California Public Utilities Commission Residential Rate Structure Rulemaking R.12-06-013

Workshop Overview

Time Variant Pricing (TVP) Workshop

Gabe Petlin

Analyst, Retail Rate Design Section

Energy DivisionJuly 30-31, 2014

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Time-Variant Pricing Workshop Objectives

Day 1:

Identify available factual data for the assessment of best practices and lessons learned in TVP rates in the areas of:

• rate design and program implementation• load impacts (coincident and non-coincident)• bill impacts (including low-income and mainstream customers)• evaluation, measurement and verification (EMV)• pilot programs, and the use of technology.

Day 2:

(a) Identify best practices & lessons learned from other TVP marketing, education & outreach (ME&O) programs;

(b) Discuss California Investor Owned Utility (IOU) ME&O plans and identify any stakeholder concerns and gaps in the IOU proposals.

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Defining Time-Variant Pricing

AB 327 (Sec. 745a) defines “time-variant pricing” to include:

• Time-of-use (TOU) rates

• Critical peak pricing (CPP), and

• Real-time pricing (RTP)

• For purposes of this workshop, TOU will be the primary focus with consideration of CPP when appropriate.  RTP is beyond the scope of this workshop.

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AB 327 Rules on Time-Variant Pricing

• Allows, but does not require, default TOU rates beginning January 1, 2018

• The Commission may authorize the utilities to offer optional TVP rates and other demand-response programs

• Allows residential customers to opt out of default TOU onto to a non-time-variant rate having at least two tiers.

• Requires consent from medical baseline and third-party notification customers before defaulting to TOU

• The Commission shall ensure that any TOU rate does not cause unreasonable hardship for senior citizens or economically vulnerable customers in hot climate zones

• Requires that customers receive one year of interval data before being placed on a default TOU rate and one year of bill protection thereafter.

• Requires that the utilities provide, yearly, a summary of available tariff options and expected annual bill impacts of each of these tariffs.

• The Commission shall strive for TOU rate schedules that utilize time periods that are appropriate for at least five years

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R.12-06-013 Proceeding Schedule

February 2014 – IOUs Rate Design Proposals and Road Maps for 2015-2018 Served

March 2014 – Supplemental IOU Testimony Served

April 2014 – Third Amended Scoping Ruling and ACR Issued

May 2014 – Corrected Staff Proposal on Residential Rate Reform Served

May and June 2014 – Additional Supplemental and Optional IOU Testimony Served

June 2014 – Summer Rate Relief Settlement Proposals Approved by Commission

July 2014 – TVP Workshop

September 2014 – Intervener Testimony Served

September & October 2014 – Public Participation Hearings

October 2014 – Rebuttal Testimony Served

November 2014 – Evidentiary Hearings

December 2014 - Opening and Reply Briefs

March 2015 – Proposed Decision Issued

Summer 2015 – If approved new rates to take effect