Revised Proposed Decision Issued in SDG&E 2022 ERRA Forecast
The ALJ issued a revised proposed decision ("PD") to include clarifying revisions as recommended by comments filed by SDCP, CEA, and SDG&E. Overall, the approved application will result in a 4.94% increase over current system average bundled rates, an increase to GTSR rate components, and a decrease to PCIA rates. In addition, the Commission requires SDG&E to include certain workpapers and a quality control attestation in in subsequent ERRA Forecast Applications. A Commission vote is expected December 16, and rates will go into effect January 1.
The rate adjustments adopted in the PD are comprised of the rate effects of the original 2022 ERRA Forecast filing in A.21-04-010, the 2021 November Update, and the rate effects of the 2021 ERRA Trigger. Higher-than-forecast market prices resulted in an undercollection in the ERRA Balancing Accounts causing ERRA Triggers for SDG&E and SCE, the collection of which results in higher bundled charges for 2022.
Bundled Rates
SDG&E projected a combined total revenue requirement decrease of $297,553,000 compared to the currently effective rates. In total, these changes would increase the current system average bundled rate by 1.382 cents per kilowatt hour, or 4.93%.
Based on these numbers, SDG&E projects that a typical bundled non-CARE residential customer using 425 kilowatt hours could see a monthly bill increase of 1.17%, or $1.59. SDG&E projects that a typical bundled CARE residential customer using 425 kilowatt hours could see a monthly bill increase of 1.17%, or $1.04.
Table 1
PCIA
Increased market prices resulted in an overall decrease to PCIA rates:
GTSR
In its Application, SDG&E requested to recover an approximate $2 million under-collection accrued from GTSR customers in 2018 and 2019. SDG&E also proposed to recover this entire under-collection in 2022. However, in its November Update, SDG&E presented an alternative “amortization of the 2018 and 2019 [GTSR balancing account (“GTSRBA”)] through the Renewable Power Rate over 21 months, with a delayed implementation date of April 1, 2022.
The CCA Parties objected to a late change proposed by SDG&E because there is a real possibility that SDG&E may request permission to suspend the program. The Commission agreed with the CCA Parties that both the indifference standard and the lateness of the proposal in the November Update justify denying SDG&E’s proposal.
