PG&E's Request for Authority to Implement a Late Payment Fee

On July 20, 2004, PG&E filed AL 2550-G/2534-E requesting authority to implement a late payment fee. PG&E received authority to implement a late payment fee as part D.95-12-055, issued in PG&E's test year 1996 GRC, but this authority was contingent on PG&E's demonstrating the efficacy of PG&E's billing system. PG&E's AL explained that the requirement for demonstrating efficacy was based on intervenors' concerns about implementing the late payment fee in PG&E's prior customer information system called Legacy CIS. PG&E's Legacy CIS was not initially designed to accommodate a late payment fee and was, even in 1995, thought to be an outdated system that carried a risk of system error.

The AL explains that in late 2002 PG&E replaced its Legacy CIS with a vendor-supplied CIS called CorDaptix. CorDaptix offers late payment fee functionality as part of its base system, which PG&E has, to date, not yet implemented. The AL states that PG&E is now in the process of working with its vendor to modify the CorDaptix late payment fee module to PG&E's business rules.

The AL explains that although the module has already undergone testing and use by PG&E's vendor, the module will still need to be installation-tested on PG&E's system immediately prior to implementation, taking into consideration whatever rate changes or system changes have been made up to the point of implementation. Furthermore, PG&E will conduct a post-implementation review to ensure that the late payment fee is functioning properly and PG&E will report any unexpected findings to the Energy Division.