I. Summary
Pub. Util. Code § 739.5 requires mobile home park (MHP) owners who provide electricity and/or natural gas to their tenants through a submetered distribution system to charge their tenants at the same rate the serving utility charges for comparable service.1 Section 739.5 also requires the serving utility to provide a discount to the MHP owner as compensation for providing such services to its tenants.2 These proceedings were initiated to address matters pertaining to the discount. In Decision (D.) 04-04-043, an interim decision in these proceedings, we identified the categories of costs the electric and natural gas utilities incur when directly serving MHP tenants that are avoided by the utilities when the MHP is served through a distribution system owned and operated by the MHP owner. These categories of costs are to be used in determining the amount of the discount. We also identified the categories of costs that are either not incurred by the utility when it directly serves MHP tenants, or are not reflected in utility rates for direct service, but are incurred by MHP owners, and may be separately charged to tenants if not otherwise prohibited.
In this decision, we require the following:
1. The discount shall be set at the average cost that the utility would have incurred in providing comparable services to the tenant directly, which is avoided when the MHP is submetered.
2. The discount shall be determined in a general rate case, biennial cost allocation proceeding, or similar proceeding where the utility's revenue requirement and rates are set (revenue requirement proceeding). Between such proceedings, the utilities shall include a proposed revision to the discount in any utility filing proposing a revision to residential rates if the change in residential rates, or the data upon which the residential rate change is based, is sufficient to change the discount.
3. Any proposed settlement or stipulation in a revenue requirement proceeding, that includes the discount, shall specify whether and how the discount is to be adjusted between such proceedings.
4. If the calculation of the discount and how the discount is to be adjusted between such proceedings is not specified in an adopted settlement or stipulation that includes the discount, the discount shall not be revised until the next such proceeding.
5. In any proceeding where the parties propose a settlement or stipulation that includes the discount, they shall specifically demonstrate that the proposed discount complies with § 739.5.
6. The discount shall be set as an amount per space per day.
7. The discount shall be calculated using a sampling method based on a statistically valid random sample, or using a marginal cost method. The specifics of any sampling or marginal cost method shall be addressed in the revenue requirement proceeding where the discount is set.
8. Refunds shall be distributed to tenants pursuant to § 739.5(b), except that when the refunds by the utility are on a per-meter basis, the refunds to the tenants shall be on a per-submeter basis.
9. Whenever a utility issues a refund to MHP owners through a reduction in the utility bill that should be distributed to tenants, the utilities shall: (1) identify the refund amount on the bill, and (2) explain how tenant refunds are to be calculated. If refunds are issued to MHP owners other than through the bill, the utilities shall identify the refund as such, and explain how to calculate tenant refunds.
10. For special programs for which the above tenant refund distribution methodology would not be appropriate, the tenant refund distribution methodology shall be addressed in the proceeding in which the special program is authorized.
11. When a tenant of a submetered MHP contacts a utility concerning the bill provided to the tenant by the MHP owner for electricity and/or natural gas, the utility shall as a minimum offer to provide information on how it calculates its bills, since the MHP owner is required to calculate tenant bills in the same manner, and on eligibility for programs for which the tenant may be eligible such as the California Alternate Rates for Energy (CARE) program. The utility shall also refer the tenant to the Commission's Consumer Affairs Branch, for resolution of complaints.
12. In their next revenue requirement proceedings, the utilities shall provide an analysis of the costs, benefits, and feasibility of providing bill calculation services to MHP owners. The utilities shall also provide examples of the appropriate tariff language, and an estimate of the rates necessary to recover the full costs of such services from the MHP owners.
13. The motion, filed by the active parties on January 16, 2004, to establish a new proceeding to consider the issue of whether there are fair and reasonable ways to mitigate the cost to MHP owners of converting existing submetered systems to directly-metered service, is denied.
1 All references are to the Public Utilities Code unless otherwise indicated.
2 All references to MHP owners will be to those who are master-meter customers of the utility, and provide service to their tenants through a submeter.
