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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIAFILED 03/13/23 11:22 Application of Pacific Gas and Electric Company for Approval of its 2023 Gas Cost Allocation and Rate Design Proposals
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01
Gather all necessary data including expenses, revenue, and customer usage
02
Determine the cost allocation method to use such as Activity-Based Costing or Step-Down Method
03
Allocate costs to various cost centers based on the chosen method
04
Calculate the rates for each cost center by dividing the allocated costs by the corresponding usage or activity level
05
Design the final rate structure based on the calculated rates and any additional factors such as subsidies or discounts

Who needs allocation and rate design?

01
Utilities companies looking to determine rates for different customer segments
02
Government agencies in need of allocating costs across different departments
03
Manufacturing companies seeking to understand the cost of production for each product
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Allocation and rate design refers to the process of determining how costs will be divided among different users or entities, and what rates will be charged for services or products.
Entities providing goods or services that are subject to regulatory oversight are typically required to file allocation and rate design.
Allocation and rate design forms are typically provided by regulatory agencies and must be completed according to their instructions.
The purpose of allocation and rate design is to ensure that costs are distributed fairly and rates are set at levels that allow for the recovery of costs while still providing reasonable access to services.
Information typically required includes cost data, usage statistics, proposed rates, and justification for rate changes.
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