N-1Report
6 passages
2.0 METHODOLOGY The SRMC test involves the following steps: Determine the average marginal cost (over 8784 hours in 2024) at the transmission delivery level. In calculating this marginal cost, the effects of exports and load served under t...
AI summary The SRMC test calculates average marginal costs and compares them to unit revenues to assess efficiency. It accounts for distribution losses, uses price elasticity estimates, and applies different values for various rate classes. The test uses data from the 2024 Load Forecast Report and a California Energy Commission report.
3.0 RELATIONSHIP BETWEEN AVERAGE COST BASED RATES AND ACTUAL SHORT RUN MARGINAL COSTS 2 1 SRMC test results are determined by comparing appropriately modified average unit revenues for each rate class to actual marginal costs, adjusted for...
AI summary This section discusses the relationship between average cost-based rates and actual short-run marginal costs, highlighting differences caused by timing discrepancies in regulatory ratemaking and fluctuations in fuel costs. Rate changes are often based on forecasts rather than actual costs, and multi-year rate plans help smooth rate changes over time, leading to variations between customer payments and actual service costs.
Figure 4. Long-term trend in differential between Marginal Costs and Unit Revenues broken down by fuel and non-fuel components. 2014 2015 2015 2017 2010 2010 2020 2024 2022 2022 2024 11 Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 20...
AI summary Figure 4 shows the long-term trend in the differential between marginal costs and unit revenues, broken down by fuel and non-fuel components. The data highlights fluctuations over time, with significant year-over-year changes in both average marginal costs adjusted for line losses and unit revenues, including FAM-related costs and fixed costs.
As shown in Figure 4 , the unit average marginal costs, aside from following a different annual trend pattern with a higher overall volatility, are also significantly lower than unit revenues in each calendar year. This is because the unit...
AI summary The text discusses the relationship between unit average marginal costs and unit revenues, noting that unit revenues are higher and reflect total service costs for the four entities involved. The document references Figure 4 and is part of a regulatory proceeding filed on June 27, 2025.
1 Figure 5: Actual and Test year Unit Variable Generation Costs 2024 Actual 2024 Test Year FAM Classes Unit Variable Generation fuel cost Capped Base cost of fuel Uncapped Base cost of fuel Net Fuel and Purchased Power (Millions) $958.4 $7...
AI summary Figure 5 compares the actual and test year unit variable generation costs for 2024, highlighting differences in fuel costs and sales volumes. The data shows a significant percentage change in unit variable generation costs between actual and test year values, indicating variations in fuel cost assumptions.
Figure 1.1 2024 Base Cost Rate Revenues with DSM _ . N4 o- · - S hort Run Marginal Cost Tes st Ine efficient Usage I Estimat е Distributi on Line Losses as a % of Total Ave. Line Unit Revenue net of Base Charge in cents per MC in cents per...
AI summary The table in Figure 1.1 outlines 2024 base cost rate revenues with Demand Side Management (DSM) across various residential classes, including line losses, unit revenue, marginal costs, and usage estimates. It highlights significant variances in cost and usage patterns for different time-of-day and seasonal rate structures.
N-2Report - Refiled
6 passages
2.0 METHODOLOGY The SRMC test involves the following steps: Determine the average marginal cost (over 8784 hours in 2024) at the transmission delivery level. In calculating this marginal cost, the effects of exports and load served under t...
AI summary The SRMC test calculates the average marginal cost at the transmission delivery level, adjusting for exports and ELIADC Tariff load, and compares it to unit revenues. If unit revenues are lower than marginal costs, the class fails the test, and inefficient usage is estimated using price elasticities.
being set lower than the prospective test year costs. For the above reasons, the annual unit revenues paid by customers can significantly vary from actual unit cost of service incurred by the utility. Changes in actual unit short-run margi...
AI summary The document discusses the relationship between average cost-based rates and actual short-run marginal costs (SRMC), noting that unit revenues can vary significantly from actual service costs. It also mentions exceptions to the GRA framework, such as annually adjusted rates and specific riders like FAM AA/BA.
Figure 2. Trends in annual Energy Requirement, Unit Revenues and Marginal Costs 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 % Change in 2024 Total System Requirement (GWh) Net of LRT/ELIADC 9,968 10,102 9,837 9,970 10,252 10,342...
AI summary Figure 2 presents trends in annual energy requirement, unit revenues, and marginal costs from 2014 to 2024. It shows fluctuations in average marginal costs, unit revenues, and variance between them over time, with notable increases in some years and a decrease in others. The data also reflects changes in fuel costs and their impact on the system.
As shown in Figure 4 , the unit average marginal costs, aside from following a different annual trend pattern with a higher overall volatility, are also significantly lower than unit revenues in each calendar year. This is because the unit...
AI summary The text discusses the relationship between unit average marginal costs and unit revenues, noting that marginal costs are significantly lower than revenues due to the inclusion of total costs across four functional areas: generation, transmission, distribution, and retail.
reflective of total costs of service of the four functional areas of generation, transmission, distribution, and retail. The marginal generation costs DATE REFILED: August 15, 2025 Page 12 of 20 used by the Company in the SRMC test reflect...
AI summary The text discusses the marginal generation costs used by the Company in the SRMC test, which include only fuel and generation, operation, and maintenance costs, not fixed costs. It explains how the marginal cost relationship changed in 2022 due to geopolitical events and reverted in 2023. The average system marginal cost increased by 14.7% from 2023 to 2024 due to changes in the generation mix and increased load.
1 Figure 5: Actual and Test year Unit Variable Generation Costs 2024 Actual 2024 Test Year FAM Classes Unit Variable Generation fuel cost Capped Base cost of fuel Uncapped Base cost of fuel Net Fuel and Purchased Power (Millions) $958.4 $7...
AI summary Figure 5 compares actual and test year unit variable generation costs in 2024, showing differences in fuel costs, base costs, and unit variable costs in cents per kWh. The data highlights variations between actual and test year figures, including a 20.9% and 7.2% change in unit variable generation costs.