D.97-08-056

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Conclusions of Law

1. The Commission should support the transmission revenue allocation and rate design proposals included in the Joint Motion filed on March 19, 1997 and adopt those proposals to the extent permitted by law governing state and federal jurisdiction.

2. Section 454 requires the Commission to issue findings with regard to the reasonableness of utility rates.

3. AB 1890 retains the Commission’s authority to allocate costs among customers.

4. The Commission should adopt the distribution revenue requirements proposed by the utilities in this proceeding with the adjustments set forth in this decision.

5. The Commission should reduce distribution revenue requirements by amounts allocated to generation dispatch and control.

6. The Commission should defer to the findings of R.92-03-050 and subsequent ratemaking proceedings in considering line extension allowance rules and their effects on revenue requirements.

7. The utilities should be ordered to propose modifications to their cost of capital or justify existing cost of capital revenue requirements in the generic cost of capital proceeding.

8. The Commission should adopt SDG&E’s method for escalating revenue requirement.

9. The utilities should be prohibited from entering into their CEMA accounts any costs associated with generation.

10. The utilities should be prohibited from entering into their HSCLS accounts any costs association with generation.

11. The utilities’ revenue requirements for distribution should be reduced to recognize a fair allocation of A&G costs between distribution, transmission and generation, as set forth in this decision.

12. SDG&E’s and Edison’s revenue requirements for distribution should be reduced to recognize a fair allocation of customer service and marketing costs between distribution, transmission and generation, as set forth in this decision.

13. The utilities’ distribution revenue requirements should be reduced to recognize a fair allocation of FF&U costs between distribution, transmission and generation, as set forth in this decision.

14. The rules of statutory construction provide that where exceptions to a general rule are specified by statute, other exceptions are not to be implied or presumed.

15. PG&E’s request to create a nonbypassable charge for Diablo Canyon ICIP costs that are above market prices should be denied. Regulatory treatment of associated costs should be considered in the proceeding addressing appropriate components of the CTC.

16. Edison’s request to create a nonbypassable surcharge and balancing account for costs set forth in its MAM proposal should be denied. Associated costs should be allocated to various functions as set forth in this decision.

17. SDG&E’s request to create a nonbypassable surcharge and balancing account for costs set forth in its MAM proposal should be denied. Associated costs should be allocated to various functions as set forth in this decision.

18. PG&E’s request to create a TRA should be denied.

19. The utilities should be ordered to apply the 10% discount to residential and small commercial customers on all types of rate schedules and to recover the cost of paying off the rate reduction bonds from the same classes of customers.

20. Marketers and brokers should be permitted to negotiate with their energy customers the method by which customers will pay the CTC to them.

21. The utilities’ proposals to develop the CTC should be rejected. Instead, the Commission should adopt the modified ORA methodology described in section VIII.B.1 of this decision.

22. Deriving an averaged CTC residually for each rate class by ex post averaging for utility-service customers all non-CTC functional rate components that vary with time does not violate the rate freeze articulated in Section 368 of the PU Code.

23. The utilities should be required to allocate the costs of public purpose programs using the system average percent method.

24. The utilities should be required to 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 would continue to reflect the baseline rate structure.

25. Hourly distribution line loss factors should be implemented effective January 1, 1998.

26. The utilities’ public purpose program surcharges should include all CARE program costs, consistent with Sections 381 and 382.

27. The utilities should be required to functionalize the rates on customer bills consistent with this decision no later than June 1, 1998.

28. Utility tariffs should specify that a customer who leaves the utility system to be served by an entity which must impose a public purpose surcharge pursuant to Section 385 shall not thereafter be required to pay the utility’s public purpose program surcharge.

29. The utilities shall reflect the 10% rate reduction to small commercial and residential customers by way of a reduction to the CTC.

30. The utilities should be required to provide information regarding the PX price on customer bills.

31. Customer bills should separately identify charges for energy, transmission, distribution, the CTC, public purpose programs and nuclear decommissioning costs no later than June 1, 1998 as set forth in this decision.

32. The utilities should be required to collect data necessary to provide customers with information about air emissions profiles of various generation resources. Utility bills should notify customers of the availability of the information beginning January 1, 1999.

33. The utilities should be required to include on customer bills an explanation of the PX price and the availability of alternative electricity suppliers, as set forth in this decision.

34. PG&E should continue to bill BART conjunctively for bundled and direct access services.

35. Edison’s proposal to incorporate costs for administrative and other unlift charges that are assigned to all scheduling coordinators into the PX energy charge and to credit these costs to direct access customers is reasonable and should be adopted.

36. Edison’s large power rate design proposals are reasonable and should be adopted

37. SDG&E should update its advice letter after its 1998 PBR revenue requirement change is approved, requesting of a 1998 distribution revenue requirement to become effective January 1, 1998.

Footnotes are bracketed and in blue

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