HomeMy WebLinkAbout49-City Administrator
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Deci s ion
86 09 042
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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of General Telephone )
Company of California, a corporation, )
for authority to increase certain )
intrastate rates and charges for )
telephone service. )
)
)
Investigation on the Commission's )
own motion into the rates, tolls, )
rules, charges, operations, costs, )
separations, practices, contracts, )
service, and facilities of GENERAL )
TELEPHONE COMPANY OF CALIFORNIA, )
a California corporation; and of all )
the telephone corporations listed in )
Appendix A, attached hereto. )
)
Application 83-07-02
(Filed July 1, 1983)
on 83-08-02
(Filed August 3, 1983)
ORDER MODIFYING DECISION (D.) 86-04-020
AND DENYING REHEARING
A petition for rehearing of D.86-04-020 has been filed by
Toward Utility Rate Normalization (TURN). we.have carefully
considered all the allegations raised in the petition and are of
the opinion that rehearing should be denied but that the decision
should be modified in several respects.
We have further reviewed our policy regarding
compensation for travel time and are of the opinion that TURN
should be granted ~ compensation for travel time, which was
reasonable and necessary to its participation. We have determined
that a reasonable accounting for travel hours in this case is to
include reasonable and necessary travel time at one-half the
regular hourly rate approved. (See Ryan v. Raytheon Data
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Systems Co., 601 F.Supp. 243, 256 (D.Mass. 1985); Maceira v.
Pagan, 698 F.2d 38, 40-41 (1st Cir. 1983); Miles v. Sampson,
675 F.2d 5, 9 (lst Cir. 1981); Furtado v. Bishop, 635 F.2d 915,
918 (1st Cir. 1980). In addition, as provided below, the
Commission will consider a request by TURN for compensation at the
full hourly rate for travel time that was spent working on issues
for which compensation has been granted.
We also wish to articulate our general policy with
respect to travel time, to be applied in the future. In
formulating this policy, we consider the fact that travel time can
be divided into two distinct categories, distinguished by whether
the potential exists for the time spent traveling to be used
simultaneously as productive working time. We recognize that, due
to the realities of travel, some of the time spent traveling lacks
the potential to be used as productive working time. We have
determined that this time, which cannot be used as productive
working time, is compensable at a maximum of one-half the normal
hourly rate approved, upon a showing that the time claimed was
reasonable and that this time could not have been used to work on
any issues in the case. The efficiency of the mode of
transportation used will be considered in evaluating the
reasonableness of the time claimed. We stress that compensation
for this "purely" travel time is to be narrowly limited to time in
which applicant is unable to work due to considerations related to
the practicalities of traveling. We also emphasize that the
burden is on applicants to provide the required showing.
A second category of travel time is time which is
potentially productive. We have determined that this time is
compensable only if a detailed showing is provided by applicant to
demonstrate that the time was reasonable and that it was used to
work on issues for which compensation is ultimately granted by the
Commission. Compensation may be granted for these hours, upon a
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proper showing, at a rate up to 100% of the claimed hours, in a
manner consistent with our general rules for intervenor fee
awards. In presenting a Claim for such hours, applicants should
include the requisite showing within the category of hours spent
working on the specific issue for which a claim is made, rather
than within the category of travel time.
Applicants seeking compensation for time spent traveling
must file their requests for compensation in accord with these
guidelines or face a substantial risk that their claims will be
disallowed.
IT IS HEREBY ORDERED:
1. Finding of Fact No.6 is modified by deleting the second
sentence.
2. Finding of Fact No. 7 is added to state:
"The following is adopted for the instant case:
compensation shall be allowed for necessary
and reasonable travel time at one-half the
regular hourly rate approved, in addition to
reimbursement for the actual costs of travel.
The Commission shall consider any request by
TURN for compensation at the full hourly rate
for travel time that was spent working on the
issues for which compensation is granted."
3. Conclusion of Law No.3 is modified to state:
"TURN has made a substantial contribution under
Article 18.6, Rule 76.26, on the issues listed
in the above findings of fact and, absent a
showing as to what proportion of the travel
time was spent in working on issues for which
compensation is granted, is entitled to
compensation of $5,570.22 from General less
compensation at one-half the attorney's regular
hourly rate for reasonable travel time."
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4. Conclusion of Law No.4 is added to state:
"A reasonable accounting for travel hours for
TURN in this case is to include necessary and
reasonable travel time at one-half the regular
hourly rate approved."
5. Ordering Paragraph No.1 is modified by revising the
first and second sentences to state as follows:
"I. Toward Utility Rate Normalization
(TUR~) shall file a verification of the time
spent traveling that was previously included
within the 26.5 hours of "GENERAL HOURS" and a
verification of the travel time that was
spent working on the issues for which
compensation is granted. The compensation
award shall be reduced by the product of the
reported travel time (not spent working on
the issues for which compensation is
granted) and one-half the hourly attorney's
fee. The Commission shall consider any
request by TURN for compensation at the full
hourly rate for travel time that was spent
working on the issues for which compensation
is granted."
6. Ordering Paragraph No.2 is modified to state:
"2. Within 30 days of the fina~
determination in this matter, General Telephone
Company of California shall pay TURN $5,570.22
less the appropriate reduction for travel time,
as provided herein, for TURN's participation in
the 1986 attrition phase of these proceedings."
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denied.
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IT IS FURTHER ORDERED:
Rehearing of 0.86-04-020, as modified herein, is
This order is effective today.
Dated SEP 171986 , at San Francisco, California.
['ON';LD VIAL
Preaident
\~:ToR CAL.VO
f'11I5C1lLA C. GREW
FI~EDr:RICK R. OUDA
;;;'1 AI.:..EY W, HULEiT
Commislloner.
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BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE
STATE OF CALIFORNIA
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SOUTHERN CALIFORNIA GAS COMPANY
NOTICE TO CUSTOMERS OF FILING OF APPLICATION
AND PUBLIC HEARING
IN APPLICATION NO. 86-09-030 and
APPLICATION NO. 86-09-029
The California Public Utilities commission (Commission) will hold
public hearings on the request of Southern California Gas Company (SoCalGas) to
increase its rates effective January 1, 1987. The requested rate increase is
made up of several elements. First, Application No. 86-09-030, filed September
19,' 1986, requests Commission approval to increase rates by $304.3 million in the
November 1986 Consolidated Adjustment Mechanism (CAM). In addition, SoCalGas
seeks recovery of $9.7 million it expects to be billed during the forecast period
by El Paso Natural Gas Company. Application No. 86-09-030 reflects changes in
the cost of gas to be purchased by SoCalGas and gas costs already incurred by
SoCalGas, but not yet recovered in rates.
Second, SoCalGas filed on September 19, 1986, Application,No. 86-09-029
requesting a reduction in rates of $53.4 million to be effective January 1, 1987.
This is pursuant to the Commission authorized Conservation Cost Adjustment
Mechanism and reflects lower costs associated with previously-authorized
conservation programs.
Third, SoCalGas filed Advice Letter No. 1653 on September 19, 1986,
requesting an increase in rates of $27.9 million as an attrition allowance
effective January 1, 1987. In turn, SoCalGas will reduce the balancing account
in 1986 by $15.3 million to reflect reduction in return on equity for .1986. An
attrition allowance adjustment is authorized by Commission Decision No. 85-12-076
to offset the effect of inflation and other economic factors on the utility's
cost of doing business between general rate cases.
SoCalGas is requesting that the CAM increase be made effective on
January 1, 1987, rather than its normal revision date of November 1, 1986 in
order to make all of these rate changes simultaneously to avoid multiple rate
changes within a short time period. The combined effect of these rate changes
would be a net increase in rates of $277.9 million.
SoCalGas has under recovered revenues because some large customers
capable of burning oil have switched from gas to oil due to low oil prices. In
addition, dramatically lower oil prices have meant SoCalGas had to drastically
lower gas prices to retain these customers. When oil prices (and corresponding
gas rates) were higher, the revenue from these large customers could subsidize a
larger portion of the costs of providing service to residential customers.
Although gas prices are lower than they used to be, they are not low enough to
allow us to sell gas at a price competitive with oil and still recover adequate
revenue from large customers to subsidize residential customers to the same
extent as before.
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SoCalGas is requesting the net rate increase be recovered by increasing
the monthly residential customer charge to $6.30 from the current $3.10, to more
nearly cover the cost of providing service to residential customers. SoCalGas
has also requested a reduction in the residential baseline allowances in
accordance with the baseline statute. The revised monthly baseline allowances
would be: Summer-19 therms for all climate zones; Winter-Climate Zone 1: 55
therms; Climate Zone 2: 72 therms; Climate Zone 3: 95 therms. No change in
residential commodity rates is proposed.
The effect of the proposed rate adjustment would increase the annual
monthly average single family residential customer's bill from $27.84 to $36.46.
Pursuant to Commission-set rate design formula, SoCalGas has also
proposed to reduce rates to wholesale customers by $4.1 million. This reduction
of wholesale revenues means a corresponding increase in retail revenue
requirements.
If SoCalGas' request is approved by the Commission as proposed, the
impact on various customer classes will be as follows:
Class of Service
M$
Increase
(Decrease)
%
Increase
(Decrease)
Residential
Commercial/Industrial
Wholesale
282,688
(716)
(4,058)
19.308
(0.062)
(1. 308)
Tota 1
277 ,914
7.868
The actual rates adopted by the Commission could differ significantly
from those requested by SoCalGas and may result in an increase or decrease in
your individual rates.
The public hearing date listed below gives customers an opportunity to
express their views to the commission. You may submit written comments or make a
brief oral statement at these hearings.
DATE AND LOCATION OF PUBLIC HEARING
IN CAM APPLICATION NUMBER 86-09-030 AND
CCA APPLICATION NUMBER 86-09-029 BEFORE
THE CALIFORNIA PUBLIC UTILITIES COMMISSION
Wednesday, October 22, 1986
at 10:30 a.m.
State Office Building
107 South Broadway
Los Angeles, California 90012
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The Commission welcomes your comments. If you cannot attend these
hearings, you may submit written comments to the commission at one of the
addresses listed below. Simply state that you are writing about Application
Nos. 86-09-030 and 86-09-029 of Southern California Gas Company.
Places of hearing are accessible to the handicapped. A copy of
SoCalGas' application may be inspected in its local business offices or at its
headquarters or at the Commission offices located at the addresses listed below.
Additional hearings days will be devoted to analyzing the need for the
required rate increase and ways of allocating any approved increases among
residential, commercial/industrial, wholesale and utility electric generation
customers. At these hearings the Commission will receive testimony of SoCalGas,
and the testimony of other interested parties, and the Commission Staff. The
Commission staff consists of engineers, accountants, economists and attorneys who
independently evaluate the proposals of utilities and present their analyses and
recommendations to the Commission at public hearings.
If you would like to participate in these proceedings and need advice
on how to do so write to the Public Advisor, California Public Utilities
Commission, 505 Van Ness Avenue, San Francisco, CA, 94102.
Further information may be obtained from SoCalGas at its headquarters
at 810 South Flower Street, Los Angeles, CA, 90017, its local business offices,
or from the Commission offices at:
505 Van Ness Avenue
San Francisco, CA 94102
or
107 South Broadway, Room 5109
Los Angeles, CA 90012
Any interested party in the above application and related exhibits will
be furnished a copy upon written request to:
Frederick E. John, Vice President
Regulatory Affairs
Southern California Gas Company
P. O. Box 3249, Terminal Annex
Los Angeles, CA 90051