PX Credit Calculations and Comments

Attached is a Word document with my notes from the PG&E meeting last Thursday August 1.
I am also including an Excel spreadsheet that shows how the PX credit is calculated under the various methods that have been discussed.

My conclusion is:
PG&E continues to make unpredictable and arbitrary decisions without applying with the CPUC. If not for the PX receivable, I would recommend an immediate protest to halt this behaviour.
They are also bending the existing rules so far as to strain credibility.

The SCE method of calculating a PX credit is the best choice both from a logical perspective and does not require an adjustment to our mark. (Again, setting aside the PX receivable issue.) Many external parties support it, the CPUC is heading in this direction.
It makes sense because it keeps DA customers paying for the services they use, i.e. T&D.
DA may be getting a "break" to the extent the current generation rate pays for "past sins", i.e. if market prices are below embedded generation plus the 3-cent surcharge. This is where a yet-to-be determined nonbypassable CTC may come from.

Setting the PX credit equal to the Market Price is unlikely to be approved, on a go-forward basis. If PX Credit = Market, the DA customer will only pay frozen rates. Although this confirms to AB1890 since the rate freeze is not technically over, it is unlikely that this will go forward since:
bundled customers are paying more than rate-freeze rates
there is no agreed-upon market price