2016 10

2017 10

Total 50



8. SCOPE

9. JUSTIFICATION

Peaker Blanket 076 - Lab/Test&Tech Tools

Blanket - Lab/Test & Tech Tools. Consists of the costs for various Insturment tools and equipment used in operating and maintaining the Peakers. Each Peaker will have s small instrument shop equipped with basic tools.

Consists of electronic and physical nstrument and aboratory testing tool equipment to measure environment, performance and safety of various Peaker parameters.

Instrument and Laboratory Testing tools are necessary to perform electronic and physical testing of equipment to measure environment, performance and safety parameters of Peakers.




PROJECT DETAIL WORKSHEET: MISC CAPITAL EQUIP BLANKET

Organizational Unit Summary: GEN - PeakersTestimony Summary: SCE-02, Volume 9, Chapter 5Major Program: BlanketCategory: BlanketDetail: Misc Capital Equip BlanketDatabase ID: 1144 / RO Model ID: 278

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

SPECIFIC - PEAKERS

6496

CG0-00-PP-PK-000125

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A

2015 GRC • C a p ita l E xpenditu res Forecast

2013 2014 2015 2016 2017


Yr2013

2014

2015

2016

2017

SCE $ 5

5

5

5

5

Total 25



8. SCOPE

9. JUSTIFICATION

Miscellaneous Equipment

Blanket - Miscellaneous Capital Equipment contains the cost for various computer equipment supproing Peaker operation and maintenance.

Consists of computers and related equipment to facailiate operation and maintenance of the Peakers.

Having and maintaining appropriate computer hardware supports reliable, safe and complaint Peaker operation and maintenance.




PROJECT DETAIL WORKSHEET: PERMANENT TOOLS & EQUIP BLANKET

Organizational Unit Summary: GEN - Peakers Testimony Summary: SCE-02, Volume 9, Chapter 5 Major Program: Blanket Category: BlanketDetail: Permanent Tools & Equip Blanket Database ID: 1142 / RO Model ID: 274

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

BLANKET - PEAKERS

6496

CG0-00-PP-PK-000118

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A


Yr SCE $2013 2

2014 2

2015 2

2016 50

2017 50

Total 106

2015 GRC - C a p i t a l E x p e n d i t u r e s F o r e c a s t

2013 2014 2015 2016 2017



8. SCOPE

9. JUSTIFICATION

Peaker Blkt 078-Perm Tools & Work Equip

Blanket 078-Permanent Tools & Work Equipment. Contains the costs for permanent non-portable tools and work equipment such as drill presses, welders and table saws.

Funds permanent, non-portable tools and work equipment such as drill presses, welders and tablesaws.

Maintaining permanent tools and work equipment supports reliable, safe and compliant Peaker operation and maintenance. Tooling needs will increase above current levels as the five Peakers continue through aging maintenance cycles.




PROJECT DETAIL WORKSHEET: PORTABLE TOOLS/WORK EQUIP BLANKET

Organizational Unit Summary: GEN - Peakers Testimony Summary: SCE-02, Volume 9, Chapter 5 Major Program: Blanket Category: BlanketDetail: Portable Tools/W ork Equip Blanket Database ID: 1137 / RO Model ID: 269

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

BLANKET-PEAKERS

6496

CG0-00-PP-PK-000111

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A


Yr SCE $2013 2

2014 2

2015 2

2016 2

2017 2

2015 GRC - C a p i t a l E x p e n d i t u r e s F o r e c a s t

Total 10 2013 2014 2015 2016 2017



8. SCOPE

9. JUSTIFICATION

Peaker Blanket 068-Portable Tools/Wk Eq

Blanket - Portable Tools & Work Equipment contains the costs for small, portable hand tools and vaious work equipment.

Consists of obtaining small, portable hand tools and vaiours work equipment to facilitate operation and maintenance of the Peakers.

Consists of obtaining small, portable hand tools and various work equipment to facilitate operation and maintenance of the Peakers, which are needed to facilitate repairs.




PROJECT DETAIL WORKSHEET: SPARE PARTS BLANKET

Organizational Unit Summary: GEN - PeakersTestimony Summary: SCE-02, Volume 9, Chapter 5Major Program: BlanketCategory: BlanketDetail: Spare Parts BlanketDatabase ID: 1136 / RO Model ID: 268

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

BLANKET - PEAKERS

6496

CG0-00-PP-PK-000110

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A

2015 GRC • C ap ita l E xpenditu res Forecast

2013 2014 2015 2016 2017


Yr SCE $2013 5

2014 5

2015 5

2016 5

2017 5

Total 25

7 (a). SYSTEM SHORT TEXT Peaker Blanket 044 - Spare Parts

7 (b). DETAILED DESCRIPTION Blanket - Spare Parts contains the capital costs for Peaker spare parts inventories.

Consists of obtaining Peaker spare parts inventories to facilitate quick, efficient repairs.8. SCOPE

9. JUSTIFICATION Maintaining an inventory of Peaker spare parts reduces outage time and provides for a more efficient maintenance program. Peaker spare parts, especially gas turbine parts, are not readily available and must be otained in advance of need in order to minimize outage time.




PROJECT DETAIL WORKSHEET: SPARE PARTS BLANKET

Organizational Unit Summary: GEN - PeakersTestimony Summary: SCE-02, Volume 9, Chapter 5Major Program: BlanketCategory: BlanketDetail: Spare Parts BlanketDatabase ID: 1140 / RO Model ID: 272

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

BLANKET - PEAKERS

6496

CG0-00-PP-PK-000116

Select one



Upgrades


Select one

X

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A

Customer Growth

Load Growth

Reliability


Various (See Below)

2 01 5 GRC - C a p i t a l E x p e n d i t u r e s F o r e c a s t

2013 2014 2015 2016 2017


Yr SCE $2013 2

2014 2

2015 2

2016 2

2017 2

Total 10

7 (a). SYSTEM SHORT TEXT Peaker Blanket 074 - Stores

7 (b). DETAILED DESCRIPTION Blanket - Warehouse/Stores

8. SCOPE Funds warehouse and stores facilities (appropriate storage containers, stores equipment, etc.)

9. JUSTIFICATION Proper warehouseing practices support reliable, safe and compliant Peaker operation and maintenance.




PROJECT DETAIL WORKSHEET: F&E BLANKET

Organizational Unit Summary: GEN - PeakersTestimony Summary: SCE-02, Volume 9, Chapter 5Major Program: Furniture & Equipment BlanketCategory: Furniture and EquipmentDetail: F&E BlanketDatabase ID: 1143 / RO Model ID: 275

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

BLANKET - PEAKERS

6496

CG0-00-PP-PK-000120

Select one



Upgrades

X Blanket: FE, Tools, Spare Parts, Lab, Computer Equip

Select one

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Blanket

N/A

Customer Growth

Load Growth

Reliability


Various (See Below)


Yr2013

2014

2015

2016

2017

Total

SCE $ 2

2

2

20

20

46



8. SCOPE

9. JUSTIFICATION

Furniture & Equipment

Blanket - Furniture & Equipment contains the costs for office and shop furniture and related equipment for the Peaker control rools and shops.

Consists of office furniture and related equipment for the Peaker control rooms, dispatch centers and shops.

Having and maintaining appropriate office furniture supports reliable, safe and complaint Peaker operation and maintenance.




PROJECT DETAIL WORKSHEET: GAS TURBINE OVERHAUL

Organizational Unit Summary: GEN - PeakersTestimony Summary: SCE-02, Volume 9, Chapter 5Major Program: GenerationCategory: Turbine RetrofitDetail: Gas Turbine OverhaulDatabase ID: 1556 / RO Model ID: 277

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

4. ASSET TYPE Peakers

5. CLOSE DATE 11/1/2017

6. RIIM ELIGIBLE N/A


Yr SCE $2013 0

2014 0

2015 0

2016 0

2017 2,600

Total 2,600

Scott Messer

(NOT SPECIFIED)

NOT SPECIFIED

6496

CG0-00-PP-PK-000124

Select one



Upgrades


Select one

Customer Growth

Load Growth

Reliability


Various (See Below)

X



8. SCOPE

9. JUSTIFICATION

Turbine Retrofit

Specific - Peaker Engine Major Overhaul contains the costs for the overhauling including replacement parts, testing, shipping and installation of a spare Peaker gas turbine.

Consists of overhauling a Peaker gas turbine which includes shipping one Peaker gas turbine to the nearest General Electric repair facility, replacement overhaul parts, testing and return shipping. Scope also includes the installation and testing of the spare gas turbine currently stored in the Wesminster facility.

Overhauling a Peaker gas turbine must be accomplished whenever a gas turbine fails. The overhaul turn-around time for a gas turbine can be leghty and is dependent upon the repair facility's backlog. In order to minimize outage time, a spare gas turbine stored in Westminster would be installed while the failed gas turbine is being repaired at the nearest General Electric facility. This substitution procedure would greatly reduce Peaker outage time and maximize Peaker benefit. SCE assumes that the fleet of Peakers will incur one major overhaul by 2017.




PROJECT DETAIL WORKSHEET: VARIOUS PROJECT < $1M

Organizational Unit Summary: GEN - Peakers Testimony Summary: SCE-02, Volume 9, Chapter 5 Major Program: Other Capital Projects Category: Project < $1M Detail: Various Project < $1M Database ID: 1135 / RO Model ID: 267

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

GENERAL - PEAKERS

6496

CG0-00-PP-PK-000103

Select one



Upgrades


Select one

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

Specific Blanket

N/A


Yr SCE $2013 46

2014 426

2015 415

2016 1,146

2017 150

Total 2,183

7 (a). SYSTEM SHORT TEXT Peaker Unforeseen Cap Repl/Additions

7 (b). DETAILED DESCRIPTION Various Capital Projects < $1Millon

8. SCOPE

9. JUSTIFICATION

Funds various capital projects less than $1 Million each such as McGrath Spare Air Compressor and 3 spare Transformers to back-up all five Peakers.

Various capital projects are necessary to ensure reliable, safe, and compliant Peaker operation.


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PROJECT DETAIL WORKSHEET: MCGRATH SHOP BLDG

Organizational Unit Summary: GEN - Peakers Testimony Summary: SCE-02, Volume 9, Chapter 5 Major Program: Structures and Improvements Category: Facilities Infrastructure Detail: McGrath Shop Bldg Database ID: 1139 / RO Model ID: 271

1. WITNESS

2. PROJECT DETAIL

Program Group

Program

Pin#

WBS Element

3. PROJECT TYPE

Scott Messer

PEAKERS CORE BASE

GENERAL - PEAKERS

6496

CG0-00-PP-PK-000115

Select one



Upgrades


Select one

X

Customer Growth

Load Growth

Reliability


Various (See Below)

4. ASSET TYPE

5. CLOSE DATE

6. RIIM ELIGIBLE

Peakers

11/1/2015

N/A

2 01 5 GRC - C a p i t a l E x p e n d i t u r e s F o r e c a s t

2013 2014 2015 2016 2017


Yr SCE $2013 0

2014 0

2015 2,600

2016 0

2017 0

Total 2,600



8. SCOPE

Various Peaker Offices/Shops.Labs

McGrath Peaker Multi-Purpose Building - Install building to include small instrument shop, maintenance bay for inspection and repair of plant equipment, modest lunchroom, restroom facility and small parts storage room.

Consists of McGrath Peaker Site design, permitting, and construction of multi-purpose building.

9. JUSTIFICATION The McGrath Peaker Site Multi-Purpose building will facilitate maintenance, parts storage, and other operation and maintenance functions. Currently a rental trailer is being used to serve provide this function.



0 . 1 0 W orkpaper - Southern California Edison / 2009 GRC - Application

w a California ISOY o u r Unw t o P o w e r

CaliiSyst ■ration

08-15-06 02 :49 PM

August 9, 2006

Mr. Michael R. Peevey, President California Public Utilities Commission 505 Van Ness Ave.San Francisco, CA 94102

Dear President Peevey:

The California Independent System Operator Corporation (CAISO) appreciates the cooperation and support we received from the California Public Utilities Commission (CPUC) during the heat wave of late July, 2006. Your staff and many others worked closely with us to coordinate communications on the urgency of the situation and to ensure that we were doing everything possible to maintain reliable electric service.California successfully weathered July’s unprecedented system conditions because of help from you and others in the West.

I value the relationship that has developed between our organizations and respect the steps you took earlier this year to implement meaningful resource adequacy policies for the State. It was largely the supply requirements you adopted that gave the CAISO a reasonable level of comfort as this summer began. The weather and system conditions that we faced in July, however, were well in excess of anything previously anticipated. With that in mind, it is not too soon to begin planning for next year, which we know is likely to be an even greater challenge, especially in Southern California.

Time does not allow permitting and development of new, large projects between now and next summer. However, other options that merit our priority attention may be available. I urge the CPUC to direct the state's investor-owned utilities to use the CPUC-established and approved procurement processes to solicit a combination of quick-start generation and demand response opportunities that can be developed over the next six to twelve months to increase available supply at the peak hours and enhance grid reliability. The CAISO stands ready to support these efforts in any way possible - with the expertise of our staff or in our operations and markets, as appropriate.

Again, thank you for your ongoing support. I look forward to our continued, close collaboration in maintaining electric service reliability for the State of California.

Sincerely yours,

Yakout MansourPresident & Chief Executive Officer

CAISO 151 Blue Ravine Road

Folsom, California 95630 (916) 351-4400

Exhibit No. SCE-02 / Generation / Vol. 10 / Ch. IllWitness: G. Butts



PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

ENERGY DIV ISIO N RESOLUTION E-4031N ovem ber 9,2006

R E S O L U T I O N

Resolution E-4031. Southern California Edison Company (SCE) requests the Commission's approval to establish the Peakers Generation Memorandum Account (PGMA) and to revise the Generation Sub-account of the Base Revenue Requirement Balancing Account (BRRBA).

The PGMA will record the revenue requirement (i.e., incremental O&M expenses, book depreciation, applicable taxes, and an authorized rate of return on rate base) as each peaking facility is completed and closed to plant-in-service. The revenue requirement recorded in the PGMA will be transferred to the Generation Subaccount of the BRRBA on a monthly basis.

By Advice Letter 2031-E Filed on August 24, 2006.

SUMMARY

This Resolution approves SCE's request to establish a Peakers Generation Memorandum Account (PGMA) and to revise the Generation Sub-account of the Base Revenue Requirement Balancing Account (BRRBA). This Resolution also authorizes SCE to record the revenue requirement as each peaking generation plant is completed and becomes used and useful. The revenue requirement will be recorded in the PGMA and will be transferred to the Generation Sub-account of the BRRBA on a monthly basis.

BACKGROUND

On August 15, 2006, in Rulemakings 05-12-013 and 06-02-013, an Assigned Commissioner's Ruling (ACR) "Addressing Electric Reliability Needs in Southern California For Summer 2007" directed Southern California Edison Company (SCE) to, among other thing, pursue the development and installation of up to 250 MW of black-start, dispatchable generation capacity within its

256474 1



Resolution E-4031 November 9, 2006Southern California Edison Company AL 2031-E/Energy Division

service territory for summer 2007 operation. The ACR invited SCE to file an advice letter to establish a memorandum account in which it would record the acquisition and installation costs.

Assigned Commissioner's Ruling directed SCE to procure 250 MW of utility owned generation that can be online in time for summer 2007.

The ACR directed SCE to procure black-start, dispatchable generation capacity within its service territory for summer 2007 operation.

The ACR stated that it was taking these actions in response to the critical nearterm needs in southern California that was identified by the California Independent System Operator (CAISO).

The CAISO's assessm ent for the sum m er of 2006 indicated that it could handle a dem and in excess of 48,000 MW, close to w hat dem and w as forecasted to be under extrem e tem peratures that m aterialize once every 10 years, w ith lim ited to no im pact on firm load custom ers.1 H ow ever, the CAISO reports, the peak dem and during that heat w ave w as 51,000 MW, w ell above any of the scenarios it had assum ed in its assessm ent. As the CAISO notes, that w as over 12% higher than last year's record, 6% higher than the w orst case scenario the CAISO analyzed in its assessm ent, and 38% higher than the peak dem and of the crisis year 2001; it represents the dem and forecasted not to appear until five years from now. Across the CAISO's service area, w eighted average tem peratures ranged betw een 106 and 110 degrees Fahrenheit on various days, som ething California and the W est have not experienced in recent history; these tem peratures w ere higher than anything recorded in the 30-year history of the tem perature m odels used by the CAISO. [8 /15 /06 ACR]

ACR invited SCE to file an advice letter to establish a memorandum account.

The ACR noted that it did not appear possible for SCE to develop and for the Commission to consider proposals for ratemaking treatment of the costs of developing and installing the utility-owned generation prior to the time such generation would be installed. As such, the ACR invited SCE to file an advice

1 Prepared Statement of Yakout Mansour, President and Chief Executive Officer of CAISO, before the California State Senate Committee Governmental Organizations, dated August 9,2006. The statement is available at the CAISO's website.

2




letter to establish a memorandum account in which it would record the acquisition and installation costs of the generation facilities.

SCE filed Advice Letter 2031-E to establish the Peakers Generation Memorandum Account.

SCE filed Advice Letter 2031-E on August 24, 2006. The advice letter sought Commission permission to establish the Peakers Generation Memorandum Account (PGMA) and to revise the Generation Sub-account of the Base Revenue Requirement Balancing Account (BRRBA).

NOTICE

Notice of AL 2031-E was made by publication in the Commission's Daily Calendar. SCE states that a copy of the Advice Letter was mailed and distributed in accordance with Section III-G of General Order 96-A.

PROTESTS

Advice Letter 2031-E was not protested.

DISCUSSION

Energy Division has reviewed SCE's Advice Letter 2031-E and recommends approval as clarified. The clarifications are needed to ensure that the Commissions direction and SCE implementation are consistent with the intent of the ACR.

The advice letter filed by SCE exceeds the ACR's directive.

The ACR invited SCE to file an advice letter to establish a memorandum account to "record the acquisition and installation costs." SCE's advice letter, in addition to establishing a memorandum account, sought authority to record the revenue requirement (i.e., incremental O&M expenses, book depreciation, applicable taxes, and an authorized rate of return on rate base) arising from with the acquisition costs, installation costs, and other related costs associated with peaking generation units and non-ISO transmission facilities upgrades associated with interconnecting the peaker units. SCE proposes to calculate the revenue requirement as each peaking facility is completed and closed to plant-in-service.

3




SCE further proposes that the revenue requirement recorded in the memorandum account be transferred to the Generation Sub-account of the BRRBA on a monthly basis.

SCE's filing highlights the different purpose of its proposed memorandum account. SCE proposes to use the memorandum account to record the revenue requirement associated with the peaker plants. The ACR directive indicated that the memorandum account was to record the acquisition and installation costs. The ACR did not address revenue requirement for the peakers.

SCE does not require a memorandum account to record acquisition and installation costs.

SCE states that prior to the peaker plants going into service, SCE spends the cash to construct the project and those expenditures are accumulated and tracked in a "work order" and those expenditures are recorded as an asset (Construction- work-in-progress) on the general ledger. SCE also accrues allowance for funds used during construction (AFUDC) associated with the expenditures in the work order. As the peaker costs are tracked in a "work order", a mechanism already exists at SCE to record the acquisition and installation costs.

SCE proposes to record $57 to $71 million of revenue requirement to the PGMA

SCE estimates that, for up to 250 MW of resources (5 combustion turbines of approximately 45 MW each), the total costs associated with the development, installation and start-up will probably exceed $250 million. As noted above, these costs will be accrued and tracked in a "work order", not the PGMA.

Based on the estimated $250 million of capital expenditures to install 5 peaking units, SCE estimates that the annual revenue requirement will be approximately $40 to $50 million. SCE proposes to record the revenue requirement in the PGMA. Assuming that the units go in-service in August 2007, the revenue requirement recorded in the PGMA in 2007 will be approximately $17-$21 million (5 month) and another $40-$50 million in 2008, for a total of $57-$71 million. Beyond 2008, the annual revenue requirement for the peakers will be included in SCE's authorized 2009 GRC revenue requirement which is currently scheduled to be implemented on January 1, 2009.

4




SCE's advice letter filing seeks to neutralize the income statement impact once the peakers are in service.

Once the peaker plants are operational and transferred to plant-in-service, SCE starts recording depreciation, O&M, and tax expenses. Recording these expenses without a corresponding increase in revenues will result in SCE's recorded earnings to be negatively impacted. Allowing SCE to record the revenue requirement in a memorandum account without the monthly transfer to the BRRBA does not mitigate the earnings impact, as SCE's memorandum account balances cannot be recorded on the general ledger until the Commission has approved rate recovery through a balancing account. SCE's advice letter proposal to record the revenue requirement to the memorandum account with a monthly transfer to the Generation Sub-account of the BRRBA neutralizes the income statement impact. SCE is ensured that the addition of the power plants will not affect SCE's opportunity to earn its authorized rate of return.

SCE will track the revenue requirement for each unit separately.

Mitigating circumstances compel deviating from standard Commission procedure.

As described above in the ACR, unanticipated conditions occurring during the summer of 2006 have prompted the CAISO to identify critical near-term needs in southern California for summer 2007. Accordingly, the ACR directed SCE to, among other things, pursue new utility-owned peaker units with the characteristics described in the ACR that provide up to 250 MW of new generation and can be online in time for August 1, 2007. SCE would ordinarily be required to procure any such resources through a competitive solicitation, pursuant to D.04-12-048. As competitive IOU procurement processes are key elements of the Commission's procurement regime, the ACR directed SCE to promptly evaluate any offers for resources in its on-going New Generation Request for Offers (RFO) process that have the features described in the ACR and to submit any resulting contracts for Commission approval by November 15, 2006, to the extent agreements can be reached for appropriate resources. However, given the extremely limited timeframe to bring such units online, there would not be sufficient time for SCE to wait until the results of that process are known and only then initiate its development of any still-needed utility-owned generation. Nor is there sufficient time for SCE to initiate and conduct a separate RFO that would include consideration and evaluation of new utility-owned

5




resources along with third party resources. In light of the foregoing mitigating circumstances, it is reasonable to permit SCE to proceed with the development of this limited amount of utility-owned resources outside of a competitive procurement process.

Additionally, allowing SCE to request authority to record revenue requirements associated with the peaker plants via an advice letter is not standard Commission practice. The advice letter process is an informal procedure. A revenue requirement request, should, under normal circumstances, be filed under an application process with its more formal procedures.

However, given that the peaker units were not forecasted in the 2006 GRC, begin accruing operational expenses by summer 2007, and that an application process may take a year or longer, there are sufficient mitigating circumstances for SCE's request.

Burden to show reasonableness of accrued costs w ill be on SCE.

SCE should be prepared to demonstrate that the accrued costs were reasonable. Accrued costs include all costs related to acquisition and installation of the peaker plants tracked through the "work order" system (estimated at $250 million), as well as the associated revenue requirement recorded to the memorandum account once the plants are in service (estimated at $57-$71 million). SCE should file an application no later than December 31, 2007 to demonstrate that the costs were reasonable.

The Preliminary Statement for the Peakers Generation Memorandum Account should be clarified.

CE should submit a substitute tariff sheet for the preliminary statement for the PGMA to clarify the purpose of the memorandum account. The currently stated purpose "to record the costs of acquisition and installation" is not correct and is misleading. SCE should properly state that the purpose of the PGMA is to record the revenue requirement associated with the peaker plants.

SCE's proposal to submit a monthly status report is welcomed.

In SCE's advice letter filing, SCE proposed to submit a monthly "Planning and Construction" Report to keep the Commission informed of the progress of the

6




projects. That report will include information such as the status of the projects, the costs incurred from inception to date, and any issues or concerns regarding the projects so that the Commission can provide guidance as the project advances.

The Commission endorses SCE's proposal for a monthly status report. We request that the date of August 1,2007 be identified as being the peaking generation on-line date with all corresponding progress measured to this date.

Effective date should be November 9,2006.

SCE request for an effective date of August 15,2006 is denied.

The Commission's standard practice is to authorize memorandum accounts to be effective only on or after the date on which the Commission approves them. Accordingly, we will authorize this memorandum account to be effective as of the date of today's decision. As SCE does not plan to record any amounts in this memorandum until the peaker plants are in service, there is no harm to SCE.

COMMENTS

Public Utilities Code section 311(g)(1) provides that resolutions generally must be served on all parties and subject to at least 30 days public review and comment prior to a vote of the Commission. Section 311(g)(2) provides that this 30-day period may be reduced or waived upon the stipulation of all parties in the proceeding.

The 30-day comment period for the draft of this resolution was neither waived nor reduced. Accordingly, this draft resolution was mailed to parties for comments, and placed on the Commission's agenda no earlier than 30 days from the date of mailing.

SCE provided comments on the draft resolution on October 26, 2006 to parties on service list for E-4031, R.04-04-003, and R. 06-02-013. No other party provided comments. No parties provided reply comments on the draft resolution.

In its comments, SCE requested clarifications confirming that SCE may develop up to 250 MW of new utility-owned generation as described in the ACR outside

7




of a competitive solicitation process, as a limited exception to the requirements ofD. 04-12-048.

Based in part on SCE's comments, the draft resolution is being modified.Modifications to the draft resolution have been incorporated throughout asreflected herein.

FINDINGS

1. Assigned Commissioner's Ruling (ACR) "Addressing Electric Reliability Needs in Southern California For Summer 2007" directed Southern California Edison Company (SCE) to pursue the development and installation of up to 250 MW of black-start, dispatchable generation capacity within its service territory for summer 2007 operation.

2. The ACR invited SCE to file an advice letter to establish a memorandum account in which SCE would record the acquisition and installation costs.

3. SCE filed Advice Letter 2031-E on August 24, 2006 to establish the Peakers eneration Memorandum Account (PGMA) and to revise the Generation Subaccount of the Base Revenue Requirement Balancing Account (BRRBA).

4. No protests were filed.5. Advice Letter 2031-E, in addition to establishing a memorandum account,

sought authority to record the revenue requirement (i.e., incremental O&M expenses, book depreciation, applicable taxes, and an authorized rate of return on rate base) arising from the acquisition cost, installation costs, and other related costs associated with peaking generation units.

6. SCE estimates total revenue requirement to be recorded in the PGMA of $57- $71 million, based on an estimated capital expenditures of $250 million to install 5 peaking units.

7. SCE proposes to calculate the revenue requirement as each peaking facility is completed and closed to plant-in-service.

8. SCE further proposes that the revenue requirement recorded in the PGMA be transferred to the Generation Sub-account of the BRRBA on a monthly basis.

9. The cost to be recorded in the PGMA is different from what the ACR directed. The ACR directed SCE to record "acquisition and installation costs" of the peaker plants. SCE filed its advice letter to record the revenue requirements associated with the peaker plants.

10. As SCE utilizes a "work order" to accumulate and track the costs associated with the peaker plants, SCE does not require a memorandum account for that purpose.

8




11. SCE states that once the plants are in service, SCE will begin recording depreciation, O&M, and tax expenses.

12. Recording these expenses without a corresponding increase in revenue will result in SCE' recorded earnings to be negatively impacted.

13. SCE's advice letter proposal to record the revenue requirement to the memorandum account with a monthly transfer to the Generation Subaccount of the BRRBA neutralizes the negative earnings effect caused by the peaker plants.

14. SCE will track the revenue requirement for each unit separately.15. Allowing SCE to procure utility-owned generation outside of the competitive

solicitation process and to request authority to record revenue requirements associated with the peaker plants via an advice letter is not standard Commission practice.

16. A revenue requirement request, should, under normal circumstances, be filed under an application.

17. Mitigating circumstances that require a limited exception from the competitive solicitation requirement of D.04-12-048 and standard Commission practice for requesting changes in authorized revenue requirements include: the unanticipated conditions arising in summer 2006 that prompted the CAISO to identify an urgent need for quick-start peaker units in southern California by summer 2007, the length of time for SCE to initiate and conduct a separate RFO for peaker units that would include new utility-owned resources and third party resources, the length of a formal application process associated with a revenue requirement request, the peaking units not being forecasted in the 2006 GRC, and the anticipated accrual of operational expenses by summer 2007.

18. SCE should be prepared to demonstrate that the acquisition and installation costs accrued in a "work order" and the associated revenue requirement recorded to the PGMA were reasonable.

19. SCE should submit a substitute sheet for the preliminary statement for the PGMA to clarify that the purpose of the memorandum account is to record the associated revenue requirement of the peaker plants, and not the acquisition and installation costs.

20. SCE's proposal to submit a monthly status report is welcomed.21. SCE requests an effective date of August 15,2006 for Advice Letter 2031-E.22. The Commission's standard practice is to authorize memorandum accounts

to be effective only on or after the date on which the Commission approves them.

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THEREFORE IT IS ORDERED THAT:

1. The request of the Southern California Edison Company (SCE) to establish the Peakers Generation Memorandum Account (PGMA) and to revise the Generation Sub-account of the Base Revenue Requirement Balancing Account (BRRBA) as requested in Advice Letter AL 2031-E is approved.

2. SCE is authorized to record the revenue requirement (i.e. incremental O&M expenses, book depreciation, applicable taxes, and an authorized rate of return on rate base) arising from the acquisition costs, installation costs, and other related costs associated with peaking generation units and non-ISO transmission facilities' upgrades associated with interconnecting the peaker units.

3. SCE is authorized to record the revenue requirement to the PGMA as each peaker plant is completed and becomes used and useful.

4. SCE shall track the revenue requirement for each unit separately.5. SCE is authorized to develop utility-owned peaker units, consistent with the

requirements of the ACR and this Resolution, without using a competitive solicitation process to procure such units as required by D.04-12-048.

6. SCE shall file an application no later than December 31, 2007 to demonstrate the reasonableness of the accrued acquisition and installation costs tracked in a "work order" and the associated revenue requirement recorded to the PGMA.

7. SCE shall file a substitute preliminary statement for the PGMA to clarify the purpose of the PGMA.

8. SCE shall file a monthly "Planning and Construction" report and identify the date of August 1, 2007 as being the on-line date with all corresponding progresses measured to this date.

9. The effective date of Advice Letter 2031-E is November 9, 2006.

This Resolution is effective today.

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I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on November 9, 2006; the following Commissioners voting favorably thereon:

STEVE LARSON Executive Director

MICHAEL R. PEEVEY PRESIDENT

GEOFFREY F. BROWN DIAN M. GRUENEICH JOHN A. BOHN RACHELLE B. CHONG

Commissioners

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127aWorkpaper - Southern California Edison / 2015 GRC - APPLICATION

(See Appendix A for a list of appearances.)

O PIN IO N O N BASE RATE REVENUE REQ UIREM ENT A N D OTHER PH ASE 1 ISSUES

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Workpaper - Southern California Edison / 2015 GRC - APPLICATION127b

A.02-05-004 COM/SKI/ham

this section, we address general principles applicable to forecasts of both

expenses and capital expenditures.8 . • • '

2.4.1. Averaging and Other Methodologies. Several different methods can be used to calculate test year estimates of

expenses. These include linear trending, averaging, last recorded year, and

budget based estimates. In PG&E's 1999 GRC, the Commission summarized

certain methodological issues as follows:

. The Commission has recognized that there are different valid and acceptable methods for accoimt-by-account forecasting test year costs in a GRC, including using a single recorded year's expenses . . . and using multi-year average recorded costs . . . . The question at hand is which of these two-methods yields the most accurate and ,reliable forecast of test year expenses. In PG&E's test year 1990 GRC . the Commission described the following criteria for developing a base estimate of test year expenses: '

• s. .If recorded expenses in an account have been relatively stable for three or more years, the 1987 recorded expense is an appropriate base estimate for 1990. . .

If recorded expenses in an account have shown a trend in a certain , direction over three or more years, the 1987 level is the most recent point in the trend and is an appropriate base estimate for 1990.

For those accounts which have significant fluctuations in recorded expenses from year to year, or which are influenced by weather or other external forces beyond the control of the utility, an average of recorded expenses over a period of time (typical four years) is a

8 Unless indicated otherwise, references to Operations and Maintenance (O&M) expenses are in year 2000 dollars and references to capital expenditures and capital plant additions are in nominal dollars. N

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127cWorkpaper - Southern California Edison / 2015 GRC - APPLICATION

A.02-05-004 COM/SKI/ham • ' ' '

reasonable base expense for the. 1990 test year. (D.89-12-057,34 '. CPUC 2d 199,231.) . . , '

With respect to a particular account in that GRC (Account 588), the •

' Commission went on to state:

Absent a specific explanation of why 1987 .recorded data best reflects the estimated 1990 expenses of an account with fluctuating expense levels and no discernible trends, we. find it most appropriate to use a , •four-year average as the base 1990 estimate. (Id., 238.)

' (Re Pacific Gas arid Electric Co., D.00-02-046, pp. 156-157 (quoting, •D.89-12-057,34 CPUC 2d 199).) . ' . . . '

-While the foregoing passage arose in the context of electric distributions-... .

expenses, the principles are consistent with findings the Commission has made, in

the context of other expense categories; For example, the Commission addressed

forecasting methodologies in a 1989 decision on a water utility's request for a rate

Where it is clear that there is a trend of increasing expenses which cannot be explained by inflation alone, and that such increases are , .

. necessarily incurred in providing utility service, less weight should .. be given to the constant dollar averaging method. On the other

hand, where it appears that an expense category is isubject to year-to- year variations, constant dollar averaging may be a more .appropriate method to smooth out such variations. (Re California

. W ater Service, D.89-04D60, 31 CPUC 2d 481/506.) ■ ' .

Discussion .

. The forecasting principles discussed' in D.00-02-046, D.89-12-057, and

D.89-04-060, quoted above, are generally appropriate and applicable here. Many

accounts reflect significant spending fluctuations from year to year, and in the

absence of'information to the contrary (for example/information that expenses

have been stable over time and no discernible upwards or downwards trend

increase:

16




Exhibit No. SCE-02/ Generation/Vol. 09Witnesses: A. Kurpakus and S. Messer

s02v02p01 - app...southern california edison company (sce) owns and operates five operating...

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