6. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Timothy J. Sullivan is the assigned Administrative Law Judge in this proceeding.

1. Appendix D of D.08-09-012 contains the word "No" in the cell at the point where the column "New World Generation Costs" intersects the row "Direct Access - continuous" thereby indicating that customers who have been on DA continuously do not pay the cost elements associated with the IOU's generation costs incurred to meet bundled demand.

2. The cell at the point where the column "New World Generation Costs" intersects the row "Direct Access - continuous" in Appendix D of D.08-09-012 does not cite a source that justifies the entry.

3. D.08-09-012 established a "vintaging" methodology to calculate the cost obligations that a utility has incurred in the years that the customer was part of bundled load to ensure that the utility could meet then current and future demand.

4. The regulatory category "Direct Access - continuous" contains customers who have received DA service without break from a period prior to February 1, 2001 and those who received DA before February 1, 2001 but who returned to bundled service after September 20, 2001, in a manner consistent with Resolution E-3843 and revised in D.11-12-018.

5. It is reasonable that customers who left utility bundled service of electric utilities to obtain DA service before February 1, 2001 and continued on DA service from that time with no break other than safe harbor should not pay the costs known as "New World Generation Costs."

6. It is reasonable to require any customers who receive bundled service and who return to DA service to pay the non-bypassable charge associated with power procured to meet their needs, as described in D.04-12-048.

7. It is reasonable that customers who left utility bundled service of electric utilities to obtain DA service before February 1, 2001 and who subsequently return to bundled service and then switch back to DA service in a manner consistent with Resolution E-3843, and revised in D.11-12-018, to pay the costs known as "New World Generation Costs" pursuant to the vintaging process adopted in D.08-09-012.

8. A utility's billing system can be complex and even seemingly limited modifications can require time and resources to implement.

9. It is reasonable to permit utilities up to 12 months to implement the changes that would bring their tariffs and billing practices into conformity with the policies adopted in D.08-09-012 and clarified in this decision.

10. It is reasonable that any change in customer rates would be applied prospectively only from the time that the tariffs and billing practices are changed.

11. It is reasonable to categorize this proceeding as quasi-legislative and to find that there is no need for a hearing.

1. A customer who departed utility bundled service of an electric utility to obtain DA service before February 1, 2001 but who subsequently returns to bundled service after September 20, 2001 in a manner consistent with Resolution E-3843, as modified by D.11-12-018, retains the designation of "Direct Access - continuous."

2. Currently, Ordering Paragraph 4 of D.08-09-012 states: "Bundled service customers who are eligible to return to direct access shall not be excluded from having to pay the NBC associated with D.04-12-048."

3. Ordering Paragraph 4 of D.08-09-012 provides that customers who have been part of bundled service who elect to switch to DA service should be subject to a non-bypassable charge for procurement commitments made on their behalf.

4. The word "No" in the cell at the point where the "New World Generation Costs" column intersects the "Direct Access - continuous" row in Appendix D of D.08-09-012 is inconsistent with Ordering Paragraph 4 of D.08-09-012.

5. The Commission has broad authority, consistent with Public Utilities Code Section 1708 to modify decisions that it has adopted.

ORDER

IT IS ORDERED that:

1. Decision 08-09-012 is modified as follows:

· Ordering Paragraph 4 is amended to read: Continuous direct access customers returning to bundled service and then returning to direct access service are subject to the vintaging process as adopted herein, and are responsible for new world generation charges applicable to their assigned vintage.

· The word "No" in the cell at the point where the "New World Generation Costs" column intersects the "Direct Access - continuous" row in Appendix D of Decision 08-09-012 is replaced with a yes and an asterisk ("yes*"). At the bottom of that page, the asterisk should direct readers to this decision for the relevant policy.

2. Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas & Electric Company shall implement the changes needed to bring their tariffs and billing practices into conformity with the clarifications to Decision 08-09-012 adopted in Ordering Paragraph 1 within 12 months of the mailing of this order.

3. All charges resulting from today's decision shall apply prospectively, and only from the time that the tariff and billing charges described in Ordering Paragraph 2 are implemented.

4. The preliminary categorization of quasi-legislative and the determination that hearings are not required are affirmed.

5. Application 11-06-026 is closed.

This order is effective today.

Dated April 19, 2012, at San Francisco, California.

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