a) Yes, SoCalGas and SDG&E’s proposed residential fixed charge of approximately $10 per month are designed solely for the purpose of recovering fixed customer costs in a fixed customer charge. b) Yes, however, CARE customers currently receive a 20% discount that would continue to apply to the proposed customer charge, as well. c) See attached spreadsheet. d) Confirmed. The list of items which the proposed fixed charge is designed to recover is discussed on lines 1 through 5 of page 5 in Mr. Bonnett’s revised prepared direct testimony. e) The requested information is already provided in Table 5 of Mr. Bonnett’s revised prepared direct testimony. Additionally, the rate design models showing the calculation have already been provided. See tables” tab in the SCG RD model. “testimony f) It is unclear what is meant by the amount of change in the average monthly bill of “confirm the lowest usage residential customers.” Mr. Bonnett’s revised prepared direct testimony contains a table which shows the bill impact information of baseline-only customers. g) Confirmed. (To clarify, the SDG&E number is on Ms. Schmidt-Pines’ workpapers). h) Confirmed, based on the NCO only method without any replacement investments for old equipment removal. (To clarify, the SDG&E number is based on Ms. Schmidt-Pines‘ workpapers). The marginal customer costs based on NCO method with replacement investments (at historical replacement rates) are considerably higher than those based on NCO only method. i) The definition of the term minimum charge” as used in the question is not clear to SoCalGas and SDG&E. The fixed customer charge is intended to recover a reasonable portion of the fixed costs associated with providing a customer with access to SoCalGas’ or SDG&E’s gas delivery systems. The fixed customer charge reflects what a residential customer would pay when that customer’s gas consumption is zero. QUESTION 6:
a) Yes, SoCalGas and SDG&E’s proposed residential fixed charge of approximately $10 per month are designed solely for the purpose of recovering fixed customer costs in a fixed customer charge. b) Yes, however, CARE customers currently receive a 20% discount that would continue to apply to the proposed customer charge, as well. c) See attached spreadsheet. d) Confirmed. The list of items which the proposed fixed charge is designed to recover is discussed on lines 1 through 5 of page 5 in Mr. Bonnett’s revised prepared direct testimony. e) The requested information is already provided in Table 5 of Mr. Bonnett’s revised prepared direct testimony. Additionally, the rate design models showing the calculation have already been provided. See “testimony tables” tab in the SCG RD model. f) It is unclear what is meant by “confirm the amount of change in the average monthly bill of the lowest usage residential customers.” Mr. Bonnett’s revised prepared direct testimony contains a table which shows the bill impact information of baseline-only customers. g) Confirmed. (To clarify, the SDG&E number is on Ms. Schmidt-Pines’ workpapers). h) Confirmed, based on the NCO only method without any replacement investments for old equipment removal. (To clarify, the SDG&E number is based on Ms. Schmidt-Pines‘ workpapers). The marginal customer costs based on NCO method with replacement investments (at historical replacement rates) are considerably higher than those based on NCO only method. i) The definition of the term minimum charge” as used in the question is not clear to SoCalGas and SDG&E. The fixed customer charge is intended to recover a reasonable portion of the fixed costs associated with providing a customer with access to SoCalGas’ or SDG&E’s gas delivery systems. The fixed customer charge reflects what a residential customer would pay when that customer’s gas consumption is zero. QUESTION 6:
ORA-TCAP2-SCG-11.docx