7. Response to Comments on Energy Industry Rules

In response to the 2001 Draft Decision of the Assigned ALJ, many parties submitted specific comments on the proposed Industry Rules (Energy, Telecommunications, and Water). This section summarizes the comments on the Energy Industry Rules, where changes to the Energy Industry Rules have been made in response to comments, and explains why other comments have not been followed. Section 8.0 provides similar information for the comments made on the Water Industry Rules. Since the Telecommunications Industry Rules are not being adopted at this time, comments on those earlier rules are not reviewed. For all Industry Rules, we have decided to delete sample tariff and advice letter forms and require the Industry Divisions to make such forms available in other ways, such as on the Commission's website.

We have added a definition for "Load Serving Entity," Energy Industry Rule 1.3, and added a rule describing the compliance filings made by these entities under Pub. Util. Code § 380 (see Energy Industry Rule 9).

The Energy Industry Rules received relatively little comment. There was no comment on the Energy Industry Rule 1, "Additional Definitions," or Energy Industry Rule 2, "Submitting a Document."

Several comments indicated that requiring the service of advice letters on all potentially affected customers could be costly. We have modified the rule to indicate that a notice of the advice letter may be served if it summarizes the major provisions and indicates where a complete copy may be accessed or requested. General Rule 4.2 describes how notice can be given to customers, including bill inserts. We anticipate that most utilities will be able to refer affected customers, either by printed notice or an e-mail with a link, to the complete advice letter and proposed tariff sheets on the utilities' web sites.

Also, one comment recommended that the rule not require service of the advice letter on "other providers that may compete within the area to be served" since it is difficult for a utility to ascertain who is likely to compete. We have modified the rule to require service of the advice letter only on those other utilities that are actually providing service in the area to be served by the utility filing the advice letter.

One comment recommended specific authorization for energy companies, in satisfaction of this rule, to file tariffs in a FERC format. We agree, but we have modified General Rule 8.4 to allow a utility (with the Industry Division's authorization) to file and number tariff sheets prepared using a federal tariff format or sheet numbering system.

One comment suggested that withdrawing a service, canceling a schedule, or closing a schedule to new customers should be allowed under Tier 1, rather than Tier 3, if the action is pursuant to a prior Commission decision or resolution. We agree with this suggestion, and accordingly modify both Energy Industry Rules 5.1 and 5.3 (item 6).

One comment indicated that the rules should clarify that the first use of a newly approved methodology, such as performance-based ratemaking, will be designated as a Tier 2 item. We do not change the rule because Energy Industry Rule 5.2 specifically says that such a subject is not appropriate for Tier 2 consideration (item 1). For performance-based ratemaking, see item 9 under Energy Industry Rule 5.3.

Several comments suggested a discrepancy between General Rule 8.1.2, already adopted, and this Industry Rule. Under Energy Industry Rule 6.1, the concern is that energy utilities will be required to maintain no longer effective tariffs on their web sites. Because Energy Industry Rule 6.1 applies only to those larger utilities that must maintain a web site under General Rule 8.1.2, we believe that the requirement of maintaining expired tariffs on the web site is not unduly burdensome and provides customers with useful information about how rates and conditions of service have changed over time.

Another comment asked for clarification that the publication of an advice letter attaching the proposed tariff sheets satisfies the requirement of publishing "within five business days each new tariff sheet that it [the utility] submits for review and disposition." We have amended the rule to make this clarification.

As originally drafted, this rule required the use of zip codes to provide a narrative description of a utility's service area. One comment said this requirement does not make sense for some utilities, such as pipelines. We agree and have eliminated this requirement. Utilities, however, must adhere to the requirements of General Rule 8.5.4 to use "reasonable means for precisely specifying the boundaries of the service area."

One comment said in the case of oil pipelines, the inclusion of the specifically mentioned tariff rules is either duplicative of other tariff language or unnecessary based on the unique nature of the oil pipeline industry. Another comment indicated that tariff rules are often governed by utility-specific Commission requirements. We agree and have modified the rule to address both concerns.

Several comments were made on the sample forms, which generally illustrate the desired format and content. Some utilities may have unique circumstances justifying some variation or modification of these forms. These needs should be raised with the Energy Division.

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