J. Assignment of Proceeding
Loretta Lynch is the Assigned Commissioner and Robert Barnett is the assigned Administrative Law Judge in this proceeding.
1. The preferred method for estimating marginal customer cost is the New Customer Only method.
2. ORA's revenue allocation methodology in which the increase to Sierra's revenue requirement is allocated equally to all customer classes except for rate schedules A-2 and A-3 is fair and reasonable to all customer classes. Table 1 is adopted.
3. ORA's recommendation for the A-2 and A-3 schedules of a zero rate increase and capping present rate revenues for these customer classes is a reasonable compromise between cost-based rates and mitigation of rate impacts to residential customers.
4. ORA's composite based calculation for determining the tier 1 and tier 2 residential rate differential is consistent with past Commission decisions and Pub. Util. Code § 739. It is adopted.
5. The increase customer charge to Sierra's commercial class customers should be A-1, $9; A-2, $100; A-3, $437.50. They are adopted.
6. There is no evidence that demonstrates that the ski areas will be harmed under ORA's revenue allocation proposal.
7. It is not appropriate to exclude the interim rate increase when determining the reasonableness of increasing or decreasing rates to customer classes.
8. The settlement agreement filed June 6, 2003 is supported by the record and is reasonable. It is adopted.
9. Sierra's proposed baseline allowances are reasonable and adopted.
10. Sierra's proposed CARE discount rate and billing determinants are reasonable and adopted.
11. Sierra shall merge Schedule A-1A with A-1.
12. Sierra may eliminate the 10% credit for residential and small commercial customers.
13. Sierra may reinstitute an ECAC.
1. The adjustments to base rates in this proceeding are appropriate to maintain Sierra's ability to provides adequate service.
2. The settlement agreement is reasonable in light of the whole record, consistent with law, and in the public interest.
3. The rates and charges authorized by this decision are reasonable.
4. This proceeding and the settlement suffices for SB 85 xx purposes as within the Commission's authority to institute a proceeding "to raise rates for reasons other than the termination of the 10-percent rate reduction set forth in subdivision (a) of Section 368."
IT IS ORDERED that:
1. The settlement agreement is approved.
2. Within 10 days after the effective date of this order Sierra Pacific Power Company shall file an Advice Letter with revised tariff sheets to implement the authority granted in this decision. The revised tariff sheets shall become effective on the date filed subject to the Energy Division determining that it is in compliance with this decision. The revised tariff sheets shall apply to service rendered on or after their effective date.
3. This proceeding is closed.
This order is effective today.
Dated _____________________, at San Francisco, California.
APPENDIX A
