4. Petition for Modification of D.02-04-060
CIU and CLECA petition for modification proposing a fourth option: continue the bill limiter for all rate elements (including those in place both before and after 2001), and use a portion of the approximately $0.0053/kWh "catch-up" surcharge that would otherwise be returned to large customers beginning on June 2, 2002 to fund the revenue deficiency.2 That is, part of the "catch-up" surcharge would be used to fund the $29 million annual revenue shortage not already recovered in rates.
In support, petitioners assert that this avoids the "rate shock" caused by the Commission-adopted approach, with minimal impact on other large customers. Petitioners estimate that the "rate increase" to other large customers would be $0.0012/kWh, implemented by not reducing rates by as much as would otherwise occur on June 2, 2002. In further support, petitioners state that this would eliminate any alleged revenue deficiency for SCE.
2 The "catch-up" surcharge results from D.01-03-082 and D.01-05-064. D.01-03-082, dated March 27, 2001, granted Pacific Gas and Electric Company (PG&E) and SCE authority to increase rates by adding a $0.03/kWh surcharge. D.01-05-064 allocated the surcharge among customers, and approved customer-specific rates to implement the average increase adopted on March 27, 2001. The new rates became effective on June 1, 2001 for PG&E, and on June 3, 2001 for SCE. D.01-05-064 required the new rates to include a component to recover over a period of one year revenues associated with the $0.03/kWh surcharge not collected between March 27, 2001 and the date of the new rates (e.g., June 1, 2001 for PG&E; June 3, 2001 for SCE). On a total system basis, this component equals approximately $0.0052/kWh for PG&E, and $0.0053/kWh for SCE. (Resolution E-3776, pages 1-2.)
