2016 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 September 2016, Edison filed a RDW application to revise Time of Use (TOU) period definitions, critical peak pricing (CPP) programs, and non-bypassable charges. In summary, SCE proposed to:

  • Shift TOU on-peak periods to later in the day and create a new super off-peak period in the winter season based on its updated marginal costs.
  • Allow small commercial customers to opt-in CPP rather than default them to CPP.
  • Remove exemptions of non-bypassable charges for departing load customers served on low-income assistance and medical baseline rates.
    • The administrative law judge (ALJ) has ruled that this is outside the scope of this proceeding. Therefore, SCE withdrew this proposal.     
     

ORA Policy Position

In April 2017, ORA filed testimony advocated that cost-based rate design must be balanced with the other policy objectives, such as customer acceptance and reasonable bill impacts. ORA recommends:

  • CPP should be an optional program instead of default because there is little demand response resulting from small size customers participating in CPP.
  • Moderate SCE’s TOU period proposal based on marginal costs and bill impact analyses.

 This following table contrasts ORA and SCE’s TOU proposals:

 

ORA & SCE TOU proposals 

 

See ORA’s April 28, 2017 Testimony.

 
See ORA’s September 8, 2017 Opening Brief.

 
See ORA’s September 29, 2017 Reply Brief.

Proceeding Docket

See the Proceeding docket.