Phase 2 (see condition (i) above). Issues for these workshops include: Which fixed costs are appropriate to collect through a fixed charge. Ensuring that any fixed charge amount treats small and large customers fairly. Timing of including new or increased fixed charges in residential rates. Marketing, education and outreach for fixed charges. The decision on the proposed fixed charge calculation will apply to the specific utility, with respect to the actual amount of fixed costs identified, but the determination of which categories of costs the Commission determines should be permitted in a fixed charge should be considered precedential. The GRC Phase 2 applications for the other two IOUs should rely on the findings from the first decision. Any requested variations from the methodology approved for the first IOU shall be accompanied by material evidence demonstrating differences between the two IOUs’ systems. (iii) A decision in the IOU’s 2018 Residential RDW that approves a new fixed charge request from the IOU. The IOUs may not file a new request for a fixed charge prior to the Residential RDW. The Residential RDW applications will be consolidated. (iv) Default TOU is implemented. Provided that all four conditions have been met, a fixed charge can be implemented with an effective date at least one year after the start of default TOU. Generally A Fixed Monthly Charge May Be Reasonable for Fair Residential Rate Design Currently, fixed costs are included in volumetric rates. Two concerns have been raised with this approach. First, high use customers may be paying a
Phase 2 (see condition (i) above). Issues for these workshops include: Which fixed costs are appropriate to collect through a fixed charge. Ensuring that any fixed charge amount treats small and large customers fairly. Timing of including new or increased fixed charges in residential rates. Marketing, education and outreach for fixed charges. The decision on the proposed fixed charge calculation will apply to the specific utility, with respect to the actual amount of fixed costs identified, but the determination of which categories of costs the Commission determines should be permitted in a fixed charge should be considered precedential. The GRC Phase 2 applications for the other two IOUs should rely on the findings from the first decision. Any requested variations from the methodology approved for the first IOU shall be accompanied by material evidence demonstrating differences between the two IOUs’ systems. (iii) A decision in the IOU’s 2018 Residential RDW that approves a new fixed charge request from the IOU. The IOUs may not file a new request for a fixed charge prior to the Residential RDW. The Residential RDW applications will be consolidated. (iv) Default TOU is implemented. Provided that all four conditions have been met, a fixed charge can be implemented with an effective date at least one year after the start of default TOU. Generally A Fixed Monthly Charge May Be Reasonable for Fair Residential Rate Design Currently, fixed costs are included in volumetric rates. Two concerns have been raised with this approach. First, high use customers may be paying a