7. Assignment of Proceeding

John A. Bohn is the Assigned Commissioner, and Bruce DeBerry is the assigned ALJ in this proceeding.

Findings of Fact

1. A maximum non-residential customer consumption of 40,000 kWh or less, or an energy demand of 20 kW or less provides a reasonable definition of a small business electrical customer.

2. A maximum non-residential customer consumption of 10,000 therms or less provides a reasonable definition of a small business gas customer.

3. A small business may be a non-residential customer meeting the micro-business definition in Government Code Section 14837.

4. Utility qualification of a non-residential customer as a small business under Government Code Section 14837 may require reprogramming of utility tariffs or hand processing.

5. No party opposes changing the length of time a utility may back-bill a small business customer from three years to three months, and this change is reasonable.

6. Revising the back-billing rule from three years to three months should not impact the electrical and gas use definitions of a small business.

7. Only five states require customer deposits equal to twice the maximum monthly bill.

8. It would be unreasonable to base a deposit on exceptional energy use for one month.

9. Automatic or direct utility payment plans or similar programs are a useful alternative to a deposit, upon the customer making that choise.

10. Deposits provide a degree of financial security and thus may reduce potential uncollectible expenses.

11. Deposit requirements should not be waived for re-establishment of service except when re-establishment of service is due to back-billing.

12. It is reasonable to allow two months to implement the tariff revisions in this decision.

13. The National Bureau of Economic Research declares the beginning and end of recessions retroactively, and therefore it is premature to sunset small business tariff revisions.

14. Small businesses continue to face a severe cash and credit shortage problem.

15. It is difficult to run a small business, even in a positive economic climate.

16. It is reasonable to treat small business customers like residential customers.

17. It is unclear whether the small business tariff revisions in this order result in significant utility costs at this time.

Conclusions of Law

1. The changes in small business tariffs in this order should be adopted.

2. The CSBRT/CSBA motion to file comments late and for party status should be granted.

3. The preliminary categorization of this proceeding as quasi-legislative as defined in Rule 1.3(d) and our statement that hearings are not necessary are affirmed.

4. This order should be effective immediately to assist small business in this difficult economic period.

ORDER

1. Alpine Natural Gas Operating Company, Golden State Water Company, Mountain Utilities, PacificCorp, Pacific Gas and Electric Company, San Diego Gas & Electric Company, Sierra Pacific Power Company, Southern California Edison Company, Southern California Gas Company, Southwest Gas Company, and West Coast Gas Company shall revise their tariff rules for non-residential electric customers using less than 40,000 kilowatt hours or a demand of 20 kilowatts or less, or gas customers using 10,000 therms or less, or non-residential customers meeting the requirements of a micro-business as defined in Government Code Section 14837 (small business customers) as follows:

a) reduce the back-billing period from three years to three months for undercharges resulting from billing and metering errors;

b) reduce the deposit requirements to twice the average monthly bill and permit the utilities to offer alternative credit mechanisms in lieu of deposits if customers select this option;

c) establish that refund periods for overcharges resulting from metering and billing errors be a maximum of three years;

d) specify that re-establishment of service deposits shall not apply when failure to pay results from charges that are back-billed;

e) establish that a small business customer, as specified above, shall receive a warning letter after the first late payment during any calendar year, which informs that a deposit to re-establish credit may be required if a second late payment occurs within the same calendar year; and

f) clearly define the small business customers which qualify for these tariff revisions.

2. Alpine Natural Gas Operating Company, Golden State Water Company, Mountain Utilities, PacifiCorp, Pacific Gas and Electric Company, San Diego Gas & Electric Company, Sierra Pacific Power Company, Southern California Edison Company, Southern California Gas Company, Southwest Gas Company, and West Coast Gas Company shall file Tier I Advice Letters implementing the revised tariff rules specified herein within 60 days of the effective date of this order. The Advice Letters shall be effective on the date filed, pending disposition by the Energy Division staff pursuant to General Order 96-B.

3. Alpine Natural Gas Operating Company, Golden State Water Company, Mountain Utilities, PacificCorp, Pacific Gas and Electric Company, San Diego Gas & Electric Company, Sierra Pacific Power Company, Southern California Edison Company, Southern California Gas Company, Southwest Gas Company, and West Coast Gas Company shall inform non-residential customers subject to back-billing that they may self-certify as a small business customer under Government Code Section 14837.

4. The revised tariff rules in this order are effective until otherwise changed by the Commission.

5. The California Small Business Roundtable and California Small Business Association's motion to file comments late and for party status is granted.

6. Rulemaking 10-05-005 is closed.

This order is effective today.

Dated October 28, 2010, at San Francisco, California.

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