The Petitioners state that they welcome competition from utility affiliates as long as all suppliers are treated equally by a utility. They identify two prerequisites which they argue ensure equal treatment. One is the establishment of clearly articulated and enforceable standards of conduct governing the relationship between the utilities and their marketing affiliates, which we have discussed above. The other prerequisite is that the utility providing services within a monopoly structure limit its actions to those services. The Petitioners ask the Commission to delineate those regulated activities appropriate for the utilities to perform versus the unregulated, competitive activities better performed by a marketing affiliate.
SCUPP points out that this aspect of the Petitioners’ motion is opposed to a proposal made by SCG in its Performance-based Ratemaking (PBR) A.95-06-002. SCUPP asks the Commission to coordinate the processing of the motion and the related aspect of SCG’s PBR application.
In its application, SCG seeks the ability to offer new products and services, either itself or through an affiliate, without prior Commission approval, assuming these programs are funded with shareholder dollars. It also asks the Commission to agree that the Commission will not regulate the prices, terms and conditions for new products and services; that the profits or losses from new products and services should flow entirely to shareholders; and that existing products and services that are offered on an unbundled basis in the future should be treated in the same manner as new utility-related products and services.
We agree with SCUPP that coordination of the motion and this aspect of SCG’s PBR application is appropriate. We are concerned that addressing this aspect of SCG’s PBR application could place SCG and its affiliates at an unfair advantage vis a vis the other California energy utilities and their affiliates. The bold step in deregulation of energy services SCG proposes is best accomplished in a manner which applies uniform rules to the energy utilities and their affiliates. As we foster competition in the energy marketplace, it is our responsibility to ensure that entry by the energy utilities and their affiliates into the unregulated market for energy products and services is on an equal footing. We address coordination further in R.97-04-011.