The California Public Utilities Commission has established guidelines for the recovery of stranded costs over four years through a competition transition charge collected from existing and future customers, including those who depart the system.
The June 11 order allows recovery from 1998 through 2002 for costs associated with generation plants, nuclear settlements and QF contracts (Docket No. R.94-04-031/I.94-04-032). Costs associated with purchased power contracts, including QF contracts in place on Dec. 21, 1995, can be collected for the duration of the contract. Utilities also can recover costs associated with the Biennial Resource Proceeding Update settlement, capital additions to utility generation facilities existing as of December 1995, employee-related transition costs and Southern California Edison's fixed-fuel contracts. They may recover employee costs through Dec. 31, 2006.