13. SoCalGas Customer Service Incentives

SoCalGas Customer Service Incentives37

DRA notes correctly (Opening Brief, p. 531) that the prior proceeding found the incentives for SDG&E and SoCalGas need not be different because of the sizes of the companies.38 SoCalGas' proposed dollar reward incentive increments are approximately three-times the size proposed for SDG&E. We reject this out of hand noting that SoCalGas was able to achieve improvements and earn incentives based on the same dollar reward rates for incremental improvement as applied to SDG&E. The essential difference that we do recognize is the differing beginning values, and varied historical performances, which result in different targets for SDG&E and SoCalGas.

We again find DRA's three-year average is more appropriate than a five-year average, which is diluted by earlier years' lower performances. Consistent with SDG&E, we will adopt a simple, single target Phone/office Contact satisfaction. Also, as noted, we adopt balanced incremental payments for rewards and penalties. Also, as noted, we adopt balanced incremental payments for rewards and penalties.

An annual improvement adjustment for each of these incentives is useful to ensure continued improvement and to ensure that rewards or penalties are not assessed for several years over a static target. Consistent with the annual improvement factors discussed for SDG&E, above, we will adjust SoCalGas' targets by one-half of the dead band.

37 DRA Opening Brief, p. 532.

38 D.05-03-023, mimeo., p. 53: Customer satisfaction ... ought to be more closely aligned considering the companies have essentially one management structure. ... we already adopt just and reasonable rates that are sufficient to fund safe and reliable service; therefore any reward or penalty is solely an incentive to improve (or not backslide).

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