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STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
August 23, 2000
TO: ALL PARTIES OF RECORD IN INVESTIGATION 00-08-002
Decision 00-08-037 is being mailed without the Dissent of Commissioner Wood and President Lynch. The Dissent will be mailed separately.
Very truly yours,
/s/ LYNN T. CAREW (by ang)
Lynn T. Carew, Chief
Administrative Law Judge
COM/HMD/tcg ** Mailed 8/23/2000
Decision 00-08-037 August 21, 2000
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Investigation into the Functioning of the Wholesale Electric Market and Associated Impact on Retail Rates.
(Filed August 3, 2000)
OPINION MODIFYING DECISION (D.) 00-06-034
AND D.00-08-021 TO ADOPT A BILL STABILIZATION PLAN FOR
SAN DIEGO GAS & ELECTRIC COMPANY
On August 3, 2000, we issued Decision (D.) 00-08-021. After reconsidering the exigencies of the soaring electric rates in San Diego, we adopt a bill stabilization plan to extend through December 31, 2001 and book any revenue shortfalls to the Transition Cost Balancing Account (TCBA) for future collection of these costs. As discussed below, we defer the ultimate decision as to the duration of the bill cap pending hearings. The bill stabilization plan will ensure that the approximately 70 percent of all residential customers, those who consume 500 kWh or less, will pay no more than $68 per month for electricity through the end of January 2001. The rate for these customers will then increase to $75 per month through the end of December 2001. The plan will also ensure that the approximately 70% of all commercial customers, which consume 1,500 kWh or less, will pay no more than $220 per month and school districts not covered by the small commercial customer class through the end of January 2001. The rate for these customers will then increase to $240 per month through the end of December 2001.
However, we intend to allow for further adjustment of the kWh caps, retroactive to June 1, 2000, to ensure that customers in hotter inland regions have an appropriate level of usage cap and medium sized commercial customers are provided relief. Finally, we are directing SDG&E to implement the residential bill caps in a prorated manner so that low income users of lesser amounts of energy also obtain the benefits of capped prices.
The program preserves incentives to conserve electricity by requiring all customers who consume energy in excess of these amounts to pay the market rate for this additional consumption. Thus, the bill stabilization plan proposed here protects San Diego Gas & Electric Company's (SDG&E) customers from the gyrations of the current market, avoids a rate freeze, and encourages energy conservation. Finally, the bill stabilization plan requires SDG&E to file comments addressing the implementation of a Levelized Payment Plan (LPP) for all customers on an "opt out" basis as well as the plan's true-up. In the meantime, we direct that SDG&E continue its aggressive marketing efforts of the LPP.
In doing so, we recognize the directive of Governor Davis to stabilize bills and the urgency of the situation in San Diego. We therefore modify D.00-08-021 and D.00-06-034, and establish a bill stabilization plan for SDG&E. We will explore other options, as appropriate.