Rate Design Workshop

A.00-11-038, et al.

April 3, 2001

California Public Utilities Commission

Rate Design Templates

Utilities agreed to provide revised rate design templates which include all rate schedules and 2001 billing determinants.

Data Needs

Parties agreed to meet after the workshop and develop a master data request for the utilities. The utilities agreed to e-mail the data request response to all parties on the workshop service list and possibly post on utility websites.

Three categories of data were discussed:

  1. Updated billing determinants.
  2. Billing frequency distribution data.
  3. Generation allocation data.

Utility contacts for data requests:

SCE Jim

PG&EKeith

SDG&EJim

SDG&EMike

Rate Design Ideas

Parties discussed the following structural changes:

  1. Introduce tiering to TOU rates.
  2. Change TOU hourly designation.
  3. Change seasonal designations.
  4. Whether a four-tier residential rate design is required or is a three-tier acceptable.
  5. Eliminate existing declining block rate structures and replace with increasing block rate structure.
  6. Introduce “negative customer charge” to offset cents/kWh increase.
  7. Do CARE customers with usage above 200% of Baseline see an increase or are all CARE customers exempt from any increase? If exempt, how is the shortfall allocated, i.e. allocated to all customers or just to residential.
  8. What is subject to re-allocation: the 3 cent increase, the 3 cent + 1 cent, or entire generation rate.

On April 5 the utilities will file billing system feasibility reports addressing proposed structural changes. Parties will comment on the following day. Parties request that the Commission provide guidance on all structural issues as discussed in the schedule below.

Consensus Schedule

Parties agreed to the following schedule.

April 9 or 10: Assigned Commissioner’s Ruling setting forth a schedule and providing guidance to parties on structural issues.

April 12: Parties file Rate Design Proposals

April 16 and 17: Energy Division Workshop on Rate Design Proposals.

April 19: Parties file comments on proposals.

April 26: Commission issues Proposed Decision.

April 30: Parties file comments on Proposed Decision.

May 3: Commission issues Final Decision.

Utilities MUST have Final Decision by May 11 to allow implementation by

June 1st

Other Issues Discussed:

  1. Impact of the DWR revenue requirement.
  1. Need for a revenue allocation table in addition to the rate design template.
  1. Impact of 3 cent increase on direct access customers.
  1. Concern regarding billing determinants based on average year versus drought year and need for an updated agricultural demand forecast.
  1. How to handle potential migration of customers from firm to non-firm rates.