PVA/t94 7/6/01
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on the Commission's Own Motion to Determine Whether Baseline Allowances for Residential Usage of Gas and Electricity Should Be Revised. |
Rulemaking 01-05-047 |
ASSIGNED COMMISSIONER'S RULING
AND SCOPING MEMO
This Ruling and Scoping Memo determines the schedule of this proceeding and the issues to be addressed, consistent with the requirements of Rule 6.3 of the Commission's Rules of Practice and Procedure. This proceeding is categorized as ratesetting, evidentiary and public participation hearings are necessary, and Administrative Law Judge (ALJ) Peter V. Allen is designated as the principal hearing officer. (Rule 6(c)(2).) The ex parte procedures in Public Utilities Code § 1701.3 are applicable to this proceeding.
In the Ruling of Assigned Commissioner and Administrative Law Judge Setting Prehearing Conference, dated June 11, 2001, this proceeding was bifurcated. This Scoping Memo will determine the schedule for Phase 1 of this proceeding. The schedule for Phase 2 will be determined later. Similarly, this Scoping Memo will identify the issues to be addressed in Phase 1. While some issues may be identified as appropriate to be addressed in Phase 2, this Scoping Memo is not determinative as to the scope of issues in Phase 2.
Schedule
A Prehearing Conference (PHC) was held on Thursday, June 21, 2001 before ALJ Allen and Assigned Commissioner Geoffrey Brown. Attendees addressed the scope and scheduling of this proceeding, and those comments were considered in the preparation of this Scoping Memo. The schedule for Phase 1 of this proceeding is:
August 3, 2001 Opening testimony from utility respondents
August 17 Testimony from ORA and intervenors
August 24 Rebuttal testimony from utility respondents
August 27-28 Public Participation Hearings1
September 4-7 Evidentiary Hearings
September 10-12 Public Participation Hearings
September 13-14 Evidentiary Hearings (if needed)
September 20 Public Participation Hearing
September 21 Concurrent Opening Briefs
September 24 Public Participation Hearing
September 28 Concurrent Reply Briefs
October 19 Proposed Decision
November 2 Comments on Proposed Decision
November 9 Reply Comments on Proposed Decision
November 29 Commission Decision
This schedule is consistent with the Commission's desire to act expeditiously on this matter, while acknowledging that even under a highly compressed schedule, a Decision could not take effect in time for the summer peak season. Accordingly, we are allowing time for a more thorough and careful process that will still allow for implementation of any changes in time for the winter peak heating season.
Scope
In a previous Ruling,2 we identified the issues to be examined in Phase 1 to be:
1) Updating the energy usage data used by the Commission in calculating baseline quantities;
2) The appropriate percentage of energy usage to use in calculating baseline quantities (within the range specified by Public Utilities Code § 739(d)(1));
3) Possible changes to the medical baseline allowance; and
4) Suggestions for legislative changes.
No party suggested any substantive change to this list of issues for Phase 1. Accordingly, these will remain the issues for Phase 1. We will, however, provide some elaboration and clarification of what we are looking for on these issues. In general, what we would find most useful is a clear description of current practice, and any specific changes that are recommended to that practice.
1) Updating the energy usage data used by the Commission in calculating baseline quantities.
Utilities are applying baseline quantities established in a variety of proceedings, presumably using usage data of varying vintages. For example, PG&E states that it last changed its effective electric baseline quantities in 1993, based on targets derived from 1990 recorded usage, while its target baseline gas quantity is based on 1993 usage. By comparison, Mountain Utilities states that its baseline rates were only established in late 1999. Given the recent significant changes in the California energy markets, it would appear reasonable to update the usage data (for all customer classes) that baseline quantities are based upon. We also wish to avoid arbitrary discrimination between customers of different utilities.
All parties should feel free to make suggestions as to methodology. In its Prehearing Conference Statement, PG&E asked for guidance on "whether its analysis should use the traditional, adopted weather normalization of usage data, or some other method." All parties may use what PG&E describes as "the traditional, adopted" approach, or may recommend another approach, as long as the approach chosen is clearly described and adequately supported.
2) The appropriate percentage of energy usage to use in calculating baseline quantities (within the range specified by Public Utilities Code § 739(d)(1)).
Utilities in particular, and others who are interested, should identify the percentage(s) currently used in calculating baseline quantities, and suggest any recommended changes to the currently used percentages, within the allowed statutory range. Parties should identify any problems with the percentages used, or any perceived limitations on the Commission's ability to adjust the percentages within the statutory range. To the extent that parties feel that the statutory ranges should be changed, they should address that issue under the below topic of "Suggestions for legislative changes."
3) Possible changes to the medical baseline allowance.
Again, we primarily want to make sure the Commission obtains a clear and complete picture of current practices, and ask parties to identify any problems with current practice, and to recommend any changes that would improve this important aspect of the baseline program. Parties should make the Commission aware of any practices or procedures in this area that are believed to be particularly effective.
4) Suggestions for legislative changes.
The authority of the Commission relating to baseline is generally prescribed by statute. If parties believe that the baseline program needs to be changed in ways that would require legislation, parties should identify (and support) the suggested changes, and describe what legislation would be required to implement such changes.
Some of the smaller utilities expressed concerns about the cost of participating in this proceeding, and requested some form of relief from participation. ALJ Allen properly denied those requests at the PHC. As acknowledged by ALJ Allen, the level of active participation of each party in this proceeding, including each respondent utility, is up to that party.3 However, all respondent utilities remain parties to this proceeding, and are bound by the outcome of this proceeding, regardless of their level of active participation. It is assumed that all respondent utilities will continue to cooperate with the Commission's Energy Division, and will respond promptly and thoroughly to its data requests. Responses to Energy Division's data requests may be made part of the record, and the Commission may use that information as a basis for its ultimate decision(s) in this proceeding.
Parties have inquired as to whether cost allocation issues would be addressed in this proceeding or another proceeding. We have determined that cost allocation issues will not be addressed in Phase 1 of this proceeding. Parties will be given an opportunity in the future to recommend where and how these issues should be addressed.
Anyone who needs assistance with participation in this proceeding should make use of the resources on the Commission's web site, www.cpuc.ca.gov, or should contact our Public Advisor's Office, which is available to help parties understand how to participate in a proceeding, how to file a pleading, and to answer other questions about Commission procedure. The northern California office can be reached at 415-703-2074 or public.advisor@cpuc.ca.gov. The southern California office can be reached at 213-576- 7055 or public.advisor.la@cpuc.ca.gov.
IT IS RULED that:
1. The schedule for Phase 1 of this proceeding is described above.
2. The scope of Phase 1 of this proceeding is described above.
3. ALJ Allen is the principal hearing officer for these proceedings.
4. This proceeding is categorized as ratesetting.
5. The official service list is attached to this Ruling. Parties shall serve all testimony and filings on all parties listed on the service list, including those identified as "State Service." Parties are not required to serve those listed under "Information Only," but individuals or entities on the "Information Only" list that have provided an e-mail address should be served electronically with all testimony and filings. The Commission will serve all Rulings and Orders on the
"Information Only" list.
Dated July 6, 2001, at San Francisco, California.
/s/ GEOFFREY BROWN | ||
Geoffrey Brown Assigned Commissioner |
CERTIFICATE OF SERVICE
I certify that I have by mail, and by electronic mail to the parties to which an electronic mail address has been provided, this day served a true copy of the original attached Assigned Commissioner's Ruling And Scoping Memo on all parties of record in this proceeding or their attorneys of record.
Dated July 6, 2001, at San Francisco, California.
/s/ KAREN CILMAN |
Karen Cilman |
NOTICE
Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.
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The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: Calendar Clerk (415) 703-1203.
If specialized accommodations for the disabled are needed, e.g., sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074, TTY 1-866-836-7825 or (415) 703-5282 at least three working days in advance of the event.
************ APPEARANCES ************ |
Shawna Parks |
James C. Paine |
Dexter E. Khoury |
Jason J. Zeller |
Joseph P. Como |
William H. Booth |
Judith L. Young |
