Position Of SDG&E

SDG&E states that the proposed modification will change the existing two-tiered system of allocating payments when UDC consolidated billing is used, to a one-tiered system. The one-tiered system will allow ESPs to recover charges owed to them on a pro rata basis with all SDG&E charges and the TTA.

SDG&E states that the current two-tiered system results in a priority system whereby the collection of ESP charges is placed in a subordinate position to the collection of TTA and UDC charges, for which delinquency may result in disconnection. SDG&E asserts that the existing language creates a situation where a customer of an ESP that fails to pay the electric commodity charge can avoid disconnection, while a bundled customer of the UDC will be disconnected for non-payment of the electric commodity charge. SDG&E contends that the only impact from the requested change is the way in which partial customer payments under consolidated UDC billing will be allocated among the charges for which the billing was rendered. Furthermore, the proposed change will more closely align customer payment requirements under consolidated billing with similar requirements for UDC bundled billing.

If the proposed change is approved, SDG&E states that it will not disconnect customer services for unpaid ESP charges, but will only disconnect customers for non-payment of UDC charges. That is, if a customer notifies SDG&E that he or she is withholding payment of ESP charges due to a billing dispute with their ESP, SDG&E will not disconnect the customer's service if the UDC charges have been paid.

SDG&E asserts that the current two-tiered system is an impediment to the ESP's provisioning of effective and appropriate electric commodity purchase programs and services. According to the declaration attached to SDG&E's petition, the two-tiered approach is detrimental to the ESP's ability to recover charges owed to it when consolidated UDC billing is done. SDG&E contends that the proposed change is minor in nature, and that it is necessary to better facilitate and encourage ESPs to market to SDG&E's residential and small commercial customers. The proposed change will help lower the operational costs of the ESPs, which will help eliminate a barrier to providing services to small customers.

SDG&E also states that the proposed change is consistent with SDG&E's filing of Advice Letter 1242-E, the "Emergency Proposal to Implement, On an Experimental Basis, a Customer Choice Facilitation Program." The purpose of the Customer Choice Facilitation Program is to facilitate interaction between ESPs and customers who desire to use their energy procurement alternatives.

SDG&E also states that the proposed change is consistent with D.97-09-054, D.97-09-055, D.97-09-056, and D.97-09-057, the four financing order decisions, and with all pertinent bond financing transaction documents.

In response to Rule 47(d) of the Commission's Rules of Practice and Procedure, SDG&E states that it could not have filed this petition for modification within one year from the issuance of D.98-02-030 because it did not have the information and an understanding of the ESPs' ability to penetrate various market segments, and the hurdles which ESPs face to provide products and services to small customers effectively.