ERRA Background
DRA is an active participant in the CPUC’s annual Energy Resource Recovery Account (ERRA) proceedings. In Decision 02-10-062, the Commission established the ERRA balancing account to monitor energy procurement costs incurred by the three California Investor-Owned Utilities (IOU), PG&E, SCE and SDG&E.
In D. 02-10-062, the Commission directed the three IOUs to generate and procure energy resources on a least-cost basis and to prudently administer contracts, according to upfront operational standards. The purpose of ERRA proceeding is to ensure that each utility’s generation and procurement activities uphold these standards.
Scope of ERRA Compliance
The scope of ERRA compliance review includes:
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Review of generation fuel expenses
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Contract administration
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Existing contracts such as Qualifying Facilities (QF) contracts and other renewable resource contracts
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Economic dispatch of generation resources
DRA’s History in Audit/Compliance Review
- DRA has participated in Energy Resource Recovery Account (ERRA) reasonableness reviews since 2004, under the market-based procurement paradigm (AB57)
- Prior to the 2001-02 energy crisis, DRA reviewed Energy Cost Adjustment Clause (ECAC) filings
- DRA is the only party involved in ERRA review
- Given the magnitude of energy procurement costs involved in ERRA, continued DRA participation provides the Commission with a valid "checks and balances" approach to oversight/compliance work.
DRA ERRA Re-Tooling Process
- DRA is now re-examining its strategic priorities, to streamline and re-tool participation in Commission proceedings
- Looking for Commission guidance on how to streamline and update ERRA participation
- Further Information on DRA's Participation in ERRA