Section 739.6 Of Article 2. Rates From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 2.
739.6
. The commission shall establish rates using cost allocation
principles that fairly and reasonably assign to different customer
classes the costs of providing service to those customer classes,
consistent with the policies of affordability and conservation. The
cost allocation methodology adopted for gas corporations by the
commission in Decisions 86-12-009 and 86-12-010, as supplemented by
Decisions 87-05-046 and 87-12-039, is consistent with this policy,
and shall be retained by the commission at least until December 31,
1990, except that the commission may modify this cost allocation
methodology to address customer hardships and inequities if
residential customers as a class are not, on balance, adversely
affected and the purpose of the modification is not solely protection
of gas corporation revenues. If any gas corporation files a cost
allocation application seeking to change that methodology after May
1, 1990, the commission may not issue an order on that application
until January 1, 1991.