BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Alliance for Nuclear Responsibility, Complainant, vs. Southern California Edison Company (U338E), Defendant. Case No. C. 13-02-013 (Filed February 19, 2013) SOUTHERN CALIFORNIA EDISON COMPANY’S (U 338-E) MOTION TO DISMISS COMPLAINT BY THE ALLIANCE FOR NUCLEAR RESPONSIBILITY DOUGLAS K. PORTER WALKER A. MATTHEWS RUSSELL A. ARCHER Southern California Edison Company 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, CA 91770 Telephone: (626) 302-6879 Facsimile: (626) 302-3990 E-mail: [email protected]HENRY WEISSMANN JONATHAN E. ALTMAN JOHN B. OWENS LIKA C. MIYAKE Munger, Tolles & Olson LLP 355 South Grand Avenue, 35th Floor Los Angeles, CA 90071 Telephone: (213) 683-9150 Facsimile: (213) 683-5150 E-mail: [email protected]Dated: April 10, 2013
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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE
STATE OF CALIFORNIA
Alliance for Nuclear Responsibility, Complainant,
vs.
Southern California Edison Company (U338E), Defendant.
Case No. C. 13-02-013 (Filed February 19, 2013)
SOUTHERN CALIFORNIA EDISON COMPANY’S (U 338-E) MOTION TO DISMISS COMPLAINT BY THE ALLIANCE FOR NUCLEAR
RESPONSIBILITY
DOUGLAS K. PORTER WALKER A. MATTHEWS RUSSELL A. ARCHER Southern California Edison Company 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, CA 91770 Telephone: (626) 302-6879 Facsimile: (626) 302-3990 E-mail: [email protected]
HENRY WEISSMANN JONATHAN E. ALTMAN JOHN B. OWENS LIKA C. MIYAKE Munger, Tolles & Olson LLP 355 South Grand Avenue, 35th Floor Los Angeles, CA 90071 Telephone: (213) 683-9150 Facsimile: (213) 683-5150 E-mail: [email protected]
Dated: April 10, 2013
TABLE OF CONTENTS
Page
-i-
I. INTRODUCTION AND SUMMARY OF ARGUMENT .................................... 1
II. BACKGROUND ................................................................................................... 3
A. Factual Background ................................................................................... 3
1. SGRP Costs As “Reasonableness Threshold” ............................... 4
2. Establishment Of Balancing Accounts And Recovery Of Costs In Rates ................................................................................ 6
B. Procedural Background .............................................................................. 9
III. ARGUMENT ....................................................................................................... 11
A. The Commission Lacks Jurisdiction Over The Majority Of Claims In The A4NR Complaint .......................................................................... 11
1. The Commission Lacks Jurisdiction Over Claims Based On Violations Of Federal And State Law .......................................... 11
2. The Commission Lacks Jurisdiction Over Claims Alleging Wrongdoing By Edison International .......................................... 12
B. A4NR Has Failed To State A Claim For A Rule 1.1 Violation. .............. 13
C. A4NR Has Not Come Close To Alleging Violations Of The Federal And State Statutes It Asks The Commission To Enforce ........... 14
2. A4NR’s False Claims Act Claims Also Fail................................ 21
3. A4NR Has Failed To State A Claim Under California’s Unfair Competition Law. ............................................................. 25
D. The Commission Should Not Initiate A Lawsuit Based On A4NR’s Complaint ................................................................................................. 26
E. The Complaint Is An Improper Attempt To Circumvent The OII ........... 26
IV. CONCLUSION .................................................................................................... 28
TABLE OF AUTHORITIES
Page
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STATE CASES
Assembly v. PUC, 12 Cal. 4th 87 (1995) ...................................................................................................13
California Amplifier, Inc. v. RLI Ins. Co., 94 Cal. App. 4th 102 ..................................................................................13, 20, 21, 26
Californians for Disability Rights v. Mervyn’s, LLC, 39 Cal. 4th 223 (2006) .................................................................................................25
Cel-Tech Commc’ns., Inc. v. Los Angeles Cellular Tel. Co., 20 Cal. 4th 163 (1999) .................................................................................................20
County of Kern v. Jadwin, 197 Cal. App. 4th 65 (2011) ........................................................................................28
Farmers Ins. Exchange v. Superior Court, 2 Cal. 4th 377 (1992) ...................................................................................................25
Goodspeed v. Great Western Power Co., 33 Cal. App. 2d 245 (1939) .........................................................................................11
Kwikset Corp. v. Superior Court, 51 Cal. 4th 310 (2011) .................................................................................................25
Mao’s Kitchen, Inc. v. Mundy, 209 Cal. App. 4th 132 (2012) ......................................................................................22
Motor Transit Co. v. Railroad Comm’n, 189 Cal. 573 (1922) .....................................................................................................11
Northern Cal. Power Agency v. PUC, 5 Cal. 3d 370 (1971) ....................................................................................................11
People ex rel. Orloff v. Pac. Bell, 31 Cal. 4th 1132 (2003) ...............................................................................................26
State ex rel. Grayson v. Pac. Bell Tel. Co., 142 Cal. App. 4th 741 (2006) ......................................................................................22
State ex rel. McCann v. Bank of America, N.A., 191 Cal. App. 4th 897 (2011) ......................................................................................22
Wise v. Pacific Gas & Elec. Co., 77 Cal. App. 4th 287 (1999) ........................................................................................12
FEDERAL CASES
Berson v. Applied Signal Tech., Inc., 527 F.3d 982 (9th Cir.2008) ........................................................................................18
Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723 (1975) .....................................................................................................15
Chabner v. United of Omaha Life Ins. Co., 225 F.3d 1042 (9th Cir. 2000) .....................................................................................25
County of Santa Clara v. Astra United States, Inc., 428 F. Supp. 2d 1029 .............................................................................................23, 24
Desaigoudar v. Meyercord, 223 F.3d 1020 (9th Cir. 2000) .....................................................................................16
Dura Pharm., Inc. v. Broudo, 544 U.S. 336 (2005) .....................................................................................................16
Fox v. Acadia State Bank, 937 F.2d 1566 (11th Cir. 1991) .............................................................................15, 28
Halkin v. VeriFone Inc. (In re VeriFone Sec. Litig.), 11 F.3d 865 (9th Cir. 1993) .........................................................................................18
TABLE OF AUTHORITIES (continued)
Page
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Hollinger v. Titan Capital Corp., 914 F.2d 1564 (9th Cir. 1990) .....................................................................................21
In re Coinstar Inc. Sec. Litig., No. C11-133 MJP, 2011 WL 4712206 (W.D. Wash. Oct. 6, 2011) ............................16
In re Cutera Sec. Litig., 610 F.3d 1103 (9th Cir. 2010) .....................................................................................18
In re Silicon Graphics Sec. Litig., 183 F.3d 970 (9th Cir. 1999) .......................................................................................19
In re Wash. Pub. Power Supply Sys. Sec. Litig., 823 F.2d 1349 (9th Cir. 1987) .....................................................................................15
Ontario Pub. Serv. Employees Union Pension Trust Fund v. Nortel Networks Corp., 369 F.3d 27 (2d Cir. 2004)...........................................................................................16
Ronconi v. Larkin, 253 F.3d 423 (9th Cir. 2001) .......................................................................................19
Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308 (2007) .....................................................................................................19
TSC Indus., Inc. v. Northway, Inc., 426 U.S. 438 (1976) .....................................................................................................18
United Paperworkers Int’l Union v. Int’l Paper Co., 985 F.2d 1190 (2d Cir. 1993).......................................................................................18
United States ex rel. Hendow v. Univ. of Phoenix, 461 F.3d 1166 (9th Cir. 2006) .....................................................................................22
United States ex rel. Herndon v. Science Applications Int’l Co., No. 05CV2269-BEN, 2007 WL 2019653 (S.D. Cal. July 10, 2007) ..........................24
United States ex rel. Longstaffe v. Litton Indus., Inc., 296 F. Supp. 2d 1187 (C.D. Cal. 2003) .......................................................................22
United States ex rel. Roby v. Boeing Co., 100 F. Supp. 2d 619 (S.D. Ohio 2000) ........................................................................23
TABLE OF AUTHORITIES (continued)
Page
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United States ex rel. UNITE HERE v. Cintas Corp., No. C 06-2413 PJH, 2008 WL 1767039 (N.D. Cal. Apr. 16, 2008)............................23
United States v. Dan Caputo Co., 321 F.3d 926 (9th Cir. 2003) .......................................................................................24
D. 12-03-037, 2012 WL 1135830 (Mar. 22, 2012) ...........................................................14
D. 13-01-001, 2013 WL 265502 (Jan. 10, 2013) ...............................................................14
TABLE OF AUTHORITIES (continued)
Page
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OTHER AUTHORITIES
HAROLD MARSH, JR. & ROBERT H. VOLK, PRACTICE UNDER CALIFORNIA SECURITIES LAWS (REV. ED. 2012) ..................................................................................................21
THOMAS LEE HAZEN, THE LAW OF SECURITIES REGULATION (6TH ED. 2009). ..................15
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I. INTRODUCTION AND SUMMARY OF ARGUMENT
On February 13, 2013, the Alliance for Nuclear Responsibility (“A4NR”) first
attempted to file its complaint against Southern California Edison (“SCE”) and Edison
International (“EIX”), alleging causes of action for securities fraud, violations of the state
and federal false claims acts, and unfair competition. The Commission immediately
rejected the complaint, explaining that the Commission lacked jurisdiction over A4NR’s
claims. Three days after the Commission’s rejection, A4NR filed essentially the same
complaint (the “Complaint”), once again alleging exactly the same five defective causes
of action over which the Commission has already ruled it lacked jurisdiction, but—in an
effort to avoid the Commission’s correct jurisdictional ruling—adding a new cause of
action for an alleged violation of Commission Rule of Practice and Procedure 1.1 (“Rule
1.1”). With the addition of the new cause of action, the Commission permitted the
Complaint to be served. A4NR’s Complaint is frivolous and should be dismissed.
First, the Commission has already correctly held that it has no jurisdiction over
five of A4NR’s six causes of action.
Second, A4NR’s cause of action under Rule 1.1—the one claim the Commission
has not already rejected—fails because SCE did not mislead the Commission or its staff.
Contrary to A4NR’s conclusory allegation, SCE did not use an inflation adjustment in
Advice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E.
Third, A4NR’s five statute-based claims fail on the merits, even if the
Commission had jurisdiction to consider them. Their numerous deficiencies include:
� No allegation appears that A4NR has ever attempted to buy or sell a single SCE
or EIX security, as required to state a claim under the federal securities laws.
� A4NR has no standing to bring its federal securities fraud claim based on 15
U.S.C. § 77q(a) (Section 17(a) of the Securities Exchange Act of 1933), which
does not provide a private right of action.
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� A4NR’s securities fraud claim based on 15 U.S.C. § 78j(b) (Section 10(b) of the
Securities Exchange Act of 1934) fails because A4NR fails to allege facts
sufficient to meet any of the required elements of a Section 10(b) claim, notably
failing even to attempt to allege that SCE’s or EIX’s statements were materially
false, that any investor relied on any SCE or EIX statement, or that such reliance
resulted in harm.
� For similar reasons, A4NR’s securities fraud claim based on Cal. Corp. Code
§ 25400(d) fails. In addition to failing to allege that any security was sold, or
offered to be sold, A4NR’s Complaint fails each element of a Cal. Corp. Code
§ 25400(d) claim, including failing to allege materiality or that the price of any
security was affected by SCE’s or EIX’s statements at issue.
� A4NR accuses SCE of violating federal and state False Claims Acts without
identifying a single allegedly false claim, or that any supposed false claim would
have been material to a government decisionmaker or caused any government
entity to pay.
� A4NR’s False Claims Act allegations are not only substantively meritless, but
procedurally deficient. A4NR has failed to satisfy the prerequisite procedural
requirements for bringing False Claims Act claims—that such claims be filed in
court and under seal, and be concurrently served on a government prosecutor.
� A4NR contends that SCE violated the California Unfair Competition Law, Cal.
Bus. & Prof. Code §§ 17200, et seq. (“UCL”), even though A4NR has suffered no
injury that could give it standing to sue under that statute.
� Aside from having no standing to bring a California UCL claim, A4NR has failed
to demonstrate violations of any statute or rule that could serve as a predicate
violation upon which its UCL “unlawfulness” claim could be based.
Indeed, it appears that A4NR did not make even a minimal effort to learn or
allege the essential elements of any of the causes of action in its Complaint. In any event,
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as set forth in greater detail below, none of them are plausibly pled, nor could they be.
SCE respectfully requests that the Commission dismiss A4NR’s Complaint with
prejudice. Should the Commission decide to not dismiss part or all of A4NR’s
Complaint, the Commission should refer it to Commission staff for informal resolution
pursuant to Commission Rule 4.2(c).
The Commission should reject A4NR’s request for this Commission to initiate its
own lawsuit concerning A4NR’s allegations. This request is merely another attempt by
A4NR to skirt the limitations on the Commission’s power to consider these claims. A
Commission lawsuit would suffer from the same jurisdictional, procedural, and
substantive deficiencies as the A4NR’s complaint.
II. BACKGROUND
A. Factual Background
On December 15, 2005, the Commission issued Decision (“D.”) 05-12-040 (the
“SGRP Approval Decision”), approving SCE’s request to replace SONGS Units 2 and
3’s four original steam generators (the Steam Generator Replacement Project, or SGRP).
In that decision, the Commission made two orders relevant to the issues raised in A4NR’s
Complaint concerning the costs of the SGRP and how those costs could ultimately be
included in SCE’s rates.
1. SGRP Costs As “Reasonableness Threshold”
First, the Commission ordered SCE to apply to include the full costs of the SGRP
into rates once the SGRP was completed. D. 05-12-040, 2005 WL 3540902 at *46 (Dec.
15, 2005) (Ordering Paragraph (“OP”) 11). The Commission approved a “reasonable
cost estimate” for SGRP costs of $680 million in 2004 dollars. Id. (OP 3). The
reasonableness threshold was subsequently reduced to $670.8 million pursuant to D. 11-
05-035, 2011 WL 2246054 (May 26, 2011). This figure was set as a threshold to help
determine whether the level of costs incurred for the SGRP would be subject to a
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reasonableness review at the time of the application to include the full costs of the SGRP
into rates: “We do not intend to conduct an after-the-fact reasonableness review if the
SGRP cost does not exceed $680 million [modified to $670.8].” Id. at *46 (OP 4). At
the time of the SGRP Approval Decision, the Commission did not prescribe an inflation
adjustment in connection with the costs discussed in the Decision. The Commission
noted that an inflation adjustment would be required to determine whether the costs
incurred should be subject to reasonableness review, and suggested that “[t]he inflation
adjustment should be made based on reliable publications such as the Consumer Price
Index published by the U.S. Bureau of Labor Statistics.” Id. at *42 (Findings of Fact
(“FOF”) ¶¶ 148-49). It further determined that the existing record was insufficient to
determine how such an inflation adjustment should be made. Id. (FOF ¶ 150).
On March 15, 2013, SCE filed its Application for inclusion of the SGRP costs
permanently in rates (A. 13-03-005 or the “SGRP Cost Review Application”). In the
testimony accompanying the SGRP Cost Review Application (SCE-6, submitted in I. 12-
10-013 (the “SONGS OII”), at 1-2), SCE noted that the Commission had not set a
specific inflation adjustment to apply to the SGRP costs for purposes of determining
whether the costs fell below the reasonableness threshold in 2004 dollars. SCE’s
testimony demonstrates that SCE’s actual SGRP costs are well below the reasonableness
threshold based on deflation of actual expenditures to 2004 dollars using the Handy-
Whitman Index of Public Utility Construction Costs and the burial escalation rates
approved by the Commission in other proceedings. The testimony also explains why the
Handy-Whitman Index and the burial escalation rate are the most appropriate indices to
use in calculating the deflation adjustment for SGRP costs. SCE-6 at 4-12. The SGRP
Cost Review Application, including the question of what deflation adjustment will be
used to determine whether SCE met the reasonableness threshold, is still pending.
In their securities filings and in other statements to investors since the SGRP
Approval Decision, SCE and EIX have regularly reported the approximate costs incurred
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in connection with the SGRP. In those statements, SCE and EIX have compared those
expenditures against the $670.8 million reasonableness threshold, appropriately adjusted
for inflation to permit an apples-to-apples comparison between recorded SGRP costs
(which have occurred in the years since the SGRP Approval Decision) and the
reasonableness cost threshold (which was set in 2004 dollars). A4NR alleges that SCE,
and its holding company, EIX, made material misrepresentations to investors in these two
statements: (1) that EIX CEO Theodore F. Craver, Jr. used the phrase “inflation-adjusted
authorized spend” in an earnings conference call, and (2) that in securities filings, EIX
and SCE included the phrase “the CPUC authorized expenditures of approximately $525
million1 ($665 million when adjusted for inflation).” Compl. ¶¶ 14-17. These phrases,
A4NR contends, shows that SCE and EIX told investors that the Commission had
authorized an inflation adjustment to be applied to SGRP costs. Compl. ¶15. A4NR’s
interpretation is inadvertently confused at best, deliberately misleading at worst, and in
any event, wrong.
2. Establishment of Balancing Accounts And Recovery Of Costs In Rates
Second, the Commission ordered that SCE could recover, on an interim basis, its
revenue requirement related to the SGRP based on its recorded expenditures. D. 05-12-
040 at *46 (OP 9-10). The Commission permitted SCE to record in balancing accounts
the revenue requirement associated with the steam generator replacement (the SONGS
2&3 Steam Generator Replacement Balancing Account, or SGRBA) and revenue
requirement associated with the removal and disposal of the original steam generators
(the SONGS 2&3 Steam Generator Removal and Disposal Balancing Account, or
SGRDBA). Id. (OP 7-8). Through these balancing accounts, SCE would track and
1 $525 million is SCE’s approximate proportion of the $670.8 million reasonableness threshold amount ($670.8 million multiplied by SCE’s ownership share in SONGS of 78.21% equals approximately $525 million).
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record the actual costs for the SGRP as those costs were incurred over the course of the
SGRP. The Commission also permitted SCE to include the revenue requirement
associated with the balancing accounts in rates on an interim basis, subject to refund, at
the beginning of the year following (a) commercial operation of each unit; and (b) the
completion of the removal and disposal of the original steam generators for each unit. Id.
(OP 9-10).
As ordered by the Commission, SCE filed Advice Letter 2355-E to establish the
SGRBA and SGRDBA and to modify the existing Base Revenue Requirement Balancing
Account (“BRRBA”). The SGRBA was established as a part of SCE’s tariff schedules in
Preliminary Statement, Part Z, “to record SCE’s ownership share of its actual steam
generator replacement costs revenue requirements.” Advice Letter 2355-E at 2; see also
id. at Preliminary Statement, Part Z, Sheet 1.2 The SGRDBA was established as a part of
SCE’s tariff schedules under Preliminary Statement, Part SS, “to record SCE’s ownership
share of its actual steam generator removal and disposal costs revenue requirements,”
except for 20% of estimated removal and disposal costs, which SCE was allowed to
recover from 2006 to 2011. Id. at 3; see also id. at Preliminary Statement, Part SS, Sheet
1.3 The tariff permits SCE to record only its actual, recorded costs – for example, Book 2 The SGRBA consisted of two sub-accounts (the SONGS Unit 2 SGR Sub-account and SONGS Unit 3 SGR Sub-account), one each for the recorded activity associated with Unit 2 and Unit 3, respectively. Each sub-account contained the following entries recording actual revenue requirements associated with the SGRP for that unit: “a. Debit entry - recorded Book Depreciation Expense; b. Debit entry - recorded Ad Valorem Tax Expense; c. Debit entry - recorded Tax Expense Based on Income, including all appropriate income tax adjustments, and deferred income tax expense; and d. Debit entry- recorded Return on Rate Base (which is one-twelfth of the Rate of Return on Rate Base, multiplied by the average SONGS Unit [2 or 3] SGR rate base for the month).” Advice Letter 2355-E, Preliminary Statement, Part Z, Sheets 4-5. Cost forecasts derived from recorded costs and forecasts of capital costs were recovered and then “trued up” to be consistent with the recorded costs reflected in the SGRBA. Snow Decl. Ex. 1 (SCE-5 at 4-7). 3 The SGRDBA consisted of two sub-accounts (the SONGS Unit 2 SGRAD Sub-account and SONGS Unit 3 SGRAD Sub-account), one each for the recorded activity associated with Unit 2 and Unit 3, respectively. Each sub-account contained the following entries
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Depreciation Expense. The tariff does not permit SCE to apply an inflation adjustment to
its recorded costs.
SCE then filed three Advice Letters to implement the Commission’s order which
authorized SCE to include certain SGRP-related revenue requirements in rates on an
interim basis, subject to refund:
� Advice Letter 2521-E, filed November 1, 2010, implemented the estimated
2011 revenue requirement to be included in rates beginning January 1, 2011,
for the replacement of the Unit 2 steam generators. Advice Letter 2521-E was
approved by the Energy Division on December 7, 2010, and made effective as
of December 1, 2010.
� Advice Letter 2648-E-A, filed November 1, 2011, implemented the 2012
revenue requirements to be included in rates beginning January 1, 2012,
including estimated revenue requirements for the SGRP relating to both Units
2 and 3. Advice Letter 2648-E-A was approved by the Energy Division on
June 13, 2012, and made effective as of January 1, 2012.
� Advice Letter 2834-E, filed December 31, 2012, implemented the 2013
revenue requirements to be included in rates beginning January 1, 2013,
including estimated revenue requirements for the Units 2 and 3 SGRP and the
replacement and disposal of both Unit 2 and 3’s original steam generators.
This Advice Letter is still pending.
recording actual revenue requirements associated with the removal and disposal costs for the original steam generators of that unit: “Debit entry - recorded Ad Valorem Tax Expense; b. Debit entry - recorded Tax Expense Based on Income, including all appropriate income tax adjustments, and deferred income tax expense; and c. Debit entry - recorded Return on SGRAD Rate Base (which is one-twelfth of the Rate of Return on Rate Base, multiplied by the average SONGS Unit [2 or 3] SGRAD rate base for the month).” Advice Letter 2355-E, Preliminary Statement, Part SS, Sheets 3-4. Cost forecasts derived from recorded costs and forecasts of capital costs were recovered and then “trued up” to be consistent with the recorded costs reflected in the SGDRBA. Snow Decl. Ex. 1 (SCE-5 at 4-7).
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Consistent with the language of the tariffs, in none of the calculations used to
determine the SGRP revenue requirements submitted in the above-referenced “Relevant
Advice Letters” (Advice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E) did SCE use an
inflation adjustment or escalation factor. Declaration of Doug Snow (“Snow Decl.”)
¶¶ 3. As explained in more detail in SCE-5, filed on March 15, 2013 in I. 12-10-013,
SCE used a combination of actual, recorded costs, plus a forecast of the current year
capital costs to determine its estimated revenue requirements, which were then “trued-up”
in the subsequent year to reflect the actual, recorded costs as recorded in the SGRBA and
SGRDBA. Snow Decl. Ex. 1 (SCE-5 at 4-7). Because the ratemaking was set up to
recover only actual, recorded costs, no escalation or inflation factors were required or
used in determining either the estimated or the actual revenue requirements.
A4NR alleges that SCE misleadingly omitted mention of using an inflation
adjustment in reporting costs in three Advice Letters it used to seek interim inclusion of
certain SGRP costs in rates. Compl. ¶¶ 34-35. But SCE unambiguously did not use an
inflation adjustment in any of those Advice Letters; nor does A4NR allege any facts to
show that SCE did use an inflation adjustment. A4NR alleges only on information and
belief, and without alleging any basis for that belief, that it thinks SCE used an inflation
adjustment in these Advice Letters. Compl. ¶ 27.
In a portion of the SGRP Approval Decision not at issue in A4NR’s Complaint,
the Commission ordered that SCE was “authorized to recover through depreciation a total
of 20% of its ownership share ($22.2 million times its ownership share) of the estimated
removal and disposal costs for the original steam generators over 2006-2011.” D. 05-12-
040 at *46 (OP 12). These costs were not recorded in either of the balancing accounts
established through Advice Letter 2355-E. Advice Letter 2355-E at 3. As explained in
SCE-5, SCE recovered these costs through the filing of Advice Letters (1951-E, 2067-E,
2292-E, and 2402-E) separate from those mentioned in A4NR’s Complaint. Snow Decl.
Ex. 1 (SCE-5 at 2-3). SCE escalated the costs associated with this 20% of estimated
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removal and disposal costs, and expressly referenced these inflation adjustments in the
Advice Letters. Id. at 3-4. Those Advice Letters were each approved and made effective
by the Commission’s Energy Division. Snow Decl. ¶ 4.
B. Procedural Background
On or about February 13, 2013, A4NR attempted to file a complaint before the
Commission (the “Original Complaint”), asserting five causes of action: (1) Violation of
(holding that the Commission had no jurisdiction to adjudicate alleged violations of the
UCL); Goodspeed v. Great Western Power Co., 33 Cal. App. 2d 245, 273 (1939)
(holding that commission had no jurisdiction to hear claim concerning alleged fraud in
connection with stock sale); see also Motor Transit Co. v. Railroad Comm’n, 189 Cal.
573, 579-80 (1922) (explaining that Commission does not have the power to adjudicate
claims unrelated to the regulation of public utilities, like libel claims).
A4NR erroneously asserts that the Commission should entertain this Complaint
because it may “consider areas of law outside of its jurisdiction in fulfilling its duties.”
Compl. at 3. The Commission’s mandate is to supervise and regulate public utilities,
which it does through the enforcement of the Public Utilities Code. See Cal. Pub. Util.
Code § 701. The Commission may consider “law outside of [the Commission’s]
jurisdiction” only where necessary for the Commission to carry out its own mandate to
regulate and supervise utilities under the Public Utilities Code. E.g., Northern Cal.
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Power Agency v. PUC, 5 Cal. 3d 370, 378 (1971) (holding that Commission’s
consideration of antitrust laws was permissible where such considerations would inform
the primary question of whether a proposed development was in the public interest).
Because no such nexus to the Commission’s authority under the Public Utilities Code is
alleged, the Commission lacks jurisdiction to adjudicate the statutory claims. See
Greenlining Inst., 103 Cal. App. 4th at 1331.
A4NR’s appeal to the doctrine of primary jurisdiction is also inapt. The primary
jurisdiction doctrine operates to stay an action in court that involves issues “within the
special competence of an administrative body,” and where initial agency review would
assist a court’s decisionmaking. Wise v. Pacific Gas & Elec. Co., 77 Cal. App. 4th 287,
295-96, (1999). In Greenlining, the California Court of Appeal specifically rejected the
argument that the primary jurisdiction doctrine conferred jurisdiction on the Commission
to adjudicate statutory claims not within the Commission’s power to adjudge. 103 Cal.
App. 4th at 1332 (dismissing argument that primary jurisdiction doctrine enabled
Commission to adjudicate UCL claims).
The Commission should dismiss all of A4NR’s statute-based claims.
2. The Commission Lacks Jurisdiction Over Claims Alleging Wrongdoing By Edison International
The Commission also should dismiss A4NR’s claims against Edison International
or its officers based on allegedly material false representations in certain of its securities
filings. Compl. ¶¶ 14, 15, 17, 29, 30, 33. This Commission lacks jurisdiction over EIX,
which is not a public utility subject to the Commission’s regulatory jurisdiction. The
Commission has been permitted to exercise jurisdiction over holding companies only
when such an extension of its jurisdiction is “cognate and germane to utility regulation.”
PG&E Corp. v. PUC, 118 Cal. App. 4th 1174, 1201 (2004) (emphasis in original)
(Commission has jurisdiction over holding companies to enforce conditions in
Commission decisions authorizing formation of holding companies). The evaluation of
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EIX’s compliance with securities laws is not pertinent to this Commission’s regulation of
SCE and is beyond the Commission’s jurisdiction.
Moreover, enforcement of both federal and state securities fraud statutes is
reserved to the Securities and Exchange Commission (“SEC”), U.S. Department of
Justice, and California Department of Corporations. 15 U.S.C. § 78u(d) (authorizing
SEC to bring actions to enforce Section 10(b) of the Securities Exchange Act of 1934);
15 U.S.C. § 78ff(a) (codifying criminal penalties for violations of Securities Exchange
Act of 1934); 15 U.S.C. § 77t(b) (authorizing SEC to bring actions to enforce violations
of the Securities Exchange Act of 1933); California Amplifier, Inc. v. RLI Ins. Co., 94
Cal. App. 4th 102, 109 (“Enforcement of section 25400 is limited to administrative
proceedings initiated by the Department of Corporations.”) (citing Cal. Corp. Code
§§ 25530, 25532, 25535). The Commission has no jurisdiction to enforce these statutes,
which are far outside of the Commission’s mandate and expertise. Any attempt by the
Commission to enforce these securities fraud statutes against EIX would contravene the
securities statutes’ provisions that assign enforcement powers to other regulatory or
prosecutorial authorities. The Commission’s powers under Cal. Pub. Util. Code § 701
are circumscribed to the extent they contravene such “express legislative directives.”
Assembly v. PUC, 12 Cal. 4th 87, 103-04 (1995) (rejecting “a construction of section 701
that would confer upon the Commission powers contrary to other legislative directives”).
The Commission should dismiss A4NR’s claims to the extent they allege
wrongdoing or misrepresentations by EIX or any of its officers.
B. A4NR Has Failed To State A Claim For A Rule 1.1 Violation.
A4NR’s cause of action under Commission Rule 1.1 should be dismissed because
it fails to allege facts establishing a violation of that rule, and because the undisputed
facts show that there was no violation. See D. 99-11-023, 1999 WL 1957792, at *3 (Nov.
4, 1999) (complaint should be dismissed where, “taking the well-pleaded factual
allegations of the complaint as true, the defendant is entitled to prevail as a matter of
- 14 -
law”) (emphasis added); D. 12-03-037, 2012 WL 1135830 (Mar. 22, 2012); D. 13-01-
001, 2013 WL 265502, at § 3.1 (Jan. 10, 2013) (complaint should be dismissed “where
the evidence presented indicates there are no triable issues as to any material fact and
that, based on the undisputed facts, the moving party is entitled to judgment as a matter of
law”) (citing Cal. Code Civ. Proc. § 437(c)); see also D. 04-05-006, 2004 WL 1095245,
at *8 (May 26, 2005).
A4NR contends that SCE used “an inflation adjustment for the SGRP costs
addressed by its Advice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E” (Compl. ¶ 34),
and misled the Commission and its staff by allegedly failing to disclose this alleged use
of an inflation adjustment (id. ¶ 35). A4NR’s Complaint includes no well-pled
allegations to support this claim. It alleges only on information and belief that SCE used
an inflation adjustment in calculating SGRP costs in those Advice Letters (id. ¶ 27)—but
states no basis for that belief. A4NR cites no document, testimony, or statement
indicating that SCE used such an inflation adjustment in calculating SGRP costs in those
Advice Letters. Moreover, as explained in SCE’s OII Testimony (SCE-5) and the
Declaration of Douglas Snow, filed concurrently herewith, SCE did not in any way use
any inflation adjustment in calculating SGRP costs reported in those Advice Letters.
Snow Decl. ¶ 3.4 Both A4NR’s inadequate pleading and the uncontroverted testimony of
Douglas Snow forecloses A4NR’s Rule 1.1 claim, and it must be dismissed.
C. A4NR Has Not Come Close To Alleging Violations Of The Federal And State Statutes It Asks The Commission To Enforce.
The Commission’s lack of jurisdiction over the statutory claims is dispositive, but
even if it were not, the statutory claims should be dismissed on the merits.
4 As noted, SCE did use an inflation adjustment in connection with the recovery of the 20% of estimated removal and disposal costs that are not at issue in the Complaint. SCE expressly disclosed the use of the inflation adjustment in the separate advice letters pursuant to which it recovered the estimated removal and disposal costs.
- 15 -
1. A4NR’s Securities Fraud Claims Fail.
A4NR does not even allege the most basic requirement of a securities fraud
action—that it purchased or sold securities, or sought to do so. Simply put, because there
are no securities at issue, A4NR has no securities fraud claim. In addition to this
fundamental flaw, each of A4NR’s securities claims is deficient for multiple reasons.
a. A4NR Has No Claim Based On 15 U.S.C. § 77q(a) (Section 17(a) Of The Securities Exchange Act Of 1933).
A4NR cannot bring a claim under 15 U.S.C. § 77q(a). That statute (also known
as Section 17(a) of the Securities Exchange Act of 1933), is generally raised in
enforcement actions brought by the SEC. A majority of circuits, including the Ninth
Circuit, agree that there is no private right of action under Section 17(a). E.g., In re
Wash. Pub. Power Supply Sys. Sec. Litig., 823 F.2d 1349, 1350-58 (9th Cir. 1987); Veltex
Corp. v. Matin, No. CV 10-1746 ABC (PJWx), 2010 WL 3834045, at *3 (C.D. Cal. Sept.
27, 2010); 4 THOMAS LEE HAZEN, THE LAW OF SECURITIES REGULATION § 12.22 (6th ed.
2009). Indeed, courts impose Rule 11 sanctions against plaintiffs or their counsel for
bringing private Section 17(a) claims where, as in the Ninth Circuit, existing authority
bars private plaintiffs from asserting Section 17(a) claims. Crookham v. Crookham, 914
known as Rule 10b-5); Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723, 731, 749
- 16 -
(1975) (holding that to bring a Rule 10(b) claim, plaintiffs must have purchased or sold
securities at issue). A4NR thus lacks standing to bring its Section 10(b) claim. See, e.g.,
Ontario Pub. Serv. Employees Union Pension Trust Fund v. Nortel Networks Corp., 369
F.3d 27, 32-33 (2d Cir. 2004) (affirming dismissal for lack of standing where plaintiffs
did not purchase securities of corporation alleged to have made misrepresentations).
In addition, A4NR fails to allege any of the required elements of a Section 10(b)
claim: that a defendant (1) made a false statement or an omission of material fact, (2)
with scienter, (3) in connection with the purchase or sale of a security, (4) upon which the
plaintiff justifiably relied, and (5) which proximately caused (6) the plaintiff’s economic
loss. See, e.g., Dura Pharm., Inc. v. Broudo, 544 U.S. 336, 341 (2005). Rule 10(b)
claims are subject to the heightened pleading requirements of Rule 9(b) and the Private
Securities Litigation Reform Act (“PSLRA”). Desaigoudar v. Meyercord, 223 F.3d
1020, 1022-23 (9th Cir. 2000).
No false statement: A Section 10(b) plaintiff must plead falsity with particularity.5
Rubke v. Capitol Bancorp Ltd., 551 F.3d 1156, 1164 (9th Cir. 2009). But A4NR’s
Complaint fails to demonstrate that SCE or EIX made any false statement whatsoever.
Instead, A4NR lends implausible constructions to isolated phrases it plucks out of SCE
and EIX securities filings and an earnings conference call. This kind of unwarranted
distortion of statements is insufficient to allege falsity. As courts have repeatedly found,
falsity cannot be alleged based on a mere misinterpretation of a statement. See, e.g.,
Rubke, 551 F.3d at 1164-65 (affirming grant of motion to dismiss Rule 10(b) claim where
allegations of misleading statement “simply misconstrue[d] the language” of a
registration statement); In re Coinstar Inc. Sec. Litig., No. C11-133 MJP, 2011 WL
5 If the Commission does consider the merits of A4NR’s claims, it should apply the same pleading standards that courts have consistently required for plaintiffs bringing the same claims in civil court.
- 17 -
4712206, at *7 (W.D. Wash. Oct. 6, 2011) (finding statements not adequately pled as
false where plaintiff “interpret[ed] [defendant’s] statements out of context”).
The Complaint points to two allegedly misleading statements. First, A4NR
highlights a sentence in SCE and EIX’s 10-K and 10-Q submissions stating, “In 2005, the
CPUC authorized expenditures of approximately $525 million ($665 million when
adjusted for inflation) for SCE’s 78.21% share of San Onofre to purchase and install” the
new steam generators and remove and dispose of their predecessors. Compl. ¶¶ 15, 17.
A4NR contends that this statement is untrue because there was no “‘authorized’ inflation-
adjusted amount” for the costs of the SGRP, and because the Commission has not yet
authorized “a particular adjustment for inflation.” Id. ¶¶ 15, 19. But the submissions do
not state that the Commission authorized any particular adjustment for inflation. Instead,
they state (1) that the Commission authorized expenditures of $525 million, and (2) that
the $525 million, when adjusted for inflation, translates to $665 million. The second
statement is set off in parentheses, and the word “authorized” at the beginning of
statement (1) does not modify the verb “adjusted” in statement (2). Compl. ¶¶ 15
inference” standard not met and one plausible explanation for defendant’s statement was
confusion about investor’s question); Ronconi v. Larkin, 253 F.3d 423, 429 (9th Cir.
2001) (granting motion to dismiss because complaint lacked allegations sufficient to raise
a strong inference of required scienter). The inference of intent “must be more than
merely plausible or reasonable—it must be cogent and at least as compelling as any
opposing inference of nonfraudulent intent.” Tellabs, 551 U.S. at 309. A4NR’s
Complaint includes no allegations to show that SCE or EIX personnel made misleading
statements intentionally or with recklessness. No facts are alleged that would tend to
show that SCE or EIX had the fraudulent intent of causing investors to believe that the
Commission had authorized a particular inflation adjustment for the SGRP costs. Such
an inference is not even reasonable, much less strong.
- 20 -
No purchase or sale of security, so no reliance, causation, or loss: Because no
purchase of a security or any investing decision whatsoever is alleged here, A4NR cannot
contend that it (or anyone else) relied on the statements it alleges were false or
incomplete. Nor are there any allegations to support the required element that A4NR (or
anyone else) suffered any losses because of the alleged misrepresentations, or that those
losses could have been caused by those alleged misrepresentations.
c. A4NR’s Complaint Has Not Stated A Claim For A Violation Of Cal. Corp. Code § 25400(d).
For similar reasons to those that foreclose A4NR’s Section 10(b) claim, A4NR’s
claim under California’s securities statutes also fails. A plaintiff asserting a Section
25400(d) claim must demonstrate that: (1) “a person selling or offering for sale . . . the
security” has made, (2) “for the purpose of inducing the purchase” of a security by
others,” (3) “any statement which was, at the time and in the light of the circumstances
under which it was made, false or misleading with respect to any material fact, or which
omitted to state any material fact necessary in order to make the statements made, in the
light of the circumstances under which they were made, not misleading,” (4) “which he
knew or had reasonable ground to believe was so false or misleading”; and which
affected the price of a security, damaging a purchaser. Cal. Corp. Code §§ 25400(d),
25500. A4NR’s Complaint fails to allege facts sufficient to satisfy any of the required
elements of this Section 25400(d) claim:
No intent to induce purchase of security: The Complaint does not allege any facts
from which one could infer that any SCE or EIX representative made statements “for the
purpose of inducing the purchase or sale of” a security by another person (Cal. Corp.
Code § 25400(d))—e.g., with the “specific intent to affect the price of a security in order
to induce its purchase or sale.” California Amplifier, Inc., 94 Cal. App. 4th at 110 (citing
Cel-Tech Commc’ns., Inc. v. Los Angeles Cellular Tel. Co., 20 Cal. 4th 163, 173 (1999))
(emphasis added).
- 21 -
No misrepresentation or omission of material fact: As explained above, neither
SCE nor EIX made any actionable misrepresentation or omission whatsoever, much less
one concerning a “material fact.” This materiality standard is the same under Cal. Corp.
Code § 25400(d) as it is under federal securities statutes; thus, the analysis showing that
the materiality standard was not met with respect to A4NR’s Section 10(b) claim also
forecloses A4NR’s Section 25400(d) claim. 1 HAROLD MARSH, JR. & ROBERT H. VOLK,
PRACTICE UNDER CALIF. SEC. LAWS 14.05[2][e] (rev. ed. 2012).
No scienter: Under Section 25400(d), the “required level of culpability . . . is the
equivalent of recklessness.” California Amplifier, 94 Cal. App. 4th at 109. “In the
context of securities fraud, recklessness exists when the danger of misleading buyers or
sellers is so obvious that the defendant must have been aware of it.” Id. at 110 (citing
Hollinger v. Titan Capital Corp., 914 F.2d 1564, 1569 (9th Cir. 1990)). Here, there are
no allegations that there was any danger of misleading buyers or sellers whatsoever,
much less that that danger was so “obvious” that SCE or EIX would have been aware of
it. Nor is there any allegation that any SCE or EIX person was aware of any such risk or
made the statement with such awareness.
No impact on price of security. “In order to recover [a plaintiff] must, of course,
establish that the price paid or received was affected by the defendant’s wrongful
conduct.” 1 MARSH & VOLK § 14.05[5]. Having failed to make this allegation, A4NR
has no claim under Section 25400(d). Nor has A4NR alleged that the price of any
security was affected by any SCE or EIX statement.
2. A4NR’s False Claims Act Claims Also Fail.
A4NR contends that it does not seek to be a qui tam plaintiff or relator. Compl.
¶¶ 40, 43. But this ploy does not enable A4NR to skirt the procedural requirements with
which qui tam plaintiffs must comply. A4NR, like other private actors filing suit under
the federal and California False Claims Acts, was required to first file its complaint in
- 22 -
court and under seal. 31 U.S.C. § 3730(b)(2); Cal. Gov. Code § 12652(c)(2). Relators
under either statute must also serve the federal government or the California Attorney
General with a copy of the complaint along with “written disclosure of substantially all
material evidence and information the person possesses.” 31 U.S.C. § 3730(b)(2); Cal.
Gov. Code § 12652(c)(3). A4NR has failed to comply with either of these requirements.6
In addition, A4NR has failed to state a claim under either False Claims Act. “The
essential elements of False Claims Act liability [are]: (1) a false statement or fraudulent
course of conduct, (2) made with scienter, (3) that was material, causing (4) the
government to pay out money or forfeit moneys due.” United States ex rel. Hendow v.
Univ. of Phoenix, 461 F.3d 1166, 1174 (9th Cir. 2006).7
Failure to identify false claim: To state a claim under either the federal or
California False Claims Act, a plaintiff must plead its claims with the particularity. E.g.,
Bly-Magee v. California, 236 F.3d 1014, 1018 (9th Cir. 2001) (holding that Fed. R. Civ.
Proc. 9(b) pleading requirements applied to federal False Claims Act (“FFCA”) claim);
State ex rel. McCann v. Bank of America, N.A., 191 Cal. App. 4th 897, 906 (2011)
(California False Claims Act (“CFCA”) claims must be pleaded with particularity).
Thus, a False Claims Act plaintiff must, “at a minimum, plead the ‘who, when, where and
6 As discussed below, A4NR’s false claims allegations are so vague and uncertain that it is impossible for SCE to determine exactly what submittals are alleged to be “false” and what about them are alleged to be “false.” From A4NR’s existing allegations, it appears that an additional jurisdictional bar applies to its claims: the “public disclosure” bar codified in both the federal and California False Claims Acts. See 31 U.S.C. § 3730(e)(4)(A); Cal. Gov. Code § 12652(d)(1)-(4). The “public disclosure” bar, which precludes claims based on allegations already in the public domain, also likely bars A4NR’s claims. Indeed, A4NR admits that “[t]he information upon which this complaint is based is in the public domain.” Compl. ¶¶ 40, 43; see United States ex rel. Longstaffe v. Litton Indus., Inc., 296 F. Supp. 2d 1187, 1195 (C.D. Cal. 2003) (dismissing qui tam action where “publicly disclosed allegations were sufficient to put the government on notice of the alleged FCA violations”); State ex rel. Grayson v. Pac. Bell Tel. Co., 142 Cal. App. 4th 741, 748 (2006) (citing federal False Claims Act, 31 U.S.C. § 3729, et seq.) (barring qui tam claim where allegation had been publicly disclosed in trade journals). 7 Because the California False Claims Act “‘was modeled on the federal False Claims Act, . . . it is appropriate to turn to federal cases for guidance in interpreting the [CFCA].’” Mao’s Kitchen, Inc. v. Mundy, 209 Cal. App. 4th 132, 146 (2012) (alteration in original) (citations omitted).
- 23 -
how’ as well as the specific content of each alleged act of fraud to allow the defendant to
defend against the charge and not just deny that it has done anything wrong.” United
States ex rel. UNITE HERE v. Cintas Corp., No. C 06-2413 PJH, 2008 WL 1767039, at
LKK/GGH, 2007 WL 1791699, at *19 (E.D. Cal. June 15, 2007) (quoting United States
ex rel. Roby v. Boeing Co., 100 F. Supp. 2d 619, 625 (S.D. Ohio 2000)). As A4NR does
not even identify what submittal it claims was falsely made, A4NR has not alleged that
supposed submittal’s falsity.
- 24 -
Even assuming that A4NR intended to allege that the Relevant Advice Letters
constituted false claims, A4NR does not properly allege that the Advice Letters are false
in any way. A4NR alleges that the Advice Letters do not state that any inflation
adjustment was used, but contends only on “information and belief” that an inflation
adjustment was used. “Allegations of fraud based on information and belief do not
satisfy the particularity requirement unless accompanied by a statement of the specific
facts on which the belief is founded.” County of Santa Clara, 428 F. Supp. 2d at 1036
(granting motion to dismiss CFCA claim for failure to plead with particularity). A4NR
proffers no allegations suggesting or showing that any inflation adjustment was actually
used in the Advice Letters. Thus, A4NR has failed to allege the falsity of the statements
in the Advice Letters. See, e.g., United States v. Dan Caputo Co., 321 F.3d 926, 933 (9th
Cir. 2003) (“For a false claim suit to succeed, the plaintiff must show that the claim was
false, that is, contrary to an existing state of things.”).
Finally, any alleged falsity in the Advice Letters does not establish that the bills
remitted to government customers are false. Those bills set forth charges based on rates
computed in accordance with tariffs on file with the Commission. Whether those rates
were computed correctly or not—and, as shown above, they were computed correctly—
the charges on the bills were not false.
No materiality: Because A4NR has not alleged that a false claim was even made,
it has also failed to plead materiality with particularity. E.g., United States ex rel.
Herndon v. Science Applications Int’l Co., No. 05CV2269-BEN, 2007 WL 2019653 at *5
(S.D. Cal. July 10, 2007) (dismissing complaint where allegations not sufficient to show
materiality). Because no particular claim is at issue, it is impossible for A4NR to contend
that any statement in any such claim would have been material to a government official
reviewing the claim.
- 25 -
No causation of government pay out: A4NR’s complaint includes no allegations
that any government entity paid out money based on false submittals (that A4NR does
not identify). A4NR thus fails to allege this essential element as well.
3. A4NR Has Failed To State A Claim Under California’s Unfair Competition Law.
A4NR’s Sixth Cause of Action asserts that SCE has engaged in “unlawful,
fraudulent, or unfair acts or practices” under the UCL, which acts or practices consist of
violations of the five statutes and rules which A4NR contends SCE has violated in its
other five causes of action. Compl. ¶ 44. Thus, A4NR appears to allege a violation of
the “unlawful” prong of the UCL.
Regardless of what prong A4NR attempts to sue under, A4NR’s claim would fail
because it lacks standing to bring a UCL claim. A plaintiff has standing to sue under the
UCL “only if he or she ‘has suffered injury in fact and has lost money or property as a
result of such unfair competition’ (§ 17204, as amended by Prop. 64, § 3; see also §
17203, as amended by Prop. 64, § 2.).” Californians for Disability Rights v. Mervyn’s,
LLC, 39 Cal. 4th 223, 227 (2006); Kwikset Corp. v. Superior Court, 51 Cal. 4th 310, 322
(2011) (“To satisfy the narrower standing requirements imposed by Proposition 64, a
party must now (1) establish a loss or deprivation of money or property sufficient to
qualify as injury in fact, i.e., economic injury, and (2) show that that economic injury was
the result of, i.e., caused by, the unfair business practice . . . that is the gravamen of the
claim.”) (emphasis in original). A4NR does not allege facts sufficient to show that it
meets this essential requirement.
A4NR cannot state a claim under the UCL’s “unlawfulness” prong in any event
because it cannot establish that SCE or EIX engaged in any “unlawful” conduct. A claim
based on the unlawfulness prong of the UCL “‘borrows’ violations of other laws” and
treats such violations as independently actionable under the UCL. Farmers Ins.
Exchange v. Superior Court, 2 Cal. 4th 377, 383 (1992); see also Chabner v. United of
- 26 -
Omaha Life Ins. Co., 225 F.3d 1042, 1048 (9th Cir. 2000). Absent violation of another
law, A4NR’s unlawfulness claim under the UCL fails. As demonstrated above, A4NR
has not come close to stating a claim for any of the statutes or rules that A4NR contends
serve as a predicate for its UCL “unlawfulness” claim.
D. The Commission Should Not Initiate A Lawsuit Based On A4NR’s Complaint.
In its Prayer for Relief, A4NR asks this Commission to determine whether it
should initiate suit pursuant to its authority under Cal. Pub. Util. Code §§ 2101 or 2102.
Compl. § IV, ¶¶ 2-3. The Commission should reject out of hand this improper attempt to
skirt the pleading and other requirements to which A4NR would have been subject had it
filed in a court of proper jurisdiction.
A4NR’s request that the Commission itself bring suit is ill-founded, as the
Commission lacks that jurisdictional power entirely.8 Moreover, as there is no
substantive basis for any of A4NR’s claims, A4NR’s suggestion that the Commission
attempt to convince federal or state prosecutors to file a complaint to prosecute these
claims against SCE or EIX is nonsensical. The multiple, fundamental deficiencies of
A4NR’s contentions and the counterfactual assumptions that underlie them show A4NR’s
claims to be meritless, no matter who asserts them.
E. The Complaint Is An Improper Attempt To Circumvent The OII.
A4NR’s Complaint raises issues that the Commission already has a process for
addressing. SCE has already submitted testimony in A. 13-03-005 that explains how it
8 The Commission has no power to bring any of the five statute-based claims on behalf of the People of California. As discussed above, the enforcement of securities action are reserved to other government entities like the SEC. 15 U.S.C. § 78u(d); 15 U.S.C. § 78ff(a); 15 U.S.C. § 77t(b); California Amplifier, 94 Cal. App. 4th at 109. Non-qui tam False Claims Act actions must be brought either by the Commission’s “prosecuting authority” (Cal. Gov. Code § 12652(b)(1)), or the United States Attorney General (31 U.S.C. § 3730(a)). The California Attorney General, district attorneys, and others “expressly are authorized to bring UCL claims in court, but [] the PUC is not.” People ex rel. Orloff v. Pac. Bell, 31 Cal. 4th 1132, 1153 (2003) (citing Cal. Bus. & Prof. Code §§ 17204, 17535).
- 27 -
computed the interim revenue requirement, and the Commission will review that
testimony in I. 12-10-013. The Complaint is a wholly unnecessary distraction from the
existing proceedings, and a wholly improper attempt to circumvent the procedural
schedule set forth in the Scoping Memo in the OII.
More broadly, A4NR’s Complaint is frivolous. Each of A4NR’s causes of action
fail for multiple, fundamental reasons—some of which require minimal legal research to
identify. It would take little to no effort to determine, for example, that a securities fraud
claim requires that the purchase, sale, or offer to sell a security be at issue, or that a False
Claims Act claim requires a false claim to be identified, or that some injury is required to
state a UCL violation. Yet A4NR did not even try to allege facts for most of the
necessary elements for any of its statutory claims. Nor do any of A4NR’s claims have
any evidentiary basis.
Indeed, A4NR’s decision to proceed with this Complaint evinces a lack of good
faith. The Commission already advised A4NR that its statute-based causes of action are
beyond the Commission’s jurisdiction to adjudicate and cannot be asserted in this venue.
Yet in filing its Amended Complaint, A4NR did not delete any of those causes of action.
Further, because A4NR’s claims are founded on an apparent confusion about SCE’s
SGRP-related filings and this Commission’s SGRP-related decisions, SCE’s counsel
twice attempted to meet and confer with A4NR about its complaint. Yet A4NR rebuffed
SCE’s invitation for further explanation and has persisted with its Complaint even though
its counsel not been able to explain why it believes the baseless assumptions upon which
its Complaint is based in light of SCE’s OII testimony. As a result, even though all of
A4NR’s claims are entirely meritless, SCE has had to conduct extensive research and
expend hours of effort to prepare and file responsive papers, and the Commission will
have to expend its limited resources resolving the Complaint. In these circumstances, the
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Commission may wish to consider whether it would be appropriate to impose sanctions
on A4NR in connection with the Complaint.9
IV. CONCLUSION
The Commission should dismiss A4NR’s Complaint.
Respectfully Submitted, DOUGLAS K. PORTER WALKER A. MATTHEWS RUSSELL A. ARCHER HENRY WEISSMANN JONATHAN E. ALTMAN JOHN B. OWENS LIKA C. MIYAKE /s/ Walker A. Matthews_______________________ By: Walker A. Matthews Attorneys for SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770 Telephone: (626) 302-6879 Facsimile: (626) 302-3990 E-mail: [email protected]
Date: April 10, 2013
9 See Commission Rule 1.8(f), 1.8(b) (authorizing sanctions for willful violation of requirement that, inter alia, legal contentions in documents filed before the Commission “are warranted by existing law” and facts are true based on a “reasonable inquiry”). Courts have sanctioned parties and counsel for bringing exactly the kind of frivolous claims A4NR asserts here. Crookham, 914 F.2d at 1028 (sanctioning attorney for signing Section 17(a) complaint); Fox, 937 F.2d at 1570 (affirming grant of sanctions for maintaining Section 17(a) claim); County of Kern v. Jadwin, 197 Cal. App. 4th 65, 72 (2011) (affirming grant of attorneys’ fees sanctions for harassing filing and pursuit of California False Claims Act claim).
Declaration of Douglas Snow
Exhibit 1
SCE’s Testimony in Response to February 21, 2013 Ruling
Application No.: I.12-10-013 Exhibit No.: SCE-5 Witnesses: D. Snow J. Perez
(U 338-E)
SCE’s Testimony In Response to February 21, 2013 Ruling
Before the
Public Utilities Commission of the State of California
Rosemead, CaliforniaMarch 15, 2013
SCE’s Testimony In Response to February 21, 2013 Ruling
Table Of Contents Section Page Witness
-i-
I.� INTRODUCTION .............................................................................................1 D. Snow/J. Perez�
II.� RATEMAKING .................................................................................................2 D. Snow�
3.� Federal and State Income Taxes ................................................9�
4.� Return on Rate Base...................................................................9�
III.� SGRP EXPENSES ...........................................................................................10 J. Perez�
IV.� CONCLUSION ................................................................................................12 D. Snow/J. Perez�
Appendix A Witness Qualifications ............................................................................13�
Appendix B ....................................................................................................................5�
Appendix C ....................................................................................................................6�
Appendix D ....................................................................................................................7�
Appendix E ....................................................................................................................8�
1
I.1
INTRODUCTION2
This testimony addresses Question Nos. 1-3 posed in the Administrative Law Judge’s (ALJ) 3
February 21, 2013 ruling: 4
51. For the following Advice Letters submitted by SCE, as 6
permitted by D.05-12-040, to implement interim revenue requirements for 7recovery of costs related to replacement of the steam generators at 8SONGS units 2 and 3, clearly explain how SCE calculated the requested 9revenue requirement: 10
� Advice 2521-E dated November 1, 2010; 11� Advice 2648-E dated December 27, 2011; and 12� Advice 2834-E dated December 31, 2012. 13
2. Identify the rates of depreciation and service life assumptions 14applied to the various components which form the basis for the revenue 15requirement requests identified in number 1 above. 16
3. For all expenses in excess of $1 million, identify each SGRP 17expense categorized as “Investigation” and “Repairs-After Outage” 18aggregated in SCE’s monthly report ($67.06 million and $27.3 million, 19respectively) submitted on February 1, 2013. 20
Section II responds to Question Nos. 1-2 and explains the manner in which rates have been 21
established to date to recover costs associated with the Steam Generator Replacement Program 22
(“SGRP”). SCE is filing on March 15, 2013 an application for inclusion of the SGRP costs permanently 23
in rates. Section III responds to Question No. 3 and provides further details regarding SGRP expenses 24
reported in SCE’s February 1, 2013 monthly report.25
2
II.1
RATEMAKING 2
A. SGRP RATEMAKING 3
The Commission in D.05-12-040 authorized SCE to implement ratemaking such that SCE could 4
1) recover a limited amount of the removal and disposal costs prior to the completion of the SGRP over 5
the six year period of 2006 through 2011; 2) begin to provisionally recover its SGRP revenue 6
requirement associated with the steam generator replacement costs for each generating unit, subject to 7
refund, the year following commercial operation of each generating unit; and 3) continue to 8
provisionally recover the removal and disposal costs, subject to refund, the year following when the 9
work to remove and dispose of the original generating units was complete. Each of these ratemaking 10
elements is discussed in further detail below in subsections 1-3. 11
1. Recovery of 20% of the Removal and Disposal Costs 12
Ordering Paragraph (OP) No. 12 of D.05-12-040 states that “SCE is authorized to recover 13
through depreciation a total of 20% of its ownership share ($22.2 million [(2004$) multiplied] by its 14
ownership share) of the estimated removal and disposal costs for the original generators over 2006-15
2011.” 1 As shown on Line No. 8 of Table II-1 below, SCE’s share of the $22.2 million is $17.25 16
million (2004$). SCE recovered the $17.25 million in equal annual portions over the six year period 17
2006 through 2011 pursuant to OP 12.2 Each year beginning in 2005, SCE filed an advice letter and 18
provided the amount that would be recovered in rates for the subsequent year.19
1 As explained in footnote No. 2 of D.05-12-040, all dollar figures included in the decision are stated as 2004 dollars unless otherwise specified.
2 The amount recovered in 2006 was slightly different due to a different ownership share before SCE acquired Anaheim’s share of SONGS 2&3.
3
Table II-1 Recovery of Estimated 20% of Removal and Disposal Costs
2/�7.5%�esca lation�rate�agreed�to�in�settlement�adopted�in�D.03�10�015�and�confirmed�in�D.07�01�003.�The�Commiss ion�authorized�a �mean�buria l �esca lation�estimate�of�6.93%�effective�May�1,�2010.�The�7.5%�buria l �escation�rate�i s �authorized�for�Jan.�1,�through�Apr.�30,�2010�and�the�6.93%�buria l �esca lation�rate�i s �authorized�for�May�1,�2010�through�Dec.�31,�2011.
As shown on Line No. 10 in Column H, through the end of 2012, SCE recorded a total 6
SGRP revenue requirement of $268.67 million (nominal$). As shown in Column I, there is still $567.85 7
million (nominal$) of SGRP plant remaining to be recovered, plus taxes and return. In the application 8
for permanent inclusion of the SGRP costs in rates filed on March 15, 2013, SCE is requesting that these 9
recorded revenue requirements no longer be subject to refund, and that SCE be able to continue to 10
recover its on-going SGRP revenue requirement necessary to recover the $567.85 million (nominal$) 11
remaining plant in rates through 2022. 12
4 The replacement units were operational and the removal and disposal work was complete. 5 The annual amounts shown in Table II-2 include adjustments recorded in subsequent years.
7
Table II-3 below shows how SCE recovered its SGRP revenue requirement recorded 1
through December 31, 2012 in the amount of $268.67 million (nominal$) in rates using the two-step 2
The revenue requirements shown on Line No. 1 of Table II-3 are the amounts included in 4
rates implemented through the advice letters shown in Table II-3 above. The revenue requirements 5
shown on Line No. 4 are the revenue requirements included in Advice Letters 2521-E and 2648-E.66
C. Calculation Of The SGRP Revenue Requirements 7
As supported in SCE’s March 15, 2013 application for permanent inclusion of the SGRP costs in 8
rates, SCE’s share of the SGRP capital expenditures, including corporate overheads, is $601.1 million 9
(nominal$). This amount excludes Allowances for Funds Used During Construction (AFUDC) and 10
capitalized property taxes. As SCE spent the capital expenditures required by the SGRP, overheads 11
6 As indicated in Note No. 2 in Table II-3, the estimated 2013 SGRP revenue requirement is not included here.
8
including AFUDC are added each month. As shown in Column J in Table II-2 above, including 1
AFUDC and capitalized property taxes, the total amount of plant to be recovered is $699.4 million 2
(nominal$). As such, SCE’s SGRP revenue requirements are calculated to recover the $699.4 million 3
(nominal$) over the current license period for SONGS 2&3. 4
Once the replacement steam generators were operational and the removal and disposal work was 5
complete, the total of the expenditures and overheads was added to rate base. At that time, accrual of 6
AFUDC and property taxes ceased and SCE began to depreciate the net plant (i.e. gross plant less 7
accumulated depreciation). It is also at that time, consistent with D.05-12-040, that SCE began to record 8
the revenue requirement (i.e. depreciation, property taxes, income taxes and return on rate base) in the 9
SGRP balancing accounts.10
1. Depreciation Expense 11
Depreciation expense for plant in service is calculated on a straight line basis consistent 12
with CPUC authorized average remaining lives for SONGS FERC plant accounts.7 The average 13
remaining lives are a function of the remaining license life, and adjusted for estimated interim 14
retirements (i.e. asset retirements that will occur prior to the end of the license life). Depreciation 15
expense related to the removal and disposal costs for the SGRP was and will be accrued consistent with 16
D.05-12-040. Twenty percent of the removal and disposal estimate was amortized over the 2006-2011 17
period, and the remaining portion (incurred cost less the amount previously amortized) will be amortized 18
over the remaining life starting from the completion of the project. 19
2. Property Taxes 20
Property taxes are calculated based on the value of plant as of the property tax lien date 21
multiplied by a property tax factor based on the historical relationship of property tax assessments to 22
recorded plant balances. 23
7 Depreciation parameters used for the 2009-2010 period were authorized in D.09-03-025 (2009 GRC) and depreciation parameters for 2012-2014 were authorized in D.12-11-051 (2012 GRC).
9
3. Federal and State Income Taxes 1
For SGRBA related costs, SCE capitalizes the costs of acquiring, transporting and 2
installing the steam generators for tax purposes, and depreciates these capitalized costs pursuant to the 3
applicable Modified Accelerated Cost Recovery System (MACRS) method for Federal tax purposes and 4
Asset Depreciation Range System for state purposes. Because SCE is using MACRS accelerated tax 5
depreciation method for federal tax purposes, SCE must use the normalization method of accounting to 6
compute its income tax expense for ratemaking purposes, which requires SCE to record deferred income 7
taxes to reflect any differences between the federal MACRS tax depreciation and the book depreciation 8
computed on the tax basis of those assets. For SGRDBA related costs, SCE deducts the costs to remove, 9
segment and ship offsite the original steam generators, as well as deducts any remaining net tax basis of 10
the original steam generators when these assets are removed as an abandonment loss for tax purposes. 11
4. Return on Rate Base 12
Return on rate base is calculated by multiplying the average recorded rate base by the 13
currently authorized rate of return authorized by the Commission. 14
The ALJ’s February 21, 2013 ruling directed SCE to explain how the SGRP revenue 15
requirements were calculated. The above methodology for calculating the SGRP revenue requirement 16
was used to calculate both the estimated annual revenue requirements included in Advice Letters 2521-17
E, 2648-E, and 2834-E and the revenue requirement recorded in the SGRBA and SGRDBA.18
Differences between those estimated annual revenue requirements and the actual revenue requirements 19
will result due to things such as, estimated plant being different than the recorded plant, tax rates 20
changes (if any), and changes in authorized rates of return. 21
10
III. 1
SGRP EXPENSES 2
In response to Question No. 3 posed in the February 21, 2013 ALJ Ruling, Table III-4 below 3
provides a summary of the steam generator inspection and repair activities in excess of $1M that are 4
included in the "Monthly Report in Compliance with I.12-10-013" dated February 1, 2013, and 5
categorized as "Investigation" and "Repairs - After Outage."86
Table III-4 2012 O&M Steam Generator Inspection and Repair Costs
Orders in Excess of $1 Million ($ in Thousands)
Description Order 100% SCE Share
Investigation:Unit 2:Eddy Current Testing and Tube Plugging 800589922 27,606.5 21,591.0Steam Generator Repair Work -- Design Engineering Org 800843405 5,435.5 4,251.1Tube Stabilizer 800933319 1,107.9 866.5Unit 3:Steam Generator Forced Outage -- Vendor Support 800840831 29,914.5 23,396.1Steam Generator Repair Work -- Design Engineering Org 800843403 2,921.0 2,284.5Forced Outage Support -- Health Physics 800840809 2,011.4 1,573.1Forced Outage Support -- Project Management Org 800840786 1,823.6 1,426.2Forced Outage Support -- Plant Engrg & Engrg Programs 800842686 1,308.1 1,023.0
Repairs - After Outage:Unit 2:Tube Stabilizer 800933319 17,731.8 13,868.0Eddy Current Testing and Tube Plugging (E088) 800589922 3,386.8 2,648.8Steam Generator Repair Work -- Design Engineering Org 800843405 1,848.4 1,445.6Eddy Current Testing and Tube Plugging (E089) 800589928 1,641.0 1,283.4Unit 3:Eddy Current Testing and Tube Plugging (E088) 800842826 3,801.1 2,972.8Eddy Current Testing and Tube Plugging (E089) 800842830 2,893.6 2,263.1
SONGS recorded costs are captured in SCE's financial reporting program (SAP) by Order; 7
therefore, these reports identify work activities by Order. Appendix B provides a detailed list of all 8
2012 costs comprising the Investigation and Repairs - After Outage, sorted by category, for Units 2 & 3 9
8 In SCE-4 Appendix 4, SCE provided the 2012 Recorded Costs for the Steam Generator Inspection and Repair Activities (100% level).
11
combined. The activities are sorted by dollar amount and costs are provided in both 100% level and 1
SCE Share. 2
To provide further detail, Appendix C includes the costs for all Steam Generator Inspection and 3
Repair activities (including Regulatory - After Outage, and Defueling), showing Unit 2 and Unit 3 costs 4
separately. This report is also broken down by Functional Group to allow for correlation with work 5
descriptions provided in the General Rate Case. These costs are provided in both 100% level and SCE 6
Share. 7
As a significant portion of the steam generator costs are contractor- and consultant-related, 8
Appendix D provides a report that identifies all vendor costs, by Functional Group, and by activity 9
(order), at 100% level. 10
For reference purposes, Appendix E includes the generic SONGS Acronym List. 11
12
IV.1
CONCLUSION 2
This concludes SCE’s testimony in response to the February 21, 2013 ALJ Ruling. 3
Appendix A
Witness Qualifications
A-1
SOUTHERN CALIFORNIA EDISON COMPANY 1
QUALIFICATIONS AND PREPARED TESTIMONY 2
OF JOSE LUIS PEREZ 3
Q. Please state your name and business address for the record. 4
A. My name is Jose Luis Perez, and my business address is 8631 Rush Street, Rosemead, CA 91770. 5
Q. Briefly describe your present responsibilities at the Southern California Edison Company. 6
A. I manage the Generation Planning and Strategy organization. 7
Q. Briefly describe your educational and professional background. 8
A. I earned an MBA from the University of California, Irvine in 1997. I earned a Bachelor of Science 9
Degree in Civil Engineering from California State University, Long Beach in 1977. I am a 10
Registered Professional Engineer and a Licensed General Contractor in the State of California. Prior 11
to joining Edison, my professional background included various home office and jobsite positions in 12
the civil engineering and scheduling organizations of Bechtel Power Corporation and the collection 13
and analysis of construction cost data for publication in cost estimating manuals for Marshall and 14
Swift Publications. Since joining Edison in 1982, I have held various management positions in the 15
business planning groups of the Generation Business Unit. In addition, I managed various projects, 16
including SONGS Unit 1 decommissioning shortly after permanent shutdown, and various activities 17
in support of the industry restructuring efforts. 18
Q. What is the purpose of your testimony in this proceeding? 19
A. The purpose of my testimony in this proceeding is to sponsor the portions of Exhibit SCE-5, entitled 20
SCE’s Testimony In Response to February 21, 2013 Ruling as identified in the Tables of Contents 21
thereto.22
Q. Was this material prepared by you or under your supervision? 23
A. Yes, it was. 24
Q. Insofar as this material is factual in nature, do you believe it to be correct? 25
A. Yes, I do. 26
Q. Insofar as this material is in the nature of opinion or judgment, does it represent your best judgment? 27
A-2
A. Yes, it does. 1
Q. Does this conclude your qualifications and prepared testimony? 2
A. Yes, it does. 3
A-3
SOUTHERN CALIFORNIA EDISON COMPANY 1
QUALIFICATIONS AND PREPARED TESTIMONY 2
OF DOUGLAS A. SNOW 3
Q. Please state your name and business address for the record. 4
A. My name is Douglas A. Snow, and my business address is 8631 Rush Street, Rosemead, California 5
91770.6
Q. Briefly describe your present responsibilities at the Southern California Edison Company (SCE). 7
A. I am the Director of CPUC Revenue Requirements and Tariffs in SCE’s Regulatory Operations 8
Department. As such, I am responsible for the recovery of SCE’s authorized revenue requirements 9
and oversee the operation of various balancing and memorandum accounts, including the recovery of 10
the balances in those accounts, and I am responsible for managing the implementation of SCE’s 11
tariffs and advice letters. 12
Q. Briefly describe your educational and professional background. 13
A. I graduated from Texas A&M University in May of 1982 with a Bachelor of Science Degree in 14
Industrial Engineering. In June of 1982, I went to work for Southwestern Public Service Company 15
(SPS) in west Texas. While there, I was a supervisory engineer, responsible for revenue requirement 16
calculations and rate design for both retail and resale customers. I filed testimony on behalf of SPS 17
before the Texas Public Utility Commission and the Federal Energy Regulatory Commission. In 18
November of 1993, I began to work for the Southern California Edison Company as a financial 19
analyst in the FERC Pricing section in the RP&A Department. While working in the FERC section, 20
I was responsible for the rate design for SCE’s requirements sales for resale, Wheeling Access 21
Charges, and wholesale Distribution Access Charges. In March 1998, I became a supervisor in the 22
Revenue Requirements division of RP&A, responsible for supervising a group of analysts that 23
oversee the forecasting and recording entries associated with all CPUC regulatory mechanisms. In 24
December 2001, I was promoted to the position of manager in the Revenue Requirements division of 25
RP&A. In August 2006, I was promoted to Manager of CPUC Revenue Requirements, and in 26
March 2013, I became the Director of CPUC Revenue Requirements and Tariffs taking on the 27
A-4
additional responsibilities for managing SCE’s tariffs. I have previously testified before the 1
California Public Utilities Commission. 2
Q. What is the purpose of your testimony in this proceeding? 3
A. The purpose of my testimony in this proceeding is to sponsor portions of Exhibit SCE-5, entitled 4
SCE’s Testimony In Response to February 21, 2013 Ruling, as identified in the Table of Contents 5
thereto.6
Q. Was this material prepared by you or under your supervision? 7
A. Yes, it was. 8
Q. Insofar as this material is factual in nature, do you believe it to be correct? 9
A. Yes, I do. 10
Q. Insofar as this material is in the nature of opinion or judgment, does it represent your best judgment? 11
A. Yes, it does. 12
Q. Does this conclude your qualifications and prepared testimony? 13
A ........................... 1 B ........................... 2 C ........................... 3 D ........................... 5 E ........................... 6 F ........................... 8 G ........................... 9
H ......................... 10 I .......................... 10 J .......................... 11 K ......................... 11 L ......................... 12 M ........................ 12 N ......................... 14
O ......................... 15 P ......................... 16 Q ......................... 18 R ......................... 18 S ......................... 20 T ......................... 22 U ......................... 23
V ......................... 24 W ........................ 24 X ......................... 25 Y ......................... 25 Z ......................... 25
1° leak rate – primary leak rate (Chemistry to Operations reporting of primary to secondary leak rates)
2° leak rate – secondary leak rate
AA – Alert (Declared Emergency) A ampere AACS – Automated Access Control System
(HP) (NIS) AAU – Access Authorization Unit (Support
Section) ABAM – Auxilliary Building Area Monitors ABR – Annual Biennial Review ABRD – Annual/Bi-Annual Review Date ac – alternating current AC – Acceptance Test Procedure AC – Alternating Current ACB – Air Circuit Breaker ACC – Arizona Corporation Commission ACE – SCE ASME Codes Engineer ACI – American Concrete Institute ACI – Auto-Closure Interlock ACIDS – Analytical Chemistry Information
Data System ACM – Accident Prevention Manual ACO – Assistant Control Room Operator ACORD – American Committee on
Radwaste Disposal ACP – Access Control Panel ACRS – Advisory Committee on Reactor
Safeguards ACS – American Chemical Society
ACSR – Aluminum Conductor Steel Reinforced
ACTS – Automated Control of Tools System
AD – Administrative Services (Identifier) AD&D – Accidental Death and
DismembermentADRS – Automated Document Retrieval
SystemADT – American Distance Telephone ADV – Atmospheric Dump Valve AE – Architect/Engineer AEC – Atomic Energy Commission AER – Authorized Edison Representative AF – audio frequency AFC – Application for Certification AFC – automatic frequency control AFW – Auxiliary Feedwater AFWAS – Auxiliary Feedwater Actuation
SignalAFWP – Auxiliary Feedwater Pump AFWS – Auxiliary Feed Water System AGC – automatic gain control Ah – ampere·hour AI – Authorized Inspector AIA – Authorized Inspection Agency AIF – Atomic Industrial Forum AIMS – Action Items Management System
(NIS)AISC – American Institute of Steel
ConstructionAISI – American Iron and Steel Institute AIT – Augmented Inspection Team AL – Administrative Leader (TSC) ALARA – As Low As Reasonably
Achievable
ACRONYMS
E- 2
AM – Amplitude modulation AM241 – Americium-241 AMP – Area Management Program AMU – Atomic Mass Unit AMS – Accident Monitoring System AMS – Automatic Mode Selector ANI – American Nuclear Insurance ANI – Authorized Nuclear Inspector ANII – Authorized Nuclear Inservice
InspectorANNUN – Annunciator ANPP – Arizona Nuclear Power Project ANS – American Nuclear Society ANSI – American National Standards
Institute, Inc. antilog – antilogarithm AOA – Acknowledgement of Acceptance
(Material Control) AOAC – Assistant Operational Area
OccurrencesAOV – Air Operated Valve AP – Administrative Procedure (Projects) APC – Auxiliary Protective Cabinet APCB – Air Pollution Control Board APHA – American Public Health
AssociationAPI – Application Problem Interface APL – Approved Products List APM – Accident Prevention Manual APPA – American Public Power
AssociationAPS – Administrative Professional &
Supervisory APS – Arizona Public Service AQMD – Air Quality Management District AR – Action Request ARAC – Atmospheric Release Advisory
Capability (NRC) ARB – Air Resources Board ARC – American Red Cross (NRC) ARCA – Area Requiring Corrective Action
(NRC)
ARFI – Area Recommended for Improvement (NRC)
ARMS – Area Radiation Monitoring System ARO – All Rods Out ARP – Alarm/Annunciator Response
Procedure (also Alarm Response Instrctions)
ABB-CE – Asea Brown Boveri - Combustion Engineering
ASC – Affected Section Change ASI – Axial Shape Index ASL – Approved Supplier List ASLB – Atomic Safety Licensing Board ASME – American Association of
Mechanical Engineers ASNT – American Society for
Nondestructive Testing ASME – American Society of Mechanical
Engineers ASOS – Administrative Security Officer
Supervisor ASTM – American Society for Testing and
Information System(NIS) ATWS – Anticipated Transient(s) Without
Scram (Events) ATWT – Anticipated Transient(s) Without
TripAUX – Auxiliary AVC – automatic volume control avg – average AWG – American Wire Gauge AWS – American Welding Society AWS Bldg. – Administrative Warehouse &
Supply/Shop Building
BBB's B&A – Budgets & Accounting BACKFIT – The word used to describe
forcing existing plants to meet new regulations
ACRONYMS
E- 3
BACT – Best Available Control Technology BAEAM – Boric Acid Evaporator Area
MonitorBAMT – Boric Acid Makeup Tank BAMU – Boric Acid Makeup bar – bar BARS – Boric Acid Recycle System BAS – Boric Acid System BAST – Boric Acid Storage Tank B&C – Boiler & Condensor B&CC – Budget and Cost Control Division
(SONGS)BCD – binary coded decimal BCT – Bushing Current Transformer B&FS – Business & Financial Services BeV – billion electronvolts (deprecated; use
gigaelectronvolt (GeV) BEIR – Biological Effects of Ionizing
RadiationBFO – beat·frequency oscillator BHP – Brake Horsepower BHP – Badge Holding Point BISI – Bypass & Inoperable Status
Indication Instrumentation BI – Background Investigation BID – Background Information on the
DeviceBLM – Bureau of Land Management BMS – Balanced Magnetic Switch BOC – Beginning of Cycle BOM or B/M – Bill(s) of Material BOP – Balance of Plant B/P – Bypass(ed) BPC – Bechtel Power Corp. BPO – Blanket Purchase Order BPPC – Boundary Point Power Correlation BPS – Blowdown Processing System B&PV – Boiler and Pressure Vessel (Code) BRC – Below Regulatory Concern BRPU – Biennial Resource Plan Update BQTR – Bechtel Quality Topical Report Btu – British thermal unit BW – Babcock and Wilcox (Nuclear Steam
Cc/s – cycles per second C – coulomb CA – Containment airborne CAA – Controlled Access Area CAD – Computer-Aided Dispatch System
(NRC)CADD – Computer Aided Design Drafting CAE – Condenser Air Ejector CAEG – Condensate Air Ejector Gas CAF – Corrective Action Follow-up cal – calorie CALTRANS – California Department of
Transportation (NRC) CAMS – Continuous Air Monitors CAR – Corrective Action Report CAR – Corrective Action Request CARB – California Air Resources Board CARS – Corporate Accounting Records
System (NIS) CAS – Central Alarm System CAS – Central Alarm Station CAS – Compressed Air System CASE – Coordinating Agency for Supplier
Control Unusual/Universal Summary CIS – Bureau of Collection and
Investigation Services, California Department of Consumer Affairs
CIS – Containment Isolation System CISS – Contractor Information Sub-System
(NIS)CLAIR – COPE List Action Items Report CLRK – Control Room Log and Records
Keeper (NIS) CLSI – Cold Leg Safety Injection cm – centimeter cm3 – cubic centimeter CM – Condition Monitoring cmil – circular mil
ACRONYMS
E- 5
CMP – Configuration Management Program
CMTR – Certified Material Test Report CNG – California National Guard (NRC) CNT – Containment CNO – Chief Nuclear Officer CO – Control Operator (Operations
SystemCOM – Coal-Oil Mixture CONAC – Continuous Nuclear Analysis of
CoalCOPE – Control of Problem Equipment CP – Chemistry Program CP – Construction Permit CP – Control of Problem Equipment CPC – Core Protection Calculators CPD – Condensate Polishing Demineralizer CPF – Central Processing Facility CPIS – Containment Purge Isolation Signal CPPVS – Containment Purge Plant Vent
StackCPS – Cycles per Second CPT – Control Power Transformer CPUC – California Public Utilities
CommissionCR – Control Room (Plant Operations) CRACS – Chemical & Radiological Analysis
Computer System CRC – Centurion Research Corporation
(BI's) OR Corporate Records Center CRCS – Corporate Records Center System CRDM – Control Rod Drive Mechanism CRDR – Control Room Design Review CRDS – Corporate Records &
Documentation Services CREACUS – Control Room Emergency Air
Cleanup System CRESP – Control Room Emergency
Shutdown Panel CRIS – Control Room Isolation Signal CRIS – Control Room Isolation System CRO – Cathode·ray oscilloscope CRS – Contract Reporting System
CRS – Control Room Supervisor CRS – Coolant Radwaste System CRT – Cathode-ray tube CS – Containment Spray CS – Construction Specifications C/S – Cost and Schedule, Civil/Structural c/s – cycle per second CSA – Construction Safety Assessment CSAS – Containment Spray Actuation
SignalC/S-C – Contractor/Subcontractor CSE – Construction Safety Evaluation CSNI – Committee on the Safety of Nuclear
jacketCSS – Containment Spray System CST – Condensate Storage Tank CT – Calibration Test CT – Current Transformer CTAC – Customer Technology Applications
CenterCTMT -- Containment CTO – Construction Turnover CTRS – Coordinated Tactical Radio
SystemCV – Control Valve CV – Cleanness Verification Procedure
FlushCVCM – Cleanliness Verification and
Control Manual CVCS – Chemical Volume Control System CW – continuous wave CWA – Contractor Work Assignment CWO – Construction Work Order CWP – CEA Withdrawal Prohibit CWS – Circulating Water System
DDAS – Data Acquisition System DASS – Disturbance Analysis Surveillance
SystemDAW – Dry Active Waste
ACRONYMS
E- 6
dB – decibel dBA – decibel (ambient) DBA – Design Basis Accident DBD – Design Bases Document(ation) DBE – Design Basis Earthquake DBE – Design Basis Event dBm – decibel referred to one milliwatt DBMS – Data Base Management System DC – Design Calculation DC – Design Change dc – direct current DCC – Distributed Computer Control DCD – Design Criteria Document DCD – Document Control Desk (Hqtrs,
StatementDEO – Design Engineering Organization DER – Deficiency Evaluation Report DFG – Dry Flue Gas DG – Diesel Generator (Units 1, 2 and 3) DGP – Data Gathering Panel DHS – Department of Health Services
Matrix DSAR – Defueled Safety Analysis Report DSB – double sideband DSC – Dry Shielded Canisters DSD – Dedicated Safe Shut Down DSP – Digital Signal Processing DSRO – Division of Safety Review and
Oversight (NRC) DSS – Dedicated Safe Shutdown System DSS – Drug Screening System (NIS) DTC – Dose Tracking Card DVM – Digital Volt Meter DVR – Design Verification Release Dwg – Drawing DWP – Department of Water & Power dyn – dyne
EE & TS – Engineering & Technical Services EA – Emergency Advisor (TSC) EAB – Exclusion Area Boundary
Qualification EER – Engineering Evaluation Report EF – Effluent Monitoring EF – E-Field EFAS – Emergency Feedwater Actuation
SignalEFPD – Effective Full Power Days EFPH – Effective Full Power Hours EG – Engineering (Identifier) EGL – Emergency Group Leader (OSC) EGS – Engineering Group Supervisor EHC – Electro-Hydraulic Control EHF – extremely high frequency ehv – extra·high voltage EI – Energy, Inc. EIR – Environmental Impact Report EIS – Environmental Impact Statement EKG – electrocardiograph ELF – extremely low frequency ELP – Engine Local Panel EMC – electromagnetic compatibility EMMP – Environmental Monitoring
Protection Plan EMF – electromotive force EMI – Electromagnetic Interference EMMP – Environmental Monitoring
Protection Plan EMSA – Emergency Medical Services
Agency (NRC) EMT – Emergency Medical Technician EMU – electromagnetic unit EN – Environmental ENC – Emergency News Center (NRC) ENF – Event Notification Form ENS – Emergency Notification System
(NRC)EOC – Emergency Operations Center OR
End of Cycle EOD – Explosive Ordnance Disposal EOF – Emergency Operations Facility
(NRC)EOI – Emergency Operating Instruction
ACRONYMS
E- 8
EOL – End of Life EOP – Emergency Operating Procedure EP – Emergency Plan EP – Emergency Preparedness EPA – Electrical Penetration Assemblies EPA – Environmental Protection Agency EPB – Emergency Planning Bulletin EPC – Emergency Planning Coordinator
(TSC)EPG – Emergency Procedure Guidelines EPIP – Emergency Plan Implementing
Procedures EPP – Environmental Protection Plan EPPE – Evaluating Potential Problem
EquipmentEPPM – Essential Plant Parameters
MonitoringEP&R – Engineering, Planning and
ResearchEPR – ethylene propylene rubber insulation EPRI – Electric Power Research Institute EPSAC – Emergency Planning Subject
Area Committee EPTG – Emergency Procedure Technical
Actuation System ESFS – Engineered Safety Feature System ESI – Equilibrium Shape Index ESM – Edison (Employee) System of
Manuals ESO – Emergency Services Officer ESO – Emergency Support Organization ESOP – Employee Stock Ownership Plan ESR – Engineering Site Representative ESU – electrostatic unit ETA – Estimated Time of Arrival ETC – Estimated Time of Completion EWO – Engineering Work Order eV – electron volt EVSD – Evacuation Shutdown Panel
FFAMM – Fuel and Material Management FAR – Field Action Request FBI – U.S. Department of Justice, Federal
Bureau of Investigation FBRIR – Fire Barrier Removal/Installation
Report [Outdated since 3/88, now known as "IFFRA" Impairment Form-Fire Rated Assembly]
FBRRR – Fire Barrier Removal and Reinstallation Report [Outdated since 3/88, now known as "IFFRA" Impairment Form-Fire Rated Assemblies]
FC – Flow Constant fc – footcandle FC – Forecast
ACRONYMS
E- 9
FCC – Federal Communications Commission
FCE – Facility Change Evaluation FCN – Facility Change Notice FCN – Field Change Notice FCR – Field Change Request FCV – Flow Control Valve FDC – Forms Distribution Center FEIS – Final Environmental Impact
StatementFEMA – Failure Effects & Mitigation
Analysis FEMA – Federal Emergency Management
Agency (NRC) FERC – Federal Energy Regulatory
CommissionFES – Final Environmental Statement FET – field effect transistor FFAP – Full-Face Air-Purifying Respirator FFAS – Full-Face Air-Supplying Respirator FFCPD – Full Flow Condensate Polisher
Demineralizer System FGIDCD – Field Generated Interim Design
Change Notice FHA – Fire Hazards Analysis FHIS – Fuel Handling Isolation Signal FHS – Fuel Handling System FID – Field Information Data FIDAS – Fixed In-core Detector Amplifier
SystemFIDCN – Field-generated Interim Design
Change Notice fL – footlambert FM – frequency modulation FME – Foreign Material Exclusion FMEA – Failure Modes & Effects Analysis FMEA – Foreign Material Exclusion Area FMT – Field Monitoring Team (NRC) FOA – Field Office Administrator FOAK – First of a Kind FOCUS – Focus Programming Support FOSAR – Foreign Object Search &
RetrievalFP – Fire Protection (Identifier) FP – Fission Products FPER – Fire Protection Evaluation Report
FPIS – Fire Protection Information System FPS – Fire Protection System FRG – Functional Recovery Guideline FRMAC – Federal Radiological Monitoring
and Assessment Center (NRC) FS – Fail-Safe FSA – Final Safety Analysis FSAR – Final Safety Analysis Report FSK – frequency-shift keying ft – foot ft/min – feet per minute ft2 – square foot ft3/min – cubic feet per minute ft/s – feet per second ft·lbf – foot pound·force ft·pdl – foot poundal FTA – Fault Tree Analysis FTT – Fuel Transfer Tube FUA – Fuel Use Act FUN – Follow-Up Notification (NRC Report
Form)FW – Feedwater FWIS – Feedwater Isolation Signal FWS – Feedwater System FWCS – Feedwater Control System Fxy – Planar Radial Peaking Factors;
subscript x - calculated FYI – For Your Information
Gg – gram G – gauss GADS – Generating Availability Data
Systemgal – gallon gal/min – gallons per minute Gb – gilbert GE – General Electric GE – General Emergency ECL (Declared
Emergency) (NRC) GEC – General English Controls GED – Generation Engineering and Design GEN – Generator
ACRONYMS
E- 10
GET – General Employee Training (Red-Badge Training)
GeV – gigaelectronvolt GHz – gigahertz GL – Group Leader GM – Geiger-Müller (NRC) GO – General Office (GO 1, 2, 3 and 4,
Corporate Headquarters) GP – General Physics GP – General Procedure GPI – Glass Packaging Institute GPM – Gallons per Minute (gal/min
preferred)GPS – General Performance Standards GPU – General Public Utilities GRC – General Rate Case GRIP – Generation Related Improvement
ProjectsGRS – Gaseous Radwaste System GS – NEDO Group Supervisor GSA – General Services Administration GT – Generic Test
Hh – hour H – henry HED – Human Engineering Discrepancy HELB – High Energy Line Break HELBA – High Energy Line Break Analysis HEPA – High Efficiency Particulate Air Filter HF – high frequency HF – Human Factors HFMUD – High Flow Makeup Demineralizer HFP – Hot Full Power HHL – Home Hot Line (EP) HJTC – Heated Junction Thermocouple HLSI – Hot Leg Safety Injection HP – Health Physics hp – High Pressure hp – horsepower HPCS – Health Physics Computer System HP&E – Health Physics and Environmental HPES – Human Performance Evaluation
System
HPL – Health Physics Leader (TSC) HPS – Hassayampa Pumping Station HPS – Health Physics Society HPSI – High Pressure Safety Injection HSC – Headquarters Support Center (EOF) HSWS – High Specific Waste Holding HTGR – High Temperature Gas Reactor Htr – Heater HV – Hand or Control Valve HV – high voltage HVAC – Heating, Ventilation, and Air
ConditioningHX – Heat Exchanger Hz – hertz
IIACS – International Annealed Copper
StandardIAEA – International Atomic Energy Agency I&C – Instrument and Calibration I&C – Instrumentation and Control IC – Integrated Circuits ICBO – International Conference of Building
AssociationICI – In-Core Instrumentation ICN – Interim Calculation Notice ICRP – International Commission on
Radiological Protection ICS – Integrated Control System ID – Identification (Number) ID – inside diameter IDCN – Interim Design Change Notice IDCN – Interim Drawing Change Notice IDLH – Immediately Dangerous to Life and
HealthIDR – Interdisciplinary Review IDS – Intrusion Detection System
ACRONYMS
E- 11
IE – Inspection and Enforcement (HQTRS USNRC)
I&E – Inspection and Enforcement IEAL – International Energy Associates
LimitedIEB – Inspection and Enforcement Bulletin
(Issued by NRC) IEEE – Institute of Electrical and Electronic
Engineers IE&MS – Industrial Engineering &
Management Services IEN – Information/Enforcement Notice IF – intermediate frequency IFFRA – Impairment Form-Fire Rated
AssemblyIID – Imperial Irrigation District IIS – Integrated Implementation Schedule IIT – Incident Investigation Team (NRC) ILS – Integrated Living Schedule ILRT – Integrated Leak Rate Test in. – inch in./s – inch per second in.2 – square inch INCA – In-Core Analysis INPO – Institute of Nuclear Power
OperationsIOC – Irvine Operations Center IOE – Industry Operating Experience IOEE – Industry Operating Experience
EvaluationIPC – Interjurisdictional Planning
Committee (NRC) IPCEA – Insulated Power Cable Engineers
AssociationIPDR – Inspection Planning Data Report IPRE – Integrated Plant Review Engineer IPZ – Ingestion Pathway Zone IR – infrared IRE – Independent Review Engineer IS – Information Services (Department) IS – Industrial Safety (Identifier) ISA – Instrument Society of America ISEG – Independent Safety Engineering
GroupISEG – Independent Safety Evaluation
Group
ISF – Industrial Security Force (Station Security)
ISI – In-Service Inspection ISM – Independent Study Module ISO – Independent System Operator ISR – Independent Safety Review IST – In-Service Test (pumps/valves) ITC – Isothermal Temperature Coefficient ITS – Important to Safety IWP – Interim Work Procedure
JJ – joule J/deg – joules per degree J/°K – joules per degree Kelvin JCO – Justification for Continued Operation JOIS – Job Opportunity Information System JPM – job performance measurement JS – Job Section
Kk_ – kilohm kc/s – kilocycles per second keV – kiloelectronvolt kg – kilogram kG – kilogauss kgf – kilogram·force kHz – kilohertz kJ – kilojoule KI – Potassium Iodide km – kilometer km/h – kilometers per hour KMC – No Literal Definition KSA – Knowledge, Skills and Abilities kV – kilovolt kVA – kilovoltampere kvar – kilovar kW – kilowatt kWh – kilowatthour
ACRONYMS
E- 12
LL – lambert l – liter l/s – liters per second La – Max Containment Accident Leakage at
Pa -- %/24 hr. LA – Lightning Arrester Lam – Measured containment leakage at
Pa LAN – Local Area Network lb – pound lbf – pound·force lbf·ft – pound·force·foot lbf/in2 – pounds·force per square inch psi – pound per square inch LBLOCA – Large Break Loss-of-Coolant
Accident LC – Inductance-Capacitance circuit LC – Locked Closed LCL – Licensing Commitment List LCO – Limiting Condition for Operation
(Tech Specs) LCOAR – Limiting Condition for Operation
System (NIS) LF – low frequency LFAS – Loose-Fitting Air-Supplying
Respirator LIS – Licensing Information Services LLRT – Local Leak Rate Test LLRWM – Low-Level Radioactive Waste
Managementlm – lumen lm/ft2 – lumens per square foot
lm/m2 – lumens per square meter lm/W – lumens per watt lm·s – lumen second ln – logarithm, natural LNG – Liquified Natural Gas LO – Locked Open LOCA – Loss-of-Coolant Accident log – logarithm, base 10 LOOP – Loss of Offsite Power LOP – Leadership Observation Program LOP – Loss of Power LOVS – Loss of Voltage Signal LP – Low Pressure LPD – Local Power Density LPMS – Loose Parts Monitoring System LPSI – Low Pressure Safety Injection LRCF – Low Reactor Coolant Flow Bypass LS – Limit Switch LSSS – Limiting Safety System Settings Lt – Max Containment Leakage at Pt LTA – Lost Time Accident LTC – Load Tap Changer Ltm – Measured containment leakage at Pt LTOP – Low Temperature Over Pressure
ProtectionLV – Low Voltage LWR – Light Water Reactor lx – lux
M...' – minute (plane angle) ..." – second (plane angle) μA – microampere μF – microfarad μg – microgram μH – microhenry μm – micrometer μ – micron (the name micrometer ( μm ) is
preferred)μs – microsecond μS – microsiemens μW – microwatt mi/h – mile per hour mi – mile (statute)
ACRONYMS
E- 13
mil – mil m – meter m – megohm m2 – square meter m3 – cubic meter m3/s – cubic meters per second mA – milliampere mg – milligram mH – millihenry ml – milliliter mm – millimeter mmHg – millimeter of mercury,
conventionalms – millisecond mS – millisiemens mV – millivolt mW – milliwatt Mc/s – megacycles per second MeV – megaelectronvolt MHz – megahertz MV – megavolt MW – megawatt MWe – megawatt electric MWt – megawatt thermal MA – Maintenance (Identifier) MAA – Material Access Area MAAC – Major Additions & Adjustments
Clause MAT – Material Acquisition Team MCC – Motor Control Center MCCB – Molded Case Circuit Breaker MCR – Main Control Room MED – Management Experience
Development (Program) MEL – Master Equipment List MELBA – Moderate Energy Line Break
Analysis MEMR – Marine Environmental Monitoring
ReportMET – Meteorological MF – medium frequency MFBV – Main Feedwater Bypass Valve MFCV – Main Feedwater Control Valve MFIV – Main Feedwater Isolation Valve MFWCS – Main Feed Water Control
System
MFWP – Main Feedwater Pump MFWS – Main Feedwater System MG – Motor Generator MHD – magnetohydrodynamics mho – mho MHW – Mean High Water (Pacific Ocean) MICDS – Moveable In-Core Detector
Systemmin – minimum min – minute (time) MKS – meter·kilogram·second MLO – Main Lube Oil MLWS – Miscellaneous Liquid Waste
SystemMMF – magnetomotive force MMI – Man Machine Interface MMO – Material Management Organization MMP – Minor Modification Package MMPI – Minnesota Multiphasic Personality
InventoryMMS – Material Management System MO – Maintenance Order MOG – Motor Operated Gate MOS – metal oxide semiconductor MOSAIC – Maintenance Operations Station
Technical & Administration Integrated Computer System
MOU – Memorandum of Understanding MOV – Motor Operated Valve MOVATS – Motor Operated Valve Analysis
and Testing System MPC – Maximum Permissible
ConcentrationMPE – Multiple Position Extensometer MPHF – Multi-Purpose Handling Facility MPO – Master Purchase Order MPOB – Maximum Permissible Organ
BurdenMR – Millirem MRC – Marine Review Committee MS – Main Steam MS – Material Support (Identifier) MSA – Material/Service Authorization MSA – Mine Safety Appliance M&SD – Management and Supervisor
Development (Program)
ACRONYMS
E- 14
MSDS – Material Safety Data Sheets (OSHA Div.)
MSIS – Main Steam Isolation Signal MSIV – Main Steam Isolation Valve MSLB – Main Steam Line Break MSLBA – Main Steam Line Break Accident MSR – Moisture Separator Reheater MSS – Main Steam System MS-SONGS – Material Services-San
Onofre Nuclear Generating Station MSSV – Main Steam Safety Valve MTBF – Mean Time Between Failure MTC – Moderator Temperature Coefficient MTE – Measuring and Test Equipment M&TE – Measuring and Test Equipment MTO – Material Takeoff MTS – Master Tracking System MUD – Makeup (Water) Demineralizer m/w -- manway MW – Microwave MWS – Miscellaneous Waste Holding Mx – maxwell
NN – newton N·m – newton meter N/m2 – newtons per square meter nA – nanoampere nF – nanofarad nm – nanometer ns – nanosecond nW – nanowatt NAC – National Assurance Corp. (NAC-ID-
model number) NATS – Non-regulatory Acton Tracking
SystemNA&EP – Nuclear Affairs and Emergency
PlanningNARC – Nuclear Audit and Review
CommitteeNARUC – National Association of
Regulatory Utility Commissioners NAS – National Aircraft Standards NAWAS – National Warning System (NRC)
NBA – Nuclear Business Administration NC – Normally Closed NC – Nuclear Construction NCB – Nuclear Control Board NCC – Network Control Center NCDB – Nuclear Consolidated Data Base NCE – Nuclear Construction Engineer NCR – Non-Conformance Report NCRS – Non-Conformance Reporting
SystemNCV – Non-Cited Violation NDE – Nondestructive Examination NDL – Nuclear Data Link NDMS – Nuclear Document Management
NI – Nuclear Instrumentation NIS – Nuclear Information Services (aka
"IF" Identifier) NIS – Nuclear Instrument System NIST – National Institute of Standards and
TechnologyNL – Nuclear Licensing NLFS – Nuclear Licensing Filing System nmi – nautical mile NML – Nuclear Mutual Limited NMSS – Nuclear Material Safety and
Safeguards (Hqtrs USNRC) NNI – Non-Nuclear Instrumentation NO – Normally Open NO – Nuclear Operations Order No. – Number NOA – Nuclear Operations Assistant (Shift
Communicator)NOA – Nuclear Oversight & Assessment NOD – Nuclear Oversight Division NOI – Normal Operating Instruction NOI – Notice of Intention NOMIS – Nuclear Operation and
Maintenance Information Services NOUE – Notification of Unusual Event ECL
(NRC)NOV – Notice of Violation Np – neper NP – Negative Pressure Respirator NPDES – National Pollution or Pollutant
Discharge Elimination System NPEAC – Nuclear Power Executive
Advisory Committee NPEO – Nuclear Plant Equipment Operator NPG – Nuclear Procedures Group NPOC – Nuclear Power Oversight
CommitteeNPRC – National Personnel Records
Center (Bi-Military Service) NPRDS – Nuclear Plant Reliability Data
SystemNPSH – Net Positive Suction Head NQC – Nuclear Quality Control Department NRA – Nuclear Regulatory Affairs NRC – Nuclear Regulatory Commission NR&P – Nuclear Rates & Planning
NRPP – Non-Radiological Industrial Respiratory Protection Program
NRR – Nuclear Reactor Regulation (Hqtrs USNRC)
NRR – Nuclear Rate Regulation (P. B. Klapka's group)
NRRPT – National Registry of Radiation Protection Technologists
NSAC – Nuclear Safety Analysis Center NSC – Nuclear Safety Concern NSC – Nuclear Services Corporation NSE – Nuclear Systems Engineer(ing) NSG – Nuclear Safety Group NSR – Nonsafety Related NSRFP – Nuclear Non-Safety Related Fire
ProtectionNSSS – Nuclear Steam Supply System NTD – Nuclear Training Division NTIS – National Technical Information
Service NTOL – Near Term Operating License NUMARC – Nuclear Management and
Resources Council NUREG – Nuclear Regulatory Information
(California) OGC – Office of the General Council (NRC) OIC – Officer in Charge (NRC) OII – Order Instituting Investigation OIR – Open Item Report OJT – On-the-Job Training OL – Operating License O&M – Operations and Maintenance O&MS – Operations and Maintenance
the Affected Unit (Unit 1 and Units 2/3) OTAG – Overtime Trend Analysis Graphics OTC – Official Test Copy OTR – Overtime Reporting Systems (NIS) oz – ounce (avoirdupois) OZD – Offshore Zone of Deformation
PPa – Peak Accident Pressure (containment) PA – Power Ascension PA – Project Administrator PA – Process Assessment PA – Protected Area (SONGS 123) pA – picoampere PAX – Edison Private Automatic Exchange pF – picofarad ps – picosecond pW – picowatt PAC – Planning and Control PAD – Protective Action Decision (NRC) PAG – Protective Action Guide (NRC) PAM – Pulse·amplitude modulation PAMI – Post Accident Monitoring
InstrumentationPAMM – Procurement and Material
ManagementPAP – Program Area Plan PAR – Protective Action Recommendation
CommitteePMS – Plant Monitoring System PNAA – Prompt Neutron Activation
Analysis PNEU – PneumaticPO – Post Order
ACRONYMS
E- 18
PO – Purchase Order POL – Provisional Operating License PORV – Power Operated Relief Valve POV – Power Operated Valve pp – pump PP – Positive Pressure Respirator PPCA – Proposed Plant Change
AuthorizationPPCS – Pressurizer Pressure Control
SystemPPDI – Plant Process Display
InstrumentationPPE – Principal Project Engineer ppm – Parts per million PPM – pulse position modulation PPS – Plant Protection System PR – Periodic Review PRA – Peak Recording Accelerographs PRA – Probabilistic Risk Assessment
(NRC)PRA – Public Risk Assessment PREQ – Procurement Requisition PRF – pulse·repetition frequency PRIDE – Performance, Recognition,
Radiochemistry Program RCPB – Reactor Coolant Pressure
BoundaryRCRA – Resource Conservation &
Recovery Act RCS – Reactor Coolant System RCS – Rod Control System RCSS – Reactor Cycle Sampling System RCTS – Regulatory Commitment Tracking
SystemRCTS – Regulatory Compliance Tracking
SystemRDN – Receipt Deficiency Notice RE – Records Control RE – Responsible Engineer REM – Roentgen Equivalent Man REP – Radiation Exposure Permit REPP – Radiation Exposure Permit
(NRC)REV – Revision RF – radio frequency RFI – radio frequency interference RFI – Request for information RFO – Refueling Outage RGDC – Retrofit General Design Criteria RHR – Residual Heat Removal
SystemRIN – Radiological Infraction Notice RIS – Regulatory Issue Summary RLWS – Radioactive Liquid Waste System RMO – Repetitive Maintenance Order rms – root mean square RMU – Reactor Make Up RMV – RemoveRMW – Reactor Makeup Water RO – Reactor Operator RP – Radiation Protection RP – Reliability and Performance RPE – Registered Professional Engineer RPR – Retrofit Problem Report RPS – Reactor Protection System RPS – Reactor Protective System R/R – Remove/Replace RR – Railroad R&R – Removed and Replaced RRG – Records Review Group RRS – Reactor Regulating System RSP – Reactor Shutdown Panel RSPI – Remote Shutdown Panel
Instrumentation (LO42) RSPT – Reed Switch Position Transmitter RSSDR – Raceway Support Supplemental
Data Report RT – Radiographic Testing RTB – Reactor Trip Breaker RTD – Resistance Temperature Detector RTO – Reactor Trip Override RTO – Responsible Test Organization RTP – Return To Power RTS – Return To Service RV – Region V (NRC) RV – Reactor Vessel RVLMS – Reactor Vessel Level Monitoring
SystemRWG – Repower Working Group RWLI – Refueling Water Level Indicator RWO – Responsible Work Organization RWR – Radwaste Condensate Return RWST – Refueling Water Storage Tank
ACRONYMS
E- 20
RWT – Refueling Water Tank RX – Reactor
S..." – second (plane angle) s – second S – siemens SAAS – Site Access Authorization System SAE – Site Area Emergency ECL (Declared
Licensee Performance Report (NRC) SAM – Shape Annealing Matrix SAPA – Substance Abuse Program
AdministrationSAR – Safety Analysis Report SAS – SAS Programming Support SAS – Secondary Alarm Station SAS – Secondary Alarm System SAS – Statistical Analysis System SBCS – Steam Bypass Control System SBLOCA – Small Break Loss-of-Coolant
Accident SBO – Station Blackout SBVMWD – San Bernardino Valley
Municipal Water District SC – Shift Commander (On-Duty Security) SCAQMD – South Coast Air Quality
SystemSDCS – Shutdown Cooling System SDDR – Supplier Deviation Disposition
Requests SDE – System Design Engineer SDG&E – San Diego Gas & Electric
Company SDR – Supplier Disposition Request SDRWQCB – San Diego Regional Water
Quality Control Board SDS – Submerged Demineralizer System SDSS – Security Detection System
Specialist SE – Security (Identifier) SE – Security Event SEA – Safety Engineering Assessment SEB – Sphere Enclosure Building ..." – second (plane angle) SECDIV – Security Division SECON – Security Condition (Safeguards
Threat Situation) SED – Station Emergency Director (TSC) SEE – Substitute Equivalency Evaluation SEE-IN – Significant Event Evaluation and
Information Network - INPO SEN – Significant Event Notification (INPO) SEP – Site Emergency Preparedness SEP – Sphere Enclosure Project (Unit 1) SEP – Systematic Evaluation Program SER – Safety Evaluation Report - Issued by
INPO (or NRC) SER – Security Event Report
ACRONYMS
E- 21
SER – Significant Event Report (INPO) SERL – Station Emergency Recall List SFD – System Functional Description SFM – Site Facilities Maintenance SFP – Spent Fuel Pool SFR – Startup Field Report SFTA – System Function Task Analysis SG – Steam Generator(s) SGBS – Steam Generator Blowdown
SystemSGLC – Steam Generator Level Control SGTR – Steam Generator Tube Rupture SHF – superhigh frequency SI – Safeguards Information SI – Safety Injection SI – Seismic Interaction SIAS – Safety Injection Actuation Signal SIMPL – Safeguards Information
Management Personnel List SIR – Station Incident Report SIS – Safety Injection System SIS – Supplier Information System SISLOP – Safety Injection System
Actuation With Loss of Offsite Power SISS – SONGS Integrated Scheduling
SystemSIT – Safety Injection Tank SL – Security Leader (TSC) SLACS – Site Local Area Communication
SystemSLAN – Site Local Area Network SLB – Steam Line Break SLSS – Safeguard Load Sequencing
SystemSM – Shift Manager SMACNA – Sheet Metal & Air Conditioning
Contractors National Assoc. SMM – Subcooling Margin Monitor SMR – Software Modification Request SN – Special Nuclear Material Inventory
and Control SNE – Site Nuclear Engineering SNM – Special Nuclear Material SNR – signal "to" noise ratio SO – San Onofre SO – Security Officer
SOC – State Emergency Operations Center (NRC)
SOCR – San Onofre Commitment Register SOCR – San Onofre Commitment Report SOE – Sequence of Events SOER – Significant Operating Experience
Reports - INPO SOMMS – San Onofre Maintenance
Management System SONGS – San Onofre Nuclear Generating
Station SOP – Standard Operating Procedure SOR – Security Observation Report SOS – State of the System (Report) SOS – Security Officer Supervisor SP – Security Plan SP – Special Procedure SP – Specific Procedure SP – State Parks, Pendleton Coast Area SPCS – Steam & Power Conversion
SystemSPDS – Safety Parameter Display System SPDS – Site Procedures and
DocumentationSPEER – Substitution Part Equivalency
Evaluation Report SPEOC – State Parks EOC (NRC) SPF – Security Processing Facility SPMT – Spare Parts Management Team SPND – Self Powered Neutron Detector SPOR – SOMMS Purchase Order
Requisition SPR – Site/Startup Problem Report
(Engineering)SQRT – Seismic Qualification Review
TeamSQRT – Square Root Function ft2 – square foot in2 – square inch m2 – square meter yd2 – square yard SR – Safety Related sr – steradian S-R – Surveillance Requirement(s) (Tech
Specs)
ACRONYMS
E- 22
SRC – SONGS Radiation Control System (NIS)
SRCS – Station Radiation Control System SRM – Schedule of Requested
ModificationsSRO – Senior Reactor Operator SRP – Standard Review Plan SS – Stainless Steel SS – Security Supervisor SS – Shift Superintendent SSAB – SONGS Site Access Badge (OCA) SSAM – Shift Superintendent Accelerated
MaintenanceSSB – single sideband SSE – Safe Shutdown Earthquake SSEP – Site Specific Earthquake Program SSFA – Safety System Functional
AssessmentSSFI – Safety System Functional
InspectionSSFICA – Safety System Functional
Inspection Commitment Analysis SSG – Site Support Group SSID – Shop Services & Instrumentation
Division SSMS – Safety Status Monitoring System SSPP – Stock Savings Plus Plan SSS – Security Screening System SSS – Site Scheduling Support System
(NIS)SSS – Site Support Services ST – Special Test STA – Shift Technical Advisor STA – Station Telecommunications Area STAIRS – Storage and Information
Retrieval System STAR – Special Tools and Rigging STEC – Station Technical (NGS) STER – Startup Test Exception Report STGR – Steam Generator Tube Rupture SU – Startup SV – Solenoid Valve SEE – Substitution Equivalency Evaluation SVAF – South Vehicle Access Facility S/W – Scope of Work SW – short wave
SWC – Salt Water Cooling SWCP – Salt Water Cooling Pump SWCS – Salt Water Cooling System SWGR – Switchgear SWO – Station Work Order SWR – standing"wave ratio SWR – Station Work Request SWRCB – State Water Resources Control
Board
TT – Tesla TAGS – Tagout Administration and
Generation System TAIS – Training Administration and
Information System TB – Terminal Block Tc – Reactor Coolant Cold Leg
TemperatureTC – transverse electric TCF – Target Capacity Factor TCN – Technical Change Notice TCN – Temporary Change Notice TCN – Test Change Notice TCP – Traffic Control Plan (SONGS) TCP – Traffic Control Point (NRC) TD – Time Delay TDC – Time Delay to close TDD – Time Delay on Deenergizing TDE – Time Delay on Energizing TDO – Time Delay to Open TDS – Total Dissolved Solids TDS – Training Documentation System
(NIS)TEC – Technology for Energy Corporation TEC – Training and Education Center Tech Spec – Technical Specification TEL – Telecommunications TEM – transverse electromagnetic 10 CFR – Code of Federal Regulations,
Part 10 (Energy) TEPA – Track Environmental Protection
Agency TER – Technical Evaluation Report
ACRONYMS
E- 23
TER – Test Exception Report TFM – Temporary Facility Modification TFT – thin film transistor Tg – Azimuthal Power Tilt TG – Turbine Generator TGIS – Toxic Gas Isolation System THY – Thyroid TI – Test Instruction TIBS – Test Item Banking System TICN – Test Instruction Change Notice TIME – Timekeeping System (NIS) TL – Technical Leader (TSC) TLD – Thermoluminescent Dosimeter
(Badge)TLU – Total Loop Uncertainty TM – transverse magnetic TMI – Three-Mile Island TMS – Training Management System (NIS) TN – Nuclear Training (AKA "NTD") TNQ – Training & Qualification Plan TO or t/o – Turnover TP – Test Procedure TPC – Thermal Power Calibration
ConstantsTPCW – Turbine Plant Cooling Water TPCWS – Turbine Plant Cooling Water
SystemT&Q – SONGS 123 Security Force Training
and Qualification Plan TQAM – Topical Quality Assurance Manual TQRS – Training Qualification Reporting
System (NIS) TR – Test Relay TR – Topical Report TRCL – Trend Review Check List TRIMS – Training Records Information
Management System (NIS) TRR – Transfer and Replacement
Requests TS – Technical Specification(s) TS – Test Switch T/S – Transmission/Substation TSC – Technical Support Center (Units 1
and 2/3) TSIP – Technical Specifications
Improvement Project
TSO – Time Sharing TSP – trisodium phosphate TURN – Towards Utility Rate
Materialization TV – television TVI – television interference TVA – Tennessee Valley Authority TWA – Temporary Work Assignment
Program (Injured Edison Employee) TWC – The Wackenhut Corporation TWG – Test Working Group (Project
Internal Review) TWT – traveling wave tube
Uu – atomic mass unit (unified) UA – Unitized Actuator UARG – Utility Air Regulatory Group UBC – Uniform Building Code UDC – Utility Distribution Company UE – Unusual Event (Declared Emergency) UEL – Upper Electrical Limit UFHA – Updated Fire Hazard Analysis UFSAR – Updated Final Safety Analysis
ReportUGS – Upper Group Stop UGS – Upper Guide Structure UHF – ultrahigh frequency UHS – Ultimate Heat Sink UL – Underwriter's Laboratories UNPOC – Utility Nuclear Power Oversight
CommitteeUNWMG – Utility Nuclear Waste
Management Group UPS – Uninterruptible Power Supply USCEA – U.S. Council for Energy
Awareness USGS – United States Geological Survey USI – Unresolved Safety Issue (NRC) USJRWPA – Upper San Joaquin River
Water & Power Authority USMC – United States Marine Corps
(Camp Pendleton) USMS – United States Marshall Service
ACRONYMS
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USNRC – United States Nuclear Regulatory Commission
USQ – Unresolved Safety Question (50.59) USWAG – Utility Solid Waste Activity Group USWC – Unsafe Work Conditions USWP – Unsafe Work Practices USWPRS – U.S. Water and Power
Resources Service UT – Ultrasonic Testing UV – ultraviolet UVTA – Under-Voltage Trip Attachment UWUA – Utility Workers Union of America
VV -- volt V&V -- Verified & Validated VA -- Vertical Assessment VA -- Vital Area(s) (SONGS 123) VA -- voltampere VAR -- Volt Amps Reactive VCO -- voltage controlled oscillator VCT -- Volume Control Tank VDIR -- Vent, Drain or Instrument Root VETIP -- Vendor Equipment Technical
Information Program VFO -- variable frequency oscillator VHF -- very high frequency VISIONS -- Versatile Interactive Simulator
of Nuclear Systems (Computer Program)
VLCBX -- Very Large Computerized Branch Exchange
VLF -- very low frequency VLPMS – Vibration and Loose Parts
Monitoring System VOPT -- Variable Over Power Trip VPCN -- Vendor Print Change Notice VPL -- Vendor Print Log VRPP -- Vital Records Protection Program VRR -- Valve Relief Request VSB -- vestigial sideband VSWR -- voltage standing"wave ratio VTP -- Verification Test Procedure VTVM -- vacuum tube voltmeter
vu -- volume unit vv -- valve
WW -- watt W/A -- work authorization WAIS -- Work Authorization Information
System (NIS) WANO -- World Association of Nuclear
Operators (performance indicators now fall under WANO)
WAR -- Work Authorization Request W/sr -- watt per steradian W/(sr"m2) -- watt per steradian square
meterWb -- weber WBCS -- Warehouse Bar Code System WBD -- Whole Body Dose WCC -- Woodward Clyde Consultants WD -- Wiring Diagram WDR -- Whole Document Revision WGIS -- Work Grouping Information
ReportWNF -- Work Notification Form WO -- Work Order WOG -- Water, Oil, or Gas service (valves
& fittings) WOG -- Westinghouse Owners Group w/out -- without WP -- Work Procedure (SONGS Nuclear
Construction)WPOA -- Wind Project Opportunity
AnnouncementWPP/QCI -- Work Plan Procedures/Quality
Control Instructions (Bechtel) WPTO -- Work Package Turnover WR -- Work Request WRCB -- Water Resources Control Board WRF -- Water Reclamation Facility (CPUC) WRGM -- Wide-Range Gas Monitor
ACRONYMS
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WRN -- Work Request Number WRWG -- Water Rights Working Group WTB -- Westinghouse Technical Bulletin
Redline Showing Differences Between A4NR’s Original and Amended Complaints
BEFORE THEPUBLIC UTILITIES COMMISSIONOF THE STATE OF CALIFORNIAAlliance for Nuclear Responsibility, Complainantvs.CASE. ____________ _Southern California Edison Company (U238E), DefendantCOMPLAINTJOHN Ll. GEESMANDICKSON GEESMAN LLP1999 Harrison Street, Suite 2000Oakland, CA 94612Telephone: (510) 899-4670Facsimile: (510) 899-4671E-Mail: [email protected]: February 13, 2012Attorney forALLIANCE FOR NUCLEAR RESPONSIBILITYBEFORE THEPUBLIC UTILITIES COMMISSIONOF THE STATE OF CALIFORNIAAlliance for Nuclear Responsibility, Complainantvs.VS.CASE ____________ _Southern California Edison Company (U238E), DefendantCOMPLAINTI. Introduction.Pursuant to Cal. Pub. Util. Code § 2101 and Rule 4.1 of the California Public UtilitiesCommission (“Commission” or “CPUC” ) Rules of Practice and Procedure, the AllianceforNuclear Responsibility (“A4NR”) hereby files its complaint against Southern CaliforniaEdisonCompany (“SCE” ):• alleging multiple violations of California and federal securities laws by intentionally,recklessly, or negligently misrepresenting, by as much as $100 million, the amount ofCPUC-authorized inflation adjustment for the San Onofre Steam Generator ReplacementProject (“SGRP”) in written filings with the United States Securities and ExchangeCommission (“SEC”) and a conference call briefing to investment analysts by TheodoreF. Craver, Jr., chairman, president, and chief executive officer of Defendant SCE’sholding company, Edison International (“EIX”);• alleging multiple violations of the Commissiong g pg g p ’s Rule 1.1 by Defendant SCE in theyyundisclosed use of unauthorized inflation adjustments for the San Onofre SGRP in itsjjAdvice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E;, , , ;, , , ;• alleging multiple violations of California and federal false claims statutes by DefendantSCE knowingly including such unauthorized inflation adjustments for the San OnofreSGRP in utility bills sent to Defendant SCE’s public sector customers, and certain of their
contractors and grantees;• alleging multiple violations of California’s “Unfair Competition Law” by DefendantSCE’sunlawful, unfair, or fraudulent practices regarding the inflation adjustments for the SanOnofre SGRP;• asking the Commission to: 1) consolidate adjudicationthe consideration of thiscomplaint with itsinvestigation of the San Onofre SGRP in I.12-10-013; 2) request1.12-10-013; 2) ; ); )determine whether there issufficient evidence to warrant the Commission exercising its authority under Cal. Pub.g yg yUtil. Code §§§§§§ 2101 or 2102 to bring suit in the name of the People of the State ofg pg pCalifornia; 3) determine whether there is sufficient evidence to warrant the; ); )Commission exercising its authorityg yg y under Cal. Pub. Util. Code § 2101 to request the aidqqof the Attorney General or the district attorney of the proper county or city and countyy p p yy yy yyy p p yy yy yyto institute court actions for the recovery of damagesand punishment of the violations of law alleged herein; and 3and prosecute appropriate actions or proceedings; 4p pp p p g ;p pp p p g ; ) issue anorder to showcause why Defendant SCE, EIX, and the individuals making the misrepresentationsalleged herein should not be found in contempt of the Commission under Cal. Pub. Util.Code § 2113.2113; and 5) provide such other relief as the Commission deems ; ) p; ) pappropriate.pp ppp pA4NR recognizes that the Commission may consider some of the misconduct allegedg y gyg y gyherein to be outside the ambit of its ability to remedy on its own, but is mindful that they yy ,yy yy ,yCalifornia Supreme Court has determined that the Commission may, and indeed p y,p y,sometimesmust, consider areas of law outside of its jurisdiction in fu lfilling its duties. Northern , j g, j gCaliforniaPower Agency v. Public Util. Com. {1971} 5 Co/3d 370 Moreover, application of the g y { } , ppyg y { } , ppyjudicialjjdoctrine of primary jurisdiction strongly argues for engagement of the Commissionp y j g yy g g gyp y j g yy g g gy ’s specialppexpertise in the factual matters underlying this complaint - and would likely stay a courtp y g p y yyp y g p y yy ’sdecisionmaking pending Commission resolution of those matters. Wise v. Pacific Gas & g p gg p gElectricCo. (1999) 77 Cal.App.4th 287( ) pp( ) ppII. Factual Allegations.1. Complainant A4NR is a 501c(3) corporation which represents both residential andsmallbusiness customers on nuclear energy issues before California and Federal regulatoryagencies,the Legislaturelegislaturegg , and Congress. A regular participant in CPUC nuclear-relatedproceedings, it iseligible to file this complaint pursuant to Rule 4.1.(a)(1) of the Commission’s Rules ofPracticeand Procedure. A4NR’s business address is P.O. Box 1328, San Luis Obispo, CA93406-1328. Its
telephone number is (858) 337-·2703.2. Defendant SCE is a public utility electrical corporation subject to the jurisdiction of theCommission. Its mailing address is 2244 Walnut Grove Avenue, Rosemead, CA 91770.Itstelephone number is (626) 302-3119.3. Complainant A4NR is a party in I.121.12-10-013 and its Data Request #7 in thatproceedingasked for copies of minutes of all meetings of the San Onofre Board of Review (((“(( BOR”) ))sinceJanuary 1, 2001 y ,yy ,y where the subject of replacement steam generators was discussed. TheSanOnofre Board of ReviewBOR is comprised of the several utility co-owners of the SanOnofre Nuclear GeneratingStation.4. In response to Complainant A4NR’s Data Request #7 in I.121.12-10-013, DefendantSCEprovided redacted minutes from the May 8, 2008, August 7,2008, November 14, 2008, , , g , , , ,, , g , , , ,Mayyy 2,2011, and July 28,, y ,y, y ,y 2011 meetingmeetingsg gg g , among others, of the San Onofre BOR.S. The unredacted portions of the minutes of the San Onofre BOR meetings identified inp gp gparagraph 4 above contain the only identifiable references to SGRP inflation adjustments p g p y jyp g p y jyorescalation factors in the post-January 1, 2001 time period covered by A4NRp y , p yyp y , p yy ’s Data Request #7qqin 1.12-10-013.6. The entire discussion of SGRP inflation adjustments or escalation factors reported in j pj ptheunredacted portions of the minutes of the San Onofre BOR meetings identified in p gp gparagraph 4p g pp g pabove is quoted in the italicized type of paragraphs 7, 9, 10, 12, and 13 below.q yp p g p , , , ,yq yp p g p , , , ,yBoard of Review. An7. The unredacted portion of the minutes of the May 2, 2011minutes reportedmeeting of the San OnofreggBOR reportspp the following exchange between Defendant SCE’s Senior Project Manager j gj gCraigggHarberts, Defendant SCE,, ’s Senior Vice President and Chief Nuclear Officer Peter T.Dietrich,,, andSan Diego Gas & Electric Senior Vice President James P. Avery:“Mr. Harberts then reviewed the SGRP budget status through March 2011. Mr. Averyg g yg g yasked that if the total SGRP costs were under $670M, would a reasonableness review be$ ,,required. Mr. Harberts responded that a reasonableness review would not be required inq p qq p qthat case. Mr. Avery asked what the cost of the project was in today’s dollars. Mr.Dietrich explained that if SCE used CPI as an escalation factor the project would be$25M over the $670M target,. but if SCE used the Handy-Whitman index,. the SGRPwould be $75M under the $670M target. Mr. Dietrich said that SCE asked for morespecificity from the CPUC on the escalation issue. Mr. Avery responded this was not hisrecollection,. SCE was insistent on being vague during the original filing.” II (emphasis( p( p
added)))A copy of the redacted May 2, 2011 minutes provided by Defendant SCE in response toComplainant A4NR’s Data Request #7 is attached to this complaint as Exhibit A.5.8. Complainant A4NR is informed and believes that Mr. Dietrich’s reference to “the$670million target” was to the SGRP’s complete cost, and not merely to Defendant SCE’s78.21%ownership share.9. Based on the un redacted portions of the minutes of the Sa n Onofre BOR, thep ,p ,significance of applying an inflation adjustment to g pp y g jg pp y g j “the $670 million target$ gg ” was recognized byg yg ySONGS co-owner SDG&E as early as mid-200B. The un redacted portion of the minutes y pyy pyof theMay B, 200B meeting of the San Onofre BOR reports the following briefing by y , g p g g yyy , g p g g yyDefendant SCE’sManager of SGRP Project Controls, David Opitz, and the response of SDG&Eg j , p , pg j , p , p ’s James P. Avery:yy“Dave provided an update on the Steam Generator Replacement Project contracts. Thep p p jp p p jtotal SGRP costs in 2004$ is $670.8M, with $400. 7M being contract costs and $270.1M$ $ , $ g $, gbeing other costs. The $400. 7M contract costs include $157 .2M in fixed price contracts,g $ $ p ,g p ,$2.5 in fixed price contracts with escalation, $1.0M in cost reimbursable contracts with$ p , $p ,no escalation, and $207.4M in cost reimbursable contracts with escalation. Future, $,allowance for contracts and subcontracts is $32.6M. The Bechtel Contract incorporated a$ pp$2.2M increase since the last Co-Owner update. Bechtel Change Order 7 includes: 2008$ p gp gescalation on non-manual labor, award of polar crane evaluation and polar crane, p p, p pinspection contracts, deletion of distribution transformer, and OLS runway pierp , , y pyp , , y pyevaluation. To offset the Bechtel Change Order and other trends offset by 2007 Edisong yg yunder runs, the contingency was reduced by $0.5M since the last Co-Owner update. This, g y yy $ py, g y yy pyconcluded Dave’s presentation.pp“Jim Avery requested a breakdown ofSGRP costs by both 2004$y q yy $yy q yy ’s and nominal byyycomponent with the escalation updated. Jim is concerned about the escalationp pp papproval hazard at the CPUC. Jim is requesting this tracking at all future BORpp q g gpp q g g ’s.”(emphasis added)( p )( p )A copy of the redacted May 8, 2008 minutes provided by Defendant SCE in response topy yy , p yy pypy yy , p yy pyComplainant A4NRpp ’s Data Request #7 is attached to this complaint as Exhibit B.q pq p10. The unredacted portion of the minutes of the August 7, 2008 meeting of the San p g , gp g , gOnofreBOR describes the following report from Defendant SCEg pg p ’s Mr. Opitz:pp“Dave gave an update on the CPUC Cost Estimate Variances. The application costg p ppg p ppestimate was $680 million in 2004$, $785 million in YOE$. The current cost estimate$ $, $ $,was $671 million in 2004$, $785 million in YOE$. This is based on actual escalation$ $, $ $,rates through 2006, updated 2007g , pg , p ·2011 projections to Handy-Whitman escalationp j yp j ytables trended as of 9/2007. with a reduction for deletion of HP Turbine Diaphragmp gp gwork. This_concluded Dave’s presentation on the SGRP Cost Performance Update.p pp p ”(emphasis added)( p )( p )
A copy of the redacted August 7, 2008 minutes provided by Defendant SCE in response py g , p yy pypy g , p yy pytoComplainant A4NRpp ’s Data Request #7 is attached to this complaint as Exhibit C.q pq p11. Complainant A4NR is informed and believes that pp “YOE$$” refers to year-of-expenditure-dollars.y py p12. The unredacted portion of the minutes of the November 14, 2008 meeting of the Sanp , gp , gOnofre BOR reflect co-owner SDG&E’s continued interest in the inflation adjustment jjtopic:pp“Jim Avery asked about escalation as SGRP was approved in $2004 dollars. Jim was toldy pp $yy ppythat Paul Hunt in Treasury group was working on a composite indeK of the appropriatey g p g p pp pyy g p g p pp pyescalation factors to apply to SGRP costs. SCE believes it will be able to support thepp y ppypp y ppyescalation factors used to apply to the SGRP costs.pp ypp y ” (emphasis added)( p )( p )A copy of the redacted November 14, 2008 minutes provided by Defendant SCE in py , p yypy , p yyresponse toppComplainant A4NRpp ’s Data Request #7 is attached to this complaint as Exhibit D.q pq p13. The unredacted portion of the minutes of the July 28, 2011 meeting of the San Onofrep y , gyp y , gyBOR reflect the regulatory significance of the $100 million difference embedded in the g y g $yg y gychoice ofinflation adjustment index:jj“Mr. Dietrich reminded the Board that the issue of escalation rates has not beenfinalized. In SCE’s filings with the California Public Utilities Commission (CPUC), g ( ),g ( ),Handyyy·yyyyWhitman escalation rates are always used to calculate escalation far longy gy g·gg term capitalppprojects. However, if the CPUC requires a different escalation methodology be used.p j , q gyp j , q gysuch as the Consumer Price Index, this would put the project into jeopardy of not, p p j j p y, p p j j p ycoming in at or under budget and a reasonableness review would be required if theg g qg g qbudget was exceeded by $100 million, but the impact of using a different escalationg y $ , p gyg y , p gymethodology wasngygy ’t expected to reach this threshold.pp ” (emphasis added)( p )( p )A copy of the redacted July 28, 2011 minutes provided by Defendant SCE in response topy yy , p yy pypy yy , p yy pyComplainant A4NRpp ’s Data Request #7 is attached to this complaint as Exhibit E.q pq p6.14. A transcript of the July 31, 2012, EIX second quarter earnings conference callconductedwith 11 investment analysts, quotes MrEIX CEO Theodore F. Craver, Jr.,, ,, , as saying thefollowing inhis opening remarks:“Turning to the regulatory review at the state level, there are several mechanisms inplace for the California Public Utilities Commission to provide oversight and review thereasonableness of expenditures related to the outage. First, the steam generator projectcost remains subject to a CPUC reasonableness review once SCE submits final cost fortheproject. As of June 30, SCE has spent $593 million on the project compared to theinflation-adjusted authorized spend of 0((($665 million, or SCE’s 78% ownershipshareshore.”(emphasis added)
This transcript is accessible at http://seekingalpha.com/article/767301-edison-internationalmanagement-international-managggement-discusses-q2-2012-results-earnings-call-transcript. Mr. Craver’s preparedremarks are available on the investor relations page of the EIX web site.7.IS. Mr. Craver’s quantification of a $66566S million “ authorized” inflation-adjustedamount forSCE’s ownership share of the SGRP was untrue. The CPUC’s 2005 decision had notauthorizedan inflation -adjusted amount and had specifically deferred that determination.Nevertheless,EIX had made a similar misrepresentation in its 10l0-K filing with the SEC datedFebruary 29, 2012which stated:“In 2005,2005. the CPUC authorized expenditures of approximately $525 million ($665million when adjusted for inflation) for SCE’s 78.21% share of San Onofre to purchaseand install new generators and remove their predecessors. Those expenditures remainsubject to CPUC review upon submission of SCE’s final costs for the overall project.SCEexpects to file an application with the CPUC setting forth final project costs in the thirdorfourth quarter of 2012.” (emphasis added)Exhibits 31.1 and 31.2 to the EIX 10l0-K, contained the respective certifications of Mr.Craver, asChief Executive Officer, and W. James Scilacci, as Chief Financial Officer, that“Based on my knowledge, this report does not contain any untrue statement of a0material fact or omit to state a material fact necessary tota make the statements made, inlight of the circumstances under which such statements were made, not misleading withrespect to the period covered by this report”Exhibit 32 to the EIX 10E1X l0-K contained the joint certification of Mr. Craver and Mr.Scilaccirequired by 18 U.S.C. § 1350, as enacted by § 906 of the Sarbanes-Oxley Act of 2002.The EIX10l0-K and its exhibits are available on the investor relations page of the EIX web site.8.16. The SCE 10-K filing with the SEC dated February 29, 2012 contained the identicaldescription of the authorized SGRP expenditures as the EIX 10l0-K of the same date, aswell ascertifications identical to those of Mr. Craver and Mr. Scilacci from SCE PresidentRonald L.Litzinger and SCE Chief Financial Officer Linda G. Sullivan. The SCE 10-K and itsexhibits areavailable on the investor relations page of the EIX web site.9.17. The 10l0-Q reports EIX and SCE filed separately with the SEC dated May 2, 20122,2012,, ; July 31,2012; and November 1, 2012 each described the $665 million “authorized” inflation-adjustedamount for SCE’s ownership share of the SGRP in the same way:
“In 2005,2005. the CPUC authorized expenditures of approximately $525 million ($665million when adjusted for inflation) for SCE’s 78.21% share of San Onofre to purchaseand install the four new steam generators in Units 2 and 3 and remove and dispose oftheir predecessors.” (emphasis added)The requisite certifications for each EIX filing were made by Mr. Craver and Mr.Scilacci, and foreach SCE filing by Mr. Litzinger and Ms. Sullivan. Each of the 10-K reports and itsexhibits areavailable on the investor relations page of the EIX web site.10. The broad authority conferred upon the Commission by18.yy Cal. Pub. Util. Code §816, et seq. confers broad authority on the Commission yy to exercisethe power of supervision, regulation, restriction, and control of the issuance of securitiesbypublic utilities. Continued access to the capital markets by public utilities regulated by thep y p g yyp y p g yyCommission requires faithful adherence to California and federal securities laws. Thein order to enable such utilities continued access to the capital markets. The Commissionhas a particularly strong interest in assuring Defendant SCE’s compliance.,,,especially in matters relating to the representations about Commission decisions.p y g pyp y g py11.19. Contrary to Mr. Craver’s statement in the July 31, 2012 quarterly earnings call, andcontrary to the similar representations by EIX and SCE in eight separate 10-K or 10-Qfilings withthe SEC, the CPUC actually went to considerable length in its 2005 decision approvingthe SGRP,D.05-12-040, to emphasize that it was not authorizing a particular adjustment forinflation atthat time. As discussed in D.05-12-040’s Ordering Paragraphs:“13. The selection of the appropriate inflation adjustment to convert the 2004 dollarsadopted herein to nominal dollars will be addressed in SCE’s application to includeSGRPcosts permanently in rates.”***“15. The selection of the appropriate inflation adjustment to convert future O&M costsand capitalcapitolpp additions as shown in Attachment A from 2004 dollars to theappropriatefuture year dollars shall be determined in the proceedings specified in OrderingParagraph 12.”1
20. Although superficially of two minds about the type of Commission proceeding inwhichthe appropriate inflation adjustment should eventually be selected, the Conclusions ofLawlaw in D.050.05-12-040 conclusively yy established that such selection had not yet been made:“46. The selection of the appropriate inflation adjustment applicable to recorded SGRPcosts should be addressed in SCE’s application to include SGRP costs permanently in
1 Complainant A4NR believes this to be a typographical error, since Ordering Paragraph 12 discusses depreciation rather than proceedings, and believes the intended reference is to Ordering Paragraph 13.
rates.” “***“68. Since the inflation adjustment was not addressed in the record, the selection of theappropriate inflation adjustment applicable to the costs shown in Attachment A shouldbe considered in proceedings such as GRCs where revenue requirements and rates areset.” H21. The Findings of Fact in D0 .05-12-040 provided additional insight into theCommission’sthinking. The only example cited in the entire decision of a specific index that might beused forfuture inflation adjustments was the Consumer Price Index – -which, as described inParagraph 47above, by May 2,March,,, 2011 had produced an authorized cost level $100 million belowthe amountcalculated by Defendant SCE using the Handy Whitman Index:“146.N145,,, In this decision, costs are expressed in 2004 dollars.“H147. Actual costs will be expressed in nominal dollars when they are recorded.“148. A meaningful comparison of recorded SGRP costs with the costs specified hereinwill require all costs to be converted to equivalent year dollars by an inflationadjustment.“149. The inflation adjustment should be made based on reliable publications such asthe Consumer Price Index published by the U.S. Bureau of Labor Statistics.“150. The record is not sufficient to address how the inflation adjustment should bemade.” “12.22. Defendant SCE filed its Advice Letterletter 2521-·E with the CommissionNovember 1, 2010 torecover $56.694 million in 2011 for completion of the installation of the Unit 2replacementsteam generators. According to SCE Advice Letterletter 2521-·E, the requested amount“includes estimated depreciation, property taxes, income taxes, return on rate base, andFranchise Fees and Uncollectibles consistent with Preliminary Statement, Part Z.”The reference to Preliminary Statement, Part Z related to the SONGS 2&3 SteamGeneratorReplacement Balancing Account approved earlier by the Commission’s Energy DivisionDirectorpursuant to SCE Advice Letterletter 2355-·E. Neither SCE Advice Letterletter 2521-E,nor PreliminaryStatement, Part Z, made any mention of an inflation adjustment. SCE Advice Letterletter2521-·E wasapproved by the Commission’s Energy Division Director December 7, 2010.13.23. Defendant SCE filed its Advice Letterletter 2648-E-A with the Commission onDecember 27,2011 to recover $57.540 million in 2012 for completion of the installation of the Unit 3replacement steam generators, as well as $57.699 million in 2012 for the Unit 2replacement
steam generators. No explanation for the $1.005 million increase from 2011 to 2012 inthe Unit2 amount was offered. According to SCE Advice Letterletter 2648-E-A,“The total 2012 forecast SONGS 2&3 steam generators revenue requirement isestimated to be $115.239 million and includes estimated depreciation, taxes, return onrate base, plus FF&U, consistent with Preliminary Statement, Part Z.”The reference to Preliminary Statement, Part Z related to the SONGS 2&3 SteamGeneratorReplacement Balancing Account approved earlier by the Commission’s Energy DivisionDirectorpursuant to SCE Advice Letterletter 2355-· E. Neither SCE Advice Letterletter 2648-E-A,nor PreliminaryStatement, Part Z, made any mention of an inflation adjustment. SCE Advice Letterletter2648-E-Awas approved by the Commission’s Energy Division Director June 13, 2012.14.24. Pursuant to the approval by the Commission’s Energy Division Director of SCEAdviceLetterletter 2521-·E and SCE Advice Letterletter 2648-E-A, Defendant SCE includedcumulative revenuerequirements of $171,933,000 in its rates and charges for 2011 and 2012 for its share oftheSGRP costs recorded in Preliminary Statement, Part Z, without disclosing what inflationadjustment, ifjfjj any, was used in determining these revenue requirements.15.25. Defendant SCE filed its Advice Letterletter 2834-·E on December 31, 201231,2012,, to recover $ 112.843million in 2013 for replacement of the Unit 2 and Unit 3 steam generators, but the requestremains pending. SCE Advice Letter 2834-E makes no mention of whether an inflationadjustment was used to calculate the amount requested, which“includes estimated depreciation, taxes, return on rate base, plus FF&U, consistent withD.05-·12-040 and Preliminary Statement Part Z.”16.26. Defendant SCE knows that the Commission has not yet authorized a particularinflationadjustment for Defendant SCE’s share of SGRP costs recorded in Preliminary Statement,Part Z.27. Complainant A4NR is informed and believes that Defendant SCE used an inflationppadjustment for the SGRP costs addressed in Defendant SCEjj ’s Advice Letters 2355-E, ,,2521-E,,,2648-E-A, and 2834-E.,,17.28. Complainant A4NR is informed and believes that Defendant SCE used an inflationadjustment, most likely the Handy Whitman Index or a composite of different indexes, tocalculate the portion of its share of SGRP costs to include in its 2011, 2012 and proposed2013rates and charges.III. Causes of Action.FIRST CAUSE OF ACTIONViolation of Cal. Corp. Code § 254002S400(d)
Incorporating by reference paragraphs 1 through 1728 herein, Complainant A4NR allegesthe following:18.29. On multiple occasions, Defendant SCE intentionally, recklessly, or negligentlymadeuntrue statements of material facts regarding the Commission’s authorization of a specificinflation adjustment for Defendant SCE’s share of the cost of the SGRP. These occasionsinclude but are not limited to:;;;a) the February 29, 2012 filing of SCE’s 10-K with the SEC;b) the February 29, 2012 filing of EIX’s 10-K with the SEC;c) the May 2, 2012 filing of SCE’s 10-Q0 with the SEC;d) the May 2, 2012 filing of EIX’s 10-Q0 with the SEC;e) the July 31, 2012 filing of SCE’s 10-Q0 with the SEC;f) the July 31, 2012 filing of EIX’s 10-Q with the SEC;g) the July 31, 201231,2012,, conference call with investment analysts;h) the November 1, 2012 filing of SCE’s 10-Q0 with the SEC;i) the November 1, 2012 filing of SCE’s 10-Q·0 with the SEC.19.30. On multiple occasions, Defendant SCE intentionally, recklessly, or negligentlyomitted tostate material facts, regarding the Commission’s D.05-12-040 treatment of SGRP costinflationadjustment, necessary to make the statements Defendant SCE did make, in light of thecircumstances under which they were made, not misleading. These occasions include butarenot limited to:a) the February 29, 2012 filing of SCE’s 10-K with the SEC;b) the February 29, 2012 filing of EIX’s 10-K with the SEC;c) the May 2, 2012 filing of SCE’s 10l0-Q with the SEC;d) the May 2, 2012 filing of EIX’s 10-Q with the SEC;e) the July 31, 2012 filing of SCE’s 10-Q0 with the SEC;f) the July 31, 2012 filing of EIX’s 10-Q with the SEC;g) the July 31, 2012 conference call with investment analysts;h) the November 1, 2012 filing of SCE’s 10-Q with the SEC;i) the November 1, 2012 filing of SCE’s 10-Q with the SEC.20.31. The certifications described in paragraphs 715 through 917 above were eachknowingly orwillfully made with regard to Commission authorization of a specific inflation adjustmentforDefendant SCE’s share of the cost of the SGRP21.32. Defendant SCE’s conduct violated Cal. Corp. Code § 25400(2S400{( {( {d).SECOND CAUSE OF ACTIONViolation of 15 U.S.C. § 77q(a) and 15 U.S.C. § 78j(b)Incorporating by reference paragraphs 1 through 2132 herein, Complainant A4NR allegesthe following:22.33. Defendant SCE’s conduct alleged in paragraphs 1829 through 21 herein31 aboveviolated Section
17(a) of the federal Securities Act of 1933, codified as 15 U.S.C. § 77q(a), and Section10l0(b) ofthe federal Exchange Act of 1934, codified as 15 U.S.C. § 78j(b) and is subject topotentialenforcement action by the SEC.THIRD CAUSE OF ACTIONViolation of Cal. Gov. Code § 12650, et seq.20 CCR §§§ 1.1Incorporating by reference paragraphs 1 through 33 herein, Complainant A4NR allegesp g y p g p g , p gyp g y p g p g , p gythe following:gg34. Defendant SCE’s use of an inflation adjustment for the SGRP costs addressed by itsj yj yAdvice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E was an artifice or false statement , , ,, , ,of factor law which misled or attempted to mislead the Commission or its staff and violated ppRule1.1 ofthe CPUC Rules of Practice and Procedure.35. Defendant SCE’s failure to disclose its use of an inflation adjustment for the SGRP jjcostsaddressed by its Advice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E was an artifice or y , , ,y , , ,falsestatement of fact or law which misled or attempted to mislead the Commission or its staff ppandviolated Rule 1.1 of the CPUC Rules of Practice and Procedure.36. Pursuant to Cal. Pub. Util. Code §§§ 2108, each violation of Rule 1.1 by Defendant , y, ySCE’sAdvice Letters 2355-E, 2521-E, 2648-E-A, and 2834-E is a continuing violation, and , , , g ,, , , g ,each dayyy’yyyy scontinuance thereof is a separate and distinct offense.ppFOURTH CAUSE OF ACTIONViolation of Cal. Gov, Code ,, §§§ 12650, et seq., q, qIncorporating by reference paragraphs 1 through 2236 herein, Complainant A4NR allegesthe following:23.37. To the extent Defendant SCE’s 2011 and 2012 rates and charges included anyinflationadjustment for its share of SGRP costs recorded in Preliminary Statement, Part Z, suchinflationadjustment was knowingly included by Defendant SCE.24.38. To the extent that Defendant SCE’s 2011 and 2012 rates and charges included anyinflation adjustment for its share of SGRP costs recorded in Preliminary Statement, PartZ, andwere submitted in Defendant SCE’s billings to California state agencies or politicalsubdivisions,they violated the California False Claims Act, Cal. Gov. Code § 12650, et seq. DefendantSCEknowingly made, used, or caused to be made or used, false records or statements to getfalse
claims paid or approved by California state agencies or political subdivisions andknowinglymade, used, or caused to be made or used, false records or statements material to false orfraudulent claims.25.39. Defendant SCE is liable for a claim of treble damages to such California stateagenciesand political subdivisions, as well as for penalties and costs, in a specific amount to bedetermined at trial in court.26.40. The information upon which this complaint is based is in the public domain, andA4NR isnot seeking to be a qui tam plaintiff or relator under Cal. Gov. Code § 12650, et seq.FOURTHFIFTH CAUSE OF ACTIONViolation of 31 U.S.C. § 3279, et seq.Incorporating by reference paragraphs 1 through 2640 herein, Complainant A4NR allegesthe following:27.41. To the extent that Defendant SCE’s 2011 and 2012 rates and charges included anyinflation adjustment for its share of SGRP costs recorded in Preliminary Statement, PartZ, andwere submitted in Defendant SCE’s billings to an officer, employee, or agent of theUnited States federal government (the “Federal Government”); or submitted to acontractor orgrantee of the Federal Government using funds provided by the Federal Government orreimbursable by the Federal Government to advance a Federal Government program orinterest, and such funds were used to pay Defendant SCE’s billings; Defendant SCE’sbillingsviolated the federal False Claims Act, 31 U.S.C. § 3279, et seq. Defendant SCEknowingly made,used, or caused to be made or used, false records or statements to get false claims paid orapproved by the Federal Government or its contractors or grantees and knowingly made,used,or caused to be made or used, false records or statements material to false or fraudulentclaims.28.42. Defendant SCE is liable for a claim of treble damages to the Federal Government,and tocertain of its contractors and grantees, as well as for penalties and costs, in a specificamount tobe determined at trial in court.29.43. The information upon which this complaint is based is in the public domain, andA4NR isnot seeking to be a qui tam plaintiff or relator under 31 U.S.C. § 3279, et seq.FIFTHSIXTH CAUSE OF ACTIONViolation of Cal. Bus. & Prof. Code § 17200, et seq.Incorporating by reference paragraphs 1 through 2943 herein, Complainant A4NR allegesthe following:30.44. Defendant SCE has engaged in, and continues to engage in, unlawful, fraudulent,or
unfair acts or practices in the conduct of a business, which acts or practices constituteunfaircompetition, as that term is defined in Cal. Bus. & Prof. Code § 17200. Such acts orpracticesinclude, but are not limited to, the following:a) violating Cal. Corp. Code § 25400(d) as described in the First Cause of Actionabove;b) violating 15 U.S.C. § 77q(a) and 15 U.S.C. § 78j(b) as described in the SecondCause of Action above;c) violating 20 CCR gg §§§ 1.1 as described in the Third Cause of Action above;;;d) violating) g) g Cal. Gov. Code § 12650, et seq., as described in the ThirdFourth Cause ofAction above; andde) violating 31 U.S.C. § 3279, et seq., as described in the FourthFifth Cause of Actionabove.31.45. Defendant SCE is liable for restitution, costs and civil penalties in a specificamount tobe determined at trial in court.IV. Prayer for ReliefWHEREFORE, Complainant A4NR respectfully asks the Commission to(1) consolidate adjudicationthe consideration of this complaint, pursuant to Rule 7.4 oftheCommission’s Rules of Practice and Procedure, with its investigation of the San OnofreSGRP in I.121.12-10-013;(2) requestdetermine whether there is sufficient evidence to warrant the Commissionexercising its authority under Cal. Pub. Util. Code g yg y §§§§§§ 2101 or 2102 to bring suit in theggname of the People of the State of California;p ;p ;(3) determine whether there is sufficient evidence to warrant the Commission( )( )exercising its authorityg yg y under Cal. Pub. Util. Code § 2101 to request qq the aid of theAttorney General’s assistanceto institute court actions for the recovery of damages and punishment of the violations or the district attorney of the proper county or city and y p p yy yyy p p yy yycounty toyyof law alleged herein;institute and prosecute appropriate actions or proceedings;p pp p p g ;p pp p p g ;(34) issue an order to show cause why SCE, EIX, and the individuals making themisrepresentations alleged herein should not be found in contempt of the Commissionunder Cal. Pub. Util. Code § 2113; and(45) provide such other relief as the Commission deems appropriate.V. Contact Information.All pleadings, correspondence, and other communications concerning this complaintshould be directed to Complainant A4NR’s attorney as follows:John L. GeesmanDICKSON GEESMAN LLP1999 Harrison Street, Suite 2000Oakland, CA 94612Telephone: (510) 899-4670Facsimile: (510) 899-4671E-Mail: [email protected] @ g john@dicksongeesma n.comj @ gjj @ g
VI. Scoping Information and Proposed Schedule.Complainant A4NR requestsreque stsqq that this matter be categorized as an adjudicatoryproceeding and expects the need for any evidentiary hearing to be determined by thecontentof Defendant SCE’s answer. If Defendant SCE proffers evidence that it did not includeanyinflation adjustment in calculating its billings, or that it had express Commissionauthorizationfor the inflation adjustment which it used, the need for hearing is conceivable and can beaccommodated within the currently scheduled Phase 1 hearings in I.121.12-10-013.Otherwise,what is at issue are questions of law rather than questions of fact, and thesethat can beresolved through briefing in Phase 1 of I.121.12-10-013, well within the 12 months allowed for adjudicatory proceedings by Rule 4.2(a) oftheCommission’s Rules of Practice and Procedure. The specific issues to be decided arewhetherthere is sufficient evidence that Defendant SCE’s conduct constituted violations of law,asalleged in the complaint’s fivesix causes of action, which merit the Commission requesting theAttorney General to initiateto warrant the initiation of court proceedingsand/or findings by the Commission of contempt regarding Defendant SCE, EIX, Mr. Craver, Mr. Scilacci, Mr. Litzinger, and Ms. Sullivanand theindividuals making the misrepresentations alleged hereing p gg p g .Respectfully submitted,By: /s/ John L. GeesmanJOHN Ll. GEESMANDICKSON GEESMAN LLPDate: February 13,18,,, 2013Attorney forALLIANCE FOR NUCLEAR RESPONSIBILITYVERIFICATIONI, John L. Geesman, declare under penalty of perjury:I am an attorney licensed to practice before the courts of the State of California. Irepresentcomplainant, Alliance for Nuclear Responsibility (“A4NR”), in this matter before theCaliforniaPublic Utilities Commission. A4NR is absent from the county in which my office islocated, andtherefore I verify this document on their behalf.I have read the foregoing Complaint and know the contents thereof, and declare thecontentsof the document are true to my own knowledge, except for those matters that are stated oninformation or belief, and as to those matters IJ believe them to be true.Executed this 1318th day of February, 2013, at Oakland, California./s/ Johnjohnjj L. GeesmanJOHN L. GEESMAN
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CERTIFICATE OF SERVICE
I hereby certify that, pursuant to the Commission’s Rules of Practice and Procedure, I
have this day served a true copy of SOUTHERN CALIFORNIA EDISON COMPANY’S
(U 338-E) MOTION TO DISMISS COMPLAINT BY THE ALLIANCE FOR NUCLEAR
RESPONSIBILITY on all parties identified on the attached service list(s) C.13-02-013. Service
was effected by one or more means indicated below:
☒ Transmitting copies to the CPUC Docket Office via overnight delivery.
☒ Placing the copies in sealed envelopes and causing such envelopes to be
delivered by hand or by overnight courier to the offices of the Commissioner(s) or other addressee(s).
ALJ Melanie Darling CPUC, Div of ALJ's 505 Van Ness Ave, Room 5115 San Francisco, CA 94102
Commissioner Michel P. Florio 505 Van Ness Ave. San Francisco, CA 94102
Executed this April 10, 2013, at Rosemead, California.
_/s/ Raquel Ippoliti_________________________ Raquel Ippoliti Project Analyst SOUTHERN CALIFORNIA EDISON COMPANY
2244 Walnut Grove Avenue Post Office Box 800 Rosemead, California 91770
PROCEEDING: C1302013 - ALLIANCE FOR NUCLEAR FILER: ALLIANCE FOR NUCLEAR RESPONSIBILITY LIST NAME: LIST LAST CHANGED: MARCH 27, 2013
DOWNLOAD THE COMMA-DELIMITED FILE ABOUT COMMA-DELIMITED FILES
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JANET S. COMBS, ESQ. JOHN L. GEESMAN SR. ATTORNEY ATTORNEY SOUTHERN CALIFORNIA EDISON COMPANY DICKSON GEESMAN LLP 2244 WALNUT GROVE AVE., PO BOX 800 1999 HARRISON STREET, STE. 2000 ROSEMEAD, CA 91770-3714 OAKLAND, CA 94612 FOR: SOUTHERN CALIFORNIA EDISON COMPANY FOR: ALLIANCE FOR NUCLEAR RESPONSIBILITY (A4NR)
CASE ADMINISTRATION HENRY WEISSMAN SOUTHERN CALIFORNIA EDISON COMPANY SOUTHERN CALIFORNIA EDISON 2244 WALNUT GROVE AVENUE / PO BOX 800 2244 WALNUT GROVE AVE. ROSEMEAD, CA 91770 ROSEMEAD, CA 91770 RUSSELL A. ARCHER RUSSELL G. WORDEN ATTORNEY DIRECTOR SOUTHERN CALIFORNIA EDISON COMPANY SOUTHERN CALIFORNIA EDISON COMPANY 2244 WALNUT GROVE AVE. / PO BOX 800 2244 WALNUT GROVE AVENUE ROSEMEAD, CA 91770 ROSEMEAD, CA 91770 WALKER A. MATTHEWS III CALIFORNIA ENERGY MARKETS SENIOR ATTORNEY 425 DIVISADERO STREET, SUITE 303 SOUTHERN CALIFORNIA EDISON COMPANY SAN FRANCISCO, CA 94117
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