Case Background
On May 23, 2018,
Duke Energy Florida, LLC (DEF) filed a petition to offer budget billing to
commercial customers. The proposed budget billing tariff sheets Nos. 4.086 and
4.087 are shown in Attachment A to this recommendation.
Currently, the
five Florida investor-owned electric utilities offer optional budget billing
for residential customers. The Commission has approved budget billing for
commercial customers for Florida Power & Light Company and Gulf Power Company. The Commission has jurisdiction under
Sections 366.04, 366.05, and 366.06, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve DEF’s petition for
approval of budget billing for commercial customers?
Recommendation:
Yes. The Commission should approve DEF’s petition
for approval of budget billing for commercial customers. DEF’s proposed tariffs
should become effective on July 10, 2018. (Doherty)
Staff Analysis:
Currently, budget billing is only offered to
residential customers. DEF has proposed to extend the budget billing option to
the commercial General Service – 1 (GS-1) and General Service Demand – 1
(GSD-1) class customers. DEF states in its petition that it can provide better
customer service by extending the budget billing to commercial customers
without affecting the general body of ratepayers.
Budget billing is an optional program that allows
customers to reduce the variations in monthly bills that result from seasonal
fluctuations in the usage of electricity. This leveling of the bill allows
customers to more easily budget their electricity expenses. The methodology for
determining the monthly budget bill for commercial customers will be the same
as the methodology for determining the monthly budget bill for residential
customers. The customer is billed based upon an average of their last 12
months’ kilowatt-hour (kWh) usage, rather than for their actual monthly usage.
The amount billed using the average method is subtracted
from the amount which would have been billed based on actual usage. This
difference is credited to a deferred balance account which maintains a running
total of over- and under-collection. DEF recalculates the monthly budget
billing amount every third month using the most recent 12 months’ billings plus
any deferred balances. If the difference between the current and the newly
calculated monthly budget billing amount is greater than 10 percent, the
monthly budget billing amount will be re-established.
Customers may request termination of the budget billing at
any time. Upon termination of the plan or disconnection of service, the
customer must settle the account in full. Once the customer has been
terminated, the customer may not rejoin the plan for 12 months.
The residential budget billing tariff provision is
currently included on residential tariff sheet No. 6.121. DEF proposed to
include the residential budget billing tariff provision, together with the
proposed commercial budget billing provision, in its general rules and
regulations section of its tariff, as shown in Attachment A.
Conclusion
Staff has reviewed DEF’s petition for approval of its
budget billing for its commercial customers. Participation in the program is
optional and will provide DEF’s commercial customers with benefits of budget
billing that are currently available to its residential customers. Therefore, staff
recommends that the Commission approve DEF’s petition for approval of budget
billing for commercial customers. DEF’s proposed tariffs should become
effective on July 10, 2018.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If a protest is filed within 21 days of the
issuance of the order, these tariffs should remain in effect with any increase
held subject to refund pending resolution of the protest. If no timely protest
is filed, this docket should be closed upon the issuance of a consummating
order. (Trierweiler)
Staff Analysis:
If a protest is filed within 21 days of the issuance
of the order, these tariffs should remain in effect with any increase held
subject to refund pending resolution of the protest. If no timely protest is
filed, this docket should be closed upon the issuance of a consummating order.
