3. Framework for Reviewing RCES Proposals

As a context for evaluating the RCES proposals, we note the framework of relevant legislative and regulatory developments. In Decision (D.) 05-11-009, the Commission expressed a general concern that utility bill formats were too complex and confusing to customers, and expressed interest in promoting more customer-friendly billing formats. In June 2006, PG&E filed A.06-06-026, proposing several changes to then-existing bill format requirements and a process for Commission oversight of further customer bill format changes. At the conclusion of that proceeding, in D.07-07-047, the Commission adopted certain bill re-design parameters for PG&E, with modifications and conditions premised on recommendations put forth by consumer groups and representatives of the disabled community. The Commission further ordered that for proposed bill changes beyond those considered cosmetic or superficial, PG&E would be required to file an advice letter for approval to implement such changes.

As noted in PG&E's RCES testimony, the Legislature and Commission have enacted a number of measures to implement California's greenhouse gas emissions goals. These legislative and regulatory developments have provided the opportunity to improve the usefulness, relevance, and understandability of the information in PG&E's customer energy statements.

In particular, California Assembly Bill (AB) 1763 added § 739(e)(1) to the Public Utilities Code, requiring PG&E to provide additional information on energy statements and to change the calculation of its bills in a timeframe consistent with this GRC. PG&E's current Customer Energy Statement is largely compliant with the existing statutory requirements, except for graphic representation of cost-per-tier as required by § 739 (e)(1)(C). PG&E's current Customer Energy Statement is also largely compliant with Commission requirements in D.07-07-047, except for sufficiently prominent presentation of the TTY number and presentation of key information in a font size that is easy to read, as well as a sufficiently clear definition of baseline.

In addition to meeting legislative requirements, another impetus for implementing improvements to PG&E's customer energy statements is the upcoming completion of SmartMeterTM deployment which offers enhanced opportunities to provide customers with daily usage information graphically. In addition, the implementation of new dynamic pricing programs are creating new requirements for presenting billing information that enables customers to understand the results of their energy usage.