July 15th Conceptual Filing
Content

• Rate Case Plan Modifications
• Functional Unbundling Proposal
• Competitive Distribution Unbundling Proposal
• Revenue Allocation (Long-term and Short-term)
• Rate Design (Long-term and Short-term)

July 15th Filing
Functional Unbundling

• Total Revenue Requirement Starting Point at Escalated 1998 level (under 1/1/96 Rate Cap)
• Generation Costs separated from G&T&D using actual 1995 Cost Data in GencoPBR
• Transmission Costs to be subtracted from remaining T&D Based on March 1997 FERC filing

July 15th Filing
Distribution Service Unbundling

• Propose standardized method of identifying, costing, and pricing competitive distribution services
• Propose that SDG&E, SCE, and PG&E unbundle competitive billing, metering, and customer services in November 15th filings
• Work with Ratesetting Workgroup to reach consensus on approach
• File consensus document with CPUC on August 26

July 15th Filing
Revenue Allocation

• Initially, minimize revenue shifting by using capped EPMC approach
• Support Long-Term Cost-Based, Uncapped approach
• CTC allocation on residual of UDC and transmission charges
• Public goods charges allocated on residual of UDC and transmission charges

July 15th Filing
Rate Design

• Support the use of fixed costs and demand charges to recover distribution costs on a statewide basis
• Single Average Power Exchange Price for non-RTP
• In end-state, TOU customers receive an average charge for all usage and TOU distribution charges

July 15th Filing
Rate Design (continued)

• In end-state, RTP customers will receive hourly use and power exchange prices under Cost Based Rates
• Direct Access customers billed by retailer
• Support for universal state-wide metering within 5 years