4. Agreement on Master Meter Discounts

The Commission has anticipated implementing a discount for master meter customers in recognition that the costs of service to master meter customers are lower than the utility would incur if it were to bill individual customers. In D.04-11-033, the Commission required that "the discount provided to mobilehome park homeowners (MHP) pursuant to Pub. Util. Code § 739.5(a) "shall be set at the average cost that the electrical or natural gas utility would have incurred in providing comparable services to the MHP tenant directly, which is avoided when the MHP is submetered." The Commission also found that the calculation of the discount may be made on the basis of a random sample or using a marginal cost analysis.

PG&E TURN and WMA, representing mobile home parks, reached agreement on all related issues as follows:

1. The base master meter discount for gas schedule GT shall be fixed at $0.39 per space per day until the next BCAP.

2. The diversity benefit adjustment shall be fixed at $0.034 per space per day until the next BCAP.

3. The base master meter discount for gas schedule GS (multi-family service for other than mobile home parks) shall be fixed at $0.199 per unit per day, with a diversity benefit adjustment of $0.022 per unit per day until the next BCAP.

4. PG&E will update the data used to calculate the diversity benefit adjustment in its next BCAP, or if the BCAP is delayed, in another rate design proceeding in the next two years.

The settlement rate is based on the range of values proposed by TURN, WMA, and PG&E and using marginal cost methods, $.35 at the low end and $.49 at the high end.

We find that the settlement on these issues is consistent with § 739.5(a) and presents a reasonable compromise between parties representing the interests of residential customers and mobile home park owners. We adopt it herein and state our commitment to revisiting this issue depending on PG&E's updated data.