V. Comments on Draft Decision
The draft decision of ALJ Karen A. Jones in this matter was mailed to the parties in accordance with Pub. Util Code § 311(g)(3) and Rule 77.7 of the Rules of Practice and Procedure. Comments were received from the following parties: TURN (July 30, 2001), Four Seasons (August 1, 2001), Hillview (August 3, 2001), and Franciscan, Rancho Santa Teresa, Diablo, Friendly Village, Pepper Tree, Spanish Ranch, Riverbend, and Hilton (August 6, 2001).
All parties indicate that they will accept the settlement agreement, as modified. In addition, TURN indicates in its filing that if the Commission requires the payment of interest, it should also direct the defendants to submit filings detailing their calculation of the interest owed and demonstrating that interest payments are being properly credited to sub-metered tenants. TURN also suggests that since there are likely to be questions regarding the precise implementation of this modification, the Commission should also direct the Energy Division to assist the defendants in properly calculating the amount and allocation of interest credits. Both of TURN's proposals have merit and we will adopt them.
We have taken the comments into account, as appropriate, in finalizing this order.
1. The ten defendant mobile home parks received Gas Refund Credits from PG&E beginning in May and June 2000.
2. The defendant mobile home parks did not take prompt action to return the Gas Refund Credits to their sub-metered customers.
3. By not returning the Gas Refund Credits to their sub-metered customers, the defendant mobile home parks were in violation of Public Utilities Code Section 739.5.
4. All rebates have now been fully disbursed to the sub-metered customers served by defendants.
5. The defendants did not pay interest on the rebates which were disbursed to their sub-metered customers.
6. Defendants are now in compliance with Section 739.5, and promise to comply with Section 739.5 in the event additional rebates are issued in the future.
7. As conduct guidance for defendants and other similarly situated mobile home parks, today's order should be made effective immediately.
1. The modified settlement is reasonable in light of the whole record because defendants have disbursed all rebates to their sub-metered customers and have been ordered to pay interest on the rebates.
2. The modified settlement is consistent with the law because the defendants are now in compliance with Public Utilities Code Section 739.5.
3. The modified settlement is in the public interest because defendants have now complied with Section 739.5 and all rebates have been paid to sub-metered customers and defendants have been ordered to pay interest on the rebates. Also, defendants promise to pass on any future rebates in a timely manner.
IT IS ORDERED that:
1. The Joint Motion for Commission to Adopt Stipulations of Fact and Conclude Proceedings is approved, with the modification specified herein.
2. Interest shall be paid to defendants' sub-metered customers at the rate of seven percent (7%) per annum, compounded monthly, beginning 30 days from the date the defendants received the rebates and continuing until the time that the rebates were passed on to their sub-metered customers.
3. By November 1, 2001, the defendants shall submit filings to the Director, Energy Division detailing their calculation of the interest owed and demonstrating that interest payments have been properly credited to sub-metered tenants.
4. The Energy Division shall assist the defendants in properly calculating the amount and allocation of interest credits, if such help is requested by the defendants.
5. This proceeding is closed.
This order is effective today.
Dated August 23, 2001, at San Francisco, California.
LORETTA M. LYNCH
President
HENRY M. DUQUE
RICHARD A. BILAS
CARL W. WOOD
GEOFFREY F. BROWN
Commissioners
APPENDIX
BEFORE THE PUBLIC UTILITIES
COMMISSION OF THE STATE OF CALIFORNIA
The Utility Reform Network (TURN), the )
California Mobile Home Resource and )
Action Association (CMRAA), and )
Does 1-100, )
)
Complainants, ) Case No. 00-08-035
)
vs. )
)
Four Seasons Mobile Home Park, )
The Franciscan Mobile Country Club, )
Rancho Santa Teresa Mobile Home Estates, )
Diablo Mobile Lodge, )
Friendly Village Mobile Home Park, )
Pepper Tree Estates Mobile Home Park, )
Spanish Ranch Mobile Home Park Number 1, )
Riverbend Mobilehome Park, )
Hilton Mobile Home Park, )
Hillview Mobile Home Park, and )
Does 1-100, )
)
Defendants. )
_________________________________________ )
JOINT MOTION FOR COMMISSION TO ADOPT STIPULATIONS OF FACT AND CONCLUDE PROCEEDINGS
Dated: March 28, 2001.
BEFORE THE PUBLIC UTILITIES
COMMISSION OF THE STATE OF CALIFORNIA
)
TURN and CMRAA )
Complainants )
vs. ) Case No. 00-08-035
)
Four Seasons Mobile Home Park et. al. )
)
Defendants )
JOINT MOTION FOR COMMISSION TO ADOPT STIPULATIONS OF FACT AND CONCLUDE PROCEEDINGS
Pursuant to Rule 51 of the Commission's Rules of Practice and Procedure, the plaintiffs and defendants in this proceeding jointly move the Commission to adopt the proposed stipulations of fact contained in this filing. The proposed stipulations resolve the complaints brought by plaintiffs against named defendants under Pub. Util. Code §739.5 and should end the need for further proceedings in this case. The parties therefore urge that the Commission issue a final order consistent with the stipulations in this filing. The proposed stipulations and request for termination of further proceedings are in the public interest because there are no outstanding violations of the Public Utilities Code by named defendants. The proposed stipulation is unopposed by any of the named parties in this case.
I. STIPULATION OF FACTS
A. Common Facts For All Named Defendants
1. Defendants purchase natural gas from PG&E at a discount designed to cover the average costs of providing sub-metered service to its tenants.
2. Pursuant to Public Utilities Code Section 739.5(a), Defendants are required to charge its sub-metered customers the same rate for natural gas service that would be applicable if PG&E were providing the service directly.
3. Pursuant to Public Utilities Code Section 739.5(b), Defendants are prohibited from retaining natural gas rate rebates it receives from PG&E. When such rebates occur, Defendants are required to distribute to, or credit the accounts of, its tenants based on the amount of usage incurred by each tenant during the previous monthly billing period.
4. On March 1, 2000, PG&E submitted Advice Letter 2218-G setting forth its plan for refunding to customers $319.6 million in overcollected revenues in the Core Fixed Cost Account (CFCA). The Refund Plan was filed in compliance with Decision (D.) 00-02-046 in PG&E's General Rate case.
5. On March 31, 2000, PG&E submitted a Second Revised Refund Plan in Advice Letter 2218-G-B. The Second Revised Refund Plan removed proposed implementation costs from the total Refund Plan amount and clarified refund eligibility for former core customers. The total amount to be refunded, including interest through April 30, 2000, was $319,617,000.
6. Pursuant to its Second Revised Refund Plan, PG&E began distributing gas rate refunds to core customers during the May 2000 billing cycle. Such refunds appeared on customers' bills as the "Gas Refund Credit."
7. Pursuant to its Second Revised Refund Plan, PG&E included a bill insert in core customers bills commencing with the start of the refund that included the following statement: "This `Gas Refund Credit' results from surplus revenues created by high customer gas use during the last two years as a result of cooler than normal weather. The `Gas Refund Credit' shown on this bill is your share of a refund approved by the California Public Utilities Commission." For master-metered customers with sub-metered accounts, the bill insert included the following additional statement: "In accordance with California Public Utilities Code Section 739.5(b), you are required to distribute to your users the refund received from PG&E. This refund is calculated for each user by determining the ratio of the user's usage to the total therms for your account during the last billing period, and then applying that percentage to the total refund amount. For any questions, call PG&E at 1-800-743-5000." Sub-metered customers did not receive direct notification from PG&E about the Gas Refund Credit.
8. Defendants received bills for natural gas service that included a gas refund credit from PG&E along with a notice which stated, "In accordance with California Public Utilities Code Section 739.5(b), you are required to distribute to your users the refund received from PG&E. This refund is calculated for each user by determining the ratio of the user's usage to the total therms for your account during the last billing period, and then applying that percentage to the total refund amount. For any questions, call PG&E at 1-800-743-5000."
B. Facts Specific to Each Defendant
Defendant Franciscan Mobile Home Park
1. On June 9, 2000, Franciscan received its bill for natural gas service from PG&E covering usage during the period of April 26, 2000 to May 26, 2000. The bill, dated May, 2000, included the Gas Refund Credit from PG&E. The Gas Refund Credit totaled $33,572.08.
2. After receiving the Gas Refund Credit, Franciscan took no action to return the Gas Refund Credit to its sub-metered customers. The Gas Refund Credit did not appear on Franciscan's sub-metered customers' bills for July or August.
3. On August 16, 2000, subsequent to having been contacted by TURN and CMRAA, Franciscan calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the September bills mailed to Franciscan tenants.
Defendant Four Seasons Mobile Home Park
1. On May 25, 2000 Four Seasons received its bill for natural gas service from PG&E covering usage during the period of April 21, 2000 to May 22, 2000. The bill, dated May 22, 2000, included the Gas Refund Credit from PG&E. The Gas Refund Credit totaled $8,074.68.
2. The Gas Refund Credit did not appear on Four Season's sub-metered customers' bills for June, July, or August.
3. On July 28, 2000, TURN and CMRAA mailed a letter to Four Seasons demanding that Four Seasons return the gas refund credit immediately, or be named as a Defendant in a complaint filed with the Commission or an appropriate state court.
4. On July 11, 2000, the billing company hired by Four Seasons calculated the rebate owed to each of its sub-metered customers and placed a credit on the September bills mailed to Four Seasons' tenants.
Defendant Rancho Santa Teresa Mobile Home Park
1. On May 31, 2000 Rancho Santa Teresa received its bill for natural gas service from PG&E covering usage during the period of April 24, 2000 to May 24, 2000. The bill, dated May 24, 2000, included the Gas Refund Credit from PG&E. The Gas Refund Credit totaled $17,094.78.
2. The Gas Refund Credit did not appear on Rancho Santa Teresa's sub-metered customers' bills for June, July, or August.
3. On August 22, 2000, Rancho Santa Teresa calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the September bills mailed to Rancho Santa Teresa tenants.
Defendant Diablo Mobile Lodge
1. On May 3, 2000 Diablo Mobile Lodge received its bills for natural gas service from PG&E covering usage during the period of April 3, 2000 to May 2, 2000. The bills included the Gas Refund Credits from PG&E totalling $3,276.16.
2. The Gas Refund Credit did not appear on Diablo's sub-metered customers' bills for June, July, or August.
3. On July 28, 2000, TURN and CMRAA mailed a letter to Diablo Mobile Lodge demanding that Diablo return the gas refund credit immediately, or be named as a Defendant in a complaint filed with the Commission or an appropriate state court.
4. On September 1, 2000, subsequent to the receipt of TURN and CMRAA's demand letter, Diablo Mobile Lodge calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the September bills mailed to Diablo's tenants.
Defendant Friendly Village Mobile Home Park
1. Starting in May of 2000, Friendly Village MHP received its bills for natural gas service from PG&E and Unicom containing Gas Refund Credits. PG&E gave a gas rebate to Unicom in the amount of $12,231.98. Unicom has passed that rebate on to the park in increments. As of the October 2000 Unicom bill, the park had received a total of $3,450.20 in rebates.
2. The Gas Refund Credit did not appear on Friendly Village's sub-metered customers' bills for June, July, August, September or October.
3. On July 30, 2000, TURN and CMRAA mailed a letter to Friendly Village Mobile Home Park demanding that they return the gas refund credit immediately, or be named as a Defendant in a complaint filed with the Commission or an appropriate state court.
4. In late October of 2000, Friendly Village calculated the rebate owed to each of its sub-metered customers and, instead of crediting just the amount that the Park had thus far received in rebates, Friendly Village decided to refund the entire amount, in an effort to make up for the past five months. Friendly Village will not receive the entire rebate amount until the middle of 2001. The credit appeared on the November bills mailed to Friendly Village's tenants.
Defendant Pepper Tree Estates Mobile Home Park
1. In May of 2000, Pepper Tree Estates received its bill for natural gas service from PG&E covering usage during the previous month. The bill included the Gas Refund Credit from PG&E. The Gas Refund Credit totaled $9,705.13.
2. The Gas Refund Credit did not appear on Pepper Tree Estates sub-metered customers' bills for June, July, or August.
3. On August 7, 2000, TURN and CMRAA mailed a letter to Pepper Tree Estates demanding that Pepper Tree Estates return the gas refund credit immediately, or be named as a Defendant in a complaint filed with the Commission or an appropriate state court.
4. On August 17, 2000, subsequent to the receipt of TURN and CMRAA's demand letter, Pepper Tree Estates calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the September bills mailed to Pepper Tree Estates tenants.
Defendant Spanish Ranch No. 1 Mobile Home Park
1. On June 6 2000, Spanish Ranch No. 1 MHP received its bill for natural gas service from Enron covering usage during the previous month. The bill included a $9,999.99 Gas Refund Credit from PG&E. Subsequent bills included Gas Refund Credits of $9,999.99 on July 11 and $6,773.28 on August 7. The total Gas Refund Credits provided to Spanish Ranch No. 1 MHP over these three months was $26,773.26.
2. The Gas Refund Credit did not appear on Spanish Ranch No. 1 MHP sub-metered customers' bills for June, July, or August.
3. On August 17, 2000, subsequent to having been contacted by the homeowners board based on information provided to them by CMRAA and TURN, Spanish Ranch No. 1 MHP calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the September bills mailed to Spanish Ranch No. 1 MHP tenants.
Defendant Riverbend Mobile Home Park
1. On May 18 2000, Riverbend MHP received its bill for natural gas service from PG&E covering usage during the previous month. The bill included the Gas Refund Credit from PG&E. The Gas Refund Credit totaled $5,959.82.
2. The Gas Refund Credit did not appear on Riverbend MHP sub-metered customers' bills for June, July, or August.
3. On August 8, 2000, subsequent to having been contacted by a CMRAA member residing at the park, Riverbend MHP calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the September bills mailed to Riverbend MHP tenants sent to residents on August 25, 2000.
Defendant Hilton Mobile Home Park
1. On May 17 2000, Hilton MHP received its bill for natural gas service from PG&E covering usage during the previous month. The bill included the Gas Refund Credit from PG&E. The Gas Refund Credit totaled $2,511.11.
2. The Gas Refund Credit did not appear on Hilton MHP sub-metered customers' bills for June, July, August, or September.
3. On August 30, 2000, subsequent to the filing of the complaint by plaintiffs at the CPUC and being contacted by representatives of the Western Manufactured Housing Communities Association, Hilton MHP calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. The credit appeared on the October bills mailed to Hilton MHP tenants.
Defendant Hillview Mobil Home Park
1. In mid-June of 2000, Hillview MHP received its bill for natural gas service from PG&E covering usage during the previous month. The bill included a $1,120.33 Gas Refund Credit from PG&E. A subsequent PG&E bill received in July included a $212.63 Gas Refund Credit. The total Gas Refund Credit received from PG&E was $1,332.96.
2. Through the September billing cycle, the Gas Refund Credit did not appear on Hillview MHP sub-metered customers' bills.
3. On August 30, 2000, subsequent to having been contacted by TURN and CMRAA, Hillview MHP calculated the rebate owed to each of its sub-metered customers and credited the accounts of its sub-metered customers. As of September 26, 2000, the credit appeared on bills mailed to Hillview MHP tenants as part of their October billing statement.
