CPUC Decision in Phase 2 of CCA Rulemaking (continued)

Other Tariff Rates and Services

1. Treatment of New Customers

New customers will be automatically assigned to the CCA. Utilities are permitted to charge for the cost of switching the customer to CCA service via a Community Choice Aggregation Service Request (CCASR), if one must be generated for a new customer. The statute requires new customers must be notified twice within the first 60 days of service of their opt-out rights. Neither the CPUC nor the utilities have the authority to enforce the statute, and for that reason, the utility tariffs may not make this notification a condition of service.

2. Boundary Metering

The statute requires all metering to be performed by the utilities. CCA vendors are not permitted to provide these services.

3. Customer Information

The DECISION reiterates the Phase 1 ruling that AB 117 does not permit a utility from second guessing a CCA’s request for relevant information. Utility tariffs are to include a provision that permits CCAs to access all relevant customer information, consistent with the Phase 1 Decision.

Customers that return to bundled service must do so under the same conditions as applicable to returning direct access customers, per AB 117. Such customers will be required to remain on bundled utility service for a three year period, consistent with current direct access rules.

4. Utility-CCA Service Agreement

The service agreement proposed by the utilities is adopted as exemplary and may be tailored by mutual agreement of the utility and the CCA to accommodate specific circumstances. The utilities should modify the proposed service agreement to be consistent with the order.

5. Call Center Fees

The DECISION finds that the utilities have not yet tracked CCA calls to establish that such calls will impose incremental costs, and it is therefore premature to establish an 800 number for purposes of charging CCAs for customer calls. The DECISION declines to adopt the utilities’ proposed charges for customer calls to the utility regarding CCA, and directs the utilities to raise this issue in their general rate cases.

6. Opt-Out Fees

The utilities are entitled to charge fees for processing customer opt-outs. PG&E will not be required to revise its processing system to handle post cards due to the expense. PG&E is encouraged to consider internet options for processing opt-outs and revise its tariffs at a later date, as it suggests.

7. Customer Deposits, Partial Payments and Termination of Service

The DECISION finds that CCA services should not be considered disconnectable, consistent with existing Commission policy for ESPs. Each entity is to collect its own deposits from customers, where applicable, and the CCA may collect the deposits using the utility’s billing services. Partial payments would be allocated first to disconnectable services and then on a prorated basis to other utility and CCA services. The CCA may return a CCA customer for nonpayment of CCA services.

8. CCASR Processing

The DECISION agrees with the utilities that a 15-day lead time is reasonable to process a switch from the utility to the CCA where there is no need for urgent action, such as when a customer is moving or following an opt-out notice.

9. Changing Municipalities in the CCA Plan

The DECISION finds it appropriate that the utility tariffs address provisions for changes in the CCA’s membership (i.e., changes in cities or counties in a CCA program). The reason is that changes in CCA membership will affect utility operations and outstanding liabilities that would affect the CRS.

10. Confirmation Letters

There is nor compelling justification for the utilities to send a confirmation letter because customers will already receive two opt-out notices following their cut-over to CCA service.

11. Scheduling Coordinator Requirements

Consistent with the view that utility tariffs govern the relationships between CCAs and the utilities, it is not appropriate for the tariff to require the CCA to identify its scheduling coordinator. This is a matter between the CCA and the Independent System Operator.

12. Load Aggregation

Private aggregation (direct access) is permitted by CCA customers only to the extent its implementation does not conflict with utility tariffs.

13. Notice of Program Implementation

AB 117 requires the CPUC to determine the earliest possible implementation date for a CCA to begin service. The Proposed Decision finds that the earliest possible date for the program was the date upon which the tariffs filed pursuant to the Phase 1 Decision were effective. The earliest possible implementation date for a CCA’s provision of service is the date of the completion of all tariffed requirements. The utilities are directed to undertake to affect the system changes required to satisfy the tariffs once they receive the first binding notice of intent in their service territory and complete the changes within six months.

14. Electronic Data Interchange Testing (EDI)

The cost of EDI testing should be paid by the CCA, and utility tariffs should require each CCA to pay for EDI testing within reason.

15. Specialized Service Requests

The utilities proposed to charge hourly rates for services not otherwise priced out in the tariffs. The utilities tariff proposals to charge for specialized services appear consistent with the principle to charge CCAs the incremental costs of providing service to them and are therefore approved.

16. Metering Fees

PG&E’s proposed fee for Meter Data Management Agent Meter Data Posting of $9.28 per interval meter per month is appropriate. The CCA’s assertion that this fee is too high is rejected because the CCAs appear to have misunderstood the basis for the cost in their criticism of the charge.

17. Involuntary Service Termination

The utilities’ tariff proposals to terminate a CCA’s service under certain conditions are far too vague and would provide the utilities with too much discretion. Utilities are not permitted to include any language in the tariffs that provides the utilities with discretion to terminate a CCA’s service with the exception that the utility may terminate service in the event of a system emergency or where public health or safety is involved. Otherwise the utility that seeks to terminate a CCA service must obtain an order from the Commission directing the utility to terminate service. The request must include the reasons for the requested termination, the impacts of the termination, and the expected impacts if the CCA’s service is not terminated. The cost of lawful terminations should be billed to the CCA.

18 Net Metering

The issues of net metering should be decided in a different proceeding, R.04-03-017.

19. Rate Ready Billing

The DECISION finds that PG&E should develop a billing system that is unbundled so that a CCA is not required to pay for a service that it may choose not to use. PG&E should also permit the CCA to “provide complete information about CCA rates, which SDG&E and SCE already have in place.” PG&E may charge the same rate as charged by SCE for this service. If PG&E can show its incremental costs are higher than this in its next General Rate Case, the CPUC will consider increasing the charge. The costs of initial changes to the billing system should be paid by all ratepayers, consistent with the policy expressed in the Phase 1 Decision.

PG&E's "rate-ready" billing service is optional, and the CPUC does not object to modifications desired by CCAs if provided at cost. Alternatively, CCAs can use PG&E's bill ready billing service.

20. Services Funded by Bundled Rates

Additional tariff language proposed by the CCAs that would require utilities to continue providing CCA services that are supported by bundled rates are not necessary. Utilities must continue to provide tariffed services until the CPUC finds to the contrary.

21. California Alternative Rate for Energy (CARE) Discount

The CARE discount provides reduced rates for qualifying low income customers. The utilities should continue to apply the CARE discount to all qualifying CCA customers. The calculation of the CARE discount will be based on the utility' rates, as if customer took bundled service from utility. The discount should be applied only to the distribution rate. The discount should not be reflected in the CRS. CCAs can design rates that provide additional discounts if they so choose.

22. In-Kind Power

The DECISION restates the policy from the Phase 1 Decision that parties are encouraged to make arrangements for assignment of DWR contract power if the power would otherwise be undeliverable or if this in some other way would minimize power contract liabilities. The CPUC will rely on the parties to work out such arrangements.

23. Bill Ready Billing

PG&E should automate its billing system for accommodating bill-ready billing so that its costs can be brought in line with those of SCE and SDG&E. PG&E is directed to develop the service within 12 months and may charge the same rate as charged by SCE for this service (44 cents per account per month). If PG&E can show its incremental costs are higher than this in its next General Rate Case, the CPUC will consider increasing the charge. The costs of initial changes to the billing system should be paid by all ratepayers, consistent with the policy expressed in the Phase 1 Decision.

Future CCA Issues

Because CCA is a new program, the CPUC intends to initiate a new rulemaking to review the program within a year of the initiation of the first CCA’s operation. In the meantime, CCAs and utilities are encouraged to bring to the CPUC’s attention problems with existing tariffs, rules or policies adopted in this order. This may be accomplished by consulting with the CPUC’s technical staff or by filing petitions to modify orders issued in this proceeding.

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