V. Comments on Proposed Decision
The proposed decision in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(d) and Rule 77.1 of the Rules of Practice and Procedure. Comments were filed on ________________, and reply comments were filed on _______________.
1. The age of the usage data used to calculate gas and electric baseline allowances varies widely between utilities.
2. The age of the usage data used to calculate gas and electric baseline allowances sometimes varies between gas and electric customers of a single utility.
3. While the methodology used to calculate gas and electric baseline allowances varies somewhat, all of the major utilities incorporate an averaging or normalization process.
4. The predominant calculation methodology is the bill frequency methodology, previously adopted by this Commission.
5. The percentage of energy usage used in calculating baseline quantities must fall within the statutory ranges identified in Pub Util. Code § 739.
6. Some utility customers have their baseline allowances calculated using a percentage of energy usage at the top of the statutory range, while other customers have their baseline allowances calculated using a percentage of energy usage at the midpoint of the statutory range.
7. Water Code § 80110 addresses electric baseline cost issues, but is silent on gas baseline cost issues.
8. The medical baseline program can be improved in the areas of outreach, ease of enrollment and certification, and consistency among utilities.
9. Customers faced with both a serious medical condition and a language barrier may be doubly disadvantaged in their ability to pay their energy bills and find out about programs that can offer them assistance.
10. We do not have an adequate record to require utilities to provide medical baseline forms in Braille.
11. Combining medical baseline information on all CARE forms could result in customer confusion.
12. We do not have an adequate record to order changes to the medical baseline forms. It is appropriate, therefore, to order that the parties meet and confer regarding proposed changes to the form prior to addressing such changes in a decision.
13. It is not clear whether the Commission and the parties currently have adequate information and expertise to thoroughly review the utilities' climate zones. The Commission may find it necessary to retain a consultant with expertise in this area to study the utilities' climate zones and any suggestions for changes to those climate zones.
14. There is no reason why the age of the usage data used to calculate gas and electric baseline allowances should vary significantly between utilities or between gas and electric customers of a single utility.
15. All electric and gas customers should have their baseline allowances calculated using relatively current usage data.
16. All utilities should use the bill frequency methodology previously adopted by the Commission.
17. No customer or utility hardship has been shown to result from setting the percentage of energy usage used in calculating baseline allowances at the maximum of the statutory range.
18. The baseline allowance for all electric and gas customers should be calculated using maximum allowable percentage of energy usage.
19. The Commission need not wait for a utility to file its GRC in order to adjust baseline allowances.
20. We will resolve cost allocation issues raised by our decisions here in Phase 2 of this proceeding.
1. Pub. Util. Code § 739 requires the Commission to review and revise baseline quantities as average consumption patterns change.
2. Section 739 requires that baseline ratios be maintained at 50 to 60 percent of average residential consumption and 60 to 70 percent of such consumption during the water-heating season for residential gas customers and all-electric residential customers.
3. In setting baseline quantities, we are not required to use data from identical time periods for each utility.
4. AB 1890 does not constrain the Commission from changing baseline allowances in this phase of the proceeding.
5. Water Code § 80110, read together with Pub. Util. Code § 739, authorizes us to increase baseline allowances for electricity, but not to decrease them.
6. Consistent with Water Code § 80110, customers' rates will be calculated based on 130% of the new baseline levels we set in this proceeding, rather than based on 130% of the levels in existence on February 1, 2001. In order to maintain revenue neutrality to the utilities until Phase 2, when rates will be subject to change, it is reasonable to authorize the establishment of a balancing account (the BBA) that will track any under-collection or over-collection resulting from today's decision.
7. Under Pub. Util. Code § 739, the Commission may increase the charges for usage above 130% of existing baseline, but is not required to do so.
8. Water Code § 80110 does not affect gas baseline quantities. Thus, the Commission is free in this proceeding to raise or lower gas baseline quantities.
9. The Commission need not wait for a utility to file its GRC in order to adjust baseline allowances.
10. This order should be effective today in order to increase baseline allowances expeditiously.
IT IS ORDERED that:
1. The determinations made in this order apply to all Commission-regulated gas or electric utilities. Any Commission-regulated gas or electric utility that has its current baseline rates calculated on calendar year 1999 or 2000 data or has an open application before this Commission in which its baseline rates will be updated using 1999 or later data, may update its data in this proceeding, but is not required to do so.
2. Any utility currently using data no older than calendar year 1996 shall either file an application prior to March 31, 2002 to update its baseline data using calendar year 2000 or 2001 data or shall update its data in this proceeding.
3. All other utilities must update their data and their corresponding baselines in this proceeding. Any utility intending to update its data and baseline in any other proceeding shall notify the Commission of its intent to do so via compliance advice letter, including identification of the type of application, filing date or anticipated filing date, and proceeding number.
4. Southern California Edison Company (Edison or SCE), Pacific Gas and Electric Company (PG&E), San Diego Gas and Electric Company (SDG&E) and Southern California Gas Company (SoCalGas) shall use their proposed or existing methodologies to update their data.
5. Any utilities whose existing methodology is not consistent with one of the three methodologies used by the major utilities (four-year average, weather normalization or normalization of current data using historical usage) shall update their data by applying one of these approved methodologies, with our preference being for weather normalization.
6. The respondent utilities shall file compliance advice letters indicating which methodology they are currently using, and if changing methodology, which methodology they are adopting.
7. The respondent utilities shall continue to use the existing bill frequency methodology, adopted in Decision (D.) 83-12-065, for calculating baseline quantities.
8. The respondent utilities shall set their baseline quantities for both basic and all-electric customers at the highest percentage allowed by § 739, consistent with PG&E's practice.
9. If utilities already have an appropriate balancing account in which to record the effect of today's decision, they may use that account, rather than create a new one, as long as the balancing account to be used is clearly identified in a compliance advice letter. Otherwise, the respondent utilities shall establish the Baseline Balancing Account (BBA). Any costs recorded in the BBA, or other applicable account, are recoverable after the end of the rate freeze, consistent with the procedures adopted in D.01-07-028.
10. All changes required to be made in the baseline quantities as a result of this decision shall be in place by April 1, 2002.
11. PG&E, SCE, SDG&E, and SoCalGas shall, in addition to English, provide all medical baseline forms in the second-most prevalent language in its service territory. We also encourage these four utilities to provide medical baseline forms in additional languages, particularly languages spoken by significant percentages of their customers. In the alternative, these utilities may work with community groups to provide information in additional languages on the medical baseline program.
12. If more than 10% of the customers of a utility not covered by the previous ordering paragraph speak as their primary language any language other than English, that utility shall make its medical baseline forms available in the second most common language in its service territory. We also encourage these utilities to perform outreach on medical baseline in additional languages, but the Commission will leave the determination of the best approach up to each utility.
13. All respondent gas and electric utilities shall have all medical baseline information and forms available in large print and should be provided upon request. Large print versions shall be made available immediately, and need not await the revision of the forms. During this interim period, these large print materials need not match the format of the standard size material, and can be a simple enlargement of the existing materials.
14. We encourage all utilities to conduct outreach programs for the visually impaired through community organizations and state agencies that serve the blind and visually impaired.
15. Utilities with California Alternate Rates for Energy (CARE) programs shall inform organizations involved in CARE outreach of the existence of the medical baseline program if they have not done so already, and let those organizations know of the availability of forms and information relating to medical baseline.
16. The respondent gas and electric utilities shall perform reasonable outreach regarding the medical baseline program to Independent Living Centers and Senior Organizations in their service territories. They shall describe in detail how they are performing this outreach in the compliance advice letters we require in this decision.
17. Disability Rights Advocates (DRA) shall file and serve samples of the medical baseline forms, as DRA believes they should appear, within 30 days from the date of this order. DRA need not wait the 30 days, but may serve its samples earlier if they are ready. Within 30 days of the date that DRA provides samples of its suggested forms, the respondent gas and electric utilities shall and any other party may respond. All responses shall be filed and served; responses may be made prior to the 30-day deadline. If DRA and the other parties that provided a response to DRA cannot agree on the content of the forms within 30 days from when those utilities respond, all parties shall meet with the Commission's Energy Division, which retains or maintains or reserves the authority to resolve any outstanding issues. DRA, the utilities, and other interested organizations are encouraged to meet informally outside of the framework, devised for this proceeding in order to achieve a resolution of this issue prior to the above dates. If such resolution is reached, the utilities shall file and serve a report describing the resolution, including at least a copy of the agreed upon forms to those named on the service list in this proceeding, and to the Commission's Energy Division.
18. The utilities shall make medical baseline forms available to anyone requesting such forms, whether or not that person is potentially qualified for medical baseline or is even a customer of the utility. The utilities shall confirm that their customer service personnel have easy access to the forms and readily provide the forms to anyone who asks for them.
19. Any utility that currently offers any of its customer forms online must add its current medical baseline form to its website within 20 days of the date of this order. Other utilities shall have the form available on the website within 30 days of the revised form becoming available. All utilities shall have information about medical baseline on their websites, including a telephone number to call to request medical baseline forms, and a means to request medical baseline forms by e-mail, within 20 days of the date of this order.
20. Respondent gas and electric utilities shall inform their customers of the following: 1) Customers certified as having a permanent disability will need to self-certify, in lieu of obtaining a physicians signature or authorization, their eligibility every two years, to (at a minimum) ensure their continued residence at the service address, and 2) Those customers not having a permanent disability will need to self-certify each year, and will need a doctor's certification every two years.
21. Any electric utility whose electric medical baseline allowance is lower than the allowances of the three major electric utilities shall revise upward its medical baseline allowance to match those of the three major electric utilities in this proceeding, and to implement this change by advice letter filing within 30 days of the effective date of this decision. Any revenue shortfall resulting from this change should be recorded in the BBA.
22. The Commission delegates to the assigned Commissioner the authority to retain for this proceeding, on behalf of the Commission, a consultant or consultants for the purpose of reviewing the utilities' climate zones, reviewing any proposals relating to climate zones, and if necessary, suggesting changes to the climate zones.
This order is effective today.
Dated , at San Francisco, California.
