HomeMy WebLinkAboutAgenda Report - July 21, 1999 G-02aAGENDA TITLE: Notice Of Application No. 99-03-013 From Pacific Gas & Electric (PG&E) Company
Submitting Cost And Rate Proposals On Electric Revenue Cycle Services To Comply With A
CPUC Order
MEETING DATE: July 21, 1999
PREPARED BY: City Clerk
RECOMMENDED ACTION: Information only, no action required.
BACKGROUND INFORMATION: The City Clerk's Office has received a notice of Application No. 99-03-013
from Pacific Gas & Electric (PG&E) Company submitting cost and rate
proposals on electric revenue cycle services to comply with a CPUC Order
(Exhibit A). This is information only, no Council action is required.
FUNDING: None
7r 4.�'
Alice M. Reimcfie
City Clerk
APPROVED:
D'6n Flynn -- City -Manager,,
EXHIBITA
.91 Pacific Gas and RECEIVED
Electric Company
Time Steven W. Frank Mading Address
- Attorney at Law P.O. Box 7442
Al nn San Francisco, CA 94120.7442
JUN N 0 19 99 StreerlCarner Address
Law Department
Alice M. ReirnChE) 77 Beale Street.B30A
June 24, 1999 City Clerk San Francisco. CA 94105
City of Lodi 415.973.6976
Fax. 415.973.0516
TO STATE, COUNTY AND CITY OFFICIALS:
The following notice is given at the direction of the California Public Utilities
Commission in the "Scoping Memo and Ruling of Assigned Commissioner and
Administrative Law Judge" dated May 25, 1999. This notice is provided in accordance
with the requirements of Rule 24 of the CPUC's Rules of Practice and Procedure.
Notice of Application Submitting
Electric Revenue Cycle Services Proposals
Pacific Gas and Electric Company (PG&E) filed Application No. 99-03-013 with the
California Public Utilities Commission (CPUC) on March 5, 1999, submitting cost and
rate proposals on electric revenue cycle services to comply with a CPUC order. If any
proposals are approved by the CPUC, rate changes will become effective in the year
2000.
WHAT PG&E HAS SUBMITTED
Currently, PG&E pays credits where customers take electric revenue cycle services ---
that is, meter ownership, meter services, meter reading, or billing -- from an energy
service provider rather than from PG&E. The amount of each credit is equal to the cost
that PG&E avoids because another company is providing the service. PG&E pays the
credits to customers, except that credits are paid to energy service providers who send
their customers bills that include PG&E's charges.
The amounts of the credits were set by the CPUC in Decision No. 98-09-070, which also
ordered PG&E to submit proposals that would change the credits in the following three
ways: (1) PG&E would bill all customers for basic services and add charges for revenue
cycle services provided by PG&E, instead of billing all customers for all services and
paying credits where electric revenue cycle services are not provided by PG&E; (2)
PG&E would price electric revenue cycle services at costs to be incurred over the long
run, instead of at avoided costs; and (3) PG&E would calculate the costs of electric
TO STATE, COUNTY AND CITY OFFICIALS
June 24, 1999
Page 2
revenue cycle services and other distribution services by geographic zones, instead of
averaging costs over the entire area that PG&E serves.
Although PG&E's March 5 application contained the ordered proposals, PG&E requests
that the CPUC not approve them. Instead, PG&E recommends that the CPUC continue
to price electric revenue cycle services through credits equal to PG&E's avoided costs.
If the CPUC approves the proposals submitted by PG&E, then the current monthly
residential electric revenue cycle services amounts will change as follows under the long -
run cost proposal:
Meter Reading (electric and gas site): from $0.21 to $0.22
Meter Reading (electric -only site): from $0.71 to $0.75
Billing (electric -only account): from $0.83 to $0.90
The amounts will change as follows under the geographic zone proposal:
Meter Reading (electric -only site): from $0.71 to $0.44 (high density),
$0.69 (medium density), and $1.29 (low density)
The electric revenue cycle service amounts will change based on studies of costs
associated with each rate schedule.
PUBLIC HEARINGS
Before acting on PG&E's application, the CPUC may hold public participation hearings
to provide customers an opportunity to express their views. The CPUC welcomes the
public's participation. If you can't attend a hearing, you may submit written comments to
the CPUC at the address listed below. Mention that you are writing about PG&E's
Application No. 99-03-013.
Formal hearings on PG&E's application also will be held. They are scheduled to begin at
10:00 a.m. on November 16, 1999, continuing as needed weekdays through November
24, 1999, at the CPUC's offices at 505 Van Ness Avenue in San Francisco. Participants
at these hearings may offer proposals that differ from those of PG&E. In addition, during
the proceedings, updated information may be introduced that could change the amount of
the rate changes requested. After considering all proposals presented during the hearing
process, the CPUC will issue a decision. Rates adopted by the CPUC may differ from
those submitted by PG&E, and may result in an increase or decrease in individual rates.
If you want to participate in this proceeding and have any questions, please contact The
Public Advisor's office at the address below:
TO STATE, COUNTY AND CITY OFFICIALS
June 24, 1999
Page 3
The Public Advisor
California Public Utilities Commission
505 Van Ness Avenue, Room 5303
San Francisco, CA 94102
or via electronic mail to: public.advisor@cpuc.ca.gov
Mention you are writing about PG&E's Application No. 99-03-013 and indicate if you
would like a written response, otherwise no reply will be sent. Your letter will be sent to
the Commissioners and become part of the formal correspondence file for this
application.
FOR FURTHER INFORMATION
You may obtain a copy of this application and related exhibits by writing to: PG&E,
P.O. Box 7442, San Francisco, CA 94120, Attention: RCS Proposals. Copies are
available for review at our corporate headquarters (77 Beale Street, Room 3120,
San Francisco, CA 94105), at any of our division offices, or at the San Francisco office of
the CPUC.
PACIFIC GAS AND ELECTRIC COMPANY
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By:
Steven W. Frank