4. Scope and Issues
As specified in the Scoping Memo, the purpose of this proceeding is to establish just and reasonable rates on an overall (total utility) revenue neutral basis using the Commission authorized 2006 revenue requirement. The three general subjects of this rate design window application are marginal costs, revenue allocation, and rate design. Based on SDG&E's statement of proposed issues3 in the application, Protests4 by Office of Ratepayer Advocates' (ORA), the Utility Consumers' Action Network (UCAN) and the Western Manufactured Housing Community Association (Manufactured Housing), plus the parties' statements at the prehearing conference, the 2006 issues can be reasonably identified as:
a. Adjust electric revenue allocations and rates toward cost-based levels addressing the asserted cross-subsidies included in non-residential customer classes' rates.
b. Account for DWR Above-Market Costs.
c. Allocation of Public Purpose Program Costs.
d. Application of Allocation Methodology.
e. Establish a Master Meter Discount where there is sub-metered service See D.04-04-043, D.04-11-033 and D.95-02-090/
D.95-08-056.f. Consider authorization of a new non-bypassable charge for costs associated with AB 1X - the proposed Total Rate Adjustment Component.
g. Analyze the Marginal costs of generation, distribution, and customer services.
h. Determine the allocation of Marginal costs of generation, distribution, and customer services and the imposition of a cap.
i. Consider changes to the residential service rates including: elimination of the distribution rate components in residential rates for usage above 130% of baseline, consolidation of residential tier 4 and tier 5 commodity rates; and changes to Schedule E-LI for CARE customers.
j. Consider the use of full equal-percentage of marginal cost for generation costs.
k. Consider changes to small commercial customer charges; customer charge for Schedule PA; and Schedule S distribution charge.
l. Consider changes to summer/winter price differential for small commercial customers.
m. Consider closure and cancellation of Schedule AL-TOU-CP.
n. Consider the cost allocation and rate design of the Day-of- Reliability Tariff (CPP-E) adopted in D.05-04-053.
3 (See Rules 6.3.)
4 All three protests were timely filed on March 24, 2005, March 18, 2005, and March 23, 2005, respectively.
