ALJ/RS1/jt2 Date of Issuance 5/19/2008
Decision 08-05-003 May 15, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Southern California Edison Company (U338E) for Authorization to Update and Revise the Direct Access and Other Service Fees in Schedules ESP-DSF, CC-DSF and ESP-NDSF. |
Application 07-01-045 (Filed January 26, 2007) |
DECISION ADDRESSING SOUTHERN CALIFORNIA EDISON COMPANY'S APPLICATION FOR AUTHORITY TO UPDATE AND REVISE ITS DIRECT ACCESS AND OTHER SERVICE FEES
TABLE OF CONTENTS
DECISION ADDRESSING SOUTHERN CALIFORNIA EDISON COMPANY'S APPLICATION FOR AUTHORITY TO UPDATE AND REVISE ITS DIRECT ACCESS AND OTHER SERVICE FEES 22
3. Should the Application be Considered at This Time? 99
4. Should the Commission Approve the Incremental Cost Methodology for Calculating the Service Fees? 1616
4.1. Does the Methodology Used to Develop the Proposed Fees Ensure
DA Services are Provided in an Efficient Manner? 1919
4.2. Is the Methodology Used for Calculating the Proposed Fees Appropriate? 2323
5. Is the Cost Information Used to Calculate the Proposed Fees Reliable and Accurate? 2626
5.1. Costs Based on OEA Estimates 2626
5.2. Cost Components - Inclusion of Corporate and Division Overhead Costs 3535
6. Should the Commission Approve the Proposed Revisions to the DA
Service Schedules? 3838
7. Should SCE be Authorized to Remove Certain Offerings That are
No Longer Relevant? 4949
8. Should SCE be Authorized to Add Certain Service Offerings and Fees
That Were Not Included in the Original Schedules or to Revise Certain Service Offerings and Fees? 5151
8.1. Discretionary Services And Fees 5353
8.3. ESP Termination of Service Fees 5757
8.4. Monthly Account Maintenance Fee 5858
8.5. Other Non-Discretionary Service Fees 6464
9. Does the Incremental Cost Methodology Help Reduce Cost Shifting?
If So, Which Cross-Subsidies are Reduced, and Which Ones Remain? 6464
10. How Will the Proposed Fees Affect Community Choice Aggregator Customers, Bundled Service Customers and/or Residential
Direct-Access Customers in California? 6767
11. What Impact, if any, Will SCE's Advanced Metering Infrastructure
Proposal Have on the Proposed Fees or Meter-Related Costs? Do the Proposed Fee Changes Raise any Issues Related to Potential Impacts on SCE's Revenue Requirement That Should be Considered? 7171
12. Should the Commission Authorize an Advice Letter Procedure for Establishing New Service Fees? 7171
13. Comments on Proposed Decision 7878
14. Assignment of Proceeding 7979
Appendix A - Proposed and Approved Services and Fees
DECISION ADDRESSING SOUTHERN CALIFORNIA EDISON COMPANY'S APPLICATION FOR AUTHORITY TO UPDATE AND REVISE ITS DIRECT ACCESS AND OTHER SERVICE FEES
1. Summary
Decision (D.) 97-10-087 approved tariff provisions and related agreements necessary to implement a statewide Direct Access (DA) program, as part of electric industry restructuring in California. The DA program was intended to facilitate a competitive marketplace for electric energy by permitting electric customers the choice to purchase "bundled service" from utility distribution companies (UDCs), or to buy electricity directly from competing non-utility suppliers, Electric Service Providers (ESPs) and purchase-related optional services from other market participants, such as aggregators, brokers, and marketers.1
Under the approved tariffs, ESPs must purchase certain services (i.e., non-discretionary services) to enable their market participation, and ESPs and end-use customers may purchase metering, billing and/or related services (i.e., discretionary services) from UDCs.2
This decision (Decision) approves, in part, Southern California Edison Company's (SCE) request to add, delete and make revisions to the DA and other similar fees. The Decision denies SCE's request to re-title its DA and other service fees to eliminate the discretionary/non-discretionary categorization of fees because the Commission has a continuing interest in distinguishing discretionary from non-discretionary services, and separate tariffs help to reduce confusion about which services ESPs and customers have a choice in obtaining from alternate providers.
The Decision approves SCE's request to add, delete and make revisions to discretionary service fees, but denies SCE's request to add, delete and make revisions to non-discretionary service fees. The Decision concludes that the proceeding anticipated by D.97-10-087 to examine the appropriateness of all of the UDCs' DA service fees and tariffs should take place prior to approving revisions to non-discretionary service fees or before approving other changes to SCE's DA service fees and tariffs.
The Decision approves SCE's request to use the advice letter process to establish new discretionary services and fees. However, the Decision denies authority to use advice letters to establish new non-discretionary services and fees, or to modify existing discretionary or non-discretionary services and fees.
The Decision does not approve the incremental cost methodology SCE used to develop its proposed service fees because the methodology results in fees that assign costs to those who do not cause those costs to be incurred, and because the operational expert analysis estimates used by SCE have not been adequately validated to provide confidence in their accuracy or reliability.
Finally, the Decision directs the Energy Division to convene and facilitate a meeting between SCE, the Alliance for Retail Energy Markets (AReM), the California Manufacturers and Technology Association (CMTA), and other interested parties to consider issues surrounding SCE DA process improvements, including the timing for implementing any recommended improvements that may not be cost effective now at the presently low DA volumes but which may become cost effective if the suspension on enrolling new DA customers is lifted and the volume of transactions increases.
1 D.01-09-060, as modified by D.01-10-036, suspended the right to enter into new contracts or agreements for DA service. That suspension remains in effect. However, customers with contracts or arrangements in effect at the time D.01-09-060 became effective remain eligible for DA service.
2 ESPs may also provide their own metering, billing or other discretionary services, or obtain them from non-UDC providers.
