IT IS ORDERED that:
1. The transmission rate design and revenue allocation proposals set forth in the Joint Motion filed March 16, 1997 and set forth in Appendix A are approved and adopted to the extent permitted by law governing state and federal jurisdiction.
2. The Joint Motion filed March 16, 1997 is granted to the extent set forth herein and to the extent the Commission has acted in accordance with the recommendations of the Joint Motion.
3. The revenue requirements for Southern California Edison Company (Edison) set forth in Appendix B are adopted.
4. The revenue requirements for Pacific Gas and Electric Company (PG&E) set forth in Appendix D are adopted.
5. The revenue requirements for San Diego Gas & Electric Company (SDG&E) set forth in Appendix C are adopted.
6. Edison shall file an application on May 8, 1998, seeking review of its cost of capital for 1999 test year.
7. SDG&E shall file an application on May 8, 1998, seeking review of its cost of capital for 1999 test year.
8. PG&E shall file an application on May 8, 1998, seeking review of its cost of capital for 1999 test year.
9. PG&E, Edison, and SDG&E shall not enter into their respective Catastrophic Events Memorandum Accounts any costs related to generation.
10. PG&E, Edison, and SDG&E shall not enter into their respective Hazardous Substance Clean-up and Litigation Cost Accounts any costs related to generation.
11. Utility requests to create nonbypassable surcharges and balancing accounts not identified in Assembly Bill (AB) 1890 are denied.
12. PG&E, Edison, and SDG&E shall file tariffs within 15 days of the effective date of this order which incorporate the provisions of this order and which shall not include any changes to tariffs not anticipated or required by this order. The tariffs shall reflect the revenue requirements for each utility set forth in Ordering Paragraphs herein and shall:
a. Provide the 10% discount mandated by AB 1890 to residential and small commercial customers on all types of rate schedules and recover the cost of paying off the rate reduction bonds from the same classes of customers.
b. Permit marketers and brokers to negotiate with their energy customers the method by which their customers will pay the competitive transition charge (CTC) to them.
c. Derive an averaged CTC residually by ex post averaging of energy and other non-CTC functional rate components that vary over time using the modified ORA methodology described in Section VIII.B.1 of this decision.
d. Allocate the costs of public purpose programs using the system average percent method.
e. Create a rate differential between baseline and other rates for both distribution rates and the CTC so that the rate structure after the CTC is removed reflects the baseline rate structure.
f. Include in public purpose program surcharges all California Alternative Rate for Energy program costs, consistent with Public Utilities (PU) Code §§ 381 and 382.
g. Provide that customer bills will include rates, charges and other information consistent with this decision no later than June 1, 1998. Prior to the time they unbundle rates, the utilities shall specify PX prices as set forth in this decision.
h. Specify that a customer who leaves the utility system to be served by an entity which must impose a public purpose surcharge pursuant to PU Code § 385 shall not thereafter be required to pay the utility’s public purpose program surcharge.
i. Reflect the 10% rate reduction to small commercial and residential customers by way of a reduction to the CTC.
j. Incorporate other rate design and revenue allocation provisions set forth in this decision.
13. PG&E, Edison, and SDG&E shall collect data necessary to provide customers with information about air emissions profiles of various generation resources. Utility bills shall quarterly notify customers of the availability of the information beginning January 1, 1999.
14. SDG&E shall file an advice letter no later than October 15, 1997 to update the authorized distribution revenue requirement as shown in Appendix C, Table 1 to reflect the adopted 1997 (Resolution E-3401) and proposed 1998 PBR escalation rates and other PBR-related adjustments. The advice letter filing shall reflect the adjustments for distribution portion of the adopted PBR adjustments using the methodology consistent with this decision. This Advice Letter shall be updated after the proposed 1998 PBR escalation rates are adopted.
15. PG&E shall continue to bill BART conjunctively for bundled and direct access services.
16. Applications (A.) 96-12-009, A.96-12-011, and A.96-12-019 are held open pending development of a streamlined A&G reallocation procedure by the Assigned Commissioners.
This order is effective today.
Dated August 1, 1997, at San Francisco, California.
P. GREGORY CONLON
President
JESSIE J. KNIGHT, JR.
HENRY M. DUQUE
JOSIAH L. NEEPER
RICHARD A. BILAS
Commissioners
I will file a concurring opinion.
/s/ JESSIE J. KNIGHT, JR.
Commissioner
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
Footnotes are bracketed and in blue