California PUC Posts Proposed Decision on Allowing Small Business Customers to Opt-Out of TOU Rates

A California PUC proposed decision would deny Pacific Gas & Electric's request to provide certain small non-residential customer classes with the ability to opt for a flat rate in lieu of mandatory Time of Use (TOU) rates (A. 09-02-022).

Previously, the PUC had established a deadline of November 2012 for transitioning small and medium business customers to mandatory TOU rates, and March 2013 for transitioning small and medium agricultural customer to mandatory TOU rates.

PG&E had filed a petition requesting that the PUC modify the Commission's prior decision such that, while the cited customer classes are defaulted to TOU rates on the dates noted above, such customers are given the ability to opt-out of the TOU rate, in favor of the previous flat rate.

"[R]ecent events have underscored the importance of choice for customers," PG&E said in its petition for modification.

"PG&E believes the change requested is necessary in order to offer customers meaningful choice which is both desired by customers and will engage them more fully," PG&E said.

However, the proposed decision would deny this request, stating that, "PG&E has not provided factual support for any of the assertions in its Petition or in the attached Declarations, so we cannot find that PG&E should be granted the relief it seeks."

"Indeed, the factual information that PG&E does cite provides support for continuing with our current approach to making the transition to TOU rates mandatory for PG&E's SMB and agricultural customers," the draft order states, citing PG&E's "Analysis of Most Impact In Transition To TOU," which showed that that less than 5 percent of small and medium business customers would see much of an increase in their bills due to the transition.

"We are asked here to address a scenario where PG&E speculates about possible customer reactions to events that are unlikely to materialize. Given that the actual factual message around the impending roll-out of mandatory TOU appears to be that most customers will be unaffected, we see no reason to act today to enable PG&E to dilute that message by offering customers the option of opting out of a rate that will not affect them," the draft states.