COM/JB2,CRC/MOD-POD/tcg Date of Issuance 9/24/2007
Decision 07-09-041 September 20, 2007
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company for Authority, Among Other Things, To Increase Revenue Requirements for Electric and Gas Service and to Increase Rates and Charges for Gas Service Effective on January 1, 2003. (U 39 M) |
Application 02-11-017 (Filed November 8, 2002) |
Investigation on the Commission's Own Motion into the Rates, Operations, Practices, Service and Facilities of Pacific Gas and Electric Company. |
Investigation 03-01-012 (Filed January 16, 2003) |
Application of Pacific Gas and Electric Company Pursuant to Resolution E-3770 for Reimbursement of Costs Associated with Delay in Implementation of PG&E's New Customer Information System Caused by the 2002 20/20 Customer Rebate Program. (U 39 E) |
Application 02-09-005 (Filed September 6, 2002) |
(See Appendix A for List of Appearances.)
Title Page
MODIFIED PRESIDING OFFICER'S DECISION 2
I. Summary 2
II. Factual Background 2
III. Procedural Background 3
IV. Tariff Violations 6
V. Refunds 11
A. Are Refunds Warranted? 11
B. Who is Responsible for Funding Refunds? 13
C. What Time Period Should be Used to Determine Refunds? 18
1. Statute of Limitations 18
2. Pre-CorDaptix Data Limitations 25
3. Time Allowance for CorDaptix Stabilization 28
D. Should Refunds be Waived to Avoid Adverse Financial Consequences? 29
E. Does the PG&E Bankruptcy Settlement Bar Refunds
Pre-December 31, 2003? 29
F. How Should Refunds be Calculated? 31
G. Should Refunds be Paid with Interest? 33
H. How Should Eligible Customers be Identified? 34
I. Should Unclaimed Refunds Escheat to the State? 35
VI. Other Restitution 36
A. Reconnection Fees and Payments 36
B. Deposits Following Delayed or Estimated Bills 38
C. Credit Scores 39
D. Contribution to REACH Program 39
VII. Penalties 40
A. Severity of the Offense 40
1. Physical Harm 40
2. Economic Harm 41
3. Harm to the Regulatory Process 42
4. Number and Scope of Violations 43
B. Conduct of the Utility 44
1. Preventing, Detecting and Rectifying the Violation 44
2. Deterrent Effect 45
C. Precedent 45
D. No Penalty Warranted 46
TABLE OF CONTENTS
(Cont'd)
Title Page
VIII. Prospective Remedies 47
A. Changes to Rule 9 47
B. Ratemaking Treatment of Uncollectible Amounts 48
IX. Assignment of Proceeding, Hearings and Submission 50
X. Appeals and Motion to Set Aside Submission 51
XI. Explanation of Changes Made to the POD Pursuant to Pub. Util.
Code § 1701.2(a) 54
Findings of Fact 55
Conclusions of Law 59
ORDER 62
Appendix A - List of Appearances
MODIFIED PRESIDING OFFICER'S DECISION
I. Summary
This decision finds that Pacific Gas and Electric Company (PG&E) systematically violated its tariff Rule 9A by failing to issue bills at regular intervals based on actual metering data. The decision also finds that PG&E violated its tariff Rule 17.1 by issuing backbills related to: 1) periods of no bills ("delayed bills) and 2) periods of estimated bills, where the cause for the estimation was within PG&E's control, beyond the time limits permitted under the tariff. We order PG&E to refund, at shareholder expense, approximately $35 million for these unauthorized charges. We further order PG&E to refund reconnection fees (with interest) and pay credits to certain customers whose service was shutoff for nonpayment of illegal backbills.
