Joint Recommendations

SDG&E proposes to change various existing rate designs. For the residential classes, SDG&E proposes to: (1) reduce the ratio between distribution nonbaseline and baseline energy rates; (2) base the design of energy rates for residential time-of-use customers on the weighted average of Schedule DR distribution nonbaseline and baseline rates, rather than on the Schedule DR baseline energy rates, as is currently the case; and (3) streamline the method by which SDG&E passes through the 15% CARE program discount.

A prehearing conference was held January 5, 2000, at which time the parties represented that settlement negotiations were in progress, but that it would be prudent to set a hearing date. April 3, 2000 was set for hearing. On April 3, the parties represented that they were close to settlement and requested postponement of the hearing to April 4. On April 4, the parties announced that they had settled all issues and presented four Joint Recommendations (JRs). There were no objections to any of the JRs. The matter was submitted on June 15, 2000, after receipt of briefs.

The JRs were submitted by SDG&E, the Office of Ratepayer Advocates (ORA), Utility Consumers' Action Network (UCAN), Federal Executive Agencies (FEA), Western Manufactured Housing Communities Association (WMA), the California City-County Street Light Association (CAL-SLA), and the California Farm Bureau Federation. The JRs propose a resolution to each and every disputed issue in this case. The JRs were made a part of the record during the April 4, 2000 hearing. The recommendations contained in the JRs are based upon the parties' prepared testimony and subsequent discovery. No active party contests any JR.

SDG&E and the other parties to the JRs believe these recommendations are reasonable in that they are supported by record evidence. Moreover, the recommendations are consistent with the law and serve the public interest by presenting a comprehensive set of proposals from a diverse group of parties representing a wide spectrum of interests - a utility, customer groups, and consumer advocates. Accordingly, SDG&E urges the Commission to adopt the JRs in their entirety and without change. For the reasons stated by SDG&E and the parties, we agree that the JRs are reasonable and in the public interest.

SDG&E asks that the decision in this proceeding be made effective November 1, 2000, because of the numerous changes its billing and information technology (IT) programmers must make in response to other Commission decisions. These changes will be concurrent with those required by D.00-06-034 in the Post-Transition Ratemaking (PTR) proceeding (A.99-01-019/ A.99-02-029). This decision ordered SDG&E to refund the remaining proceeds from the company's rate reduction bonds to over one million residential and small commercial customers. SDG&E's billing and IT programming personnel will be heavily involved in this process.

Two other Commission proceedings may require further changes to SDG&E's billing system. The pending review of revenue cycle services (RCS) (A.99-03-019 et al.) will not only determine the appropriate method for costing RCS but may also address RCS pricing. SDG&E's billing system may need substantial modification. Finally, a decision in the Gas Industry Restructuring Investigation (I.99-07-003) may change how utilities bill customers for gas services, requiring additional billing and IT programming changes to reflect consolidated billing, new credits and fees, and the development of a computer system to track direct access customers.

SDG&E requests that most of the proposed rate changes described in Exhibit 24 become effective on November 1, 2000 to provide time needed to make the numerous system modifications to its billing and information and IT. SDG&E also asked that seasonal rates described in Exhibit 26 not become effective for an additional 120 days (or on March 1, 2001).

The following exhibits are made attachments to this decision:

Exhibit 10: SDG&E and CAL-SLA JR. (Appendix A.)

Exhibit 11: SDG&E and WMA JR regarding unit space discounts. (Appendix B.)

Exhibit 22: The SDG&E, ORA, UCAN, the FEA, WMA, CAL-SLA and the California Farm Bureau Federation, which proposes resolutions to the vast majority of issues in this case. (Appendix C.)

Exhibit 22B: Revenue Allocation Table in support of Exhibit 22. (Appendix D.)

Exhibit 23: SDG&E, UCAN, and WMA JR regarding Tariff Schedule DT rebates and disputes between master meter and tenants. (Appendix E.)


Exhibit 24: The rate tables showing rates SDG&E proposes to become effective November 1, 2000. (Appendix F.)¹

Exhibit 26: The rate tables showing seasonal rates that go into effect 120 days after November 1, 2000 (or March 1, 2001). (Appendix G.)

Findings of Fact

1. The recommendations in the JRs are made by parties who represent a broad spectrum of ratepayer interests.

2. The JRs were entered into after all testimony was reviewed by parties on the issues addressed in the JRs.

3. The recommendations in the JRs are the result of significant negotiation and compromise of the parties thereto on issues significantly affecting their constituents.

4. The recommendations in the JRs, resulting from negotiation and compromise, are recommended as an integrated whole.

5. Each recommendation in the JRs is reasonable and in the public interest.

6. The JRs are procedurally correct, are in conformity with Commission policy, and do not impede competition.

7. Moderating rate changes by capping increases and decreases to individual customer classes at plus or minus 3% is reasonable and should be adopted.

8. Allocating revenues to each class based on the average of four different allocation calculations as shown in the Revenue Allocation Table (Exhibit 22B) is reasonable and should be adopted.

9. The individual agreements on marginal costs incorporated in the Joint Recommendation (Exhibit 22) are reasonable and should be adopted.

10. Keeping Schedule A6-TOU and Schedule AL-TOU separate for allocation purposes and then (after the revenue allocation step) combining these rate schedules for the purpose of rate design is reasonable and should be adopted.

11. Allocating generation related franchise fees using energy as an allocator is reasonable and should be adopted.

12. Deferring the allocation of Nuclear Decommissioning costs to the Post Transition Ratemaking Phase 2 proceeding (A.99-01-019, A.99-02-029) is reasonable and should be adopted.

13. The proposal to implement residential nonbaseline distribution rates that vary by season beginning 120 days after the effective date of this decision is reasonable and should be adopted.

14. Introducing seasonal distribution rates for Schedule A beginning 120 days after the effective date of this decision is reasonable and should be adopted.

15. Deferring the residential customer charge issue in this proceeding and to require SDG&E to make a filing concerning a residential customer charge in an application not later than December 31, 2001 is reasonable and should be adopted.

16. Adopting the Unit Space Discount recommended in SDG&E's and WMA's Joint Recommendation (Exhibit 11) is reasonable and should be adopted.

17. Adopting the SDG&E, WMA and UCAN Joint Recommendation (Exhibit 23) is reasonable and should be adopted.

18. Closing Rate Schedules AO-TOU, PA-TOU, AV-2 and RTP-2 to new customers on the effective date of this decision is reasonable and should be adopted.

19. Canceling Schedule AO-TOU one year after the effective date of this decision is reasonable and should be adopted.

20. Closing Schedule AV-1 to new customers on the effective date of this decision except for customers installing Distributed Generation is reasonable and should be adopted.

21. Allowing customers that are on Schedules AV-2 and RTP-2 to transfer to Schedule AV-1 as of the effective date of this decision is reasonable and should be adopted.

22. Requiring all customers on Rate Schedules PA-TOU, AV-2 and RTP-2 to take service on another rate schedule 12 months after the effective date of this decision is reasonable and should be adopted.

23. Canceling Rate Schedules PA-TOU, AV-2 and RTP 18 months after the effective date of this decision is reasonable and should be adopted.

24. Canceling Rate Schedules AV-3 and I-3 on the effective date of this decision is reasonable and should be adopted.

25. Changing the limitation on the number of new customers permitted on A-TOU from 1,500 per year to 1,000 per year and to list Schedule A-TOU as a regular Rate Schedule in SDG&E's Table of Contents is reasonable and should be adopted.

26. Establishing the manner in which SDG&E is to communicate with customers being cancelled as a result of this decision is reasonable and should be adopted.

27. Increasing the level of service from the current 10 megawatts (MW) to 12 MW before a higher Basic Service Fee is applied for Primary Substation level rates is reasonable and should be adopted.

28. Splitting the Distance Adjustment Fee for Primary Substation level rates into separate fees that are differentiated between overhead and underground areas is reasonable and should be adopted.

29. Changing the point of measurement for determining the Distance Adjustment Fee (for Primary Substation level rates) to originate from the nearest transmission level line (69kV kilowatts or higher) instead of the nearest substation is reasonable and should be adopted.

30. Changing the Distance Adjustment Fee (for Primary Substation level rates) from $2.80/foot/month to $1.09/foot/month for overhead service and to retain the $2.80/foot/month for underground service is reasonable and should be adopted.

31. Utilizing the ORA approach to Basic Service Fees (for Primary Substation level rates) resulting in values of $12,373/month for customers with demand equal to or less than 12 MW and $19,482/month for customers with demand over 12 MW is reasonable and should be adopted.

32. Introducing a new sub-class of customers that are secondary customers that are located near a 69 kV line, or higher, is reasonable and should be adopted.

33. Permitting customers on a single premise with multiple meters to receive a combined bill for a fee is reasonable and should be adopted.

34. Adopting the CAL-SLA and SDG&E Joint Recommendation (Exhibit 10) that would result in no change to any street light rates as a result of this proceeding is reasonable and should be adopted.

35. Removing any reference to a termination date in SDG&E's Rule 4.D., and adding six (6) new conditions to Rule 4.D. as set forth in the Joint Recommendation is reasonable and should be adopted.

36. The proposed rate schedules that correlate to the Joint Recommendation (Exhibit 22) as set forth in Late-Filed Exhibit 24 are reasonable and should be adopted.

37. The revised tariff language that correlates to the Joint Recommendation (Exhibit 22) as set forth in Late-Filed Exhibit 25 are reasonable and should be adopted effective 15 days after the effective date of this decision.

38. The proposed rate schedules and revised tariff language that correlate to the JRs for delayed implementation as set forth in Late-Filed Exhibit 26 are reasonable and should be adopted effective 120 days after the effective date of this decision.

39. SDG&E's uncontested rate design proposals (Exhibits 4 and 5) are reasonable and should be adopted. These uncontested proposals include, but are not limited to the following:

a. to pass CARE discounts under Schedules DR-LI, DS, DT, DT-RV and D--SMF through to eligible CARE customers using a line-item reduction to the total bill amount;


b. to discontinue On-Peak and Average Rate Limiters under Schedules AL-TOU, AO-TOU, NJ, AY-TOU, and A6-TOU;


c. to change the Schedule DR Applicability section by adding the text: "to any approved combination of residential and nonresidential service on the same meter";


d. to change the Schedule A Applicability section by adding the text: "otherwise eligible for service under Schedule DR. This schedule is applicable for single-phase service for separately metered residential common use areas, provided that such common use facilities serve residential customers residing in detached homes located on separate premises."


e. to change the Schedule PA Applicability section by adding the text: "This schedule is available to agricultural customers who are classified with Standard Industrial Classification (SIC)/Codes 01, 02, 4941, 4952, or 4971. When demand metering is not available, consumption cannot equal or exceed 300,000 kWh per month for three consecutive months."


f. to change the Rule 19B.3 by revising the text to include: "under Schedule A for non-residential vessels such as non-live-aboard recreation and/or fishing boats, and Schedules DR or DR-LI for authorized live-aboard vessels."


g. to change the Schedule A6-TOU Time Period Description Section by including the text: "When the billing period has an equal number of days within each month, the month with the highest System Peak will prevail."


h. to change the name of Schedule AL-TOU to "General Service - Time Metered."


i. to change to the name of Schedule A6-TOU to "General Service - Time Metered Optional."


j. to change the name of Schedule AY-TOU to "General Service - Time Metered Optional."


k. to insert a new Special Condition in Schedule AL-TOU for Temporary Service to state: "When service is turned on for cleaning and/or showing of an unoccupied premise above 20 kW facility, the minimal usage shall be billed under Schedule A, until a new tenant begins service."


l. to change rate component terminology in Schedule A6-TOU from "Maximum On-Peak" to Maximum Demand at Time of System Peak."

Conclusions of Law

1. The Joint Resolutions are reasonable and are approved.

2. The rates, allocations, and charges set forth in Appendixes A through G are reasonable and are adopted.

3. SDG&E should establish a memorandum account as set forth in the order.

ORDER

IT IS ORDERED that:

1. San Diego Gas & Electric Company (SDG&E) shall file, no later than 30 days after the effective date of this order, revised tariff schedules which implement the adopted changes shown in Appendixes A through G. The revised tariff schedules shall comply with General Order (GO) 96-A and shall apply to service rendered on or after their effective date.

2. The rate tables in Appendix F shall become effective November 1, 2000.

3. The rate tables in Appendix G shall become effective March 1, 2001.

4. SDG&E shall establish a memorandum account to track all revenues collected from billing the Distribution Energy Rates for Primary and Secondary Level Service during the Semi-Peak and Off-Peak periods on Schedules A-V1 and A-V2. In SDG&E's next rate proceeding those revenues shall be returned to all Large Commercial and Industrial customers.

5. This application is closed.

This order is effective today.

Dated , at San Francisco, California.

See formal file for Appendix(ces) or Attachment(s).