ALJ/MLC/sid DRAFT Agenda ID #5486
Ratesetting
Decision PROPOSED DECISION OF ALJ COOKE (Mailed 3/23/2006)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company for Authority to Implement Default CPP Rate Options For Large Customers. |
Application 05-01-016 (Filed January 20, 2005) |
Application of San Diego Gas & Electric Company (U902-E) for Adoption of a 2005 Default Critical Peak Pricing Structure for Commercial and Industrial Customers with Peak Demands Exceeding 300 kW. |
Application 05-01-017 (Filed January 20, 2005) |
Southern California Edison Company's |
Application 05-01-018 (Filed January 20, 2005) |
(See Appendix A for a list of appearances.)
DECISION ADOPTING DEFAULT CRITICAL PEAK PRICING FOR 2007
1. Summary
This decision declines to adopt the proposed settlements presented by the parties but instead identifies our preferred approach to critical peak pricing tariffs that allows for implementation of the settlement tariffs as voluntary rates, effective in Summer 2006, with conversion of all eligible customers to the critical peak pricing settlement tariffs, effective January 1, 2007. The preferred approach provides for bill protection for the first 12 months a customer is on the critical peak pricing tariff, at which point the customer can chose to convert to a standard time of use (TOU) rate. The preferred approach requires the utilities to provide all eligible customers with a bill analysis at the end of the 2006 critical peak period that reflects the customer's actual usage during Summer 2006 under the adopted critical peak pricing rates (as compared to the otherwise applicable TOU rate), and the bill impacts if the customer were to reduce its critical peak period usage by 5, 10, and 20%. The Settling Parties have 20 days from the date of the proposed decision to notify the Commission whether they accept the modified terms. In the event that the Settling Parties do not accept the preferred terms, we will close the applications without adopting critical peak pricing rates, and direct the utilities to incorporate default critical peak pricing tariffs for all eligible customers 200 kilowatts (kW) and above into their next comprehensive rate design proceeding.
