The primary purpose of this proceeding is to unbundle the three utilities’ revenue requirements into major functions in order to promote competition in electrical generation markets. Specifically, we (1) identify separate revenue requirements for distribution; (2) allocate costs of these functions to the various customer classes, and (3) address corresponding rate design principles. We also establish a revenue requirement and cost allocation for public benefit programs consistent with AB 1890.
A secondary objective of this proceeding is to determine the information the utilities must provide on their customer bills beginning with the introduction of direct access on January 1, 1998. The success of direct access depends largely on customers having information that permits them to make reasoned choices about electricity purchases.
The parties also addressed the issue of whether tariffs for master meter customers should be changed in light of direct access.
In addressing the subjects appropriately within the scope of this proceeding, it is useful to identify those issues that are not addressed here and that are subjects of other proceedings. The Commission has already issued D.97-05-039, in which we resolved issues relating to billing and metering.
Costs which are associated with uneconomic generation are addressed in the Electric Restructuring Rulemaking (R.)94-04-031/Investigation (I.) 94-04-032. Load profiling is properly the subject of the Direct Access which is also addressed in, R.94-04-031/I.94-04-032. That proceeding is also the appropriate forum for considering mobilehome park tenants’ eligibility for direct access. Performance-based ratemaking (PBR) proposals are under consideration in the related proceedings of individual utilities. The revenue bonds which the utilities will issue to finance the rate reductions mandated by AB 1890 are being considered in separate applications filed by each utility.
Footnotes are bracketed and in blue