Subject: Synopsis of (Ag) Food Processors Rate Design Proposal


CLFP proposes the following changes to medium and large commercial and industrial customer tariffs for electric service provided by Pacific Gas and Electric Company and Southern California Edison Company.
CLFP proposes the Commission establish an optional summer on-peak, peak period consisting of a continuous 3-hour period during the current summer on-peak period for both utilities.
The 3-hour period would be selected by the customer.
Specifically:   Service Eligibility:  Customers served as medium or large commercial/industrial customers on time-of-use rates and metered accordingly.
Examples - PG&E's E-19, E-20, etc.
and SCE's TOU-8, etc.
Customer Eligibility:  Electric customers processing, handling, distributing or processing perishable food and agriculture products.
(As noted below, since no revenue shift occurs within the class, the Commission may consider opening the option to others.)
Customer Charge Surcharge:  A surcharge of $130 per meter per month for the initial summer period (2001) to offset the utilities cost for changes to billing procedures.
In the case of optimal billing period service customers the surcharge shall correspond with such billing period.
Optional Summer On-Peak Period:  Any continuous 3-hour period during the summer-on-peak period of time.
Hours may be designated by the customer consistent with metering capabilities of the customer or changes to metering capability.
The reason for designation by the food processor or agriculture commodity processing customer is in order to take into account the many factors involved in load shedding.
Labor, harvesting schedules and coordination with growers, delivery schedules, inspection activity, etc.
All bear upon such an effort.
Rate for Optional Summer-On-Peak Period Service:  Energy rates for the 3-hour period would be two times the otherwise applicable charge for summer-on-peak energy.
The other 3 hours of the 6-hour on-peak period would be billed at the non-peak rate and equalized for rate/revenue neutrality.
In the event partial peak periods are retained, the rate for the non-optioned 3-hour period during the on-peak period would be adjusted to retain revenue neutrality.
These rates would apply, as now, workdays of Monday - Friday.
Notice and Service:  An eligible customer must notify the utility in writing, by fax, email, or hand delivered, to both the appropriate account representative and the customer billing department of the request for optional summer-on-peak period service.
The 3-hour period of optional service and the start date for such service shall be specified.
Start dates should coincide with billing cycles, with a minimum of seven days notice prior to such cycle.
Optional optimal billing period customers would be treated accordingly, except as currently provided, a two-day advance notice.
Implementation Issues - TOU Meters and Billing.
It appears the number of customer meters and billing changes potentially required by optional summer on-peak period service is relatively small compared to the total number of meters of the utilities.
In response to CLFP's data request by PG&E and SCE (attached) the following is observed.
For SCE, SIC 20 (food and kindred products) customers account for approximately 163 meters out of about 10,000 meters.
Of the 163, all but 8 can be managed locally by the Customer Data Acquisition System.
The 8 would appear to require a field visit.
For PG&E, out of 11,675 TOU meters on E-19 and E-20 service, 354 or 3% of the total are SIC 20.
Of the 354 nearly half, 175, are hourly interval meters.
The remaining 179 presumably would need a field visit for reprogramming.
Conclusion:  Based upon the data supplied, metering and billing changes required by an optional summer on-peak period program for processors of perishable commodities, there does not seem, in CLFP's opinion, to be a significant barrier to establishing the program.