indicated that SDG&E’s proposed rate design will limit participation, we adopt monthly fees based on wattage as CALSLA proposes, not on a fixed charge per lamp as SDG&E proposes. A wattage-based rate will enable cities with lower-wattage lamps to participate and will provide customers with higher-wattage lamps motivation to implement conservation strategies for their streetlights. We do adopt the SDG&E proposed $8,000/city up-front participation payment, and find $2.3 million a reasonable estimate for start-up implementation costs. We direct SDG&E to implement the dimmable streetlight rate option, as modified above, as soon as practicable following the issuance of a final CPUC decision. While it is unclear whether CALSLA’s proposed wattage-based rates, in combination with the up-front per city payment, will adequately collect the revenue allocated to the streetlighting customer class, a key component of SDG&E’s dimmable rate proposal is the inclusion of a memorandum account, which will record the implementation and ongoing maintenance costs of the rate program and revenue shortfall. The proposed memorandum account provides a financial safety valve and allows the true costs of the dimmable rate program to be monitored with the reasonableness of program costs in excess of $2.3 million and any revenue under or over-recovery from the new rate design addressed in future rate proceedings. Adopting a memorandum account ensures that the costs to implement the program that exceed the authorized start-up costs are reviewed for reasonableness and there is no revenue under or over-collection as a result of adopting wattage-based rate design for dimmable streetlights. Ancillary Device Rate Option In order to effectively control dimmable streetlights, these installations are operated by control modules installed on streetlight poles that are capable of
indicated that SDG&E’s proposed rate design will limit participation, we adopt monthly fees based on wattage as CALSLA proposes, not on a fixed charge per lamp as SDG&E proposes. A wattage-based rate will enable cities with lower-wattage lamps to participate and will provide customers with higher-wattage lamps motivation to implement conservation strategies for their streetlights. We do adopt the SDG&E proposed $8,000/city up-front participation payment, and find $2.3 million a reasonable estimate for start-up implementation costs. We direct SDG&E to implement the dimmable streetlight rate option, as modified above, as soon as practicable following the issuance of a final CPUC decision. While it is unclear whether CALSLA’s proposed wattage-based rates, in combination with the up-front per city payment, will adequately collect the revenue allocated to the streetlighting customer class, a key component of SDG&E’s dimmable rate proposal is the inclusion of a memorandum account, which will record the implementation and ongoing maintenance costs of the rate program and revenue shortfall. The proposed memorandum account provides a financial safety valve and allows the true costs of the dimmable rate program to be monitored with the reasonableness of program costs in excess of $2.3 million and any revenue under or over-recovery from the new rate design addressed in future rate proceedings. Adopting a memorandum account ensures that the costs to implement the program that exceed the authorized start-up costs are reviewed for reasonableness and there is no revenue under or over-collection as a result of adopting wattage-based rate design for dimmable streetlights. Ancillary Device Rate Option In order to effectively control dimmable streetlights, these installations are operated by control modules installed on streetlight poles that are capable of
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