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HomeMy WebLinkAboutAgenda Report - October 16, 1991 (67)OF CITY OF LODI COUNCIL COMMUNICATION °+c.Foa�'�• AGENDA TITLE: Communications (September 24, 1991 through October 8, 1991) MEETING DATE: October 16, 1991 PREPARED BY: City Clerk RECOMMENDED ACTION: AGENDA ITEM RECOMMENDATION J -lb Information only. BACKGROUND INFORMATION: The following communication was received between the dates of September 24, 1991 and October 8, 1991. From, J. Michael Reidenbach Pacific Gas and Electric. ,.Attached, marked Exhibit A, is a notice that has been received from Pacific Gas and Electric Cly regarding application No. 91-08-061 filed with the California Public Utilities Commission (CPUC) in which it requests authority to increase its rates for electric services. FUNDING: Nave required. City Clerk APPROVED. THOMAS A. PETERSON a City Manager col COUNCOM8/TXTA.02J/COUNCOM Pack Cas and Electric Company 77 Beale Street San Francisco, CA 94106 4151972.7000 w September 6, 1991 TO: THE STATE, COUNTY AND CITY OFFICIALS AND INTERESTED PARTIES,; = Pacific Gas and Eiectric Company (PG&E) has filed Appl icat, icp No. 91-08-061 with the California Public Utilities Commission (CPUC) in which it requests authority to increase its rates for electric services. Pis&E seeks authority to increase its rates by $35, 645, OOO,or less than one percent, on January 1, 1992. The electric rate increase proposed by PG&E is to recover costs associated with the Helms Pumped Storage Project (Helms)- The Helms)_ The Commission will hold hearings on the proposed increase. Parties at those hearings may offer proposals to the CPUC which differ substantially from those requested by the utility. After considering all proposals presented during the formal hearing process, the Commission will issue a decision. The actual rates and revenue requirement adopted by the Commission may differ significantly from PG&.E's origina' request and may result in an increase or decrease in rates. If you wish two participate in the hearings or need advice, please write to the Public Advisor, California Public Utilities Commission at 505 van Ness Avenue, Room 5303, San Francisco, California, 94102. Inquiries about the date, time and place of hearing on the Application may be directed to the Public Advisor. A copy of the Application and related exhibits may also be examined at the Commission, as well as at the offices of Pacific•Gas and Electric Company, 77 Eeale Street, Room 3022, San Francisco, California, 94106; or at PG&E's Division Offices in Fresno, Oakland, Sacramento, San Jose, and Santa Rosa. This notice is given in accordance with Rule 24 of the Rules of Practice and Procedure of the California Public Utilities Commission. PACIFIC GAS AND ELECTRIC COMPANY -1 Z--7 Cl- r- " - - By - J. MICHAEL REIDENBACH ,--IN r IMPORTANT INFORMAT ION AEO E t "i€ F` MP ) PACIFIC BELL'S PROPOSED RATE CHANGES cp33 .E 1 MtIrE " F1 }M. CiiE The California Public Utilities Commission tC�1R(condiucting hearings to consider whether, and on whatterrtQ�,�j�t�la�low long distance telephone companies to compete with local companies like Pacific Bell in carrying long distance calls within California's phone service areas. The CPUC will also conduct hearings early next year to consider rate changes Pacific Bell has proposed in response to current and future competition. The dates and locations of all of these hearings are printed in this notice. This notice also describes Pacific Bell's proposed rate changes. To hear a description of Pacific Bell's proposed telephone rate changes in Spanish, call 1-800-559-2499. This is a toll-free call. To hear a description of Pacific Bell's proposed telephone rate changes in Cantonese, call 1-800-559-2699 or in Mandarin, call 1-800-559-2599. This is a toll-free call. To hear a description of Pacific Bell's proposed telephone rate changes in Korean, call 1-800-559-2799. This is a toll-free call. To hear a description 'of Pacific Bell's proposed telephone rate changes in Vietnamese, call 1-800-559-2899. This is a toll-free call. WHY IS PACIFIC BELL PROPOSING NEW RATES? One of the CPUC' s goals is to move the prices of Pacific Bell's services closer to the actual costs of providing the services. Pacific Bell's proposed rate changes are intended to satisfy this goal. In addition, our proposed rate changes are designed to enable us to respond to competition, which has increased significantly in recent years. To respond to competition, we propose to reduce our rates for toll calls and introduce new toll volume discount calling.plans. In addition, we propose to increase the rates for our basic services, such as flat rate and measured rate service, to bring them closer to their costs. rte. IF APPROVED BY THE CPUC, HOW WILL THESE CHANGES AFFECT YOUR TELEPHONE BILL? If our proposals are adopted and customers do not change their calling habits, we estimate that the average residence customer's monthly phone bill will decrease by $0.11. (0.3%), and the average phone bill for a business customer who has less than six phone lines will decrease by $4.92 (5.4o). We estimate that these changes will not increase or decrease our overall level of revenues. We presented our proposed rate changes to the CPUC on September 23, 1991. Other parties, including the Commission's Division of Ratepayer Advocates, will also be presenting proposed rate changes for Pacific Bell. A copy of Pacific Bell's proposal may be reviewed at any Pacific Bell public office or at the offices of the CPUC listed below. Please direct any inquiries concerning our proposed changes to: Regulatory Manager Pacific Bell Headquarters 140 New Montgomery Street, Room 910 San Francisco, California 94105 If you want to comment on these proposed changes, receive information on how to participate in this case at the CPUC, or be notified of any additional hearings, write to either of the CPUC Public Advisor's Offices listed below. Refer to "Investigation 87-11-033" in your written comments. Public Advisor's Office California Public Utilities Commission 505 Van Ness Avenue, Room 5303 San Francisco, California 94102 or Public Advisor's Office California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, California 90012 IF SERVICI AREA COMPETITION IS ALLOWEDtIHO WILL HANDLE MY CALLS? If competition for toll calls within California's service areas is approved, customers will be able to choose between Pacific Bell and other telephone companies to carry their long distance telephone calls within a service area. (California is divided into ten service areas, which are sometimes referred to as "Local Access and Transport Areas" (LATAs).) Pacific Bell proposes to remain the only company to provide basic phone services, directory assistance, and calls within the local 12 -mile calling areas and Zone Usage Measurement (ZUM) areas. - 2 - PACIFIC BELL'S PROPOSED RATE CRANGES FOR SELECTED MAJOR SERVICES Pacific Bell's rate proposal includes the rate changes shown below.* They do not include the federally imposed access charge or surcredits that presently apply to many services. The CPUC could establish different rates than those Pacific Bell has proposed and may change rates for services not listed.. Present Proposed SERVICES FOR RESIDENCE CUSTOMERS Tariff Rate Tariff Rate One -Party Flat One -Party Measured Installation Charge Lifeline - Flat Lifeline - Measured Lifeline - Installation Charge Foreign Exchange Access - Flat . Foreign Exchange Access - Measured Foreign Exchange Increment - Flat Foreign Exchange Increment - Measured $ 8.35/mo. 4.45/mo. 34.75 4.18/mo. 2.23/mo. 17.38 8.35/mo. 4.45/mo. 6.75/mo, 4.05/mo. $11.35/mo. 6.05/mo. 46.90 5.68/mo. 3.03/mo. 23.45 11.35/mo. 6.05/mo. 9.15/mo. 5.50/mo. Present Proposed SERVICES FOR BUSINESS CUSTOMERS Tariff Rate Tariff Rate One -Party Measured Line $ 8.35/mo. $10.90/mo. Basic Measured Trunk 8.35/mo, 10.90/mo. Assured Measured Trunk 12.25/mo. 12.70/mo, Installation Charge - Measured Line 70.75 92.00 Installation Charge - Assured Trunk 70.75 83.00 Foreign Exchange Access - Measured Foreign Exchange Increment - Measured Local Measured Usage (Daytime Rate) Initial Minute Each Additional Minute 8.35/mo. 11.25/mo. .04 .01 10.90/mo. 16.85/mo, .05 .02 * Pacific Bell is also proposing rate changes nor services that are not shown. If you are interested in these other rate changes, you can review our entire rate proposal at any of our public offices or write to us at the address listed on page 2 of this notice. - 3 - SERVICE AREA LONG DISTANCE POLL CALLS (Residence and Business -- Daytime Rates) Present Proposed Present Rate Proposed Rate Rate For Rate For For Each For Each Miles. 1st Minute 1st Minute Additional Additional Minute Minute 17 - 20 .22 .15 .13 .09 21 - 25 .25 .18 .16 .14 26 - 30 .28 .18 .19 .14 31 - 40 .31 .18 .22 .14 41 - 50 .34 .18 .25 .15 51 - 70 .37 .18 .28 .15 Over 71 .40 .19 .31 .16 PROPOSED NEW SERVICES Toll Volume Discount Callincr Plans Proposed for Residence Customers: 1. Automatic Plan: Whenever your service area direct dialed toll a'n'd - Catting Card calls exceed $5 -in a month, --you would automatically receive 20% off all direct dialed toll and Calling Card charges in excess of $5. You would not need to sign up for this plan. 2. Service Area Plan: You would pay $3.50 monthly and receive the following discounts for service area direct dialed toll and Calling Card charges: Charges up to $45 = 300 off; over $45 = 40% off. 3. Community Plan: You would choose a community in your service area that you call often, Then, you would pay $6 monthly and receive a 40% discount on all direct dialed toll and Calling Card calls to that community. You would also receive a 30% discount on all other direct dialed toll and Calling Card calls within the service area. Toll Volume Discount Calling Plans Proposed for Business Customers: 1. Automatic Plan: Whenever your service area direct dialed toll and Calling Card calls exceed $15 in a month, you would automatically receive 20% off all direct dialed toll and Calling Card charges in excess of $15. You would not need to sign up for this plan. - 4 - Toll Volume Discount Calling Plans Proposed for Business Customers: 2. Discount Plan Alpha: You would pay $5.50 monthly and receive the following discounts for service area direct dialed toll and Calling Card charges: Charges up to $700 = 250 off; over $700 = 40% off. Customers with multiple accounts could aggregate their accounts to increase their discount. 3. Discount Plan Beta: You would pay $25 monthly and receive the following discounts for service area direct dialed toll and Calling Card charges: Charges up to $700 = 25% off; $700.01 to $1200 = 40% off; $1200.01 to $5000 45% off; over $5000 = 500 off. Customers with multiple accounts could aggregate their accounts to increase their discount. All residence customers, as well as those business customers who currently subscribe to a Pacific Bell optional calling plan, will have 150 days to sign-up for a new discount plan without any installation charges. After 120 days, Pacific Bell's current optional discount plans will be eliminated and those customers who have not changed their current optional discount plan will be placed on the residence or business Automatic Plan. OTFM PROPOSED CHANGES 0 Some rates for 800, WATS, Operator -Handled, Coin, and Cal i i ilg Card services would decrease. 0 Some Private Line Service recurring rates and non-recurring charges would increase, while others would decrease. Taken as a whole, these changes will increase Pacific Bell's Private Line Service revenues by an estimated 8%. 0 Switched Access Services: Pacific Bell would decrease the rates it charges long distance telephone companies to connect to Pacific Bell's network. 0 Over a two-year period, rates for Basic Exchange Services for residential customers would be further increased by approximately 16% and rates for certain Private Line Services would be further increased by up to 40%. To offset these increases, rates for Toll Services and Switched Access Services would be further decreased over a two-year period. 0 There would be a charge for Directory Assistance (DA) for telephone numbers outside the caller's area code. Also, the rate would be increased from 25 cents to 40 cents per call for all DA calls in excess of 10 per month. 0 We would establish "Flexible Pricing Plans" for various Centrex and Private Branch Exchange (PBX) services that would enable us to reduce the prices for these services in the future in response to competition. - 5 - ' ESTIMATED REVENUE IMPACT Estimated Estimated Net Revenue Average Increase or Percent Decrease-- Increase ?r Revenue Source Millions Decrease Year One BasicExchangeServices $591 250 Toi�aSerLines'ervices 34 8% -833 -32% s Switched Access Services -219 -29% Elimination of Surcredit3 333 Reduced Settlements Payments' 94 Total Estimated Revenue Impact- Year One $ 0 Year Two BasicExchangeServices $115 4% Prf erLineSsServices 53 11 -158 _9% Switched Access Services - 28 -5% Reduced Settlements Payments 4 18 Total Estimated Revenue Impact- Year Two $ 0 Year Three Basic Exchange Services $110 4% �r!Ne Line �ervices 53 100 o ervices -154 -9% Switched Access Services - 27 -5% Reduced Settlements Payments` 18 Total Estimated Revenue Impact- Year Three $ 0 1 Based on 1989 revenue. 2 Includes Volume Discount Calling Plans, WAIS, 800, Operator Handled, Coin, Calling Card, and DA services. s We propose to eliminate the existing permanent billing surcredit, which will allow us to reduce our rates by an additional $333 million. 4 We propose to reduce the amount of "settlements" payments we make to other California local telephone companies, thereby allowing us to reduce our rates by an extra $94 million in Year One, $18 million in Year Two, and $18 million in Year Three. - 6 - } RECAP OF SCHEDULE OF HEARINGS o Starting October 7, 1991, the CPUC will conduct "Evidentiary" Hearings to determine whether long distance telephone companies should be allowed to compete with local telephone companies for long distance telephone calfs within a California service area. These hearings are open to the public. They are being held in one of the CPUC's hearing rooms, located at 505 Van Ness Avenue, San Francisco. If you want information on how to participate, ccntact the CPUC Public Advisor's Office. o Between October 21, 1991 and November 12, 1991, the CPUC will conduct "Public Participation" Hearings throughout California. You are invited to attend these hearings and express your opinions on service area competition and our proposed rate changes. Here is the schedule for these hearings: City Address Date Time Eureka City Hall October 21 7 p.m. Council Chambers Monday 531 K Street Redding Shasta High School October 22 7 p.m. Room 29 Tuesday 2500 Eurei.a Way Sacramento Department of October 23 2 p.m. Water Resources Wednesday and Auditorium 7 p.m. 1416 9th Street San Jose Peter Burnett Academy October 24 7 p.m. Cafeteria Thursday 850 North Second St. Santa Monica City Hall October 28 2 p.m. Council Chambers Monday 1685 Main Street Pasadena Pasadena Main October 28 7 p.m. Public Library Monday Auditorium 285 East Walnut Anaheim City Hall October 29 2 p.m. Council Chambers Tuesday 200 So. Anaheim - 7 - Citv Address Date Time Lakewood Herbert Hoover October 29 7 p.m. Middle School Tuesday Auditorium 3501 East Country Club Dr. San Diegc Community Concourse October 30 2 p.m. Korth Terrace- Wednesday and Rooms 207 & 208 _ 7 p.m. 202 C Street San Bernardino City Hall October 31 2 p.m. Council Chambers Thursday 300 N. D Street Victorville City Hall October 31 7 p.m. Council Chambers Thursday 14343 Civic Drive San Francisco Californi_ Public November 4 2 p.m. Utilities Commission Monday and Auditorium 7 p.m. 505 'Jan Ness Avenue San Luis Obispo City Hall November 6 7 p.m. Council Chambers Wednesday 990 Palm Street i Fresno Fresno State Building November 7 7 p.m. Room 1036 Thursday 2550 Mariposa Street Placerville Board of Supervisors November 12 7 p.m. Meeting Rm., Bldg. A Tuesday 330 Fair Lane o Startirg on January 6, 1992 and running through May 7, 1992, the CPUC will conduct a series of evidentiary rate design hearings to determine whether Pacific Bell's proposed rate changes should be granted. These hearings will be held in one of the CPUC's hearing rooms, located at 505 Van Ness Avenue, San Francisco. If you are unable to attend these hearings but want to express your views, or if you would like to participate in the evidentiary hearings, you may write to one of the two CPUC Public Advisor's offices listed on page 2 of this notice. WHEN WILL THESE CHANGES OCLMM? The CPUC expects to reach a final decision on service area competition and on Pacific Bell's proposed rate changes sometime in mid-to-late 1992. - 8 -