1
DRAFT
Revenue Allocation and Rate
Design
2nd Workshop for Expected Parties to PG&E’s
2014 GRC Phase 2 Filing
DRAFT
July 18th , 2012
DRAFT
Workshop Agenda
2
Topic
Presenter
Time
1 Welcome and Introductions
Mareijke Weidemann
10 minutes
2 Marginal Cost Model Progress Update
Tom Troup
10 minutes
3 Customer Generation: Impact on Diversity
Dan Pease
10 minutes
4
Preview of Model Roadmap
Patricia Gideon
5 minutes
5
Revenue Allocation Model Progress Update
Patricia Gideon
15 minutes
6
Rate Design Progress Update
Nancy Breckenridge
30 minutes
7
• User Guide
• Recorded Billing Determinants
• Excel Compatibility
Patricia Gideon/
Nancy Breckenridge
30 minutes
8
Other Items
TBD
TBD
DRAFT
Marginal Cost Model Progress Update
MCAC Model
• Work in progress to add:
– Entry form for replacement costs
– RECC/Rental Method calculation option for capital components
• Additional model cleanup is ongoing
MDCC Model
• Excel files consolidated
• Additional model formatting and cleanup is ongoing
Financial Loader Model
• Model consolidated and formatted similar to MCAC
• Additional model cleanup is ongoing
RCS Model
• Project scoping underway to update for SmartMeter infrastructure
3
DRAFT
Customer Generation: Impact on Diversity
Is a study warranted to establish the extent to which customer generation
creates diversity on PG&E’s distribution system?
•
Discussion.
4
DRAFT
5
Preview of Model Roadmap
INPUTS
•Distribution
Marginal Cost
•Generation
Marginal Cost
•PCAFs
•FLTs
•TOU Shares
•Recorded kWh Data
•Billing Determinants
•Present Rates
•Revenue at Present
Rates
RA/RD MODEL
Revenue
Allocation
OUTPUTS
RA/RD Summaries
•Full EPMC (100%)
•Proposed (XX%
Movement to EPMC)
Present v. Proposed
Rate Table
Rate
Design
Bill Comparisons
DRAFT
Revenue Allocation Model Progress Update
1. Additional allocator based on CARE surcharge eligible sales built into predefined revenue allocators
2. Three additional fields for “user-defined” revenue components built into
model
3. Ability to select from multiple allocator options for redistribution of capped
revenue shortfalls/overages
4. Faster macros for balancing the model and for capping the percent change
in revenue allocation
5. Calculation of floor value in capping mechanism corrected
6. Additional capping options under review
6
DRAFT
Rate Design Progress Update
1. Consistent data presentation (e.g., rate schedules always listed as column
headers)
2. Calculations organized sequentially
3. Consistent color coding
4. Removal of redundant data within tabs
5. Clearly labeled units
6. Fewer tabs (e.g., revenue checks built into calculation tabs)
7
DRAFT
Rate Design Progress Update (Cont.)
Color Coding Legend
Indicator
Meaning
Blue Font
Alphanumeric value or constraint
Black Font
Formula or mixed formula and alphanumeric values without links
Green Font
Formula with link to another file
Purple Font
Formula with link to another tab
Red Font
Error message triggered
Blue Font,
Purple
Outline
Alphanumeric values updated by VBA Codes
Blue Tab
Purple Tab
Cover Worksheet (CV_), Table of Contents (TC_), or Section Cover
Worksheet (SCV_)
Inputs Worksheet (IN_)
Yellow Tab
Calculation Worksheet (CALC_)
Green Tab
Outputs Worksheet (OUT_)
Black Tab
Information Worksheet (INF_)
8
DRAFT
9
Rate Design Progress Update (Cont.)
Revenue Allocation
for Rate Design
Rate Calculations
Revenue Check
• Subtract nonallocated &
customer charge
revenue
• Allocate by season
& rate component
Divide revenue by
billing determinants
according to design
parameters
Ensure rates
recover revenue
allocated to rate
schedule
DRAFT
User Guide
10
DRAFT
Recorded Billing Determinants
11
DRAFT
Recorded Billing Determinants (continued)
12
DRAFT
Other Items
13