Comments on Alternate Draft Decision

Rule 77.7 of the Commission's Rules of Practice and Procedure provides for public review and comment for draft decisions and alternates subject to Pub. Util. Code § 311(g). Rule 77.7(f) allows the Commission to reduce the period for public review and comment for alternates under various circumstances.⁵ Rule 77.7(f)(9) specifically provides for an exemption:

For a decision where the Commission determines, on the motion of a party or on its own motion, that public necessity requires reduction or waiver of the 30-day period for public review and comment. For purposes of this subsection, "public necessity" refers to circumstances in which the public interest of the Commission adopting a decision before expiration of the 30-day review and comment period clearly outweighs the public interest in having the full 30-day period for review and comment. "Public necessity" includes, without limitation, circumstances where failure to adopt a decision before expiration of the 30-day review and comment period would place the Commission or a Commission regulatee in violation of applicable law, or where such failure would cause significant harm to public health or welfare. When acting pursuant to this subsection, the Commission will provide such reduced period for public review and comment as is consistent with the public necessity requiring reduction or waiver.

Pursuant to Rule 77.7(f)(9), we determine that public necessity requires a reduced period for public review and comment. This comment period provides notice and opportunity to be heard regarding the modification of these decisions.

Findings of Fact

1. Ratepayers in SDG&E's service territory should be shielded from the unreasonably high wholesale electric costs for an interim period.

2. While the Commission did not initiate electric restructuring in order to shield consumers from the market, we must consider the impact of high energy prices on consumers.

3. We recognize that, in a workably competitive market, masking prices results in incomplete and inefficient market structure and system demand, and compromises system reliability. It is reasonable to implement an interim rate stabilization plan to manage the bills of residential and commercial customers because wholesale electric markets are not workably competitive at this time.

Conclusions of Law

1. It is reasonable to modify D.00-06-034 to require the implementation of a rate stabilization program for SDG&E's residential and small commercial customers for an interim period.

2. Pursuant to Rule 77.7(f)(9), we determine that public necessity requires a reduced period for public review and comment. The comment period provides notice and opportunity to be heard.

3. This order should be effective today, so that these requirements may be implemented expeditiously.

ORDER

IT IS ORDERED that:

1. Decision (D.) 00-08-021 is modified to order San Diego Gas & Electric Company (SDG&E) to implement a rate stabilization plan described herein for its residential and small commercial customers.

2. D.00-08-021 is further modified to order SDG&E to file an advice letter by September 15 proposing a plan to transition all customers to an "opt out" levelized payment plan as described herein.

3. The following findings of fact in Decision (D.) 00-08-021 shall be modified:

1. UCAN's motion to re-institute the rate freeze for SDG&E for the months of August, September, and October could lead to unintended consequences and higher winter bills; however, we recognize that immediate rate relief is required now.

2. UCAN's proposal should not be examined and evaluated in the context of the OII order we vote upon today.

4. D.00-08-021 is modified to add the following two findings of fact:

9. A rate stabilization plan can offer stable bills to residential and commercial customers during this period of price volatility.

10. We will hold evidentiary hearings in the context of the OII we order today on recovery of any revenue shortfall that may arise from a rate stabilization plan, but will ensure that SDG&E is made whole.

5. D.00-06-034 is modified to require San Diego Gas & Electric Company (SDG&E) to cap rates for its residential, small commercial, and lighting customers on an interim basis. The following findings of fact shall be modified and now read as follows:

21. We reject PG&E's proposal that it is necessary to cap rates in order to protect residential and small commercial customers from potential price volatility and corresponding rate increases, however, it is reasonable to adopt an interim rate stabilization plan for SDG&E.

22. We did not initiate electric restructuring in order to shield consumers from the market. We agree with Weil and TURN that customers need accurate price signals in order to react and protect themselves against periodic price spikes, however, a rate stabilization plan is required to provide immediate rate relief for ratepayers in SDG&E's service territory.

23. In a workably competitive market, we recognize that masking prices results in incomplete and inefficient market structure and system demand, and compromises system reliability. Only through accurate price signals can customers understand how their usage impacts the system and make economically efficient choices; however, it is reasonable to implement a rate stabilization plan on an interim basis for SDG&E.

6. Within five days of the effective date of this decision, SDG&E shall file an advice letter to implement the interim rate stabilization plan in compliance with this decision and to book revenue shortfalls into the TCBA for future recovery of the net shortfall.

7. By September 15, 2000, SDG&E shall file an advice letter to implement a plan for a transition of all customers to a Levelized Payment Plan as described herein.

This order is effective today.

Dated ______________________, at San Francisco, California.