CONTACT: Dianne Dienstein May 6, 1997 CPUC - 21
415-703-2423 (R.94-04-031/I.94-04-032)

CPUC CREATES BILLING / METERING OPTIONS FOR THE COMPETITIVE ELECTRIC MARKET

When California's electric services industry begins to become competitive on January 1, 1998, for the first time, Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric, Kirkwood Gas & Electric, PacificCorp, Sierra Pacific Power, and Southern California Water will face competition from other electric service providers, and their customers will be able to choose service from competing suppliers. To facilitate this competition, the California Public Utilities Commission (CPUC) today authorized competitors to provide metering and billing services.

Utilities will continue to deliver electricity to all customers whether or not they choose a different supplier, and they will charge customers for delivery of electricity.

BILLING

Beginning January 1, 1998, customers purchasing electricity or related services from another supplier will be able to choose one of these billing options: (1) a consolidated bill from their supplier,

(2) a consolidated bill from the utility, or (3) two bills - one from the supplier of electricity, and one from the utility distribution company for delivery of electricity.

By allowing energy suppliers to provide consolidated electric bills if they want to, customers who wish the convenience of paying only one bill have it, and energy suppliers can reinforce their business identity and customer communications, as well as reduce bill preparation and processing costs.

The Commission is currently considering the best way to show customers what they pay each month for each aspect of electric service, and is expected to issue a decision later this year to become effective in January 1998. The goal is to itemize billing to show customers what they pay each month for: electricity; distribution (delivery) of electricity; the 'public goods charge' which funds programs to encourage conservation and energy efficiency, and research and development of energy efficient technologies and products; the low-income assistance program; the 'competitive transition charge' which is intended to give utilities the opportunity of recovering reasonable costs for generating or buying electricity to serve their customers; costs associated with meters, meter reading, and billing; and administrative costs.

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CPUC Creates Billing / Metering Options for the Competitive Electric Market 2

METERING

Beginning January 1, 1998, customers with a maximum demand greater than 20kW ( an individual household with all appliances and lights turned on has a maximum demand of only 1kW) will have the option of choosing any supplier to provide metering service to measure consumption of electricity. This option will be available to all other customers by January 1, 1999.

Some energy suppliers see the opportunity to bill customers directly as advantageous if they can also provide a meter, metering communication service, or other products in addition to retail electric service. This, in turn, should interest more new energy suppliers in marketing services to all customer classes, including residential and small business customers. Meters provided by energy services companies must be consistent with industry standards to assure utilities delivering electricity that meters are appropriately installed, and provide accurate, sufficient, reliable information.

Utility distribution companies will have to comply with the same standards if they adapt or replace their existing meters. For instance, utilities may decide to adapt their meters to offer automated meter reading services. Only customers who choose to have automated meter reading will reimburse the utility for the cost of this service.

Standards need to be developed to ensure all meters provide information and communicate in the same way, and the Commission has directed parties to propose such standards by July 25, 1997. Energy suppliers providing metering services must enter into an agreement with the distribution utility specifying the metering information to be collected, how the supplier and utility will share data, and how installation, calibration, and proper meter maintenance is to be done. The CPUC will review the agreements to ensure they are not discriminatory or anticompetitive.

PREVENTING DUPLICATION OF CHARGES FOR RELATED SERVICES

There are other activities, like customer service and uncollectibles, that are related to performing billing and metering functions. When a supplier rather than the utility chooses to handle these services, utilities are to reduce customers' distribution charges to reflect the resulting savings. By November 3, 1997, PG&E, SDG&E and Edison are to file cost studies with the CPUC identifying the cost savings resulting when billing, metering, and related services are provided by another entity, and submit proposals for ensuring that customers who choose a different energy supplier will not be charged by distribution utilities for the resulting savings.