Energy Resource Recovery Account (ERRA)
The Energy Resource Recovery Account (ERRA) is a
balancing account where the utilities record and track energy procurement costs
(fuel and purchased power). ERRA tracks the difference between the utilities’ authorized
revenue recovered in customer rates and the actual cost of power. Public Utilities Code §454.5(d)(3)
required the CPUC to establish this account and to ensure timely recovery of
these procurement costs.
In October 2002, the CPUC issued a Decision establishing ERRA
for California’s three investor owned utilities: PG&E, SCE and
SDG&E. Through the ERRA proceeding, the utilities are able to recover
100 percent of their fuel, purchased power, and other related costs if they are
consistent with the utility’s approved procurement plan. At the end of year, any under or over collection are charged
or credited to customers’ bills. The utilities do not earn a rate of return on
funds in the Recovery Account.
The ERRA process is comprised of two types of annual proceedings:
- Compliance: A review of a utility’s
compliance with its procurement plan from the preceding year, including:
- Accounting
records of its expenses and revenues in the ERRA balancing account
- Energy
procurement activities of contract administration
- Economic
procurement of electric resources (Least Cost Dispatch) and fuel expenses
- Forecast: Establishes a utility’s
revenue requirement for the upcoming year based the utility’s anticipated accrual
of electric procurement costs and sales, as approved by the CPUC.
Follow the links below to ERRA by Utility.
Utility ERRA Applications are submitted to the CPUC on a regular basis:
Utility
|
Forecast Filing
|
Compliance Filing
|
PG&E
|
June 1
|
February 28
|
Edison
|
May 1
|
April 1
|
SDG&E
|
April 15 or earlier (filed on April 14, 2017)
|
June 1
|