9. Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Amy Yip-Kikugawa is the assigned ALJ in this proceeding.
1. The street light rate group, commercial submetering, and agriculture and pumping rate group rate design settlement agreements are uncontested all-party settlements.
2. The settlement agreements were entered into by parties representing all impacted customer groups.
3. The settlement agreements were reached after significant give and take between the parties.
4. The revenue allocation, residential and small commercial rate design, and medium and large power rate group rate design settlement agreements are contested.
5. SCE's methodology for blending of the DWR power charge and utility retained generation is supported by the evidentiary record.
6. The revenue allocation settlement agreement is consistent with the State's EAP.
7. Adoption of the CIA shifts the amount of delivery revenues to be collected from each tier of residential customers, but does not change the overall amount to be collected.
8. Although the CIA shifts the amount of delivery revenues to be collected from different tiers of CCA customers, CCA customers as a group will still be paying the same total for delivery.
9. Tiered distribution charges will provide signals to encourage conservation to all customers.
10. SCE's request to implement the CIA concurrently with other rate adjustments it makes on an annual basis in its Energy Resource Recovery Account forecast proceeding is not opposed by any of the settling parties to the RSC settlement agreement.
11. There is a potential inconsistency between the residential and small commercial rate design, the medium and large power rate group rate design and the agriculture and pumping rate group rate design settlement agreements and a pending proposed decision in A.08-06-001 concerning eligibility to participate in multiple demand response programs.
12. The rate designs of the individual utilities should be consistent with the Commission's overall goals and policies.
13. SCE's Tariff Rule 1 definition and agricultural tariffs specify the criteria a customer must meet in order to receive service under the agricultural tariffs.
14 Under SCE's existing agricultural criteria, Citrus Packers are not eligible to receive service under the agricultural tariffs because they do not meet the on-the-farm requirement and 500 kW load limitation.
15. SCE's agricultural criteria apply to all customers in the agricultural industry, regardless of whether they are a producer, packer or processor.
16. It is not unusual for SCE tariffs to contain load limitations.
17. The 500 kW limitation in SCE's agricultural criteria ensures that there is no cost shifting.
18. PG&E's determination to not include an on-the-farm requirement in its agricultural definition was the product of a settlement and non-precedential.
19. Citrus Packers' proposed changes to SCE's agricultural criteria would eliminate the on-the-farm requirement and 500 kW load limitation for packers only.
20. Whether products are packed on-the-farm or off-the-farm does not affect their form or marketability.
21. Packing facilities are commercial entities operating in the agricultural industry.
22. D.08-07-045 adopted rate design guidance and a schedule for PG&E to implement dynamic pricing for its customers.
23. If SCE were allowed to wait until its GRC Phase 2 application to propose the balance of its dynamic pricing options, its customers would likely not be able to take advantage of dynamic pricing rate schedules until after 2013.
24. No parties oppose requiring SCE to file new dynamic pricing proposals prior to SCE's 2012 GRC Phase 2 application.
25. Given the number of issues that need to be addressed, SCE's dynamic pricing proposals should be considered in a separate application.
26. SCE should follow the rate design guidance adopted for PG&E in
D.08-07-045.
27. SCE is authorized under the revenue allocation settlement agreement to provide updates of changes in its revenue requirements to the assigned ALJ in this proceeding and to the Commission if the changes occur prior to the issuance of a Commission decision adopting the agreement.
1. The street light rate group, commercial submetering, and agriculture and pumping rate group rate design settlement agreements are each reasonable in light of the record, consistent with law, and in the public interest.
2. The revenue allocation settlement agreement is reasonable in light of the record, consistent with law, and in the public interest.
3. The residential and small commercial rate design settlement agreement is reasonable in light of the record, consistent with law, and in the public interest.
4. The revenue allocation, street light rate group and commercial submetering , settlement agreements should be approved.
5. The residential and small commercial rate design settlement agreement should be modified to ensure consistency with the policies for eligibility to participate in multiple demand response programs ultimately adopted in
A.08-06-001 and to have the CIA implemented concurrently with other rate adjustments in SCE's 2010 Energy Resource Recovery Account forecast proceeding. The settlement agreement, as modified, should be approved.
6. The medium and large power rate group rate design settlement agreement should be modified to ensure consistency with the policies for eligibility to participate in multiple demand response programs ultimately adopted in
A.08-06-001. The settlement agreement should be approved, as modified.
7. The agriculture and pumping rate group rate design settlement agreement should be modified to ensure consistency with the policies for eligibility to participate in multiple demand response programs ultimately adopted in
A.08-06-001. The settlement agreement should be approved, as modified.
8. This order should be effective immediately so that SCE may prepare the necessary advice letters, parties may review and comment on the advice letters, and rates may be timely adjusted.
9. Pub. Util. Code § 1822 and Commission Rule 10.3 concern discovery of computer models and databases by parties in a proceeding, but do not require these models and databases be made part of the evidentiary record.
10. The proposed generation rates in the revenue allocation settlement agreement are reasonable in light of the evidentiary record.
11. The evidentiary record in this proceeding supports adoption of the revenue allocation settlement agreement.
12. All residential customers, regardless of whether they are bundled or departing load, will be subject to the same tiered distribution charges if a CIA is adopted.
13. Tiered distribution charges will provide signals to encourage conservation to all customers.
14. As long as a customer meets the criteria specified in SCE's Tariff Rule 1 and the pumping and agricultural tariffs, it is eligible to receive service under the pumping and agricultural tariffs.
15. Although application of SCE's agricultural criteria has resulted in certain customers involved in agricultural operations not receiving the pumping and agricultural rates, this result is neither unlawful nor unreasonable.
16. It would be unreasonable to allow packers to always be eligible for agricultural rates.
17. SCE's existing agricultural criteria do not violate Pub. Util. Code § 740.11 or § 744.
18. The agricultural definition adopted for Pacific Gas & Electric Company's agricultural rates was the result of a settlement agreement and should not be considered precedent for changing SCE's current agricultural criteria.
19. It would be reasonable to require SCE to follow the rate design guidance adopted in D.08-07-045 when developing its dynamic pricing proposals.
20. It is reasonable to require SCE to propose dynamic pricing rates in a separate application.
21. In ratesetting proceedings, a decisionmaker may be disqualified upon a "clear and convincing showing that the decisionmaker has an unalterably closed mind on matters critical to the disposition to the proceeding."
22. Transphase has failed to show any bias or prejudgment on any issue that would require President Peevey's disqualification from this proceeding.
IT IS ORDERED that:
1. The motion dated January 9, 2009 which requests adoption of the revenue allocation settlement agreement is granted. The settlement agreement in Attachment B is adopted.
2. The motion dated January 20, 2009 which requests adoption of the street light rate group settlement agreement is granted. The settlement agreement in Attachment F is adopted.
3. The motion dated January 20, 2009 which requests adoption of the commercial submetering settlement agreement is granted. The settlement agreement in Attachment G is adopted.
4. The motion dated January 26, 2009 which requests adoption of the residential and small commercial rate design settlement agreement is granted. The settlement agreement in Attachment C is adopted with the following modifications:
a. The first sentence of paragraph 4.b.viii is modified to read as follows:
"SCE's demand response proposals set forth in Exhibit SCE-4 (updated) for the SDP, PTR, PCT, and CPP shall be adopted with the exception that the technology-enabled incentive for the PTR and PCT programs shall be $1.25/kWh for the three-year cycle of SCE's 2009 GRC. Eligibility to participate in more than one demand response program shall be consistent with the decision ultimately adopted in A.08-06-001."
b. The following sentence is added to the end of paragraph 4.b.xii:
"SCE shall implement the CIA concurrently with other rate adjustments in SCE's 2010 Energy Resource Recovery Account forecast proceeding."
5. The motion dated February 5, 2009 which requests adoption of the medium and large power rate group rate design settlement agreement is granted. The settlement agreement in Attachment D is adopted with the following modification:
a. The last sentence in paragraph 4.b.8 is deleted and replaced with the following:
"Eligibility to participate in more than one demand response program shall be consistent with the decision ultimately adopted in A.08-06-001."
6. The motion dated February 5, 2009 which requests adoption of the agriculture and pumping rate group rate design settlement agreement is granted. The settlement agreement in Attachment E is adopted with the following modification:
a. The following sentence is added to the end of Paragraph 4.a.5:
"However, eligibility to participate in more than one demand response program shall be consistent with the decision ultimately adopted in A.08-06-001."
7. If the decision ultimately adopted in A.08-06-001 will require rate design changes to avoid duplicate payments or negative demand charges, SCE shall file a 2009 Rate Design Window Application proposing these changes.
8. Within 45 days of the date this order is mailed, Southern California Edison Company shall file an advice letter in compliance with General Order 96-B. The advice letter shall include revised tariff sheets to implement the revenue allocations and rate designs adopted in this order with the exception of Schedule TOU-EV-1 and the Conservation Incentive Adjustment. The tariff sheets shall become effective no earlier than October 1, 2009, subject to Energy Division determining that they are in compliance with this order. No additional customer notice need be provided pursuant to General Rule 4.2 of General Order 96-B for this advice letter filing.
9. Within 45 days of the date this order is mailed, Southern California Edison Company shall file an advice letter in compliance with General Order 96-B. The advice letter shall include revised tariff sheets to implement Schedule TOU-EV-1 adopted herein. The tariff sheets shall become effective on filing subject to Energy Division determining that they are in compliance with this order.
10. Within 45 days of the date this order is mailed, Southern California Edison Company shall file an advice letter in compliance with General
Order 96-B. The advice letter shall include revised tariff sheets to implement the commercial submetering settlement agreement adopted in this order. The tariff sheets shall become effective on filing, subject to Energy Division determining that they are in compliance with this order. No additional customer notice need be provided pursuant to General Rule 4.2 of General Order 96-B for this advice letter filing.
11. The Conservation Incentive Adjustment component of residential rates shall be implemented concurrently with other rate adjustments in Southern California Edison Company's 2010 Energy Resource Recovery Account forecast proceeding.
12. Southern California Edison Company shall file an application proposing the following dynamic pricing rates no later than September 1, 2010. The effective date of these rates shall be proposed to be on or before January 1, 2012:
· Optional critical peak pricing (CPP) rates that include time of use (TOU) rates during non-CPP periods for residential customers.
· One or more default TOU/CPP rates for commercial and industrial customers with maximum loads less than 200 kilowatts (kW) that have had an advanced meter for 12 months or more; SCE's proposal shall not offer non-time-differentiated rates to customers with maximum load less than 200 kW that have had an advanced meter for 12 months or more.
· Mandatory TOU, with optional CPP, for agricultural customers with maximum loads less than 200 kW that have had an advanced meter for 12 months or more.
· One or more default TOU/CPP rates for agricultural customers with maximum loads equal to or greater than 200 kW that have had an advanced meter for 12 months or more.
· Optional real time pricing rates for all customer classes.
13. If the Assembly Bill 1X rate protections have been removed or have been materially changed to allow default or mandatory time-variant rates at the time Southern California Edison Company files the application identified in Ordering Paragraph 10, Southern California Edison Company shall propose default time of use and time of use/critical peak pricing rates for residential customers.
14. Southern California Edison Company's motion to update the revenue allocation and rate design settlement agreements to reflect updated revenue requirements and proposed rates is granted.
15. Citrus Packers' Proposal to modify Southern California Edison Company's pumping and agricultural tariffs is denied.
16. Transphase Company's motion to disqualify President Michael R. Peevey is denied.
17. Application (A.) 07-12-020 and A.08-03-002 are closed.
This order is effective today.
Dated August 20, 2009, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
D0908028 Attachemnts A through I
