STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
November 15, 2011 Agenda ID #10850
Ratesetting
TO PARTIES OF RECORD APPLICATION 10-03-014.
This is the proposed decision of Administrative Law Judge (ALJ) Thomas R. Pulsifer. It will not appear on the Commission's agenda sooner than 30 days from the date it is mailed. The Commission may act then, or it may postpone action until later.
When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Parties to the proceeding may file comments on the proposed decision as provided in Article 14 of the Commission's Rules of Practice and Procedure (Rules), accessible on the Commission's website at www.cpuc.ca.gov. Pursuant to Rule 14.3, opening comments shall not exceed 25 pages.
Comments must be filed pursuant to Rule 1.13 either electronically or in hard copy. Comments should be served on parties to this proceeding in accordance with Rules 1.9 and 1.10. Electronic and hard copies of comments should be sent to ALJ Thomas R. Pulsifer at trp@cpuc.ca.gov and the assigned Commissioner. The current service list for this proceeding is available on the Commission's website at www.cpuc.ca.gov.
/s/ JANET A. ECONOME for
Karen V. Clopton, Chief
Administrative Law Judge
KVC:lil
Attachment
ALJ/TRP/lil DRAFT Agenda ID #10850
Ratesetting
Decision PROPOSED DECISION OF ALJ PULSIFER (Mailed 11/15/2011)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company To Revise Its Electric Marginal Costs, Revenue Allocation, and Rate Design, including Real Time Pricing, to Revise its Customer Energy Statements, and to Seek Recovery of Incremental Expenditures. (U39M.) |
Application 10-03-014 (Filed March 22, 2010) |
DECISION ADOPTING ELECTRIC MARGINAL COSTS,
REVENUE ALLOCATION AND NON-RESIDENTIAL RATE DESIGN FOR PACIFIC GAS AND ELECTRIC COMPANY
DECISION ADOPTING ELECTRIC MARGINAL COSTS, REVENUE ALLOCATION AND NON-RESIDENTIAL RATE DESIGN FOR PACIFIC GAS AND ELECTRIC COMPANY 1
1. Summary 2
2. Procedural Background 3
3. Disposition of Substantive Issues 6
3.1. Marginal Cost and Revenue Allocation Settlement 6
3.1.1. Data and Modeling Workshops for 2014 GRC Phase 2 8
3.2. Medium and Large Light and Power Rate Design Settlement 9
3.2.1. Basic rate design Updates 10
3.2.2. Summer Average Rate Limiters: 10
3.2.3. Schedule A-6 Solar Pilot/Schedule E-19 and E-20
Option R Rates: 10
3.2.4. Schedule E-BIP: 11
3.2.5. Peak Day Pricing (PDP) Refinements: 11
3.2.6. Commercial Submetering Report: 11
3.2.7. Discounted Price Floors: 11
3.2.8. Solar Parties' Opposition to the MLLP Settlement 12
3.2.9. Discussion 19
3.3. Small Light & Power Rate Design Settlement 28
3.3.1. Use of Illustrative Settlement Rates: 28
3.3.2. Updating the SLP Rates 29
3.3.3. Schedule A-6 Rate Design: 29
3.3.4. Kilowatt Threshold Delineating Small from Medium L&P 29
3.3.5. Schedule A-15 DC Meter Issue: 31
3.3.6. Schedule E-CARE 31
3.3.7. Annual Billing: 32
3.3.8. PDP Refinements: 32
3.3.9. Schedule TC-1: 32
3.3.10. Discussion 32
3.4. Remaining Residential Rate Design Issues 32
3.4.1. Schedule ES and Natural Gas Quantity Baseline Settlement 33
3.4.2. Schedule ET Mobile Home Park (MHP) Master
Meter Discount 35
3.4.3. Uncontested Proposals 39
3.4.3.1. Escalation Factors 39
3.4.3.2. Line Loss Adder. 39
3.4.3.3. Illustrative Diversity Benefit Adjustment 40
3.4.3.4. Account 903 Cost Adjustments 40
3.4.3.5. Minimum Average Rate Limiter 41
3.4.3.6. Secondary Voltage Transformer Costs for
MHP Master Meter Connection 41
3.4.4. Contested Schedule ET Discount Issues 42
3.4.4.1. Replacement Costs 42
3.4.4.2. In-Park Secondary Distribution Capital and
Maintenance Costs 44
3.4.4.3. Proposal to Add EPMC Scalar to Avoided Costs 45
3.4.4.4. Use of Capped Versus Uncapped Connection Costs in Submeter Discount 47
3.4.4.5. Use of PG&E's 2003 Access Equipment Cost Data,
Escalated to 2011 48
3.4.4.6. Use of Multifamily Connection Costs Versus Residential Class Average Equipment Costs 49
3.4.4.7. Study Regarding Costs of Serving Mobile Home
Park Customers 52
3.5. Streetlighting Rate Design Settlement 52
3.6. Agricultural Rate Design Settlement 57
3.6.1. Uncontested Proposals in the Agricultural Rate Design
Settlement 58
3.6.1.1. Updating of Basic Rate Design 58
3.6.1.2. Tariff Charges 58
3.6.1.3. TOU Revenue Neutrality: 59
3.6.1.4. Account Aggregation 60
3.6.1.5. Schedule AG-R and AG-V Enrollment Closure
and Phase-Out 60
3.6.2. Dispute over Proposed Expansion of Schedule E-37 61
3.6.2.1. Discussion 65
4. Review of Settlements 71
5. Comments on Proposed Decision 75
6. Assignment of Proceeding 76
Findings of Fact 76
Conclusions of Law 82
ORDER 85
APPENDIX A - Settlement Agreement on Marginal Cost and Revenue Allocation
APPENDIX B - Supplemental Settlement Agreement on Medium and Large Light and Power Rate Design Issues in PG&E's Application 10-03-014
APPENDIX C - Supplemental Settlement Agreement on Small Light and Power Rate Design Issues in PG&E's Application 10-03-014
APPENDIX D - Supplemental Settlement Agreement on Streelight Rate Design Issues in PG&E's Application 10-03-014
APPENDIX E - Supplemental Settlement Agreement on Schedule ES and Natural Gas Baseline Quantity Residential Rate Design Issues in PG&E's Application 10-03-014
APPENDIX F - Supplemental Settlement Agreement on Agricultural Rate Design Issues in PG&E's Application 10-03-014
APPENDIX G - Revenue Allocations Expressed as Percentage Change in Customer Class Average Annual Rates Resulting from Adopted Settlement Agreement
DECISION ADOPTING ELECTRIC MARGINAL COSTS, REVENUE
ALLOCATION AND NON-RESIDENTIAL RATE DESIGN
FOR PACIFIC GAS AND ELECTRIC COMPANY
1. Summary
Pursuant to Pacific Gas and Electric Company's (PG&E) general rate case (GRC) Phase 2 application, we adopt the design of electric retail rates based on adopted marginal costs and revenue allocation to the customer class level.1 The resulting rates will allow PG&E to collect the revenue requirement previously determined in its Phase 1 test year GRC, as modified by subsequent revenue requirement decisions. Revised rates will become effective January 1, 2012.
PG&E and interested parties submitted a range of evidence and entered into a series of settlement agreements regarding marginal cost and revenue allocation, and non-residential rate design issues. PG&E proposes to adjust its current rates and tariff schedules for customers pursuant to the terms of the Settlement Agreements. Based on our review of the proposals in light of the whole record, we approve all of the settlements submitted in Phase 2, and attached as appendices to this decision.
The following table summarizes the adopted percentage increase or decrease in average electric rates for each major customer class as a result of the revenue allocation settlement agreement approved herein. While the allocation of revenue among customer classes changes, the overall effect on total utility revenues is zero, as summarized below:
Revenue Allocation Class Percentage Increase (or Decrease)
· Residential 0.6%
· Small Light & Power 0.2%
· Medium Light & Power: -0.9%
· E-19 Class: -0.9%
· Streetlights 1.5%
· Standby 1.7%
· Agricultural 1.5%
· E-20 : -1.0%
Total 0.0
1 The majority of rate design issues for PG&E residential electric customers in this proceeding were previously resolved in D.11-05-047.
