XIX. Other Issues

A. PBOP

Commission policy requires SoCalGas to return PBOP overcollections to ratepayers. SoCalGas has incorporated $8,713,000 in PBOPs overcollection in rates by refunding that amount to ratepayers through an EPMC allocation. ORA agrees, as do we.

B. Customer Satisfaction Under 1997 PBR

In D.97-07-054, the Commission adopted the joint recommendation of SoCalGas, ORA, and TURN to conduct a mid-course evaluation of the service quality, customer satisfaction, and safety incentives of the SoCalGas PBR. The Commission identified the current BCAP as the appropriate forum for that review. SoCalGas has provided evidence on customer satisfaction, service quality, and safety measures, but since the PBR commenced on January 1, 1998, there is limited information available for making a reasonable assessment of the PBR measures in this proceeding. ORA agrees with SoCalGas that there is no reason to change the measures, targets, rewards and/or penalties established in the 1997 PBR decision. ORA also agrees that this is not the appropriate proceeding to establish a CARE performance measure, and recommends no such measure at this time. In its annual review of the SoCalGas PBR, ORA will monitor and evaluate the performance of SoCalGas in the areas of customer satisfaction, service quality, and safety.

C. QF Restructuring

SoCalGas claims that gas ratepayers are harmed as a result of QF restructuring. To remedy this harm it recommends the establishment of either an escrow account which would compensate gas ratepayers for any harm they experience or a tracking account to track revenue as a result of QF restructuring. ORA opposes the SoCalGas recommendation since there is no need for this account. The throughput risk developed as a part of the JR equitably balances shareholder and ratepayer interests and the EOR balancing account tracks revenue recovery associated with EOR contracts. We agree with ORA. Utilities have always had a risk factor incorporated into their rate of return. One risk is regulatory policy changes. This is not a surprise and does not require special treatment.

D. Interstate Pipeline Refunds

SoCalGas has received approximately $11.7 million in refunds from El Paso, Transwestern, and PITCO, an affiliate. ORA recommends that these refunds, plus interest, be returned to customers in conjunction with the implementation of new BCAP rates. The refund should be in conformity with the refund plan submitted with Exhibit 196. The return of the refunds to customers should generally follow the manner in which the interstate costs associated with the refunds were originally allocated to the different customer classes. SoCalGas agrees with this proposal. We will adopt the proposal; the refund should be amortized over a one-year period.