ALJ/CFT/jva Mailed 10/29/2004

Decision 04-10-032 October 28, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion to Determine Whether Baseline Allowances for Residential Usage of Gas and Electricity Should Be Revised.

Rulemaking 01-05-047 (Filed May 24, 2001)

OPINION GRANTING INTERVENOR COMPENSATION

TO LATINO ISSUES FORUM FOR SUBSTANTIAL

CONTRIBUTION TO DECISIONS 03-01-037 AND 04-02-057

This decision awards the Latino Issues Forum $165,324.00 in compensation for its contribution to Decisions (D.) 03-01-037 and 04-02-057.

Background

The Commission opened Rulemaking (R.) 01-05-074 to consider steps to make it easier for residential customers to afford their basic energy needs in light of the substantial rate increases and the multi-tiered rate structure implemented to meet utility obligations caused by the energy crisis. Phase 1 of this rulemaking addressed: 1) updating the energy usage data used by the Commission in calculating baseline quantities; 2) the appropriate percentage of energy usage to use in calculating baseline quantities (within the range specified by Pub. Util. Code § 739(d)(1)); and 3) possible changes to the medical baseline allowance. Suggestions for legislative changes originally were raised in the scoping memo but subsequently were deferred to Phase 2.

D.02-04-026, the Phase 1 decision, increased the natural gas and electric baseline allowances for many residential customers and began the process of improving the medical baseline program. In D.02-04-026 we noted that several parties raised issues in Phase 1 testimony that fell outside the scope of Phase 1, including consideration of factors such as family size in calculating baseline allowances and seasonal usage. We deferred those issues to Phase 2.

Phase 2 evaluated the affordability of basic energy needs for customers who might be vulnerable for reasons other than being low income. Specifically, Phase 2 considered household characteristics (including household/home size and demographics), climate zones and geographic boundaries of each utility's baseline zones, well water pumping for household use, condominium and other multiple dwelling unit common areas, seasonal residence effects on average use calculations (including the application of baseline to vacation homes), definition of seasons, rate impacts of changes to baseline, and proposed legislative changes for many of these issues. In D.03-01-037, an interim Phase 2 decision, the Commission approved the modified settlement permitting Pacific Gas and Electric Company's (PG&E) residential common area electric accounts, currently served on residential rate schedules, the option to be served on commercial rate schedules. D.04-02-057 adopted the program proposed by The Utility Reform Network (TURN) for residential customers of three major utilities, PG&E, Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E), whereby lower-middle income large household participants will be charged Tier 2 electricity rates for their Tier 3 usage.¹ We did not extend that program to customers of the smaller electric utilities, since their upper tier rates were not as high and they did not appear to have a comparable need for rate relief. That decision also adopted a policy to exclude certain seasonal usage. This rulemaking now is closed except for resolution of requests for intervenor compensation.