Calif. Draft Would Mandate Dynamic Pricing for SDG&E Small Non-Residential Customers in 2013

A California PUC proposed decision would order that mandatory dynamic pricing for small non-residential bundled service customers at San Diego Gas & Electric shall begin on November 1, 2013.

Specifically, the draft would require SDG&E to implement default Time of Day rates for its small non-residential and agricultural customers on November 1, 2013. After implementation of default Time of Day rates, these customers will not be able to opt-out to a flat rate.

In addition, the draft would require SDG&E to implement an optional Time of Day with Critical Peak Pricing rate (known as Peak Shift at Work, or PSW) for these non-residential classes in November 2013.

Beginning on November 1, 2015, small non-residential customers at SDG&E would be subject to default Time of Day with Critical Peak Pricing (PSW) rates, but would retain the ability to opt-out to Time of Day rates without a Critical Peak Pricing component.

For residential customers, the draft would require SDG&E to implement optional Time of Day rates and optional Time of Day with Critical Peak Pricing rates (Peak Shift at Home, or PSH) in November 2013.

The specific rate design for both the residential and non-residential dynamic rate structures would be determined later in Proceeding A.11-10-002.

The draft order would require that the costs of implementing SDG&E's dynamic pricing programs shall be recovered from all bundled service customers, and only bundled service customers, through generation rather than distribution rates.

The costs would be bypassable for customers on direct access or community choice aggregation.

"We are persuaded by the arguments of the Direct Access Parties that requiring the customers of CCAs and ESPs, who cannot enroll in SDG&E's dynamic pricing tariffs, to pay the costs of implementing those tariffs, is not consistent with cost causation principles, and would not be reasonable," the draft finds.

Docket: A.10-07-009