QUESTION 1: - SoCalGas



QUESTION 1:

Referring to p. 80 of 90 of the workpapers for the updated prepared testimony of Jason Bonnett on behalf of SDG&E (dated September 18, 2012):

a. Please explain how the monthly average of 45 therms was determined for November-April. Please provide the supporting calculations in an Excel spreadsheet, with all formulae intact.

b. Please explain how the monthly average of 21 therms was determined for May –October. Please provide the supporting calculations in an Excel spreadsheet, with all formulae intact.

c. Assuming the average residential average reported for each month, how many non-CARE residential customers were billed for usage above that average in each month? How many non-CARE residential customers were billed for usage below that average in each month?

d. For each month, what is the median usage level? What is the median usage level for the year?

e. How many SDG&E non-CARE residential customers use less than 35 therms per month in the November-April period?

f. Assume an SDG&E non-CARE residential customer uses 35 therms during a month in the November-April period. Please calculate how the customer charge would impact the bill as compared to not having a customer charge, all else equal. If the calculation merely requires changing the 45 therm value in row 49 of the table on p. 80 of 90 of the workpapers, please so indicate. If other changes to that table are required in order to calculate the impact, please describe each such change.

RESPONSE 1:

a. The figures are based on an historical annual average of 33 therms/month.  However, this usage is not constant throughout the entire year and there are different baseline rate usage thresholds that change between winter and summer months. Therefore, the annual average of 33 therms/month must be converted into winter and summer monthly usage levels that will average to 33 therms/month for an entire year. Based on historical data, residential customer winter usage is approximately 2.2 times greater than summer usage.  In order to achieve 33 therms/month for the average of the year, and, given that winter usage is 2.2 times greater than summer usage, the usage in the winter months is 45 therms/month and the usage in the summer months is 21 therms/month. Please see attached spreadsheet for calculations of the annual average therms/month and the winter/summer difference.

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b. Please see response to part a, above.

c. See table below for response.

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d. The median usage level for each month is shown below. SDG&E notes that the average therms are based on weather normalized data and the median usage is based on actual data for the particular month.

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e. The number of non-CARE residential customers who use less than 35 therms per month during November – April is shown below.

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f. In order to perform the requested calculation the usage amount found on row 24 of the table on page 80 of Mr. Bonnett’s workpapers must be changed to the desired level. When this is accomplished the bill impact results at 35 therms/month during the months of November – April are as follows:

Monthly bill w/o customer charge - $32.31

Monthly bill w/ customer charge - $32.03

Bill Impact ($ 0.28)

QUESTION 2:

Is SDG&E proposing to have the customer charge for SDG&E residential customers apply to CARE customers as well? If so, please identify where this proposal is discussed in SDG&E’s prepared testimony, or where supporting calculations appear in the SDG&E workpapers. Also, please explain whether SDG&E proposes any differences in the customer charge proposal as applicable to its CARE customers, and describe each such difference in detail.

a. If SDG&E is proposing to have a customer charge for its CARE customers, please prepare a table similar to the table at page 80 of 90 of the workpapers for the updated prepared testimony of Jason Bonnett on behalf of SDG&E (dated September 18, 2012) that reflects the rates applicable to CARE customers.

b. What is the average consumption level for SDG&E CARE customers? How many CARE customers were billed for usage above that average? How many CARE customers were billed for usage below that average?

c. For each month, what is the median usage level for CARE customers? What is the median usage level for the year for CARE customers?

d. How many SDG&E CARE customers use less than 35 therms per month in the November-April period?

e. Assume an SDG&E CARE customer uses 35 therms during a month in the November-April period. Please calculate how the customer charge would impact the bill as compared to not having a customer charge, all else equal.

f. Please provide a table similar to the table appearing at p. 80 of 90 of the workpapers, but reflecting the customer charge proposal for SDG&E CARE customers. Please provide the table in Excel format with all formulae intact.

RESPONSE 2:

Yes, SDG&E is proposing a customer charge for all residential customers, CARE customers included. The residential customer charge is discussed in Mr. Bonnett’s Updated Prepared Direct Testimony dated September 18, 2012, beginning on page 3. Additionally, SDG&E tariff schedule G-CARE states that “the qualified customer will receive a 20% CARE discount on all customer, commodity, and transportation charges on their otherwise applicable service schedule”. Thus, residential customers who qualify for CARE rates will see a 20% discount on any customer charge.

a. See attached.

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b. As discussed in the supplemental direct testimony of Mr. Bonnett the average consumption level used for an SDG&E CARE customer was 25 therms. See table below for the number of customers billed either above or below that amount.

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c. The median usage level for each month is shown below. SDG&E notes that the average therms are based on weather normalized data and the median usage is based on actual data for a particular month.

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d. For the number of CARE residential customers that use less than 35 therms per month during the months of November – April are shown below.

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e. The bill impact results are as follows:

Monthly bill w/o customer charge - $22.85

Monthly bill w/ customer charge - $22.80

Bill Impact ($ 0.05)

f. Please see response to part a, above.

QUESTION 3:

Referring to Table 2 of Updated Bonnett Testimony of 9/18/2012 for SDG&E: If there is no customer charge approved for SDG&E’s residential customers, would the Baseline and Non-Baseline rates be the $0.55599 and $0.70083 figures, respectively, found on the table at page 81 of 90 in the updated Bonnett Testimony workpapers? If not, please calculate the Baseline and Non-Baseline rates assuming there is no customer charge for SDG&E’s residential customers. Please provide the calculations in Excel format with all formulae intact.

RESPONSE 3:

No. The figures cited above are SDG&E’s 2012 residential baseline and non-baseline rate including the California Solar Water Heating Initiative (CSITMA). Assuming all of SoCalGas’ and SDG&E’s proposals proposed in A.11-11-002 are approved except SDG&E’s proposed customer charge then the SDG&E residential baseline/non-baseline rate including the CSITMA would be as follows:

Baseline: $0.63373

Non-Baseline: $0.78636

These values are found on the table at page 80 of 90 in Mr. Bonnett’s workpapers.

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QUESTION 4:

In the table “SDGEgas Residential Bill Impact” at page 80 of 90 in the updated Bonnett Testimony workpapers, under the heading “Proposed Rates (w/customer chg.)”, the baseline rate is listed as $0.43309, and the non-baseline rate is listed as $0.69309. Please explain the differences between these rates on this table and the $0.42888 baseline and $0.68888 non-baseline rates in Table 2 of the updated Bonnett testimony and Table 2 of the workpapers.

RESPONSE 4:

The rates found in the table “SDGEgas Residential Bill Impact” at page 80 includes the CSITMA fee of $0.00421/therm. That table shows the total residential customer impact and shows such fees as PPPS, commodity, CSITMA, and regulatory fee. Whereas, the discussion of Table 2 of Mr. Bonnett’s Updated Prepared Direct Testimony dated September 18, 2012 was only discussing the baseline rate with/without the monthly customer charge. However, both sets of figures are included in Appendix A, table 2, lines 5, 6, and 14 - 16 of Mr. Bonnett’s Updated Prepared Direct Testimony.

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