VI. Assignment of Proceeding
Geoffrey Brown is the Assigned Commissioner and Charlotte TerKeurst is the assigned ALJ in this proceeding.
1. The Commission instituted R.01-05-047 to evaluate whether the utilities' baseline programs should be revised. This review was prompted, in large part, by the unprecedented surcharges we have been forced to impose on Californians and by our adoption of a rate design relying heavily on baseline quantities to determine which residential customers are affected and to what degree.
2. In D.01-05-064, the Commission implemented the $0.03 per kWh average surcharge authorized in D.01-03-082, with PG&E's residential rate increase effected through a new five-tier residential rate structure pegged to customers' baseline allowances.
3. PG&E's electric rates for commercial customers do not vary based on usage levels.
4. PG&E's common area electric accounts with single-phase service were switched from commercial to residential rates in 1967, and PG&E's common area accounts with poly-phase service were switched to residential rates in 1992.
5. In D.94-04-088, we provided guidance that individual elements of settlements should be considered in order to determine whether the settlement generally balances the various interests at stake and to ensure that each element is consistent with our policy objectives and the law.
6. The residential tiered rate structure adopted for PG&E in D.01-05-064 has a disproportionate effect on larger-usage common area accounts, compared to other residential customers.
7. Many of PG&E's higher-usage common area accounts would benefit from the Modified Stipulation's proposed optional migration to commercial schedules.
8. Common area electricity costs are often passed on to a building's occupants.
9. PG&E's demographic information indicates that over 80 percent of multifamily dwellings served by PG&E are apartments, and that households in multifamily dwellings have average incomes about 25 percent lower than single-family dwellers.
10. PG&E's current residential rate design is not well suited for application to common area accounts, particularly those with very high usage.
11. Allowing PG&E's common area accounts to switch to commercial schedules would be equitable for PG&E's larger common area customers and would not harm smaller common area customers.
12. The Modified Stipulation treats lower-income customers equitably because it would tend to help rather than harm them.
13. The provisions of the Modified Stipulation that allow common area customers to take service on commercial rate schedules balance the interests of PG&E's common area and other residential customers and are consistent with our policy objectives.
14. It is equitable for new common area accounts to be provided a right-of-transfer window comparable to the right-of-return window in Term 7 of the Modified Stipulation.
15. The Modified Stipulation's requirement that PG&E install TOU or demand meters, or reprogram existing qualified meters, on a first-come, first-served basis balances equitably the interests of all common area accounts.
16. The Modified Stipulation's requirement that PG&E provide written confirmations and historical bill analyses to common area customers who would save at least $100 per year exclusive of meter charges is reasonable.
17. It is reasonable to require that PG&E send a bill insert to all residential customers who do not receive the written confirmations and historical bill analyses, in order to ensure that all common area accounts are notified of their option to transfer from residential to commercial schedules.
18. PG&E estimated that common area accounts could save about $18 million per year from migrating to commercial schedules.
19. Recovery of the expected revenue shortfall due to the Modified Stipulation will not have a significant impact on ratepayers.
20. Balancing account treatment of revenue shortfalls resulting from the Modified Stipulation is reasonable.
21. It is reasonable to allow PG&E to recover revenue shortfalls due to the Modified Stipulation, including shortfalls reasonably booked in the authorized balancing account and expected ongoing revenue shortfalls.
22. We will address allocation and cost recovery issues regarding the Modified Stipulation and termination of the CABA in an order on remaining Phase 2 issues.
23. The Modified Stipulation is a reasonable settlement which ameliorates the negative effects of the mismatch between PG&E's current residential rate design and common area usage patterns, balances the various interests at stake, and is consistent with our policy objectives.
1. In compliance with Rule 51.2, the Modified Stipulation was proposed after the first PHC in this proceeding.
2. The Modified Stipulation is a settlement within the meaning of Rule 51(c).
3. The baseline program required by § 739 does not apply to customers receiving electrical service through commercial schedules.
4. Section 739 does not constrain the Commission from allowing PG&E's common area accounts to transfer voluntarily from a residential schedule to a commercial schedule.
5. Water Code § 80110, effective February 1, 2001, prohibits the Commission from increasing electricity charges for residential usage up to 130 percent of baseline quantities.
6. The voluntary transfer of electric common area accounts from PG&E residential schedules to PG&E commercial schedules would not violate Water Code § 80110.
7. The Modified Stipulation should be construed to provide new common area accounts a right-of-transfer window.
8. The parties' recommendation that the Modified Stipulation have no precedential effect is reasonable and should be adopted.
9. Consistent with Rule 51.1(e), the Modified Stipulation is reasonable in light of the whole record, consistent with law, and in the public interest, and should be adopted.
10. This order should be effective today, so that the Modified Stipulation may be implemented expeditiously.
IT IS ORDERED that:
1. The Stipulation on Common Area Accounts in Baseline OIR Phase 2 (Parties' Modified Version) (Modified Stipulation), filed on July 15, 2002, is adopted, as set forth in Attachment B.
2. Pacific Gas and Electric Company (PG&E) shall provide each common area electric account created after the effective date of the Modified Stipulation that chooses to be served through a commercial schedule a two-month window, beginning 14 months after it first elects a commercial schedule, during which it may choose residential status.
3. Term 8 of the Modified Stipulation shall apply to new common area electric accounts.
4. The right-of-transfer window required in Ordering Paragraph 2 shall apply regardless of whether or when Term 8 of the Modified Stipulation is exercised.
5. PG&E shall send a bill insert to all residential customers who do not receive written confirmations and historical bill analyses, informing them that common area accounts have an option to transfer from residential to commercial schedules.
6. PG&E shall establish a Common Area Balancing Account (CABA) and record in the CABA any revenue under-collection or over-collection resulting from implementation of the Modified Stipulation.
7. PG&E shall file and serve a compliance advice letter within 30 days of the effective date of this decision to update its residential and commercial tariffs to implement the Modified Stipulation. The advice letter will become effective after appropriate review by the Energy Division.
8. Adoption of the Modified Stipulation does not constitute approval of, or precedent regarding, any issues remaining in Phase 2 or in any future proceeding.
This order is effective today.
Dated January 16, 2003, at San Francisco, California.
MICHAEL R. PEEVEY
President
CARL W. WOOD
LORETTA M. LYNCH
GEOFFREY F. BROWN
SUSAN P. KENNEDY
Commissioners
|
Dan L. Carroll |
William H. Booth |
Georgetta J. Baker |
James Van Nostrand |
(END OF ATTACHMENT A)
Attachment B
Stipulation on Common Area Accounts in
Baseline OIR Phase 2 (Parties' Modified Version)
TerKeurst Attachment B to Agenda ID #1528
