Discussion

In our recent SDG&E ERRA decision (D.09-09-042) we approved a $124 million ERRA overcollection one-time refund which excluded residential customers taking service through CARE rates and Tier 1 and Tier 2 rates. We said, "SDG&E has proposed a credit methodology that is consistent with the law and the manner in which residential electric rates are currently structured, as mandated by AB 1X. To use an alternate method would require giving the refund not only to those who paid higher than actual costs and thus contributed to the overcollection, but also to those who did not pay higher than actual costs and thus did not contribute to the overcollection." (D.09-09-042 at p. 6.)

PG&E's GCR method of refunding its overcollection is similar to the one approved in D.09-09-042. PG&E's CARE and Tier 1 and Tier 2 ratepayers did not pay the higher than actual costs, so should not receive a portion of the refund that is due those who did pay the higher costs. Further, had there been an undercollection the CARE and Tier 1 and Tier 2 customers would not have been assessed a portion of the shortfall.

For the reasons stated above, we approve PG&E's GCR bill credit plan whereby PG&E will give bundled electric customers one-time bill credits in the November/December 2009 billing cycle based on the expected December 31, 2009 ERRA overcollection. PG&E shall file an advice letter on October 30, 2009, to show the final aggregate amount of the bill credits. The bill credits then will appear on customers' energy statements in the November/December billing cycle.