V. Assignment of Proposed 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. Together with compensation costs, employee costs, taxes, property costs, etc., it adds 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. The implementation of successful economic development projects would benefit ratepayers directly by increasing the revenues available to contribute to the utilities' fixed costs of doing business, thus lowering rates to other customers.
3. In addition to direct benefits to other ratepayers, economic attraction and retention activities also provide indirect benefits to ratepayers in the form of increased employment opportunities and improved overall local and economic vitality.
4. For the enhanced ED program not to benefit ratepayers instances of free-ridership would have to be as high as 75%.
5. The utilities' past experience with the existing Schedule ED, in conjunction with the additional eligibility limitations proposed for the enhanced EDR, indicates that the actual level of free-ridership would be substantially below the 75% break even level.
6. The utilities' have proposed measures, including a mandatory affidavit, the imposition of liquidated damages for fraud, misrepresentation and early termination, and a third-party review by CalBIS, that will effectively curb the frequency of potential free-riders.
7. Amy's Kitchen, a company that could expect to receive a GRC electric rate decrease plus a further EDR decrease of 25%, opted to locate its expansion facilities in Oregon because the Commission failed to issue a timely decision on the matter
8. The experience of Amy's Kitchen demonstrates that the current EDR regime must be overhauled to allow the utilities the discretion to offer these rates to qualified applicants and, therefore, accomplish the goals of retaining business in the state, attracting business to the state, and encouraging California businesses to engage in in-state expansion.
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 been justified. (Pub. Util. Code § 454(a).)
1. The requests for economic development rates in Applications (A.) 04-04-008 and 04-06-018 are approved.
2. Beginning in 2006, and on an annual basis thereafter until the program's 2009 sunset, PG&E and SCE are ordered to submit to the Commission a compliance filing all EDR applicants, the contents of the CalBIS review for these applicants, the cost-effective conservation and demand side management options discussed with these applicants, the applicants' decisions to accept or reject these measures, and the utilities final selection of EDR candidates.
3. San Diego Gas and Electric and Southern California Gas Company are hereby ordered to file applications within 120 days that are consistent with the EDR programs approved for PG&E and SCE as described herein.
4. 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)
CERTIFICATE OF SERVICE
I certify that I have by mail, and by electronic mail to the parties of which an electronic mail address has been provided; this day served a true copy of the original attached Alternate Proposed Decision of Commissioner Susan Kennedy on all parties of record for proceeding A.04-04-008 and A.04-06-018 or their attorneys of record.
Dated July 26, 2005 at San Francisco, California.
/s/ CHRISTOPHER V. MEI |
Christopher V. Mei |
NOTICE
Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.
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