4. Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Robert Barnett is the assigned Administrative Law Judge in this proceeding.
1. All nonbypassable charges are nondiscountable.
2. There are no exemptions or exceptions for nonbypassable charges other than those specifically described in a statute.
3. Economic discount rates must have a floor of all nonbypassable charges.
4. Some benefits of retaining EDR customers accrue to shareholders.
5. There are no statutory restrictions to applying the EDR discount to all bill components other than nonbypassable charges.
6. In the Amended Proposal in D.05-09-018, the description of Floor Pricing and Marginal Costs is modified to read:
Limit the discount to ensure revenue does not fall below floor price, which consists of transmission charges, PPP charges, ND charges, DWR Bond charges, CTC, marginal costs for transmission, distribution, and, if a bundled-service customer, marginal costs for generation. Floor price to be based on customer-specific marginal costs, up to the OAT. Unit marginal costs to be established at beginning of customer contract.
7. The modification adopted in this decision regarding electric economic development rates does not result in any inequity in EDR discount amounts between direct access and bundled customers.
8. D.06-04-002 is modified to add the following Findings of Fact:
a) The G-PPPS cannot be discounted.
b) SoCalGas may discount to Guardian its transportation rate, fixed charges, and fees.
1. All nonbypassable charges are nondiscountable.
2. It is unlawful to exclude nonbypassable charges from the price floor.
3. No exemptions or exceptions for EDR customers are permissible under applicable statutes and Commission decisions for PPP surcharges, DWR charges, CTC charges, and Nuclear Decommissioning charges.
4. Nonbypassable charges are not subject to exception upon a Commission finding that there will be no cost shifting.
5. Shareholders as well as ratepayers obtain the benefits of the EDR customers.
6. We strike Conclusion of Law 2 in D.05-09-018 stating:
The rate reductions and procedures requested by the applicants and as modified herein have been justified. (Pub. Util. Code § 54(a).)
7. The rate reductions and procedures as modified herein have been justified.
8. This Commission does not have the authority to discount the G-PPPS, but we do have the authority to create a new class of customers. However, the record in this proceeding is devoid of evidence to create a new customer class.
IT IS ORDERED that:
1. The economic development rates (EDR) approved in Decision (D.) 05-09-018 are modified as follows:
The description of Floor Pricing and Marginal Costs is:
Limit the discount to ensure revenue does not fall below floor price, which consists of transmission charges, public purpose program (PPP) charges, nuclear decommissioning (ND) charges, DWR Bond charges, Competition Transition Charge (CTC), marginal costs for transmission, distribution, and, if a bundled-service customer, marginal costs for generation. Floor price to be based on customer-specific marginal costs, up to the OAT. Unit marginal costs to be established at beginning of customer contract.
2. Outstanding EDR contracts shall be modified to include all nonbypassable charge components in the floor price on a going-forward basis. For past amounts paid under outstanding contracts, the funds collected will be reallocated so that NBC's are paid first, and the discounts applied to the distribution and generation components.
3. Southern California Edison Company and Pacific Gas and Electric shall file tariffs consistent with the EDR program adopted herein within 15 days of the effective date of this decision, and agreements as they are entered into. These tariffs shall be effective upon filing, subject to confirmation of compliance by the Energy Division.
4. D.06-04-002 is modified to add the following Findings of Fact:
a) The G-PPPS cannot be discounted.
b) Southern California Gas Company may discount to Guardian its transportation rate, fixed charges, and fees.
5. As modified by this decision, D.05-09-018 and D.06-04-002 are approved. Application (A.) 04-04-008, A.04-06-018, and A.05-10-010 are closed.
This order is effective today.
Dated September 6, 2007, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
I reserve the right to file a concurrence.
/s/ JOHN A. BOHN
