ALJ/CMW/tcg DRAFT 1
5/14/01
Decision ___________
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
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Application of Southern California Edison Company (E 3338-E) for Authority to Institute a Rate Stabilization Plan with a Rate Increase and End of Rate Freeze Tariffs. |
Application 00-11-038 (Filed November 16, 2000) |
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Emergency Application of Pacific Gas and Electric Company to Adopt a Rate Stabilization Plan. (U 39 E) |
Application 00-11-056 (Filed November 22, 2000) |
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Petition of THE UTILITY REFORM NETWORK for Modification of Resolution E-3527. |
Application 00-10-028 (Filed October 17, 2000) |
(See Appendix A for List of Appearances.)
TABLE OF CONTENTS
Title Page
INTERIM OPINION REGARDING RATE DESIGN................................... 2
I. Summary 2
II. Background 3
III. Rate Design Principles and Goals 6
IV. Revenue Requirement Increase 11
V. Revenue Allocation 16
A. Revenue Allocation Methodology 17
B. Revenue Requirement Shortfalls 22
1. Usage Under 130% of Baseline 22
2. CARE and Medical Baseline Exemption 26
3. Direct Access Customers 29
C. Amortization of Rate Increase as of March 27, 2001 29
VI. Preliminary Matters in Rate Design 32
VII. Residential Rate Design 37
A. PG&E's E-7 and E-8 Schedules 38
VIII. Nonresidential Rate Design 39
A. Tiering 39
B. Non-TOU Schedules 41
C. Time of Use 42
D. "Super Peak" Rate 43
E. County of Los Angeles' Proposal to Cap Rates for
Essential Customers 44
F. Agricultural 44
G. Master Meter Customers 45
H. Streetlight and Traffic Light Schedules 46
I. CIPA's Credit for Interruptible Customers 47
TABLE OF CONTENTS
(Cont'd)
Title Page
IX. Other Issues 47
A. Tracking and Posting Data 47
B. Expedited Installation of RTP Metering Systems 49
C. 10% Rate Discount Associated with Rate Reduction Bonds 51
D. Bill Display 52
E. Bill Insert 53
F. Customer Education 54
G. Payments to CDWR .................................................................56
X. Next Steps 57
XI. Issuance of the Proposed Decision 58
INTERIM ORDER............................................................................... 75
Appendix A - List of Appearances
Appendix B - Pacific Gas and Electric Proposed Rates
Appendix C - Southern California Edison Proposed Rates
Appendix D - Summary of Public Participation Hearings
I. Summary
This decision adopts a rate design for the three-cent per kilowatt-hour (kWh) rate increase authorized for Southern California Edison Company (Edison) and Pacific Gas and Electric Company (PG&E) in Decision (D.) 01-03-082. That surcharge was adopted on March 27, 2001 to provide the utilities with additional revenues on a going-forward basis in order for those utilities to comply with their statutory duty to provide adequate electric service to their customers. Pursuant to Assembly Bill (AB) 1X, residential use below 130% of baseline is exempt from this increase. In addition, we exempt all customers who qualify for the California Alternative Rates for Energy (CARE) and Medical Baseline programs from paying the surcharge.1
In today's decision, we address the steps for allocating the rate increase to customer classes. First, we determine the revenue requirement, which is the starting point for revenue allocation and rate design. We then allocate the revenue increase among the customer groups. Finally, we design rates within the customer groups to collect the revenue requirement. We allocate revenue and design rates in a manner that is consistent with our overall goals of conservation and equity.
The rate design we adopt allows rates to be effective as of June 1, 2001. One important goal of this rate design is to provide both customers and this Commission the market information and technical tools (RTP metering systems) to actively respond to the wholesale market costs California Department of Water Resources (CDWR) could face this summer. We also set in place a framework that allows us to make midcourse corrections this summer.
