Discussion

No one has objected to the proposed change by SDG&E, and at least some ESPs, through the comments of ARM, support SDG&E's petition.

We agree with SDG&E that the proposed change will provide ESPs with an incentive to offer direct access using UDC consolidated billing. The proposed change will allow ESPs to receive a pro rata share of the monies collected, instead of the current procedure, where a partial payment results in a pro rata allocation to the TTA and UDC charges for which delinquency may result in disconnection, and then any remaining balance is prorated between the ESP and other UDC charges.²

The proposed modification will provide the ESPs with assurance that under UDC consolidated billing, the ESP will receive some monies in the event the customer makes a partial payment. However, if the customer notifies the UDC that it is withholding payment of ESP charges due to a billing dispute with the ESP, then the ESP will not receive any monies from the customer because the UDC may modify the allocation methodology so that the partial payment is applied to all charges other than the ESP service.

SDG&E's petition was filed more than one year after the effective date of D.97-10-087 and D.98-02-030. SDG&E has justified in its petition why it did not file its petition to modify sooner.

We note that SDG&E's proposed modification makes several specific references to SDG&E. Since Appendix A of D.97-10-087 was intended to apply to all of the UDCs, and not just solely to SDG&E, the proposed modification should be changed so that the specific references to SDG&E be replaced with the "UDC" abbreviation. This is necessary so that the tariffs of Pacific Gas and Electric Company and SCE are not obligated to include references to SDG&E.

SDG&E's petition to modify should be granted. Section P.(1)(b) of Appendix A of D.97-10-087 and Ordering Paragraph 2 of D.98-02-030 should be modified to reflect the following language:

"Partial payments by customers will be allocated on a pro rata basis to the TTA, UDC charges, and ESP charges in the same proportion as the amount of TTA charges, UDC charges, and ESP charges bear to the aggregate amount of charges billed the customer. Should a customer notify the UDC that he or she is withholding payment of ESP charges due to a billing dispute with their ESP, service will not be disconnected if the partial payment will cover the amount of UDC charges for which delinquency may result in disconnection. In the event of such a customer dispute with an ESP, the UDC may modify the aforementioned allocation methodology and allocate the partial payment to all charges other than the ESP charges."