Advice Letter 4015-E SUBJECT: Establishment of the ... · The protest and all other correspondence...

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STATE OF CALIFORNIA GAVIN NEWSOM, Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3298 July 16, 2019 Advice Letter 4015-E Gary A. Stern Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA 91770 SUBJECT: Establishment of the Customer Service Re-Platform Memorandum Account Pursuant to Decision 19-05-020 Dear Mr. Stern: Advice Letter 4015-E is effective as of July 14, 2019. Sincerely, Edward Randolph Deputy Executive Director for Energy and Climate Policy/ Director, Energy Division

Transcript of Advice Letter 4015-E SUBJECT: Establishment of the ... · The protest and all other correspondence...

Page 1: Advice Letter 4015-E SUBJECT: Establishment of the ... · The protest and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile

STATE OF CALIFORNIA GAVIN NEWSOM, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

July 16, 2019

Advice Letter 4015-E

Gary A. Stern

Director, State Regulatory Operations

Southern California Edison Company

8631 Rush Street

Rosemead, CA 91770

SUBJECT: Establishment of the Customer Service Re-Platform Memorandum

Account Pursuant to Decision 19-05-020

Dear Mr. Stern:

Advice Letter 4015-E is effective as of July 14, 2019.

Sincerely,

Edward Randolph

Deputy Executive Director for Energy and Climate Policy/

Director, Energy Division

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P.O. Box 800 8631 Rush Street Rosemead, California 91770 (626) 302-9645 Fax (626) 302-6396

Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations

June 14, 2019

ADVICE 4015-E (U 338-E)

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

SUBJECT: Establishment of the Customer Service Re-Platform Memorandum Account Pursuant to Decision 19-05-020

In compliance with Decision (D.)19-05-020, Southern California Edison Company (SCE) hereby submits for approval by the California Public Utilities Commission (Commission) the following changes to its tariffs. The revised tariffs are listed on Attachment A and are attached hereto.

PURPOSE

The purpose of this advice letter is to establish Preliminary Statement Part N._, the Customer Service Re-Platform Memorandum Account (CSRPMA), in compliance with D.19-05-020. SCE will record the capital-related revenue requirements associated with capital expenditures from project inception to project close and Operations and Maintenance (O&M) expenses and benefits from the beginning of the 2018 Test Year until these expenses begin to be recovered in rates.

BACKGROUND

On September 1, 2016, SCE submitted Application (A.)16-09-001 requesting, among other things, an increase in its base revenue requirements for the 2018 Test Year and 2019 and 2020 Post Test Years. In A.16-09-001, SCE included an O&M and capital expenditure forecast for the Customer Service Re-Platform project in the 2018 Test Year revenue requirement. On April 7, 2017, California Public Advocates (Cal Advocates) submitted testimony in response to SCE’s application and, among other things, proposed that SCE should track supplemental labor costs for the Customer Service Re-Platform in a memorandum account.

On May 16, 2019, the Commission issued D.19-05-020, which ordered SCE to establish a Customer Service Re-Platform memorandum account. Ordering Paragraph (OP) 10 of D.19-05-020 directed SCE to submit a Tier 2 advice letter within 30 days of the effective date of the decision to establish a Customer Service Re-Platforming memorandum account to record any costs, capital expenditures, and benefits of Customer Service Re-Platforming during the 2018-2020 General Rate Case (“GRC”) period and each

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ADVICE 4015-E (U 338-E) - 2 - June 14, 2019

subsequent GRC period. These items may be reviewed for recovery in SCE’s next GRC.

PROPOSED TARIFF CHANGES As discussed above, and in accordance with OP 10 of D.19-05-020, this advice letter establishes Preliminary Statement Part N.56, Customer Service Re-Platform Memorandum Account (CSRPMA), to record the capital-related revenue requirements associated with capital expenditures from project inception to project close and Operations and Maintenance (O&M) expenses and benefits from the beginning of the 2018 Test Year until these expenses begin to be recovered in rates. Consistent with D.19-05-020, SCE may seek review for recovery of the amounts recorded in the CSRPMA in its next GRC proceeding. No cost information is required for this advice letter. This advice letter will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule.

TIER DESIGNATION

Pursuant to D.19-05-020, OP 10, this advice letter is submitted with a Tier 2 designation.

EFFECTIVE DATE SCE respectfully requests that this advice letter become effective July 14, 2019, which is 30 days from the date submitted.

NOTICE

Anyone wishing to protest this advice letter may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice letter. Protests should be submitted to:

CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue, 4th Floor San Francisco, California 94102 Facsimile: (415) 703-2200 E-mail: [email protected]

Copies of protests should also be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above.

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ADVICE 4015-E (U 338-E) - 3 - June 14, 2019

The protest and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:

Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770

Telephone: (626) 302-9645 Facsimile: (626) 302-6396 E-mail: [email protected] Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: [email protected]

There are no restrictions on who may submit a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above.

In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice letter to the interested parties shown on the attached GO 96-B and A.16-09-001 service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to [email protected] or at (626) 302-4039. For changes to all other service lists, please contact the CPUC’s Process Office at (415) 703-2021 or by electronic mail at [email protected]. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by submitting and keeping the advice letter at SCE’s corporate headquarters. To view other SCE advice letters submitted with the CPUC, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.

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ADVICE 4015-E (U 338-E) - 4 - June 14, 2019

For questions, please contact Kimwuana Blebu at (626) 302-2403 or by electronic mail at [email protected].

Southern California Edison Company

/s/ Gary A. Stern /s/ Gary A. Stern, Ph.D. Gary A. Stern, Ph.D.

GAS:kb:jm Enclosures

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ADVICE LETTER S U M M A R YENERGY UTILITY

Company name/CPUC Utility No.:

Utility type:Phone #:

EXPLANATION OF UTILITY TYPE

ELC GAS

PLC HEAT

MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Advice Letter (AL) #:

WATERE-mail: E-mail Disposition Notice to:

Contact Person:

ELC = ElectricPLC = Pipeline

GAS = GasHEAT = Heat WATER = Water

(Date Submitted / Received Stamp by CPUC)

Subject of AL:

Tier Designation:

Keywords (choose from CPUC listing):AL Type: Monthly Quarterly Annual One-Time Other:If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #:

Does AL replace a withdrawn or rejected AL? If so, identify the prior AL:

Summarize differences between the AL and the prior withdrawn or rejected AL:

Confidential treatment requested? Yes NoIf yes, specification of confidential information:Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information:

Resolution required? Yes No

Requested effective date: No. of tariff sheets:

Estimated system annual revenue effect (%):

Estimated system average rate effect (%):

When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting).

Tariff schedules affected:

Service affected and changes proposed1:

Pending advice letters that revise the same tariff sheets:

1Discuss in AL if more space is needed.

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CPUC, Energy DivisionAttention: Tariff Unit505 Van Ness AvenueSan Francisco, CA 94102 Email: [email protected]

Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx:Facsimile (xxx) xxx-xxxx:Email:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx:Email:

Zip:

Zip:

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ENERGY Advice Letter Keywords

Affiliate Direct Access Preliminary StatementAgreements Disconnect Service ProcurementAgriculture ECAC / Energy Cost Adjustment Qualifying FacilityAvoided Cost EOR / Enhanced Oil Recovery RebatesBalancing Account Energy Charge RefundsBaseline Energy Efficiency ReliabilityBilingual Establish Service Re-MAT/Bio-MATBillings Expand Service Area Revenue AllocationBioenergy Forms Rule 21Brokerage Fees Franchise Fee / User Tax RulesCARE G.O. 131-D Section 851CPUC Reimbursement Fee GRC / General Rate Case Self GenerationCapacity Hazardous Waste Service Area MapCogeneration Increase Rates Service OutageCompliance Interruptible Service SolarConditions of Service Interutility Transportation Standby ServiceConnection LIEE / Low-Income Energy Efficiency StorageConservation LIRA / Low-Income Ratepayer Assistance Street LightsConsolidate Tariffs Late Payment Charge SurchargesContracts Line Extensions TariffsCore Memorandum Account TaxesCredit Metered Energy Efficiency Text ChangesCurtailable Service Metering TransformerCustomer Charge Mobile Home Parks Transition CostCustomer Owned Generation Name Change Transmission LinesDecrease Rates Non-Core Transportation ElectrificationDemand Charge Non-firm Service Contracts Transportation RatesDemand Side Fund Nuclear UndergroundingDemand Side Management Oil Pipelines Voltage DiscountDemand Side Response PBR / Performance Based Ratemaking Wind PowerDeposits Portfolio Withdrawal of ServiceDepreciation Power Lines

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Public Utilities Commission 4015-E Attachment A

Cal. P.U.C. Sheet No. Title of Sheet

Cancelling Cal. P.U.C. Sheet No.

1

Revised 67412-E Preliminary Statement Part N Revised 65228-E Revised 67413-E Preliminary Statement Part N Revised 64184-E Revised 67414-E Table of Contents Revised 67338-E

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Southern California Edison Revised Cal. PUC Sheet No. 67412-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 65228-E

PRELIMINARY STATEMENT Sheet 3

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4015-E Kevin Payne Date Submitted Jun 14, 2019 Decision 19-05-020 Chief Executive Officer Effective Jul 14, 2019 3H11 Resolution

N. MEMORANDUM ACCOUNTS (Continued) 2. Definitions. (Continued) d. Specified Project (Continued) Section Interest Bearing No. Specified Project Memorandum Account* (34) Community Choice Audit Memorandum Account Yes (35) Aliso Canyon Energy Savings Assistance Program Memorandum Account Yes (36) Wireless Fidelity Costs Memorandum Account Yes (37) Residential Service Disconnection Memorandum Account (RSDMA) Yes (38) Tax Accounting Memorandum Account (TAMA) Yes (39) Renewables Portfolio Standard Costs Memorandum Account Yes (40) Greenhouse Gas (GHG) Customer Outreach and Education Yes Memorandum Account (GHGCO&EMA) (41) BioMass Memorandum Account Yes (42) Department of Energy Litigation Memorandum Account Yes (43) Bio RAM Memoramdum Account (BioRAMMA) Yes (44) Project Development Division Memorandum Account (PDDMA) Yes (45) Fire Risk Mitigation Memorandum Account Yes (46) Mohave SO2 Allowance Revolving Fund Memorandum Account (MSARFMA) Yes (47) Energy Division Director’s Peer Review Group Memorandum Account Yes (PRGMA) (48) Greenhouse Gas (GHG) Administrative Costs Memorandum Yes Account (GHGACMA) (49) Net Energy Metering Automation (NEM-A) Billing Automation Costs Memorandum Account (NEMABACMA) Yes (50) Grid Safety and Resiliency Program Memorandum Account (GSRPMA) Yes (51) Long-Term Procurement Plan Technical Assistance Yes Memorandum Account (LTAMA) (52) Wildfire Expense Memorandum Account (WEMA) Yes (53) Fire Hazard Prevention Memorandum Account (FHPMA) Yes (54) Service Center Modernization Projects Memorandum Account (SCMPMA) Yes (55) San Onofre Nuclear Generating Station Memorandum Account (SONGSMA) Yes (56) Customer Service Re-Platform Memorandum Account (CSRPMA) Yes (57) Energy Matinee Tariff Program Pilot Memorandum Account (EMTPPMA) Yes (58) Green Tariff Shared Renewables Administrative Costs Yes Memorandum Account (59) Green Tariff Marketing, Education & Outreach Memorandum Account Yes (60) Enhanced Community Renewables Marketing, Education & Outreach Yes Memorandum Account (61) Residential Rate Implementation Memorandum Account (RRIMA) Yes (62) Rule 21 Cost Envelope Option Memorandum Account (CEOMA) Yes * Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate

to the average of the beginning and ending balance.

(P)

(N)

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Southern California Edison Revised Cal. PUC Sheet No. 67413-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 64184-E

PRELIMINARY STATEMENT Sheet 70

(Continued)

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4015-E Kevin Payne Date Submitted Jun 14, 2019 Decision 19-05-020 Chief Executive Officer Effective Jul 14, 2019 70C9 Resolution

N. MEMORANDUM ACCOUNTS (Continued) 56. Customer Service Re-Platform Memorandum Account (CSRPMA)

1. Purpose:

The purpose of Customer Service Re-Platform Memorandum Account (CSRPMA) is to record the capital-related revenue requirements associated with capital expenditures from project inception to project close and Operations and Maintenance (O&M) expenses and benefits, from the beginning of the 2018 Test Year until these expenses begin to be recovered in rates. Recorded benefits shall include reductions associated with Customer Service Re-platforming in O&M expenses in other accounts. SCE shall continue to use the CSRPMA until such time as recovery of the approved Customer Service Re-platforming revenue requirement is included in a GRC revenue requirement. These items may be reviewed for recovery in the next GRC. This account is effective as of January 1, 2018.

2. Operation of the CSRPMA:

Monthly entries to the CSRPMA shall be determined as follows:

a. A debit entry equal to recorded O&M project expenses, including but not limited to: (1) incremental SCE labor, (2) supplemental labor, and (3) overhead loadings on incremental SCE labor.i The overhead loading factors shall be based on authorized General Rate Case (GRC) loading factor rates.

b. A credit entry equal to recorded benefits associated with CSRP;

c. A debit entry equal to the capital-related revenue requirement, which includes depreciation expense, return on rate base at the currently authorized rate of return on rate base and applicable taxes, such as income and ad valorem taxes; and

d. An entry to record interest expense by applying the Interest Rate to

the average monthly balance in the CSRPMA. 3. Review and Disposition:

Pursuant to Ordering Paragraph 10 of D.19-05-020, SCE may seek review for recovery of the amounts recorded in the CSRPMA in its next General Rate Case (GRC) proceeding.

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i Recorded expenses shall exclude Short Term Incentive Programs, Pensions, PBOP’s, medical, dental and vision expenses because these costs are recorded in separate memorandum or balancing accounts.

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Southern California Edison Revised Cal. PUC Sheet No. 67414-E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No. 67338-E

TABLE OF CONTENTS Sheet 1

(Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 4015-E Kevin Payne Date Submitted Jun 14, 2019 Decision 19-05-020 Chief Executive Officer Effective Jul 14, 2019 1H9 Resolution

Cal. P.U.C. Sheet No.

TITLE PAGE ............................................................................................................................. 11431-E TABLE OF CONTENTS - RATE SCHEDULES .... 67414-67339-67340-67341-67342-67343-67344-E ........................................................................................................... 67345-67346-67347-E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS ................................... 66863-E TABLE OF CONTENTS - RULES ................................................................................. 65313-64043-E TABLE OF CONTENTS-INDEX OF COMMUNITIES, MAPS, BOUNDARY DESCRIPTIONS 62213-E TABLE OF CONTENTS - SAMPLE FORMS.. .................. 62213-64447-61576-65710-63318-61631-E

........................................................................................................... 64044-61971-63296-E

PRELIMINARY STATEMENT:

A. Territory Served ......................................................................................................... 22909-E B. Description of Service ................................................................................................ 22909-E C. Procedure to Obtain Service ..................................................................................... 22909-E D. Establishment of Credit and Deposits ....................................................................... 22909-E E. General .......................................................................... 45178-45179-45180-53818-45182-E F. Symbols ..................................................................................................................... 45182-E G. Gross Revenue Sharing Mechanism ....... 26584-26585-26586-26587-27195-27196-54092-E

.................................................................................................. 51717-53819-27200-27201-E H. Baseline Service ........................................................... 52027-52028-52029-52030-52031-E I. Charge Ready Program Balancing Account ................................................... 65510-65511-E J. Not In Use ............................................................................................................................. -E K. Nuclear Decommissioning Adjustment Mechanism ........................................ 36582-57779-E L. Purchase Agreement Administrative Costs Balancing Account ........... 55207-51922-55208-E M. Income Tax Component of Contributions ....................................................... 58419-58420-E N. Memorandum Accounts .... 21344-65676-67412-58221-49492-61165-61166-61167-53821-E

........ 50418-42841-61168-64869-64870-44950-44951-44952-44953-42849-42850-42851-E ........ 65677-65678-55623-61171-42856-61172-61173-52033-50419-55048-61174-42863-E ........ 42864-56204-56205-51235-45920-51236-61175-50209-42872-42873-50421-46539-E ........ 42876-42877-42878-42879-42880-42881-42882-54534-53371-56253-44959-42887-E ........ 53321-53322-61176-52551-52552-49928-56235-56236-56237-55144-55145-44029-E

........ 53016-57156-57157-51163-51164-51165-51166-67414-51168-51169-51170-51171-E ................................ 51244-55806-56393-56394-56395-56396-56397-56398-56399-58978E O. California Alternate Rates for Energy (CARE) Adjustment Clause ................. 34705-41902-E .................................................................................................. 36472-38847-56788-67026-E P. Tree Mortality Non-Bypassable Charge Balancing Account………...65929-65930-65931-E

(T)

(T)