6. Changes to Energy Industry Rules

The Energy Industry Rules are drastically shortened, compared to the version set forth in the order instituting this rulemaking. Even at that time, there were many areas where the Energy Industry Rules overlapped the General Rules. With the clarification and expanded coverage of the General Rules proposed in today's order, we saw that all of the Industry Rules needed severe pruning. The Energy Industry Rules set forth in Appendix B are less than half the length of the prior version, and we have also revised their format and structure to fit better with both the General Rules and the other Industry Rules.

The tier structure of the Energy Industry Rules has been simplified. Conceptually, Tiers 1, 2, and 3 for energy and telecommunications are now identical. Advice letters for oil pipeline rate changes will be handled under Tier 1 because these advice letters may be effective pending disposition, but an additional Energy Industry Rule is proposed to implement other aspects of the statutorily-mandated procedures for these changes.

The prior version of the Energy Industry Rules did not specifically address advice letters proposing new products or services. In their comments, several energy utilities jointly suggested that "Pilot Programs for Discretionary Products and Services" could be initiated simply by submission of notice to the Commission through an information-only filing (General Rule 6). We reject the suggestion. Our recent experience shows that proposed new products or services commonly raise controversial and difficult issues. An information-only filing is completely unsuitable for dealing with such issues, since by definition (General Rule 3.9) an information-only filing is only a report; it is not subject to protest, and does not receive a disposition. Even a pilot program should not go forward on such a thin basis. For new energy products and services to be offered under tariff, we find that under current conditions only Tier 3 provides an appropriate level of regulatory scrutiny. Thus, an advice letter proposing a new tariffed energy offering must be submitted for review under Tier 3, and may not be approved or become effective except by Commission adoption of a resolution approving the advice letter.²⁸

As expressly authorized in some of the General Rules, the Industry Rules may set other or additional requirements regarding certain subjects addressed in those General Rules. Energy Industry Rules 6 to 6.4 have tariff requirements that go beyond the General Rule provisions on Internet publication, description of service area, and tariff contents. The first two of these requirements are additions to the Energy Industry Rules as initially proposed.

Regarding Internet publication, Energy Industry Rule 6.1 requires the utility to publish both the text and the current status of all tariff sheets, beginning with the date when the utility had to comply with the Internet publication requirement. Essentially, under this rule, the utility's Internet site will contain a comprehensive, searchable tariff file that will include the tariff sheet corresponding to every used tariff sheet number, starting with all of the tariff sheets in effect or pending review as of the date the utility had to begin Internet publication. The published tariffs will enable any person to easily research the evolution of a particular tariff provision through successive revisions, and will resolve questions about the status of a particular tariff sheet since the published tariffs will indicate whether the sheet is in effect, pending, withdrawn, rejected, or no longer in effect (i.e., canceled).

Regarding description of service area, Energy Industry Rule 6.2 requires that the utility include, among other descriptors, the zip codes wholly or partially within its service area. In the Energy Division's experience, this zip code information has been very useful to staff and others, and should be required of all energy utilities.