Decision 99-05-030 May 13, 1999
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of San Diego Gas & Electric Company (SDG&E) for Authority to Implement a Distribution Performance-Based Ratemaking Mechanism (U 902-M). |
Application 98-01-014 (Filed January 16, 1998) |
(See Appendix A for list of appearances.)
OPINION REGARDING
SAN DIEGO GAS & ELECTRIC COMPANY'S
DISTRIBUTION PERFORMANCE-BASED RATEMAKING MECHANISM
Summary
In this decision, we consider the performance indicators and the design of the San Diego Gas & Electric Company (SDG&E) distribution performance-based ratemaking (PBR) mechanism. We adopt the settlement agreement regarding the performance indicators proposed by SDG&E, the Office of Ratepayer Advocates (ORA), the Utility Consumers' Action Network (UCAN), the Federal Executive Agencies (FEA), the Coalition of California Utility Employees (CCUE), the City of San Diego, the California Farm Bureau Federation (Farm Bureau), and the Natural Resources Defense Council (NRDC). This agreement is an all-party settlement and resolves all issues raised in connection with the requested performance indicators.
We adopt a distribution PBR mechanism modeled after those adopted for Southern California Gas Company (SoCalGas) in Decision (D.) 97-07-054 and Southern California Edison (Edison) in D.96-09-092. We adopt a rate indexing mechanism, a progressive sharing mechanism, and a productivity factor that includes a stretch factor. The revenue requirement used as the starting point for this distribution PBR mechanism is $563.4 million for electric distribution and $201.5 million for gas base rate revenues, as approved in D.98-12-038.1
1 Including expected Demand-side Management (DSM) shareholder incentives and compared to revenues at present rates, D.98-12-038 adopts a decrease of $14.2 million in the electric department (2.46% decrease as a system average rate change) and an increase of $3.9 million for the gas department (1.97% increase on a system average basis). The effect for combined departments is a $10.3 million decrease, (1.33% decrease on a system average basis).
