O R D E R
IT IS ORDERED that:
1. Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E) shall file a compliance advice letter within 14 days of the effective date of this decision that makes the necessary changes to the preliminary statements to reflect the implementation of this decision.
2. For post-test year ratemaking beginning in 2005, SoCalGas and SDG&E are authorized to file for rate adjustments using the mechanisms as described in the Settlement Agreement and as modified in this decision.
3. In the next proceeding SoCalGas and SDG&E shall either propose an X factor adjusted to reflect good to excellent performance (by excluding poor performance from the request) or propose an appropriate stretch factor to offset mediocrity in the study group.
4. The adopted Sharing band, and rates of sharing, for SoCalGas and SDG&E are:
Authorized Sharing | |||
Bands |
Basis Points Above/Below Authorized Rate of Return |
Company |
Customer |
Inner |
0-50 |
100% |
0% |
1 |
51-100 |
25% |
75% |
2 |
101-125 |
35% |
65% |
3 |
126-150 |
45% |
55% |
4 |
151-175 |
55% |
45% |
5 |
176-200 |
65% |
35% |
6 |
201-300 |
75% |
25% |
Outer |
More than 300 |
Suspend |
|
5. The otherwise adopted sharing mechanism does not apply for SoCalGas and SDG&E to 2004.
6. SDG&E is authorized to have three Electric Incentives: System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index (SAIFI), and Momentary Average Interruption Frequency Index (MAIFI). These include deadbands, livebands, and incremental rewards or penalties as shown:
|
Adopted Reliability Incentives | |||||
|
SAIDI |
SAIFI |
MAIFI |
|
| |
|
5 Year Base |
64 |
0.68 |
0.77 |
| |
|
Stretch Factor |
1 |
0.01 |
0.01 |
| |
|
Target |
63 |
0.67 |
0.76 |
| |
|
Deadband |
+/-2 |
+/-0.02 |
+/-0.02 |
| |
|
Liveband |
+/-15 |
+/- 0.15 |
+/- 0.30 |
| |
|
Reward/Penalty |
$250,000 |
$250,000 |
$50,000 |
| |
|
Range - Millions |
$3.75 |
$3.75 |
$1.00 |
|
|
7. SDG&E's Service Guarantee mechanism is terminated.
8. SoCalGas and SDG&E are each authorized to have four Service Quality incentives as shown:
|
Adopted Indicators SoCalGas and SDG&E |
|
|
Maximum Reward/Penalty Each Company |
Phone/Office Contact Satisfaction |
83.4% |
+/- 1.0% |
+/- $500,000 |
Field Visit Satisfaction |
94.1% |
+/- 1.0% |
+/- $500,000 |
Field Service Orders Appointments Provided/Percent Made |
Varies |
35-40% provided 99% Met |
+/- $600,000 |
Call Center Responsiveness |
80% within 60 Seconds |
+/- 2% |
+/- $1,500,000 |
9. SoCalGas and SDG&E shall include a detailed report in their next rate proceedings on the monitor-only service quality indicators as shown:
Adopted Indicators |
SoCalGas |
SDG&E |
Level of busy signal |
_ |
_ |
Estimated meter reads |
_ |
_ |
Leak response time |
_ |
_ |
Missed appointments |
_ |
_ |
Problem resolved on first visit |
_ |
_ |
Elapsed time |
_ |
_ |
Percentage of abandoned calls |
_ |
_ |
Shortest time to CSR |
_ |
_ |
Gas emergency response time |
_ |
_ |
Electric emergency response time |
N/A |
_ |
Complaints |
_ |
_ |
10. This proceeding is closed.
This order is effective today.
Dated ____________________, at San Francisco, California.
