2014 Edison Rate Design Window

Background

Rate design is performed on a comprehensive basis every three years in conjunction with each utility’s General Rate Case. If interim adjustments to the Rate Design are required, they are done in interim annual Rate Design Window cases.  

In December 2013, Edison filed a Rate Design Window Application requesting CPUC approval to: 

  • TOU-D:  Establish a new optional Time-of-Use (TOU) schedule tailored for electric vehicle owners, but open to all customers. 
  • TOU-D-T:  Close this existing schedule upon approval of the new schedule TOU-D.     

In August 2014, ORA joined Edison and solar industry representatives in an uncontested Settlement: 

  • TOU-D-T:  Keeps this schedule open. 
  • TOU-D: Addresses baseline allowances, which are defined by statute (PU Code 739) as a minimum. 
    • Option A:  Increases the baseline credit on this option to make it more attractive to smaller customers.  
    • Option B:  Maintains the parameters for this option originally proposed by Edison, which includes no baseline credit and a $16 customer charge, which are designed to be attractive to larger customers. 
  • Summer On-Peak:  Extends the peak period to 8 pm for Schedule TOU-D, but retain the old time-of-use periods for Schedule TOU-D-T to provide customer choice. 
  • Caps the Number of Customers:  Allows only a fixed number of customers to move to Schedule TOU-D, to limit revenue shortfalls. 

On December 18, 2014, the CPUC adopted a Final Decision, approving the Settlement. 

 

ORA Policy Position

ORA was an active party to the Settlement and supports the CPUC’s decision approving Settlement because Time-of-Use schedules were modified to increase customer choice and to make them more attractive to smaller customers.  

The Settlement resolved ORA’s original concerns that:  

  • Edison’s originally proposed Schedule TOU-D, Option B would have created a revenue shortfall by encouraging the migration of large customer on Schedule D to the new schedule. 
    •  The Settlement resolves this by capping enrollment. 
     
  • Closing Schedule TOU-D-T would have discouraged customers with peak usage in the early evening from signing up for a time-of-use rate.  
    • The Settlement resolves this by allowing Schedule TOU-D-T to stay open to new customers, where the peak period does not cover the early evening.  

See ORA’s June 30, 2014 Testimony 

See ORA’s January 27, 2014 Protest to Edison’s Application. 

 

Proceeding Docket

See the Proceeding docket. 

The proceeding is closed.