COM/GFB/eam Mailed 3/22/05
Decision 05-03-023 March 17, 2005
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Southern California Gas Company for Authority to Update its Gas Revenue Requirement and Base Rates. (U 904 G) |
Application 02-12-027 |
|
Application of San Diego Gas & Electric Company for Authority to Update its Gas and Electric Revenue Requirement and Base Rates. (U 902-M) |
Application 02-12-028 |
Investigation on the Commission's Own Motion into the Rates, Operations, Practices, Service and Facilities of Southern California Gas Company and San Diego Gas & Electric Company. |
Investigation 03-03-016 |
(See Appendix B for a list of appearances.)
DECISION ON SOUTHERN CALIFORNIA GAS COMPANY AND
SAN DIEGO GAS & ELECTRIC COMPANY'S PHASE 2
POST-TEST YEAR 2004 RATEMAKING, EARNINGS SHARING,
INCENTIVE PROPOSALS, AND 2004 INCENTIVE PROPOSALS
Table of Contents
Title Page
5. Starting Conditions for Indexing 1111
12. Electric Reliability Incentives for SDG&E 3232
a. System Average Interruption Duration Index (SAIDI) 3434
b. System Average Interruption Frequency Index (SAIFI) 3535
c. Momentary Average Interruption Frequency Index (MAIFI) 3535
14. Service Quality indicators 5050
17. Comments on the Proposed Decision 5959
18. Assignment of Proceeding 6161
APPENDIX A: Acronyms
APPENDIX B: List of Appearances
APPENDIX C: Settlement Agreement
DECISION ON SOCALGAS AND SDG&E'S PHASE 2
POST-TEST YEAR 2004 RATEMAKING, EARNINGS SHARING, INCENTIVE PROPOSALS, AND 2004 INCENTIVE PROPOSALS
1. Summary
In this decision, we approve post-test year ratemaking mechanisms for Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E) that will remain in effect until their next general rate case for Test Year 2008.
Pursuant to Rule 51 et seq. of the Commission's Rules of Practice and Procedure, we adopt, with some minor modifications, a partial settlement agreement supported by SoCalGas, SDG&E, the Office of Ratepayer Advocates (ORA), The Utility Reform Network (TURN), Aglet Consumer Alliance (Aglet), Natural Resources Defense Council (NRDC), and Southern California Generation Coalition (SCGC). The Settlement resolves or otherwise disposes of all issues in Phase II for both SoCalGas and SDG&E, with the exception of matters related to performance incentives and performance indicators. The Settlement is joined by all active parties who made recommendations in the proceeding on the issues resolved by the Settlement Agreement.
We find the Settlement generally reasonable in light of the whole record, consistent with the law, and in the public interest. With respect to the performance incentives and indicators, we adopt modified electric reliability incentives for SDG&E that set reasonable targets and include appropriate rewards and penalties. We adopt a modified safety incentive for both companies that sets reasonable targets and includes appropriate rewards and penalties. Finally, we adopt monitor-only customer satisfaction measurements in addition to four specific customer satisfaction incentives that set reasonable targets and include appropriate rewards and penalties.
This decision adopts proposals for a SoCalGas service guarantee and continues the existing guarantee for SDG&E. Finally, this decision determines that earnings sharing and all of the incentive mechanisms do not apply to 2004 operations and will be effective from 2005 onwards until modified or terminated by further action of the Commission.
As discussed in Phase I, SoCalGas and SDG&E have the sole obligation to provide a convincing and sufficient showing to meet the burden of proof, and any active participation of other parties can never change that obligation.
