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LYN/abw 3/26/2001


Application of Southern California Edison Company (E 3338-E) for Authority to Institute a Rate Stabilization Plan with a Rate Increase and End of Rate Freeze Tariffs.

Application 00-11-038

(Filed November 16, 2000)

Emergency Application of Pacific Gas and Electric Company to Adopt a Rate Stabilization Plan. (U 39 E)

Application 00-11-056

(Filed November 22, 2000)

Petition of THE UTILITY REFORM NETWORK for Modification of Resolution E-3527.

Application 00-10-028

(Filed October 17, 2000)


In my alternate proposed decision in the rate stabilization docket, I refer to a tiered rate design. To further expedite the decisions the Commission makes regarding rates, attached is a proposed tiered rate design for all customer classes hereby released for review. The principles followed in designing the attached rate proposal include:

Under this proposal, over 45% of residential customers will not see an increase in their electric bills, even without including projections for decreased usage from conservation incentives. Thus, it is likely that a much greater percentage of customers who do change behavior to use electricity more efficiently will not see a rate increase under this proposal. Similarly, this proposal does not take into account demand-side management programs now proposed in R.00-10-002. Once these programs are implemented, customers participating in those programs-primarily medium and large commercial customers-may also experience a decrease or leveling of their electric bills, based on reduced usage.

Several important caveats exist with respect to this rate design proposal:

The attached design is merely a proposal intended to jumpstart the public process of rate design. We invite customers and parties to submit their own proposals which demonstrate a fair shouldering of the burden of purchasing energy throughout 2001-2002.

Recognizing that the Commission needs to proceed expeditiously, this ruling sets an expedited schedule within which to evaluate rate design proposals. A pre-hearing conference will be set for April 2, 2001 at 10 a.m. with briefings and hearings, if required, to follow on an expedited schedule.


1. A proposed tiered rate design for all customer classes released for review.

2. A prehearing conference regarding designing new electric rates shall be held on April 2, 2001 at 10:00 a.m. in the Commission's Courtrooms.

Dated March 26, 2001, at San Francisco, California.




Loretta M. Lynch

Assigned Commissioner


I certify that I have by mail this day served a true copy of the original attached Assigned Commissioner's Ruling on all parties of record in this proceeding or their attorneys of record.

Dated March 26, 2001, at San Francisco, California.


Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.

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The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: Calendar Clerk (415) 703-1203.

If specialized accommodations for the disabled are needed, e.g., sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074 or TTY# 1-866-836-7825 or (415) 703-5282 at least three working days in advance of the event.

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