ALJ/JPO/jva DRAFT Agenda ID #3385
Ratesetting
4/22/04 Item 11
Decision _________
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
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Order Instituting Rulemaking on the Commission's own Motion to re-examine the underlying issues involved in the submetering discount for mobile home parks and to stay D.01-08-040. |
Rulemaking 03-03-017 (Filed March 13, 2003) |
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Order Instituting Investigation on the Commission's own Motion to re-examine the underlying issues involved in the submetering discount for mobile home parks and to stay |
Investigation 03-03-018 (Filed March 13, 2003) |
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Robert Hambley, for Himself and, on Behalf of the Residents of Los Robles Mobilehome Park, Complainant, vs. Hillsboro Properties, a California Limited Partnership, and the City of Novato, Defendants. |
Case 00-01-017 (Filed January 14, 2000) |
INTERIM OPINION RESOLVING PHASE 1
In this interim decision, we adopt the unopposed joint recommendation of seven of the parties. The joint recommendation identifies the categories of costs the electric and natural gas utilities incur when directly serving mobile home park (MHP) tenants that are avoided by the utilities when the MHP is served through a distribution system owned by the MHP owner (sub-metered MHP). These categories of costs are to be used in determining the amount of the discount provided by the utility to the sub-metered MHP owner as reimbursement for the cost of providing sub-metered service. The joint recommendation also identifies categories of costs that are either not incurred by the utility when it directly serves MHP tenants, or are not reflected in utility rates for direct service, but are incurred by sub-metered MHP owners, and may be separately charged to tenants if not otherwise prohibited.
Background
A large number of MHP owners provide electricity and/or natural gas to their tenants through a master meter. In such cases, the MHP owner receives electricity and/or natural gas from the utility at a master meter. The electricity and/or natural gas are then distributed to tenants through the MHP owner's distribution system, and a sub-meter located at each tenant's mobile home. Each tenant is billed by the MHP owner for the usage recorded by the sub-meter. As a result, the tenant is not a customer of the utility.
Public Utilities Code § 739.5 requires sub-metered MHP owners to charge the same rates for electricity and natural gas that would be applicable if the utility served the tenant directly. The utilities are required to provide the electricity and natural gas to the sub-metered MHP owner at a discount. The discount is intended to reimburse the MHP owner for the reasonable average cost of providing sub-metered service. However, it may not exceed the average cost that the utility would have incurred in providing comparable services to the tenant directly, which is avoided when the MHP is sub-metered.
In Rulemaking (R.) 03-03-017 and Investigation (I.) 03-03-018, the Commission initiated a rulemaking and investigation into the discounts. In Phase 1 of the proceeding, the Commission intended to identify utility costs, not already identified in prior Commission decisions, which are avoided by the utility when the MHP is sub-metered. In addition, costs related to providing electric or natural gas service, that are not covered by the discount, and that the sub-metered MHP owner could pass through to tenants, subject to the oversight of local rent control boards where applicable, were to be identified. Phase 2 will address how the discounts should be determined, and related matters.
