V. Assignment of Draft Decision
Susan P. Kennedy is the Assigned Commissioner and Robert Barnett is the assigned ALJ in these proceedings.
1. The cost of electricity is one of the contributors to the cost of doing business in California. However, it is not the only high cost facing California business. High workers' compensation costs, employee costs, taxes, property costs, etc., add to the burden of doing business in California. By some estimates electric rates cause about one sixth of what some experts believe is the overall 30% cost premium for doing business in California.
2. When rates in California skyrocketed in 2000-2001, all EDR customers returned to conventional tariff billing. They did not leave the state. Today SCE serves at least 21 of its original 27 EDR customers and PG&E serves 27 of its original 36 EDR customers, with an additional 3 former PG&E EDR customers being served by Merced ID. Of 63 EDR customers, 51 are still taking electric service at the same location in California.
3. Amy's Kitchen, a company that could expect to receive a GRC electric rate decrease of about 10%, plus a further ED rate decrease of 25% still opted to locate its expansion facilities in Oregon.
4. The experience of Amy's Kitchen and the PG&E and SCE ED tariffs show that electric rates alone are not a primary cause of relocation.
5. Dozens of factors influence a siting decision in addition to electric pricing. The site selection worksheet of CalBIS, a division of the California Employment Development Department, lists over three dozen.
6. A tariff reduction that can be triggered by an affidavit subject to approval by the utility will encourage free riders. Where anticipated savings are multiples of $100,000/yr. there is a great incentive to qualify. The utilities' proposals make it too easy.
7. There is a clear benefit to utility shareholders in retaining or attracting load. Allowing the utility the discretion to make the final decision provides no assurance that only truly eligible customers will be offered the rate.
8. The utilities' procedure to include other factors, including approval of CalBIS in determining eligibility, is inadequate.
9. To approve 25% rate reduction under the relaxed strictures proposed by the utilities is sure to attract free riders and increase electric demand.
10. The revenue shortfall caused by free riders will have to be recovered from all other customers; a result that is neither just nor reasonable.
11. The magnitude of potential savings from ED rates should be an incentive to file an application with the Commission and present a compelling case for a deviation from the OAT. In a persuasive case there would be no need for the utility to bear 25% of the shortfall.
1. Rate reductions to attract or retain business are in accord with the legislative precept to "encourage economic development." (Pub. Util. Code § 740.4.)
2. The rate reductions and procedures requested by the applicants have not been justified. (Pub. Util. Code § 454(a).)
1. The requests for economic development rates in Applications (A.) 04-04-008 and A.04-06-018 are denied.
2. Application 04-04-008 and A.04-06-018 are closed.
This order is effective today.
Dated _______________________, at San Francisco, California.
Attachment A
AFFIDAVIT FOR ECONOMIC DEVELOPMENT INCENTIVE RATE
By signing this affidavit, an Applicant who locates, adds, or retains load in the service territory of [utility name] hereby certifies and declares under penalty of perjury under the laws of the State of California that the statements in the following paragraphs are true and correct.
1. But for receipt of the discounted economic development rate the Applicant's load would not have been located, added, or retained within California.
2. The load to which the Agreement applies represents kilowatt-hours (kWh) that either (i) do not already exist in the State of California, or (ii) the Applicant considered relocating to a location outside of the State of California.
3. Applicant has discussed with the Company the cost-effective conservation and load management measures the Applicant may take to reduce their electric bills and the load they place on the Utility System.
(End of Attachment A)
ATTACHMENT B
************* APPEARANCE *************
Last updated on 16-FEB-2005 by: LIL
A0404008 LIST
A0406018
James Weil
AGLET CONSUMER ALLIANCE
PO BOX 1599
FORESTHILL CA 95631
(530) 367-3300
Karen Terranova
ALCANTAR & KAHL, LLP
120 MONTGOMERY STREET, STE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
Michael Alcantar
ATTORNEY AT LAW
ALCANTAR & KAHL LLP
1300 SW FIFTH AVENUE, SUITE 1750
PORTLAND OR 97201
(503) 402-9900
For: Cogeneration Association of California
Nora Sheriff
ATTORNEY AT LAW
ALCANTAR & KAHL LLP
120 MONTGOMERY STREET, SUITE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
Evelyn Kahl
ATTORNEY AT LAW
ALCANTAR & KAHL, LLP
120 MONTGOMERY STREET, SUITE 2200
SAN FRANCISCO CA 94104
(415) 421-4143
For: Energy Producers and Users Coalition
Ronald Liebert
ATTORNEY AT LAW
CALIFORNIA FARM BUREAU FEDERATION
2300 RIVER PLAZA DRIVE
SACRAMENTO CA 95833
(916) 561-5657
Norman J. Furuta
ATTORNEY AT LAW
DEPARTMENT OF THE NAVY
2001 JUNIPERO SERRA BLVD., SUITE 600
DALY CITY CA 94014-3890
(650) 746-7312
For: Federal Executive Agencies
Daniel W. Douglass
ATTORNEY AT LAW
DOUGLASS & LIDDELL
21700 OXNARD STREET, SUITE 1030
WOODLAND HILLS CA 91367-8102
(818) 593-3933
For: WESTERN POWER TRADING FORUM
Gregory Klatt
ATTORNEY AT LAW
DOUGLASS & LIDDELL
411 E. HUNTINGTON DR., NO. 107-356
ARCADIA CA 91007
(626) 294-9421
For: Alliance for Retail Energy Markets, Western
Power Trading Forum
Dan L. Carroll
ATTORNEY AT LAW
DOWNEY BRAND LLP
555 CAPITOL MALL, 10TH FLOOR
SACRAMENTO CA 95814
(916) 444-1000
For: MERCED IRRIGATION DISTRICT
Regina DeAngelis
Legal Division
RM. 4107
505 VAN NESS AVE
San Francisco CA 94102
(415) 355-5530
************* APPEARANCE *************
Andrew B. Brown
ELLISON, SCHNEIDER & HARRIS, LLP
2015 H STREET
SACRAMENTO CA 95814
(916) 447-2166
For: California Department of General Services
(Electric Matters)
Jackson W. Mueller
JACKSON W. MUELLER, JR., LLC
12450 235TH PLACE NE
REDMOND WA 98053
(425) 868-6638
For: PWSAGLE,HOME DEPTOT,NOVELLUS,SIERRAPINE
William H. Booth
ATTORNEY AT LAW
LAW OFFICE OF WILLIAM H. BOOTH
1500 NEWELL AVENUE, 5TH FLOOR
WALNUT CREEK CA 94596
(925) 296-2460
Christopher J. Mayer
MODESTO IRRIGATION DISTRICT
PO BOX 4060
MODESTO CA 95352-4060
(209) 526-7430
For: Modesto Irrigation District
Scott T. Steffen
ATTORNEY AT LAW
MODESTO IRRIGATION DISTRICT
PO BOX 4060
MODESTO CA 95352
(209) 526-7387
For: Modesto Irrigation District
Brian M. Hess
NIAGARA BOTTLING, LLC
5675 E. CONCURS
ONTARIO CA 91764
(949) 735-4045
For: NIAGARA BOTTLING, LLC
Steven W. Frank
PACIFIC GAS AND ELECTRIC CO
PO BOX 770000
77 BEALE STREET, B30A
SAN FRANCISCO CA 94105
(415) 973-6976
For: Pacific Gas and Electric Company
Jonathan J Reiger
Legal Division
RM. 5130
505 VAN NESS AVE
San Francisco CA 94102
(415) 355-5596
Kelly M. Morton
ATTORNEY AT LAW
SAN DIEGO GAS & ELECTRIC
101 ASH STREET
SAN DIEGO CA 92101-3017
(619) 696-4287
For: SDG&E
Bruce Reed
ATTORNEY AT LAW
SOUTHERN CALIFORNIA EDISON COMPANY
2244 WALNUT GROVE AVENUE, ROOM 370
ROSEMEAD CA 91770
(626) 302-4183
Keith Mccrea
SUTHERLAND, ASBILL & BRENNAN
1275 PENNSYLVANIA AVENUE, NW
WASHINGTON DC 20004-2415
(202) 383-0705
Mike Florio
THE UTILITY REFORM NETWORK
711 VAN NESS AVENUE, SUITE 350
SAN FRANCISCO CA 94102
(415) 929-8876
For: TURN
(END OF ATTACHMENT B)
