9. Assignment of Proceeding
Mark J. Ferron is the assigned Commissioner and Stephen C. Roscow is the assigned ALJ in this proceeding.
1. PG&E provided a sworn declaration supporting allegations of new or changed facts in support of its Petition to Modify D.10-02-032.
2. Joint Parties did not provide a declaration or affidavit to support allegations of new or changed facts in support of their Petition to Modify D.10-02-032.
3. On May 5, 2011 the Commission's Executive Director granted PG&E's request to delay implementing mandatory TOU and default PDP for small and medium sized C&I customers until November 1, 2012.
4. Small and medium sized commercial customers should have two full years (and two summers) of experience on TOU rates alone before being defaulted to a combined TOU and PDP rate design.
5. For commercial customers, a single annual date for default to a PDP rate design is simpler, and a date after the summer period has ended is most appropriate.
6. On May 5, 2011 the Commission's Executive Director granted PG&E's request that small- and medium-sized agricultural customers begin to default to mandatory TOU on March 1, 2013, rather than February 1, 2012, as was required in D.10-02-032.
7. On May 5, 2011 the Commission's Executive Director granted PG&E's request to extend PG&E's currently effective residential CPP rate, SmartRateTM, for one year until November 2012, and to suspend the residential PDP rate approved in D.10-02-032 until November 1, 2012.
8. More time is needed to develop a residential PDP rate that will be understandable and acceptable to residential customers. This additional time can be granted because in the meantime, residential customers may choose SmartRateTMor TOU.
9. PG&E is scheduled to file a Rate Design Window application in February 2012.
10. More information is required regarding the experience of residential customers with existing SmartRateTM and TOU rates (i.e., PG&E's Schedule E-6).
11. Dynamic pricing implementation activities that appeared likely to end in early 2011 are now likely to extend through sometime in 2014. PG&E is not seeking additional costs for these activities in this proceeding.
12. Joint Parties have not provided any factual information that specifically connects current economic difficulties to the implementation of dynamic pricing rates for small commercial customers.
13. Joint Parties have not demonstrated that an "awareness-driven" approach to transitioning customers to time-varying rates would be either feasible or practical.
14. Joint Parties have not offered new information that challenges the validity of the underlying findings that continue to justify our dynamic pricing and advanced metering initiatives.
15. Customers with a SmartMeterTM system installed may qualify to voluntarily elect to enroll on A-1 TOU rates prior to their TOU default dates.
16. The September, 2010 independent evaluation of PG&E's SmartMeterTM deployment identified PG&E's customer service practices as one of multiple factors that appeared to contribute to the escalation of SmartMeterTM-related high bill complaints.
17. PG&E describes focus group results that indicate that its customer education and outreach efforts may face greater-than-anticipated challenges in meeting the expectations we included in D.10-02-032.
18. PG&E's customer education and outreach efforts require products, services and programs to help small business customers to respond to PDP; effective customer outreach to make PDP work; and integrated solutions for small businesses.
19. PG&E's present approach to customer education and outreach, which we endorsed in D.10-02-032, may not be the most effective means of meeting our deadlines for implementing dynamic rates.
20. PG&E's methods of education and outreach may not most effectively educate customers or reach specific market segments that are most at risk.
21. The extensions granted to PG&E will allow time for interested parties to review PG&E's present approach to customer education and outreach.
22. On October 31, 2011, DRA filed a Motion to Set Aside Submission and Reopen the Record for the Taking of Additional Evidence, offering extensive material almost 10 months after Joint Parties' Petition was filed. Much of the material described as new has existed for some time.
1. Rule 16.4 of the Commission's Rules of Practice and Procedure governs Petition for Modification.
2. PG&E's request to delay default to PDP for small and medium commercial customers should be granted as modified, so that these customers begin to default to PDP in November 2014.
3. PG&E should default eligible groups commercial and industrial customers to PDP in November of each year.
4. Ordering Paragraph 3 of D.10-02-032 should be modified to reflect the changes adopted in this Decision regarding the timing of the implementation of TOU and PDP rates for small and medium commercial customers.
5. Ordering Paragraph 9 of D.10-02-032 should be modified to require PG&E to default eligible small and medium commercial customers to PDP beginning on November 1 of each year.
6. Ordering Paragraph 2 of D.10-02-032 should be modified to reflect PG&E's request that small- and medium-sized agricultural customers begin to default to mandatory TOU on March 1, 2013, rather than February 1, 2012.
7. PG&E's request to eliminate the requirement to implement a new residential PDP rate should be granted. Ordering Paragraph 10 of D.10-02-032 should be modified accordingly.
8. PG&E's request to retain SmartRateTM as an option for residential customers until the Commission completes its pending review of default residential dynamic pricing rates should be granted. Ordering Paragraph 10 of D.10-02-032 should be modified accordingly.
9. PG&E's 2012 Rate Design Window application should include a report on the logic underlying its design of SmartRateTM and Schedule E-6, including the merits of these rates for ratepayers, and provide detailed information regarding its efforts to market these rates to customers, and the results of those efforts.
10. PG&E's request for certainty of cost recovery regarding costs approved and found reasonable in D.10-02-032 is reasonable, but PG&E has not clearly updated and identified these costs. Ordering Paragraph 24 of D.10-02-032 should be modified to allow PG&E to return to the Commission with a more thoroughly developed request.
11. PG&E should remain within its budget for implementing D.10-02-032, even if more time is needed to accomplish those tasks.
12. The proposals of the Joint Parties to modify the dynamic pricing implementation framework adopted in D.10-02-032 should be denied.
13. PG&E should ensure that eligible customers are aware that they may voluntarily elect to enroll on A-1 TOU rates prior to their TOU default dates.
14. The approach to customer education and outreach that was required of PG&E in D.10-02-032 should be reevaluated to determine whether it is failing to satisfactorily educate customers or reach specific market segments that are most at risk.
15. Several actions should be initiated in order to determine whether we should order PG&E to redirect its customer education and outreach efforts and funding.
16. The customer education and outreach-related modifications requested in the Petition for Modification of D.10-02-032, filed by DRA and the CSBRT/CSBA on February 4, 2011 should be granted.
17. The Commission's Energy Division and Business & Community Outreach staff should prepare a report providing their assessment of PG&E's progress on customer education and outreach, and suggest specific, actionable steps that PG&E can take to improve its efforts.
18. DRA's Motion to Set Aside Submission and Reopen the Record for the Taking of Additional Evidence is not timely and should not be granted.
IT IS ORDERED that:
1. The Petition for Modification of Decision (D.) 10-02-032, filed by Pacific Gas and Electric Company (PG&E) on January 14, 2011 is granted, with modifications:
a. Ordering Paragraph 2 of D.10-02-032 is modified to read as follows:
2. The following rates shall be effective:
· By February 1, 2011, for large agricultural customers that have access to at least 12 months of interval billing data, default Peak-Day Pricing rates that include time-of-use rates during non-Peak-Day Pricing periods. Such customers can choose to opt out to a time-of-use rate or other time-variant rate; and
· By March 1, 2013, for small and medium agricultural customers that have access to at least 12 months of interval billing data, default time-of-use rates. Flat rates will no longer be available to these customers.
b. Ordering Paragraph 3 of D.10-02-032 is modified to read as follows:
3. The following rates shall be effective:
· By November 1, 2012, for small and medium commercial and industrial customers that have access to at least 12 months of interval billing data, default time-of-use rates. Flat rates will no longer be available to these customers; and
· By November 1, 2014, for small and medium commercial and industrial customers that have access to at least 12 months of interval billing data, default Peak-Day Pricing rates that include time-of-use rates during non-Peak-Day Pricing periods. Such customers can choose to opt out to a time-of-use rate or other time-variant rate. Flat rates will no longer be available to these customers.
c. Ordering Paragraph 4 of D.10-02-032 is modified to read as follows:
4. Peak-Day Pricing rates, with the exception of that for Schedules A-10, and time-of-use rates, as specified in Exhibit 7, Tables 2-3 through 2-5, are adopted. The adopted Peak-Day Pricing rate for Schedule A-10 is $0.90 per kWh. PG&E shall be allowed to continue its E-RSMART critical peak pricing program for residential customers.
d. Ordering Paragraph 9 of D.10-02-032 is modified to read as follows:
9. The default process shall not begin until Pacific Gas and Electric Company's implementation processes meet the requirement that affected customers have access to 12 months of recorded interval billing data at least 45 days prior to their default date. Once 12 months of data is available for small and medium agricultural and commercial and industrial customers, each customer will be assigned the next available default date which is at least 60 days later. Agricultural customers will default once per year beginning on March 1, and commercial and industrial customers will default once per year beginning on November 1. For all non-residential customer classes, individual customers shall default beginning with the customer's first billing cycle that begins after the applicable annual default date in this decision.
e. Ordering Paragraph 10 of D.10-02-032 is modified to read as follows:
10. Pacific Gas and Electric Company's Alternative 1 residential Peak-Day Pricing proposal is denied. PG&E shall be allowed to continue its E-RSMART critical peak pricing program for residential customers.
f. Ordering Paragraph 14 of D.10-02-032 is modified to read as follows:
14. Pacific Gas and Electric Company shall issue a request for proposals in 2012, in order to engage a third party to conduct an evaluation in 2013 of the effectiveness of customer education and outreach efforts regarding time-of-use rates for small and medium customers. Pacific Gas and Electric Company shall work with the Demand Response Evaluation and Measurement Committee, which will have input into the project design and scope of work for the request for proposals and also take part in scoring proposals and reviewing the final report.
g. Ordering Paragraph 18 of D.10-02-032 is modified to read as follows:
18. Pacific Gas and Electric Company shall file a Tier 2 advice letter 30 days after it has completed its proposed incremental Customer Service On-line activities. Pacific Gas and Electric Company shall provide sufficient information for Energy Division staff to verify that the new Peak-Day Pricing functionalities that Pacific Gas and Electric Company has implemented on its website appropriately suit ratepayer needs. The anticipated Peak-Day Pricing default processes shall not begin until affected customers have had access to the verified Peak-Day Pricing-related customer service on-line tools for at least 45 days.
h. Ordering Paragraph 21 of D.10-02-032 is modified to read as follows:
21. To the extent that actual expenditures, except those related to the Customer Care and Billing Version 2.3 upgrade provided for in Ordering Paragraph 17, exceed the amounts authorized by this decision, Pacific Gas and Electric Company may request cost recovery in a separate after-the-fact reasonableness review application or included as part of the Customer Care and Billing Version 2.3 upgrade application authorized in Ordering Paragraph 19.
i. Ordering Paragraph 24 of D.10-02-032 is modified to read as follows:
24. PG&E's proposal to use the Dynamic Pricing Memorandum Account to record Peak-Day Pricing costs and the Distribution Rate Adjustment Mechanism for recovery of the associated revenue requirement through 2010 is adopted. This cost recovery mechanism may continue through 2014 to recover the revenue requirement associated with (1) any additional costs above the amount approved in this case, after the additional costs are determined reasonable by the Commission, and (2) any costs that are authorized by this decision for 2010 and 2011, but are actually incurred through 2014, with the exception of those costs already included in Pacific Gas and Electric Company's 2011 general rate case authorization.
2. Pacific Gas and Electric Company shall seek approval from the Commission's Executive Director, or the Director of the Commission's Energy Division, as appropriate, for additional time, consistent with the extensions of time granted in this Decision or the May 5, 2011 letter from the Executive Director, to comply with the first bullet of Ordering Paragraph 15 of Decision 10-02-032.
3. Pacific Gas and Electric Company (PG&E) shall prepare a report that explains and illustrates the logic underlying its design of its SmartRateTM and its TOU Schedule E-6. PG&E's report should also provide detailed information regarding its efforts to market these rates to customers, and the results of those efforts. The Director of the Commission's Energy Division shall develop a reporting format to be followed by PG&E, and PG&E shall include this report in its upcoming 2012 rate design window application.
4. The Petition for Modification of Decision 10-02-032, filed by Pacific Gas and Electric Company on January 14, 2011 is denied in all other respects.
5. The Petition for Modification of Decision 10-02-032, filed by the Division of Ratepayer Advocates the California Small Business Roundtable/California Small Business Association on February 4, 2011 is granted in part:
a. PG&E shall revise the "customer education and outreach plan" that it filed pursuant to Ordering Paragraph 12 of D.10-02-032 and include specific plans for accomplishing the tasks below:
· Conduct an enhanced education, outreach and marketing program to inform eligible Small C&I Customers about the availability of its A-1 TOU rate;
· In conjunction with its outreach and education campaign, conduct an aggressive outreach program providing Small and Medium C&I Customers with an integrated set of energy efficiency and demand reduction solutions through a single point of contact;
· Perform periodic assessments of customer awareness and understanding of the A-1 TOU rate and other time-varying rates offered by PG&E, track Small C&I Customer enrollment into and disenrollment from the A-1 TOU rate and other time-varying rates, and track customer complaints regarding time-varying rates.
b. PG&E shall prepare the revisions listed above by collaborating with DRA and the California Small Business Roundtable/California Small Business Association, as well as any other interested parties who wish to participate, to ensure that the revised plan satisfactorily addresses the items listed above. PG&E shall serve its revised plan on the service list in this proceeding within 60 days of today's date.
c. The Commission's Energy Division and Business & Community Outreach staff shall work with PG&E to ensure that PG&E's existing customer education and outreach plan remains on track.
6. The Petition for Modification of Decision 10-02-032, filed by the Division of Ratepayer Advocates the California Small Business Roundtable/California Small Business Association on February 4, 2011 is denied in all other respects.
7. If it is not doing so already, Pacific Gas and Electric Company shall immediately offer its A-1 Time-of-Use rate as a stand-alone rate on a voluntary basis.
8. The final bullet of Ordering Paragraph 15 of Decision 10-02-032 is modified to read:
· After each of the presentations to parties on the service list, provide an addendum to the semi-annual written report to parties on the service list. The addendum shall be drafted collaboratively with staff from the Commission's Business and Community Outreach group and Energy Division, and signed by the Directors of each group. The addendum shall include a workshop report describing recommendations and issues raised and how Pacific Gas and Electric Company will proceed as a result of the discussions and recommendations.
9. The Commission's Energy Division and Business & Community Outreach staff shall prepare a report documenting the progress, successes and remaining challenges with respect to the customer education and outreach actions and spending ordered in Decision (D.) 10-02-032. The report shall include recommendations of specific, actionable steps that Pacific Gas and Electric Company (PG&E) can take to improve its efforts, and recommendations regarding how the Commission could link PG&E's cost recovery to the outcomes expected when PG&E's funding was approved. The report shall be served on the service list 60 days from today. Parties may comment on the report 10 days later. The assigned Commissioner or assigned Administrative Law Judge may issue additional rulings, and reopen the proceeding if necessary, after reviewing the documents and actions listed above.
10. The October 31, 2011 Motion of the Division of Ratepayer Advocates to Set Aside Submission and Reopen the Record for the Taking of Additional Evidence is denied.
11. Application 09-02-022 is closed.
This order is effective today.
Dated November 10, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
I abstain.
/s/ MICHEL PETER FLORIO
Commissioner
IT IS ORDERED that:
1. The following rates shall be effective by May 1, 2010:
· For large commercial and industrial customers, default Peak Day Pricing rates that include time-of-use rates during non-Peak Day Pricing periods. Such customers can choose to opt out to a time-of-use rate or other time-variant rate; and
· For agricultural and small and medium commercial and industrial customers with advanced meters, optional Peak Day Pricing rates that include time-of-use rates during non-Peak Day Pricing periods.
2. The following rates shall be effective:
· By February 1, 2011, for large agricultural customers that have access to at least 12 months of interval billing data, default Peak-Day Pricing rates that include time of-use rates during non-Peak-Day Pricing periods. Such customers can choose to opt out to a time-of-use rate or other time-variant rate; and
· By March 1, 2013, for small and medium agricultural customers that have access to at least 12 months of interval billing data, default time-of-use rates. Flat rates will no longer be available to these customers.
3. The following rates shall be effective:
· By November 1, 2012, for small and medium commercial and industrial customers that have access to at least 12 months of interval billing data, default time of-use rates. Flat rates will no longer be available to these customers; and
· By November 1, 2014, for small and medium commercial and industrial customers that have access to at least 12 months of interval billing data, default Peak Day Pricing rates that include time-of-use rates during non-Peak Day Pricing periods. Such customers can choose to opt out to a time-of-use rate or other time-variant rate. Flat rates shall no longer be available to these customers.
4. Peak Day Pricing rates, with the exception of that for Schedule A-10, and time-of-use rates, as specified in Exhibit 7, Tables 2-3 through 2-5 are adopted. The adopted Peak Day Pricing rate for Schedule A-10 is $0.90 per kWh. PG&E shall be allowed to continue its E-RSMART critical peak pricing program for residential customers.
5. An annual minimum of 9 and a maximum of 15 Peak Day Pricing calls, as well as Pacific Gas and Electric Company's proposal for enforcing the Peak Day Pricing call bounds by raising or lowering the temperature thresholds, are adopted.
6. Pacific Gas and Electric Company's proposed first year bill stabilization/protection proposal is adopted.
7. Under- and over-collections due to first year bill stabilization/protection and the variation in the number of Peak Day Pricing events shall be allocated to all customers by class, by spreading adjustments on an even percentage basis among all generation demand and energy charges.
8. Pacific Gas and Electric Company's proposed capacity reservation option and alternating day and six-hour window options to mitigate bill volatility for those customers that do not have a capacity reservation option are adopted.
9. The default process shall not begin until Pacific Gas and Electric Company's implementation processes meet the requirement that affected customers have access to 12 months of recorded interval billing data at least 45 days prior to their default date. Once 12 months of data is available for small and medium agricultural and commercial and industrial customers, each customer will be assigned the next available default date which is at least 60 days later. Agricultural customers will default once per year beginning on March 1, and commercial and industrial customers will default once per year beginning on November 1. For all non-residential customer classes, individual customers shall default beginning with the customer's first billing cycle that begins after the applicable annual default date in this decision.
10. Pacific Gas and Electric Company's Alternative 1 residential Peak Day Pricing proposal is denied. PG&E shall be allowed to continue its E-RSMART critical peak pricing program for residential customers.
11. Regarding person-to-person outreach, Pacific Gas and Electric Company shall ensure that a customer service representative directly contacts at least the 10% of small and medium customers whose bills are likely to be increased by the largest percentage based on previous year's usage, if they are defaulted to and stay on the PDP rate. PG&E shall include a description of how utility representatives will engage theses customers in its Customer Education and Outreach plan.
12. Pacific Gas and Electric Company shall work with Energy Division and the Business & Community Outreach group and develop a written customer education and outreach plan. The utility shall post the plan to the service list within 60 days of the final decision. Pacific Gas and Electric Company shall provide parties to the proceeding the opportunity to provide comments and feedback on the plan. Pacific Gas and Electric Company must include the plan and may include revisions based on feedback from parties in the advice letter required in Ordering Paragraph 15. The plan shall be submitted with the advice letter for informational purposes only and the utility may begin implementing the plan prior to a resolution on the advice letter. The plan shall include:
· Education goals the utility expects to have achieved with customers by the time they reach their default date;
· A list of monthly timelines for activities, the types of activities that will be conducted (i.e., mailings, e-mails, calls, workshops, meetings with business or agricultural leaders or organizations), as well as the geographic area, customer groups, and market segments that will be targeted, including ethnic and traditionally "hard to reach" customers;
· The methods that will be used to directly educate the 10% of small and medium customers whose bills are likely to be increased by the largest percentage based on previous year's usage if they stay on the Peak Day Pricing rate;
· A description of how customers will be educated about the tools and programs available to enable them to reduce energy consumption when a peak event is called, including energy efficiency and distributed generation and storage (effort should be made to coordinate this approach with other integrated marketing approaches); and
· A summary of other outreach and education plans, models or strategies around the country that PG&E can incorporate into its proposal to increase the number of small and medium customers that experience person to person interactions.
The Director of the Energy Division may direct the utility to make additions to the plan if necessary.
13. Pacific Gas and Electric Company shall work with the Commission's Business & Community Outreach group to determine how the group can assist Pacific Gas and Electric Company in outreach efforts to small and medium customers.
14. Pacific Gas and Electric Company shall issue a request for proposals in 2012, in order to engage a third party to conduct an evaluation in 2013 of the effectiveness of customer education and outreach efforts regarding time-of-use rates for small and medium customers. Pacific Gas and Electric Company shall work with the Demand Response Evaluation and Measurement Committee, which will have input into the project design and scope of work for the request for proposals and also take part in scoring proposals and reviewing the final report.
15. Pacific Gas and Electric Company shall:
· File a Tier 3 advice letter within 120 days of this final decision clearly identifying and describing the specific performance measurements, for each of its customer classes, which it will use to determine that its outreach and education campaign is successful;
o Possible examples of measurements could include, but should not be limited to, quantifying benchmarks of successful outreach efforts such as: number of workshops held, minimum participants attended, number of customers signed up for "My Account," number of customers that respond to the utility indicating they will stay on or opt out of Peak Day Pricing, and maximum number of customers calls or complaints after a Peak Day Pricing event, and number of customers educated about demand response and energy efficiency opportunities;
o Pacific Gas and Electric Company should also include a detailed plan with a timeline to develop customer surveys for each customer class. The plan should include a description of the information the utility will gather from customers through survey questions to measure the success of its outreach;
· Prepare a monthly report to be provided to the Energy Division and posted on a public website. This monthly report shall include a breakdown of cost categories and money spent on education and outreach as well as a narrative description that describes the costs. Pacific Gas and Electric Company shall work with the Energy Division to design an appropriate format for the reports. Reports should be filed until customer outreach and education activities approved in this decision and the 2011 general rate case are completed;
· Provide a semi-annual written report to all parties on the service list, which includes foundational research conducted and findings, all outreach activities that have occurred, including number of customers that have received person to person contact, lessons learned from interactions, performance measurements that have or have not been met and if necessary modifications to outreach efforts going forward. The form and content of the report should be coordinated with the Energy Division and should be modified as necessary on an ongoing basis. The first of these reports should be completed and served on all parties no later than June 1, 2010, and reports should continue until six months after customer outreach and education activities approved in this decision and in the 2011 general rate case are completed;
· Hold quarterly progress report presentations. Two of the meetings shall be with Energy Division, the Division of Ratepayer Advocates and the Business & Community Outreach group. Two of the meetings shall be in conjunction with the semi-annual written reports and open to all parties on the service list;
· Provide to the Commission's Business & Community Outreach group, Pacific Gas and Electric Company's schedule of outreach events, at which Pacific Gas and Electric Company staff will be educating customers about Peak Day Pricing and time-of-use rates. (Events include workshops, industry meetings, and meetings with members of Chambers of Commerce, or other industry or customer segments that may not be represented by Chambers of Commerce, etc.) To the extent possible, Pacific Gas and Electric Company should coordinate such events with the Business & Community Outreach group; and
· After each of the presentations to parties on the service list, provide an addendum to the semi-annual written report to parties on the service list. The addendum shall be drafted collaboratively with staff from the Commission's Business and Community Outreach group and Energy Division, and signed by the Directors of each group. The addendum shall include a workshop report describing recommendations and issues raised and how Pacific Gas and Electric Company will proceed as a result of the discussions and recommendations.
16. The effectiveness of the utility's education and outreach efforts shall be a factor in approving requests for additional funding for customer education and outreach for Peak Day Pricing in future proceedings.
17. Within 60 days of the issuance of this decision, Pacific Gas and Electric Company shall file an advice letter to explain and support an alternative cut-off time for notification of event cancellation. Parties shall have the opportunity to respond. If no protests are filed, Pacific Gas and Electric Company's proposed cut-off time will be adopted and should be included in its tariffs. If protested, the cut-off time will be determined by Commission resolution.
18. Pacific Gas and Electric Company shall file a Tier 2 advice letter 30 days after it has completed its proposed incremental Customer Service On-line activities. Pacific Gas and Electric Company shall provide sufficient information for Energy Division staff to verify that the new Peak Day Pricing functionalities that Pacific Gas and Electric Company has implemented on its website appropriately suit ratepayer needs. The anticipated Peak Day Pricing default processes shall not begin until affected customers have had access to the verified Peak Day Pricing-related customer service on-line tools for at least 45 days.
19. For cost recovery of Customer Care and Billing transition costs from Version 1.5 to Version 2.3, above the amount authorized by this decision, Pacific Gas and Electric Company shall file a reasonableness application within 120 days of completing the transition to Customer Care and Billing Version 2.3.
20. Any costs related to the Customer Care and Billing transition from Version 1.5 to Version 2.3 shall be removed from Pacific Gas and Electric Company's test year 2011 general rate case proceeding.
21. To the extent that actual expenditures, except those related to the Customer Care and Billing Version 2.3 upgrade provided for in Ordering Paragraph 19, exceed the amounts authorized by this decision, Pacific Gas and Electric Company may request cost recovery in a separate after-the-fact reasonableness review application or included as part of the Customer Care and Billing Version 2.3 upgrade application authorized in Ordering Paragraph 19.
22. Pacific Gas and Electric Company shall use its results of operations model to calculate the revenue requirements related to the costs adopted by our decision today, and shall include details of the calculations when requesting rate recovery through its Annual Electric True-up advice filing process.
23. The adopted incremental expenditures that shall be used in determining the revenue requirements for this decision total $123,585,000 for the years 2008-2010.
24. PG&E's proposal to use the Dynamic Pricing Memorandum Account to record Peak-Day Pricing costs and the Distribution Rate Adjustment Mechanism for recovery of the associated revenue requirement through 2010 is adopted. This cost recovery mechanism may continue through 2014 to recover the revenue requirement associated with (1) any additional costs above the amount approved in this case, after the additional costs are determined reasonable by the Commission, and (2) any costs that are authorized by this decision for 2010 and 2011, but are actually incurred through 2014, with the exception of those costs already included in Pacific Gas and Electric Company's 2011 general rate case authorization.
25. Pacific Gas and Electric Company shall develop an analysis of the projected bill impacts under time-of-use rates for a 10,000 customer sample of agricultural customers by November 2010. The information should be provided to the Energy Division and the Agricultural Energy Consumers Association and the availability of the information should be made to the service list.
26. Pacific Gas and Electric Company shall file a 2012 Rate Design Window application in February 2012, to address the following:
· An assessment of the performance of the 2010 and 2011 summer season Peak Day Pricing programs, in terms of customer participation and achieved demand response, with proposed adjustments, if any, to improve program performance;
· Proposed adjustments to Peak Day Pricing charges and credits, to reflect marginal costs adopted in the 2011 General Rate Case Phase 2; and
· Proposed new time-of-use and time-of-use/Peak Day Pricing rates for medium commercial and industrial customers, intermediate in time-differentiation between the proposed A1-TOU and A6-TOU rate designs.
27. The January 11, 2009 Motion of the Division of Ratepayer Advocates for Official Notice of Documents is granted.
(END OF APPENDIX A)
