2. Background
On August 1, 2008, the Commission issued Decision (D.) 08-07-045 in Application (A.) 06-03-005. The decision adopted a dynamic pricing timetable and rate design guidance for Pacific Gas and Electric Company (PG&E). Among other things, the decision ordered that PG&E file an application proposing a default critical peak pricing (CPP) rate for residential customers 30 days after any change in the law that changes the Assembly Bill (AB) 1X rate protections in a manner that could allow default or mandatory time-variant rates for residential customers.
D.08-07-045 also ordered PG&E propose optional real time pricing (RTP) rates for all customer classes as part of its 2011 General Rate Case (GRC) Phase 2 filing, and the effective date of the proposed rates be on or before May 1, 2011. D.10-07-008 extended that date to May 1, 2012.
On March 13, 2009, the Commission issued D.09-03-026 in A.07-12-009. The decision authorized PG&E to proceed with its proposed SmartMeter Upgrade. Among other things, the Commission adopted a residential peak time rebate (PTR) program. The PTR program was established as an overlay to non-CPP residential customer's otherwise applicable tariff by applying bill credits for each kilowatt-hour reduced during an event day.1 The Commission anticipated a summer 2010 start of the program, but indicated that if that were not possible, PG&E's PTR program should instead be implemented in 2011. PTR was not implemented in 2010 and is now proposed to begin May 1, 2011 in PG&E's current 2011 Rate Design Window filing, A.10-02-028.
On March 2, 2010, the Commission issued D.10-02-032 for PG&E. The decision adopted CPP rates with time-of-use (TOU) rates, together referred to as Peak Day Pricing (PDP), with implementation for large commercial customers to begin May 1, 2010. With respect to residential customers, the Commission ordered that optional PDP rates be effective by February 2, 2011. Prior to February 1, 2011, the E-RSMART option that was then available to residential customers would remain in effect.2 On February 1, 2011, E-RSMART customers are to be moved to the new residential PDP rates, unless they opt to return to non-time differentiated residential tiered rates.
Therefore, at this point, for residential customers, optional (or "voluntary" as used by Petitioners) CPP, in the form of PDP, and PTR will be implemented together in approximately the same early 2011 timeframe. On February 1, 2011, E-RSMART customers will be moved to the optional PDP rates unless they opt to return to non-time differentiated residential tiered rates that will include the default PTR program. Consideration of residential default CPP will be by separate application, and optional RTP for all customer classes will begin May 1, 2012.
On April 1, 2010, the Division of Ratepayer Advocates (DRA) and The Utility Reform Network (TURN), identified collectively as Petitioners, filed a Petition for Modification of Decisions 08-07-045 and 10-02-032 (Petition).3
Petitioners request the modification of:
· D.10-02-032 to delay the implementation of the voluntary residential CPP program, known as PDP, to February 1, 2013; to close PG&E's E-RSMART program to new customers on February 1, 2011, and to move existing E-RSMART customers to the new residential PDP rates on February 1, 2013 unless customers opt to return to the default PTR rate design.
· D.08-07-045 to set the dynamic pricing timetable for default residential CPP to no sooner than 2016 and voluntary residential RTP to no sooner than 2018.
On April 28, 2010, the California Large Energy Consumers Association (CLECA) filed responses in A.06-03-005 and A.09-02-022 opposing the Petition. Petitioners filed replies to CLECA's responses on May 13, 2010.
1 Because the program will not result in higher bills for residential customers, it does not violate AB 1X.
2 E-RSMART is the existing optional CPP tariff for PG&E's residential SmartRate Program.
3 Pursuant to the advice of the Commission's Docket Office Advisor, the Petition was filed separately in both A.06-03-005 and A.09-02-022.
