V. Comments on Draft Decision
Rule 77.7 of the Commission's Rules of Practice and Procedure provides for public review and comment on draft decisions subject to Pub. Util. Code § 311(g). Rule 77.7(f) allows the Commission to reduce the period for public review and comment for draft decisions and alternates under various circumstances. Rule 77.7(f)(9) specifically provides for an exemption:
For a decision where the Commission determines, on the motion of a party or on its own motion, that public necessity requires reduction or waiver of the 30-day period for public review and comment. For purposes of this subsection, "public necessity" refers to circumstances in which the public interest of the Commission adopting a decision before expiration of the 30-day review and comment period clearly outweighs the public interest in having the full 30-day period for review and comment. "Public necessity" includes, without limitation, circumstances where failure to adopt a decision before expiration of the 30-day review and comment period would place the Commission or a Commission regulatee in violation of applicable law, or where such failure would cause significant harm to public health or welfare. When acting pursuant to this subsection, the Commission will provide such reduced period for public review and comment as is consistent with the public necessity requiring reduction or waiver.
Pursuant to Rule 77.7(f)(9), we determine that public necessity requires a reduced period for public review and comment. This comment period provides notice and opportunity to be heard regarding the modification of these decisions.
1. The CARE discount for low-income electric and gas customers is currently 15%.
2. Electric and gas rates are currently high, and may increase.
3. CARE discounts improve low-income customers' ability to pay their utility bills.
4. Electric customers of PG&E and SCE are eligible for CARE discounts at an income level equal to 175% of the federal poverty guidelines, as a result of Decision 01-03-082.
5. Gas customers of PG&E and SoCalGas, and gas and electric customers of SDG&E, are eligible for CARE discounts at an income level equal to 150% of the federal poverty guidelines.
6. Gas and electric customers of all jurisdictional utilities are eligible for LIEE programs at an income level equal to 150% of the federal poverty guidelines, except for households headed by a senior or disabled person, for which the eligibility level is set at 200% of the federal poverty guidelines.
7. CARE customers of PG&E and SCE are insulated from electric procurement surcharges.
8. CARE customers have not been insulated against gas rate increases.
9. Changing the eligibility level for CARE discounts from 150% to 175% of federal poverty guidelines for the electric and gas customers of SDG&E and the gas customers of PG&E and SoCalGas would increase the number of customers eligible for CARE discounts.
10. Changing the eligibility level for CARE discounts from 150% to 175% of federal poverty guidelines for the electric and gas customers of SDG&E and the gas customers of PG&E and SoCalGas would raise costs to customers not participating in the CARE program.
11. Changing the general eligibility level for participation in the LIEE program from 150% to 175% of federal poverty guidelines would increase the number of customers eligible for the LIEE program. On the one hand, this change would increase the costs of the program. However, to the extent that increased participation in the LIEE program results in decreased energy consumption and reduction in system costs, all ratepayers also benefit from increased participation, including customers not participating in the LIEE program.
12. At least some of the increased LIEE program costs associated with an increase in the income-eligibility threshold will be defrayed by the use of carryover funding and new LIEE funds authorized by the Legislature.
13. Increasing the CARE discount improves the affordability of energy bills to low-income customers, but also increases program costs to non-participating ratepayers, to the extent that these increases are recovered through the public purpose surcharge.
14. A portion of the rate impacts to non-CARE ratepayers from increasing the income eligibility threshold or the discount will be defrayed by the provisions of Senate Bill 5 from the First Extraordinary Session, which augments funding for the CARE program by a one-time amount of $100 million.
15. Eliminating inconsistencies in CARE income-eligibility requirements between electric and gas customers would improve customer understanding and reduce administrative cost and complexity.
16. Eliminating inconsistencies in CARE income-eligibility requirements between adjacent utilities would improve customer understanding and eliminate perceptions of inequity.
17. Raising the income-eligibility threshold for LIEE programs to be consistent with the level adopted in D.01-03-082 for CARE programs would improve customer understanding of the two complementary programs.
18. The current LIEE eligibility requirement of 200% of federal poverty levels for households headed by a senior or disabled person, while not an eligibility criteria for the CARE program, is generally well understood.
19. Eligibility based upon state median income may not be equivalent to eligibility based upon federal poverty guidelines, and is also beyond the scope of this decision. Issues raised in comments relating to reporting requirements and retroactive application of the increased CARE discount for gas customers, among others, are beyond the scope of this decision.
20. The issue of automatic enrollment in CARE and LIEE based upon a customer's participation in other assistance programs was addressed in D.01-05-033.
1. Raising the CARE discount for both gas and electric utilities from 15% to 20% represents a reasonable balance between the burdens to be borne by CARE ratepayers and non-CARE ratepayers, and should be adopted.
2. It is reasonable to make CARE eligibility criteria across electric and gas utilities consistent at 175% of the federal poverty level.
3. It is reasonable to make LIEE eligibility criteria generally consistent with CARE eligibility at 175% of the federal poverty level.
4. It is reasonable to keep LIEE eligibility at 200% of the federal poverty level for households headed by a senior or disabled person.
5. Future program planning cycles in Rulemaking 98-07-037 are the appropriate procedural forums for considering any further increases in the income eligibility thresholds for CARE and LIEE. This and other proposals for program modifications should be put on hold at this time in order to focus limited resources on the rapid deployment strategy adopted in D.01-05-033.
6. In order to incorporate today's modifications to income eligibility requirements and CARE discount levels as expeditiously as possible, this order should be effective today. The utilities should reflect the increase in the CARE discount in the next billing cycle for all currently enrolled CARE customers.
7. The assigned Commissioner and ALJ should hold a PHC as soon as practicable to begin considering the rate design implications of the actions we take today.
IT IS ORDERED that:
1. Effective immediately, the income eligibility requirements for the California Alternate Rates For Energy (CARE) and Low-Income Energy Efficiency (LIEE) programs of Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company and Southern California Edison Company, collectively referred to as "the utilities" are as follows for both gas and electric customers:
Household Size |
CARE/LIEE at 175% of |
LIEE: 60+ Years and |
1 - 2 |
$22,000 |
$25,200 |
3 |
$25,900 |
$29,600 |
4 |
$31,100 |
$35,600 |
Each Additional |
$5,200 |
$6,000 |
2. Effective immediately, the discount under the utilities' CARE program is increased from 15% to 20%.
3. The utilities shall incorporate today's adopted changes into program outreach materials without delay and reflect the increase in the CARE discount in the next billing cycle for all currently-enrolled CARE customers.
This Order is effective today.
Dated , at San Francisco, California.
