6. Assignment of Proceeding
John A. Bohn is the assigned Commissioner and John S. Wong is the assigned ALJ in this proceeding.
1. SDG&E filed its motion on November 1, 2007 to adopt the all party and all issue settlement that was attached to the motion as Attachment 1 and labeled as "TY2008 General Rate Case Phase 2 Settlement."
2. SDG&E's application in this proceeding addresses the cost allocation and rate design proposals associated with SDG&E's electric revenue requirement for its 2008 through 2010 GRC.
3. Revenue allocation is the process whereby the proposed or authorized revenue requirement is allocated among the different rate classes.
4. In this proceeding, the revenue allocation is calculated for the distribution function and for the commodity function.
5. The distribution function covers the costs of delivering electricity to customers, while the commodity function covers the costs of DWR's electricity purchases that are assigned to SDG&E and URG costs.
6. The settlement resolves all of the issues in this proceeding except for the AB1X issues.
7. The settlement is supported, or is unopposed, by all of the parties who actively participated in this proceeding.
8. In deciding whether the settlement meets the criteria for Commission approval, it is useful to compare the prominent features of the settlement to the original positions of the parties.
9. A review of all the parties' testimony and a comparison of those positions to the settlement, reveal that the parties have made a number of concessions in order to reach the compromises agreed to in the settlement.
10. The parties who participated in this proceeding represent a broad spectrum of customer interests, and the issues raised by the parties and the resolution of those issues balance those competing interests and the outcomes are fair and reasonable to all the parties.
11. Had a settlement not been reached, the revenue allocation and rate design outcomes may have been dramatically different.
12. The settlement is reasonable in light of the whole record and is in the public interest.
1. Since no one filed any comments on the November 1, 2007 motion to adopt the settlement, no hearings on the settlement are needed.
2. The settlement provisions which pertain to customers with a SES do not conflict with Pub. Util. Code § 2851.
3. Since the sub-metering program agreed to in the settlement is to be patterned after the sub-metering program adopted in D.07-09-004, there is no conflict with prior Commission decisions prohibiting commercial sub-metering.
4. Prior to SDG&E's recovery of any costs recorded to the sub-metering Memorandum Account, SDG&E should be required to file a tier 3 advice letter.
5. The settlement is consistent with the law.
6. SDG&E's November 1, 2007 motion to adopt the settlement should be granted, and the terms of the settlement in Attachment 1 of the motion should be adopted.
7. SDG&E should be directed to file an advice letter with tariffs that conform to the settlement, as clarified herein.
IT IS ORDERED that:
1. The November 1, 2007 motion of San Diego Gas & Electric Company (SDG&E), which requests adoption of the October 17, 2007, "TY2008 General Rate Case Phase 2 Settlement" (settlement) is granted, and the terms of the settlement appended to the motion as Attachment 1 are adopted and shall govern all of the revenue allocation, rate design, and critical peak pricing issues raised in this proceeding.
2. Within 30 days of the date this order is mailed, SDG&E shall file an advice letter in compliance with General Order 96-B. The advice letter shall include revised tariff sheets to implement the revenue allocations and rate designs adopted in this order. The tariff sheets shall become effective on May 1, 2008, subject to Energy Division determining that they are in compliance with this order. No additional customer notice need be provided pursuant to General Rule 4.2 of General Order 96-B for this advice letter filing.
3. SDG&E shall file a Tier 3 advice letter pursuant to General Order 96-B to recover any incremental sub-metering costs recorded to the sub-metering Memorandum Account. SDG&E shall provide justification that the costs it seeks to recover are truly incremental and are not already being recovered in rates.
4. This proceeding remains open to consider the AB1X issues raised in this proceeding, as agreed to in the settlement.
This order is effective today.
Dated February 28, 2008, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
Commissioners
Commissioner Timothy Alan Simon, being necessarily absent, did not participate.
ATTACHMENT A
Abbreviation |
Meaning of Abbreviation |
A. |
Application |
AB1X |
Assembly Bill 1 of the First Extraordinary Session of 2001-2002 |
ALJ |
Administrative Law Judge |
AMI |
Advanced Metering Infrastructure |
AMR |
Advanced Metering and Demand Response Program |
BOMA |
Building Owners and Managers Associations of San Diego and California |
C&I |
commercial and industrial |
CAISO |
California Independent System Operator |
CAL-SLA |
California City-County Street Light Association |
CARE |
California Alternate Rates for Energy |
CLECA |
California Large Energy Consumers Association |
CMTA |
California Manufacturers & Technology Association |
CPP |
critical peak pricing |
CRC |
capacity reservation charge |
CRL |
customer reference level |
CSI |
California Solar Initiative |
CTC |
Competition Transition Charge |
DG-R |
Schedule Distributed Generation-Renewable |
DRA |
Division of Ratepayer Advocates |
DRMEC |
Demand Response Measurement Evaluation Committee |
DWR |
California Department of Water Resources |
EAP |
Energy Action Plan |
EPMC |
Equal Percent of Marginal Cost |
Farm Bureau |
California Farm Bureau Federation |
FuelCell Energy |
FuelCell Energy, Inc. |
GRC |
general rate case |
gWh |
gigawatt hours |
kW |
kilowatt |
kWh |
kilowatt hour |
M&E |
measurement and evaluation |
mw |
megawatt |
PG&E |
Pacific Gas and Electric Company |
PHC |
prehearing conference |
PPH |
public participation hearing |
PPP |
Public Purpose Program |
PTR |
Peak Time Rebate |
R. |
Rulemaking |
RDSC |
Rate Design Settlement Component |
RDW |
Rate Design Window |
RECC |
real economic carrying charge |
SCE |
Southern California Edison Company |
SDG&E |
San Diego Gas & Electric Company |
SES |
solar energy system |
SGIP |
Self-Generation Incentive Program |
TOU |
time of use |
TRAC |
Total Rate Adjustment Component |
UCAN |
Utility Consumer Action Network |
UDC |
utility distribution company |
URG |
utility retained generation |
Vote Solar |
Vote Solar Initiative |
(END OF ATTACHMENT A)
