ALJ/JSW/jt2 Date of Issuance 2/29/2008
Decision 08-02-034 February 28, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of San Diego Gas & Electric Company for Authority to Update Marginal Costs, Cost Allocation, and Electric Rate Design (U902E). |
Application 07-01-047 (Filed January 31, 2007) |
OPINION ADDRESSING THE APPLICATION AND THE MOTION
TO ADOPT THE ALL PARTY AND ALL ISSUE SETTLEMENT
TABLE OF CONTENTS
Title Page
OPINION ADDRESSING THE APPLICATION AND THE MOTION
TO ADOPT THE ALL PARTY AND ALL ISSUE SETTLEMENT 22
3. Description of the Application and the Settlement 77
5. Comments on Proposed Decision 3636
6. Assignment of Proceeding 3636
Attachment A - List of Abbreviations
OPINION ADDRESSING THE APPLICATION AND THE MOTION
TO ADOPT THE ALL PARTY AND ALL ISSUE SETTLEMENT
1. Summary
This decision addresses the revenue allocation and rate design issues associated with the electric revenue requirement of San Diego Gas & Electric Company's (SDG&E) general rate case (GRC), as litigated in Application (A.) 06-12-009.1
During the course of this proceeding, SDG&E and 12 other active parties entered into a settlement of all of the issues in this proceeding. SDG&E filed its Motion for Adoption of All Party and All Issue Settlement on November 1, 2007. The settlement was attached to the motion as Attachment 1.2 No one filed any objections to this motion or to the settlement.
SDG&E's application in this proceeding addressed a series of revenue allocation and rate design proposals, including Critical Peak Pricing (CPP) and Peak Time Rebate (PTR) issues.
SDG&E had proposed in its application that there be a gradual phase out of the rate freeze imposed by Assembly Bill 1 of the 1st Extraordinary Session of 2001-2002 (AB1X).3 This phase out proposal, which SDG&E refers to as its "roll off" proposal, was bifurcated from the other rate design issues in a November 5, 2007 ruling in this proceeding. The AB1X issues will be addressed in a separate decision.
Today's decision grants SDG&E's motion to adopt the settlement. The settlement was agreed to, or is unopposed, by all of the parties who actively participated in this proceeding. Except for the AB1X issues, the settlement resolves all of the issues in this proceeding. As discussed later in this decision, the settlement represents a series of compromises that the various parties reached on a number of different issues.
Attachment B of the settlement provides illustrative rate impacts on SDG&E's customer classes. The actual rates may change depending on the total revenue requirement that is adopted in A.06-12-009, the outcome of the AB1X issues, and the application of the California Department of Water Resources' (DWR) bond charge and energy charge allocated to SDG&E in Decision (D.) 07-12-030.4
1 The abbreviations used in this decision are listed in Attachment A of this decision.
2 A copy of the settlement can be viewed at the following internet location: http://sdge.com/regulatory/tariff/cpuc_openProceedings.shtml. A copy of the settlement can also be viewed by linking to the "Docket Card" for this proceeding from the "Proceeding Information" link on the CPUC.ca.gov website.
3 Statutes of 2001-2002, 1st Extraordinary Session, Chapter 4. The rate freeze language is codified in Water Code § 80110.
4 In the effort to implement CPP by the summer of 2008, SDG&E customers may experience some volatility in rates as a result of the adoption of this decision until decisions are adopted in A.06-12-009 on SDG&E's electric revenue requirement and in this proceeding on the AB1X issues.
