STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
December 22, 2011
TO: ALL PARTIES OF RECORD IN APPLICATION 10-03-014.
Decision 11-12-053 is being mailed without the Concurrence of Commissioner Timothy Alan Simon. The Concurrence will be mailed separately.
Very truly yours,
/s/ KAREN V. CLOPTON
Karen V. Clopton, Chief
Administrative Law Judge
KVC/lil
Attachment
ALJ/TRP/lil Date of Issuance 12/22/2011
Decision 11-12-053 December 15, 2011
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company To Revise Its Electric Marginal Costs, Revenue Allocation, and Rate Design, including Real Time Pricing, to Revise its Customer Energy Statements, and to Seek Recovery of Incremental Expenditures. (U39M.) |
Application 10-03-014 (Filed March 22, 2010) |
DECISION ADOPTING ELECTRIC MARGINAL COSTS,
REVENUE ALLOCATION AND NON-RESIDENTIAL RATE DESIGN FOR PACIFIC GAS AND ELECTRIC COMPANY
DECISION ADOPTING ELECTRIC MARGINAL COSTS, REVENUE ALLOCATION AND NON-RESIDENTIAL RATE DESIGN FOR PACIFIC GAS AND ELECTRIC COMPANY 1
1. Summary 2
2. Procedural Background 3
3. Disposition of Substantive Issues 6
3.1. Marginal Cost and Revenue Allocation Settlement 6
3.1.1. Data and Modeling Workshops for 2014 GRC Phase 2 8
3.2. Medium and Large Light and Power Rate Design Settlement 9
3.2.1. Basic rate design Updates 10
3.2.2. Summer Average Rate Limiters 10
3.2.3. Schedule A-6 Solar Pilot/Schedule E-19 and E-20
Option R Rates 10
3.2.4. Schedule E-BIP 11
3.2.5. Peak-Day Pricing (PDP) Refinements 11
3.2.6. Commercial Submetering Report 11
3.2.7. Discounted Price Floors 11
3.2.8. Solar Parties' Opposition to the MLLP Settlement 12
3.2.9. Discussion 19
3.3. Small Light & Power Rate Design Settlement 29
3.3.1. Use of Illustrative Settlement Rates 29
3.3.2. Updating the SLP Rates 30
3.3.3. Schedule A-6 Rate Design 30
3.3.4. Kilowatt Threshold Delineating Small from Medium L&P 30
3.3.5. Schedule A-15 DC Meter Issue 32
3.3.6. Schedule E-CARE 32
3.3.7. Annual Billing 32
3.3.8. PDP Refinements 33
3.3.9. Schedule TC-1 33
3.3.10. Discussion 33
3.4. Remaining Residential Rate Design Issues 33
3.4.1. Schedule ES and Natural Gas Quantity Baseline Settlement 33
3.4.2. Schedule ET Mobile Home Park (MHP) Master
Meter Discount 36
3.4.3. Uncontested Proposals 40
3.4.4. Contested Schedule ET Discount Issues 43
3.4.4.1. Replacement Costs 43
3.4.4.2. In-Park Secondary Distribution Capital and
Maintenance Costs 45
3.4.4.3. Proposal to Add EPMC Scalar to Avoided Costs 46
3.4.4.4. Use of Capped Versus Uncapped Connection Costs in Submeter Discount 48
3.4.4.5. Use of PG&E's 2003 Access Equipment Cost Data,
Escalated to 2011 49
3.4.4.6. Use of Multifamily Connection Costs Versus Residential Class Average Equipment Costs 50
3.4.4.7. Study Regarding Costs of Serving Mobile Home
Park Customers 53
3.5. Streetlighting Rate Design Settlement 53
3.5.1. Updating Basic Rate Designs 54
3.5.2. Pilot Program for Network Controlled Dimmable
Streetlights. 55
3.5.3. Discussion 58
3.6. Agricultural Rate Design Settlement 58
3.6.1. Uncontested Proposals in the Agricultural Rate Design
Settlement 59
3.6.2. Dispute over Proposed Expansion of Schedule E-37 62
3.6.2.1. Discussion 66
4. Review of Settlements 72
5. Comments on Proposed Decision 76
6. Assignment of Proceeding 77
Findings of Fact 77
Conclusions of Law 84
ORDER 87
APPENDIX A - Settlement Agreement on Marginal Cost and Revenue Allocation
APPENDIX B - Supplemental Settlement Agreement on Medium and Large Light and Power Rate Design Issues in PG&E's Application 10-03-014
APPENDIX C - Supplemental Settlement Agreement on Small Light and Power Rate Design Issues in PG&E's Application 10-03-014
APPENDIX D - Supplemental Settlement Agreement on Streelight Rate Design Issues in PG&E's Application 10-03-014
APPENDIX E - Supplemental Settlement Agreement on Schedule ES and Natural Gas Baseline Quantity Residential Rate Design Issues in PG&E's Application 10-03-014
APPENDIX F - Supplemental Settlement Agreement on Agricultural Rate Design Issues in PG&E's Application 10-03-014
APPENDIX G - Revenue Allocations Expressed as Percentage Change in Customer Class Average Annual Rates Resulting from Adopted Settlement Agreement
DECISION ADOPTING ELECTRIC MARGINAL COSTS, REVENUE
ALLOCATION AND NON-RESIDENTIAL RATE DESIGN
FOR PACIFIC GAS AND ELECTRIC COMPANY
1. Summary
Pursuant to Pacific Gas and Electric Company's (PG&E) general rate case (GRC) Phase 2 application, we adopt the design of electric retail rates based on adopted marginal costs and revenue allocation to the customer class level.1 The resulting rates will allow PG&E to collect the revenue requirement previously determined in its Phase 1 test year GRC, as modified by subsequent revenue requirement decisions. Revised rates will become effective January 1, 2012.
PG&E and interested parties submitted a range of evidence and entered into a series of settlement agreements regarding marginal cost and revenue allocation, and non-residential rate design issues. PG&E proposes to adjust its current rates and tariff schedules for customers pursuant to the terms of the Settlement Agreements. Based on our review of the proposals in light of the whole record, we approve all of the settlements submitted in Phase 2, and attached as appendices to this decision.
The following table summarizes the adopted percentage increase or decrease in average electric rates for each major customer class as a result of the revenue allocation settlement agreement approved herein. While the allocation of revenue among customer classes changes, the overall effect on total utility revenues is zero, as summarized below:
Revenue Allocation Class Percentage Increase (or Decrease)
· Residential 0.6%
· Small Light & Power 0.2%
· Medium Light & Power: -0.9%
· E-19 Class: -0.9%
· Streetlights 1.5%
· Standby 1.7%
· Agricultural 1.5%
· E-20 : -1.0%
Total 0.0
1 The majority of rate design issues for PG&E residential electric customers in this proceeding were previously resolved in D.11-05-047.
