2. Background

In D.01-05-064, the Commission allocated among customer classes the three-cent-per-kilowatt-hour (kWh) average rate increase authorized to be charged to the customers of CDWR, PG&E, and Edison in D.01-03-082. The rate design we adopted promotes several objectives, chief among them an equitable allocation of costs among customer classes. It also promotes conservation, which we define as reducing total consumption at all hours and also targeting energy reduction at peak hours and other periods when California may face electricity supply shortages.

In our adopted rate design we also sought to provide customers and this Commission with information and technical tools to respond to the wholesale costs and conditions we are facing. To do this, we proposed developing an RTP pilot program and encouraged large commercial customers to use energy meters to better control electrical use at times of greatest price or demand. We directed the Energy Division to begin our RTP process with a workshop on May 21, 2001 and stated we anticipated adopting a final program later this summer.