4. "Benefiting Customers" and "For the Benefit of All Customers"
In D.06-07-029 and D.07-11-051, we reaffirmed our determination in D.04-12-048 that benefiting customers subject to the CAM consist of all bundled service customers, direct access customers, and community choice aggregation customers.8 In D.08-09-012, we clarified this definition to exclude certain municipal departing load and customer generation departing load.
Under SB 695, if the Commission determines that generation resources "are needed to meet system or local area reliability needs for the benefit of all customers in the electrical corporation's distribution service territory," then
[T]he net capacity costs of those generation resources are allocated on a fully nonbypassable basis consistent with departing load provisions as determined by the commission, to all of the following:
(i) Bundled service customers of the electrical corporation.
(ii) Customers that purchase electricity through a direct transaction with other providers.
(iii) Customers of community choice aggregators.9
The question arises whether this language is consistent with our prior determinations.
Regarding the definition of customers responsible for generation cost allocation under SB 695, PG&E/SDG&E, SCE and TURN note that the statute plainly refers to all bundled, direct access, and community choice aggregation customers.10 However, PG&E/SDG&E believe that "the statute language is not exclusive; nor does the statute limit the application of the SB 695 cost allocation mechanism only to bundled, [direct access] and [community choice aggregation] customers."11 Similarly, DRA and TURN believe that under Section 365.1(c)(2)(A), the Commission retains the discretion to determine whether it is to apply the CAM to various categories of "departing load" customers as the Commission has done in the past.12 PG&E/SDG&E recommend that these determinations not be revisited.13
We agree with PG&E/SDG&E, SCE and TURN that SB 695 provides clear guidance on bundled service, direct access and community choice aggregation customers' cost responsibility. We also agree with PG&E/SDG&E that our prior determinations in D.08-09-012 on customers subject to the nonbypassable charge and the CAM process do not need to be revisited.
8 D.06-07-029 at 26 n. 21.
9 Section 365.1(c)(2)(A).
10 PG&E/SDG&E October 1, 2010 Comments at 4; SCE October 1st 2010 Comments at 6; and TURN October 1st 2010 Comments at 5.
11 PG&E/SDG&E October 1st 2010 Comments at 4.
12 DRA October 8th 2010 Comments at 2 and TURN Oct 1st 2010 Comments at 5.
13 PG&E/SDG&E October 1st 2010 Comments at 4.
