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Home My WebLink AboutLegislative Review Cmte - Oppose SCE 2015 App i � CITY OF PALM DESERT "'^ OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: APPROVE THE PALM DESERT LEGISLATIVE REVIEW COMMITTEE'S RECOMMENDATION TO PROVIDE A LETTER TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION OPPOSING SOUTHERN CALIFORNIA EDISON'S (SCE) 2015 GENERAL RATE CASE (GRC) PHASE 2 APPLICATION, A.14-06.014. SUBMITTED BY: Stephen Y. Aryan, Risk Manager DATE: August 28, 2014 CONTENTS: SCE Rate Case Correspondence (A.14-06.014) City Opposition Letter Recommendation By Minute Motion, authorize the Mayor to send a letter of opposition to the California Public Utilities Commission concerning SCE's 2015 General Rate Case Phase 2 Application (A14- 06.014). Committee Recommendation On July 11, 2014, the Palm Desert Legislative Review Committee recommended that the City Council approve an opposition letter for the proposed SCE 2015 General Rate Case (GRC) Phase 2 Application (A14-06.014). Back�round On June 20, 2014, Southern California Edison (SCE) filed an application with the California Public Utilities Commission (CPUC) to establish marginal costs, allocate revenues, design rates, and implement additional dynamic pricing rates. This application is referred to as SCE's 2015 General Rate Case (GRC) Phase 2 Application. Revenue changes will be determined in separate proceedings and will be taken into account before the CPUC concludes its review of this application. Included in this proceeding is SCE's proposal to establish a new method for assigning baseline allowances to all electric customers. This new methodology would result in single-family all electric residences receiving a higher baseline amount than multi-family all electric residences. SCE also requests approval to transition small and medium commercial and industrial customers, and large agricultural and pumping customers, to default "critical peak pricing" (CPP) rates. This may be avoided if customers choose to opt out. If the CPUC should approve total rates as requested in this application, SCE estimates that its Phase 1 request and other revenue requirement changes pending in other proceedings will result in an 11% system average rate increase relative to April 2014 rates. Staff Report Informational Staff Repot - PSAM in Palm Desert Sculptures August 28, 2014 Page 2 of 2 reviewed by City Council before being installed in the Faye Sarkowsky Memorial Gardens. Fiscal Analvsis As per the lease agreement, the City is responsible for costs associated with the transportation, installation, and removal of the sculptures. The City is also required to pay the Museum a onetime honorarium per sculpture. Appropriation of the funds needed to install and maintain these sculptures will be the subject of a future report and request for Council action. Submitted By: CITY COLTNCILAC'�',iON APPROVED � DF,NiFD , REC�IVED OTHER <'' � MECTING DATE 8'Z'a-1 Deborah L. Schwartz, Management Analyst AYES:$�r. r�ik,�p�eaet_ W�11acr, �tn►u,- NOF.S: ..�._, ... ABSF.NT: N�P Department Head: AI3STAIN: oj'`Q +— ~ VERIFIED RV� r rY� ��.��.. Original on File with City Clerk's Office Lauri Aylaian, Director of Communi Development Approval: ohn M. Wohlmuth, City Manager SUUTHERN GLIfORN1A Fg�ia Rafccdie Khour EDlSCJN� RECEIYED ScniorAltorncy y CITY CIER�K'S OFFtCE ��ia.Khouryascc.com M F.DlSON INTF.RNATIOIVAl.m Compa�y P A!M t��',��r, C A Z�1� JUN 27 PM 2: 35 June 25, 2014 Re: Southern California Edison Company's 2015 General Rate Case(GRC)Phase 2 Application, A.14-06-Q14 To Whom It May Concern: Pursuant to California Public Utilities Commission(CPUC}Rule 3.2(b), Southern California Edison Company(SCE)is providing notice that on June 20, 2014, SCE filed an application with the CPUC to establish rnarginal costs, allocate revenues, design rates, and impiement additional . dynamic pricing rates. This application is commonly referred to as SCE's 2015 General Rate Case (GRC)Phase 2 Application. SCE's application is described in general terms in the enclosed notice that will also be published in a newspaper of general circulation in every county within SCE's service territory,as well as included as a hill notice provided to every SCE customer. To obtain more detailed infonnation,you may view and/or dovmload a copy of SCE's filing and supporting testimony on our website,htto://www.sce.com/applications(type"A.14-06-014"or"2015 GRC Phase 2"into the Search box,and click"Go"). You may also request a printed copy of these documents from SCE at the address Iisted in the enclosed notice. Sincerely, /s/Fadia Rafeedie Khoury Fadia Rafeedie Khoury Enclosure P.O.Box S00 2244 Walnut Grove Ave. Rosemead,California 91170 iekphone(626)302-b008 Fax(626)302-6693 Los usuarios con acceso a!lnternet podr�n/eer y descargar ests no�csri6n en espano!en e/sitio Web de SCE www.sce.com/avisos o escriba s: Southem California Edison Company ' P.O.Box 800 2244 Walnut Grove Avenue Rosemead,CA 91770 AtencicSn:Comunicaciones Corporativas Para mes de�aNes en Esp�Ad.Rame�I t•800-44t-2233 Monday-Sunday 8:00 am_-8.�00 p.m. �l ��Op-!)13-1�09�'I'i� 1800�8A3�I3��►�01 1-800�628•3061�itEngYi{t i•BOD327•3Q31 Monday.-Fridey8:00e.m.-S:OOp.m. SOUTNERN CALIFORNtA � An EDISON INTERNATIONAL� Company SOUTHERN CAL,IFORNIA EDISON COMPANY(SCE) NOTICE OF PHASE 2 OF�SCE'S 2015 GENERAL RATE CASE (GRG� APPLICATION {A.)14-06-014 PROPOSAL TO REVISE ELECTRIC RA,TES On June 20,2014, Southern Califomia Edison Company(SCE}filed Application 14-06-Oi4 with the California Public Utilities Commission(CPUC)seeking approvai to revise rates for all of its customers. This application is part of the Commission's process#o establish costs,allocate revenues,and design rates for all customers. This filing is referred to as Phase 2 of SCE's 2015 General Rate Case(GRC}.This applica#ion will not increase or decrease overall revenues collected from SCE's customers.Revenve changes will be determined in separate proceedings and will be taken into account before the CPUC concludes its review of this application The rate design the Commission adopts in the Phase 2 proceeding will incorporate ihose revenue requirement changes. Included in this proceeding is SCE's proposal to establish a new method for assigning baseline allowances to a11-electric customers. This new methodology would result in single-family all- elechic residences re.ceiving a higher baseline amoemt than multi-family all-electric residences. SCE also requests appmval to hansition small and mediwn commercia!and industrial customers, and large agricultural and pumping customers,to default"critical peak pricing"(CPP)rates.This may be avoided if customers choose to opt out. CPP customers are charged a significantly Page 1 of 4 higher energy charge during twelve annual CPP cvent periods, but receive a lower rate for non- event period usage and/or demand. In Phase l of SCE's 2015 GRC(proceeding A.13-11-003),the Commission is cwrently reviewing SCE's requests for additional revenues needed to operate and maintain its electric generation and delivery systems. If the Commission shonld approve totai rates as requested in this Application,SCE estimates ihat its Phase 1 request and other revenue requirement changes pending in other proceedings will result in an 1 l% system average rate increase relative to Apri12014 rates. The Phase 2 revisions are estimated to change rates for customers in the fourth quarter of 2015. The following table compares SCE's April 2014 average rates, by customer group, to an estimate of proposed average rates if SCE's revenue allocation proposals in this Application are approved by the Commission: Customer Group Reven�e Imvact Z015 GRCPhase ZApplication Average Ra#es �,o sed Rates Pro sed Customer Group Apri12014 p° p° �� 0/kWh Change% Residential 15.3 16.7 2.4% Lighting-Small and Medium Power 17.2 16.8 -2.3% Laz e Power 12.3 12.I -l.5% A 'cultural and Pum in I3.5 14.4 6.2% Street and Area Li tin 18.0 18.8 4.6% Standb 10.4 l 0.5 1.3% TOTAL 15.6 15.6 0.2°/. The actual changes in rates will be determined by the Commission. For Further Information From SCE You may review a copy of this Application and related exhibits at SCE's corporate headquarters Page 2 of4 (2244 Walnut Grove Avenue,Rosemead,CA 9 t 770). You may also view these materials at the following SCE business n�ces: 1 Pebbly Beach Rd. 1820 Rimrock Rd. 374 Lagoon St. Avalon,CA 90704 Barstow,CA 9231 l Bishop, CA 93514 SUS W. 14'h Ave. 3001 Chateau Rd. 510 S.China Lake Blvd. Blythe,CA 92225 1'viamrnoth Lakes,CA 93546 Ridgecrest,CA 93555 26364 Pine Ave. 41694 Dinkey Creek Rd. 421 W. 3 St. Rimforest, CA 92378 Shaver Lake, CA 93664 Tehachapi, CA 9356I 120 Woodland Dr. 6999 Oid Woman Springs Rd. Wofford Heights,CA Yucca Vailey, CA 92284 93285 Customers with Intemet access may view and download SCE's application and the papers supporting it on SCE's website,www.sce.com/aaalications(type A.14-06-014 into the Search box and ciick"Go"). A,nyone who would like to obtain more information about the application, please write to: Southern California Edison Company 2015 GRC Phase 2 Proceeding P.O.Box 800 Rosemead,CA 91770 Attention: Russell Garwacki CPUC PROCESS The CPUC will evaluate and determine SCE's 2015 GRC Phase 2 proposals through its administrative law process where the proceeding is assigned to an Administrative Law Judge (Judge)who will direct the method in which the record,upon which the Commission bases its d+ecisions,is made. The Judge may hold evidentiary hearings where parties to the proceeding pmvide testimony and other parties may cross-examine them. These hearings are open to the public,but only formal parties of record may participate. After considering all proposals and evidence presented,the assigned)udge will issue a pmposed decision. The Commissioners may Page 3 of 4 approve the proposed decision as written,modify it,approve another proposal wririen by a Commissioner or completely deny SCE's request. The CPUC also would like to hear from you. You may submit informal comments to the CPUC's Public Advisor's Office at: Write: California Public Utilities Commission Public Advisor's Office 505 Van Ness Avenue San Francisco,CA 94102 E-mail: Pablic.Advisor��cpuc.ca.�ov Telephone: i-866-849-8390(toil-free)or 1-015-703-2074 1-866-836-7825(tolt-freej or TTY 1-415-703-5282 Please state that you are writing concerning SCE's application A.14-06-014. Your comments will become a part of the formal correspandence file for public comment in this proceeding. You may also contact the CPUC Public Advisor's Office if you need advice on how to participate in this proceeding. June 2014 Paga 4 of 4 August 28, 2014 Mr. Michael R. Peevey, President California Public Utilities Commission c/o Public Advisor's Office 505 Van Ness Avenue San Francisco, CA 94102 Subject: SCE's 2015 GRC Phase 2 Application Dear President Peevey: On June 20, 2014, Southern California Edison (SCE) filed an application with the California Public Utilities Commission (CPUC) to establish marginal costs, allocate revenues, design rates, and implement additional dynamic pricing rates. This application is referred to as SCE's 2015 General Rate Case (GRC) Phase 2 Application. The City of Palm Desert is opposed to any electrical rate increase at this time. Any rate increase would unreasonably impact our residents and businesses. As a hot desert climate, SCE customers in the Coachella Valley are at an unfair disadvantage over those in cooler climates; especially given that May and October are considered winter baseline months and temperatures can reach triple digits during this period. Please feel free to contact us should you wish to discuss this matter further. Thank you for your consideration and the opportunity to provide our comments in opposition to this application. Sincerely, VAN G. TANNER MAYOR cc: City Council Jennifer Cusack, Southern California Edison, jennifer.cusack(a�sce.com Anthony Gonsalves, Gonsalves and Sons, gonsalves(a�qonsalvi.com John M. Wohlmuth, City Manager David J. Erwin, City Attorney Stephen Y. Aryan, Risk Manager Rudy Acosta, Assistant City Manager Paul S. Gibson, Director of Finance Frankie Riddle, Director of Special Programs