TOU. Per ALJ Ruling, bill protection shall be provided to any customer who opts-in to Default Rate 1 or 2, on or before the last day of the default pilot period. This expansion of the bill protection provision guards against the anomalous result in which vulnerable customers ineligible for default TOU, who nonetheless elect to participate in TOU, would be ineligible for a consumer protection afforded non-excluded customers. This expansion applies to all customers who opt-in to Default Rate 1 or 2, regardless of whether or not the tiered rate was their previous rate schedule. Bill protection will be calculated for these customers in the same manner as for customers who move from the tiered rate to Default Rate 1 or 2, meaning that, even if customers opt-in to Default Rate 1 or Default Rate 2 from a different TOU rate, SCE will compare the amount the customers paid on Default Rate 1 or 2 rate against the amount they would have paid on the tiered rate, not their former TOU rate. Bill Protection Revenue Shortfall SCE estimates a revenue shortfall of $10.5 million related to providing bill protection. These shortfalls will occur across generation and distribution revenues and will be recorded in SCE’s Base Revenue Requirement Balancing Account, which includes both generation and distribution sub-accounts. Generation revenue shortfalls will be recovered across all of SCE’s residential generation customers and distribution revenue shortfalls will be recovered across all of SCE’s residential distribution customers. In its protest, ORA requests more information on the projected revenue shortfalls associated with bill protection payments and load shifting, and the estimated cost savings resulting from load shifting. It its reply to ORA’s protest, SCE states that it provided estimates of revenue deficiency due to bill protection to the Working Group, of which ORA is a member. SCE also states that any revenue deficiency related to load shifting would be small. We find that SCE has provided sufficient documentation to support its projected revenue shortfall of $10.5 million. We also find that estimates of revenue shortfalls and/or cost savings due to load shifting can be better assessed after the results from the opt-in TOU pilots are in. Marketing, Education and Outreach
TOU. Per ALJ Ruling, bill protection shall be provided to any customer who opts-in to Default Rate 1 or 2, on or before the last day of the default pilot period. This expansion of the bill protection provision guards against the anomalous result in which vulnerable customers ineligible for default TOU, who nonetheless elect to participate in TOU, would be ineligible for a consumer protection afforded non-excluded customers. This expansion applies to all customers who opt-in to Default Rate 1 or 2, regardless of whether or not the tiered rate was their previous rate schedule. Bill protection will be calculated for these customers in the same manner as for customers who move from the tiered rate to Default Rate 1 or 2, meaning that, even if customers opt-in to Default Rate 1 or Default Rate 2 from a different TOU rate, SCE will compare the amount the customers paid on Default Rate 1 or 2 rate against the amount they would have paid on the tiered rate, not their former TOU rate. Bill Protection Revenue Shortfall SCE estimates a revenue shortfall of $10.5 million related to providing bill protection. These shortfalls will occur across generation and distribution revenues and will be recorded in SCE’s Base Revenue Requirement Balancing Account, which includes both generation and distribution sub-accounts. Generation revenue shortfalls will be recovered across all of SCE’s residential generation customers and distribution revenue shortfalls will be recovered across all of SCE’s residential distribution customers. In its protest, ORA requests more information on the projected revenue shortfalls associated with bill protection payments and load shifting, and the estimated cost savings resulting from load shifting. It its reply to ORA’s protest, SCE states that it provided estimates of revenue deficiency due to bill protection to the Working Group, of which ORA is a member. SCE also states that any revenue deficiency related to load shifting would be small. We find that SCE has provided sufficient documentation to support its projected revenue shortfall of $10.5 million. We also find that estimates of revenue shortfalls and/or cost savings due to load shifting can be better assessed after the results from the opt-in TOU pilots are in. Marketing, Education and Outreach
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