Subject: Electric Service Provider Financial Security Requirement Reports for May 2016



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;STATE OF CALIFORNIA PUBLIC UTILITIES COMMISSION SAN FRANCISCO, CA 94102-3298 Edmund G. Brown Jr., Governor July 5, 2016 Advice Letter 3406-E Director, Regulatory Operations 8631 Rush Street Rosemead, CA 91770 Subject: Electric Service Provider Financial Security Requirement Reports for May 2016 Dear Mr. Worden: Advice Letter 3406-E is effective as of June 9, 2016. Sincerely, Edward Randolph Director, Energy Division

Managing Director, State Regulatory Operations May 10, 2016 ADVICE 3406-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Electric Service Provider Financial Security Requirement Reports for May 2016 In compliance with Decision (D.) 13-01-021, (SCE) hereby submits for filing the following reports to document the Electric Service Provider (ESP) Financial Security Requirement. The reports are provided as Attachment A. 1 PURPOSE The purpose of this advice filing is to provide the California Public Utilities Commission (Commission) with the updated ESP financial security amount as required by Ordering Paragraph (OP) 6 of D.13-01-021. BACKGROUND In OP 10 of D.13-01-021, as corrected by D.13-04-001 and D.13-02-017, the Commission adopted the methods (see Appendix 1 of D.13-01-021) for calculating ESP financial security and re-entry fee amounts to cover incremental procurement cost requirements for Direct Access (DA) customers who are involuntarily returned to SCE service. The financial security and re-entry fee requirements are applicable to ESPs who provide service to DA customers with demands of less than 20 kilowatts (kw) and who are not affiliated with a larger customer who has demand of 20 kw or more. Advice 2903-E was filed on May 24, 2013 to establish the ESP financial security requirement. OP 6 of D.13-01-021 ordered the Investor Owned Utilities (IOUs) (i.e. Pacific Gas and Electric Company,, and San Diego Gas and Electric Company) to update by the 10 th of May and November of each year the applicable ESP financial security amount via a Tier 2 Advice Letter. 1 Attachment A contains confidential information and is provided to the Energy Division pursuant to Public Utilities Code Sec.583 and GO 66-C Public Disclosure Prohibited. P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-4177 Fax (626) 302-4829

ADVICE 3406-E (U 338-E) - 2 - May 10, 2016 Within Advice 2903-E, SCE performed the calculation specified in Appendix 1 of D.13-01-021. The results are provided in Confidential Attachment A (omitted from the public version of this advice filing). Per D.13-01-021, the required financial security amount for each ESP is the higher of the amounts set forth in Attachment A, or the deposit required in D.99-05-034 for ESP registration pursuant to P.U. Code Section 394(b)(9). The Energy Division makes the determination of which amount is higher, and ensures the appropriate financial security amount is secured from each ESP. SCE is serving each ESP a set of its relevant confidential ESP data individually. Any confidential data relating to an ESP is removed in the public version of this advice letter. This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to D.13-01-021, OP 6, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE This advice filing will become effective on June 09, 2016, the 30 th calendar day after the date filed. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: EDTariffUnit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:

ADVICE 3406-E (U 338-E) - 3 - May 10, 2016 Managing Director, State Regulatory Operations 8631 Rush Street Rosemead, California 91770 Facsimile: (626) 302-4829 E-mail: AdviceTariffManager@sce.com Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously. In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B and R.07-05-025 service lists. In addition, SCE is serving each ESP a set of its relevant confidential ESP data individually. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 302-4039. For changes to all other service lists, please contact the Commission s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters. For questions, please contact Amy Liu at (626) 302-4019 or by electronic mail at Amy.Liu@sce.com. RGW:al:jm Enclosures /s/

CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Utility type: Contact Person: Darrah Morgan ELC GAS Phone #: (626) 302-2086 PLC HEAT WATER E-mail: Darrah.Morgan@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 3406-E Tier Designation: 2 Subject of AL: Electric Service Provider Financial Security Requirement Reports for May 2016 Keywords (choose from CPUC listing): AL filing type: Monthly Quarterly Annual One-Time Other Compliance, Direct Access, Electric Service Providers If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 13-01-021 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL 1 : Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information: Resolution Required? Yes No Requested effective date: 6/9/16 No. of tariff sheets: -0- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed.

Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Ave., San Francisco, CA 94102 EDTariffUnit@cpuc.ca.gov Managing Director, Regulatory Operations 2244 Walnut Grove Avenue Rosemead, California 91770 Facsimile: (626) 302-4829 E-mail: AdviceTariffManager@sce.com Michael R. Hoover Director, State Regulatory Affairs c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com