FINDINGS
1. D.97-07-054 requires SoCalGas to file an annual advice letter , which summarizes the prior calendar year PBR performance on July 10th each year. SoCalGas filed AL 2938 on July 10, 2000 which was replaced in its entirety by AL 2938-A on September 15, 2000, requesting approval of its 1999 PBR sharable earnings filing. This report transmits the Company's: 1) calculation of earnings to be shared with ratepayers under its base rate PBR, 2) adjustment for actual 1999 customer count, 3) report on its performance under its service quality, customer satisfaction and safety incentives, and 4) results of its core pricing flexibility program activity.
2. No party filed a protest of AL 2938 or AL 2938-A.
3. In 1999 SoCalGas exceeded its authorized ROR. Its authorized ROR was 9.49%, while SoCalGas recorded a ROR of 10.13% adjusted to base rates which is 64 basis points above the authorized ROR. SoCalGas exceeded its authorized ROR due mainly to: (1) the annual PBR indexing of base margin and to higher than forecasted noncore revenues, (2) the declining of SoCalGas rate base, and (3) the declining of payroll and property taxes.
4. In 1999, the actual number of customers served was 4,937,811, an increase of 12,583 customers over the forecast of 4,925,228. An increase of $3.4 million to authorized revenue requirements will be made later to account for the difference.
5. SoCalGas master meter conversions at mobilehome parks resulted in a net increase of 353 new individual meters. SoCalGas' base margin should be increased by $60,871.
6. SoCalGas performance exceeded the target in all four areas of: 1) customer satisfaction with the Customer Service Representative, 2) customer satisfaction with the scheduling of the appointment of a field service call, 3) satisfaction with the field Appliance Service Representative, and 4) the percentage of on-time arrivals for the service call. No penalty will be assessed for SoCalGas 1999 customer satisfaction performance.
7. SoCalGas 1999 telephone response rate performance exceeded the established response rates. Therefore, no penalty will be assessed for their telephone response performance.
8. SoCalGas experienced an employee safety incident frequency rate of 6.9 against the safety benchmark of 9.3. They shall be rewarded for that amount at $20,000 per 0.1 points outside the deadband of 1.0 point for a calculated reward of $280,000.
9. In 1999, SoCalGas calculated a net revenue gain of $305,690 under its core pricing flexibility program.
10. SoCalGas' revelation of its accounting errors relating to employee stock options is noted. SoCalGas shall correct these errors by recording the 1999 ratepayer earnings sharing reduction of $475,000 into a memorandum account for subtraction from any calculated ratepayers earnings sharing in 2000 or thereafter.
4. SoCalGas AL 2938-A is approved with an effective date of today.
