3. Guiding Principles
In addressing issues related to NBCs, the Commission has generally applied the bundled customer indifference principle, whereby bundled customers should be no worse off, nor should they be any better off as a result of customers choosing alternative energy suppliers (ESP, CCA, POU or customer generation).13 The Commission has also supported the principle that stranded costs should be recovered from those customers who benefited from the stranded asset,14 as well as those customers on whose behalf the IOU incurred these costs. It is reasonable that we continue to use these guiding principles in reconciling issues related to the implementation of the D.04-12-048 and D.06-07-029 NBCs.
The notion that each customer pay its fair share of the costs the IOU incurred on behalf of this customer or the load associated with this customer is part of these guiding principles.15 Therefore, the rule is that when costs are incurred on its behalf, that customer must pay its fair share of the costs. A corollary rule is that if no costs are incurred on its behalf, then the customer's fair share can be determined to be zero.16
With respect to the CRS established by this decision to implement the D.04-12-048 NBC, we are guided by previously established principles used to implement the existing CRSs for DA, CCA, MDL and CGDL.17
13 For example, in D.04-12-048, Finding of Fact 28, the Commission stated, "The threshold policy issue underlying cost responsibility surcharges is to ensure that remaining bundled ratepayers remain indifferent to stranded costs left by the departing customers."
14 For example, in D.04-12-048, Finding of Fact 15, the Commission stated, "Allowing the utilities to recover stranded costs from all customers who benefited is consistent with recent Commission policy with regards to new resource additions." Also in D.03-04-030, Finding of Fact 20, the Commission stated, "Granting exceptions to certain portions of the CRS for customer generation up to 3,000 MW [megawatt] will not result in any cost-shifting among customers, since costs for those MW were not incurred by DWR."
15 Pub. Util. Code § 366.2(d); D.02-11-022, p. 158, Conclusion of Law 21; D.03-04-030, p. 39; D.03-07-028, p. 13; D.04-12-046, p. 24; D.04-12-048, p. 57; D.05-09-022, pp. 15-16.
16 The Legislature has given the Commission the authority to determine the fair share and the fair share can be determined to be zero. (See Pub. Util. Code, § 366.2(d); D.03-07-028, p. 61; D.04-12-046, pp. 38-39; D.04-12-059, pp. 13-14.)
17 Appendix D provides a summary of consumer responsibility for various IOU/DWR cost elements related to CRSs.
