4. Position of Protesting Parties
The protests filed by TURN and DRA deal with the advice letter process used to implement future residential rate changes pursuant to §§ 739.9 and 739.1.9 In their joint reply, applicants agree with the conditions proposed by TURN with respect to timing of the annual advice letters. UCAN specifically protested the SDG&E application, but the issues raised by UCAN are also relevant to the PG&E and SCE applications, as well. UCAN raises the issues of (1) whether rates for Tier 3 and above should be reduced when Tiers 1 and 2 rates increase; (2) what Tiers 1 and 2 rate increase percentage should be granted; and (3) whether future Tier 1 and 2 rate increase requests should be allowed by advice letter.
9 The rules applicable to advice letter filings are set forth in Commission General Order 96-B, in the General Rules, and the Energy Industry Rules. Advice letters are categorized as either Tier 1, 2, or 3. Tier 1 advice letters are effective upon filing pending Energy Division disposition. Tier 2 advice letters are effective after Energy Division approval or may become effective at the end of the initial 30-day review period if there is no timely protest and the Energy Division has not notified the utility that the advice letter is being suspended. Tier 3 advice letters are effective only upon the issuance of a resolution by the Commission approving them.
