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CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER AND AUDITS

Advice Letter Cover Sheet

[ ] APPROVED [ ] WITHDRAWN [ ] REJECTED

Signature: Comments:

Date:

Utility Name: California Water Service Company Date Mailed to Service List: 06/11/19

District:California Regulated Service AreasIncluding Grand Oaks

CPUC Utility #: U-60-W Protest Deadline (20th Day): 07/01/19

Advice Letter #: 2342 Review Deadline (30th Day): 07/11/19

Tier: ☐1 X 2 ☐3 Compliance Requested Effective Date: 06/08/19 Authorization: General Order 96-B Rule 7.3.2(5)

Description: Request to establish a Public Safety Power Loss (PSPL) Memorandum Account

Rate Impact: N/A

The protest or response deadline for this advice letter is 20 days from the date that this advice letter was mailed to the service list. Please see the “Response or Protest” section in the advice letter for more information.

Utility Contact: Todd Pray Utility Contact: Natalie Wales

Phone: 408-367-8250 Phone: 408-367-8566

Email: [email protected] Email: [email protected]

DWA Contact: Tariff Unit

Phone: (415) 703-1133

Email: [email protected]

DWA USE ONLY DATE STAFF COMMENTS

CALIFORNIA WATER SERVICE COMPANY 1720 NORTH FIRST STREET

SAN JOSE, CA 95112 (408) 367-8200 F (408) 367-8428

June 11, 2019

Advice Letter No. 2342

To the California Public Utilities Commission:

California Water Service Company (“Cal Water”) respectfully submits this Tier 2 advice letter requesting authority to make the following changes to tariffs applicable to multiple ratemaking areas.

New/Revised Cancelling

CPUC CPUC

Sheet No. Title of Sheet Schedule No. Sheet No.

xxxxx-W Preliminary Statement AY xxxxx-W

xxxxx-W Table of Contents (Page 1) TOC xxxxx-W

xxxxx-W Table of Contents (Page 4) TOC xxxxx-W

Purpose

With this advice letter, Cal Water requests authorization from the California Public Utilities Commission (Commission) to establish a Public Safety Power Loss (PSPL) Memorandum Account (PSPL MA). The PSPL MA will track the incremental costs associated with the preparation and installation of facilities to address public safety needs in the event of power losses.

Background

The recent wildfires in California have spawned a call to action to reduce the incidence and severity of these types of devastating events. The increased number of wildfire events are due to a number of factors such as extended drought, increased fuel for fires, and other extreme weather events. Exacerbating wildfire conditions are energized powerlines. These lines carry the potential to start or worsen an existing wildfire. Given this, the Commission has been examining these impacts and other emergencies in several proceedings. One of the proceedings, Rulemaking 18-12-005, is focused on proactively shutting off electric power in order to protect public safety. Called Public Safety Power Shut-Off (PSPS) or, de-energization, power will be cut off to electric lines that may fail in certain weather conditions in order to reduce the likelihood that electric utility infrastructure could cause or contribute to a wildfire.

The Commission’s rulemaking is divided into two phases. The first phase ensures the Commission has adopted de-energization parameters and protocols in anticipation of the upcoming 2019 wildfires season. The second phase will take a more comprehensive look at de-energization

CALIFORNIA WATER SERVICE COMPANY Advice Letter 2342 Public Safety Power Loss Memorandum Account Establishment

practices, including mitigation, additional coordination across agencies, further refinements to findings in Phase 1, re-energization practices, and other matters.1

Discussion

Electric utilities are expected to declare PSPS events during periods of high fire danger and where there is specific risk of electrical facilities causing a fire. The Commission has recently issued a decision for phase one, D. 19-05-042, which provides notification and communication guidelines for these events along with definitions of various roles, responsibilities, and critical facilities. When initiating a PSPS event, various factors will be taken into account by the utilities such as hazard maps, weather forecasts, and site conditions. As a public safety partner, Cal Water will receive priority notification of such events.2 According to communications with Cal Water’s main electric providers, Southern California Edison (SCE) and Pacific Gas and Electric (PG&E), PSPS events may last up to 5 days which could significantly impact facilities within the water systems. Additionally, power loss events can occur in major earthquakes, non-electric utility caused wildfires, tsunami, or other natural and man-made disasters. Cal Water must be ready and equipped to maintain water service to the extent possible during these events.

In response, Cal Water has performed a draft risk assessment (attached) which outlines recommended improvements necessary to prepare its water systems for power loss events. As a result, the PSPL program will require either an increase in backup power generation or the development of an alternate means of providing reliable supply within Cal Water’s water distribution systems. Depending upon the course of action, this can increase the need for generator fuel which will be commensurate with the expected duration of power shutoffs. In most cases, Cal Water may need to lease generators for the most critical facilities to be prepared for the 2019 wildfire season, in anticipation of installing more permanent facilities in the long term. There will also be a necessary increase in generator and electrical equipment maintenance activities to improve reliability of the auxiliary power sources for a power loss event. To this end, Cal Water respectfully requests memorandum account treatment to track costs related to this effort.

As discussed below, the proposed PSPL MA meets all of the Commission’s criteria for the creation of a new memorandum account. The PSPL effort is well-suited to memorandum account treatment because it offers the potential for significant customer benefits, but due to the timing of Commission proceedings, Cal Water was not able to include potential costs in its last general rate case filing in 2018. A memorandum account will allow Cal Water to proceed before its next rate case filing in 2021, and will give the Commission the opportunity to consider at a later date whether costs tracked in the account are appropriate for recovery through rates. Whether through a general rate case, a separate application, or a Tier 3 advice letter, the Commission will have the opportunity to review all incremental costs tracked in the proposed memorandum account for reasonableness, and to determine the appropriate regulatory treatment of those costs.

1 D. 19-05-042, page 14

2 D. 19-05-042, Section 5.1.2


Per Standard Practice U-27-W, each advice letter requesting a new memo account must address the following:

• The expense is caused by an event of an exceptional nature that is not under the utility’s control;

The enactment of the Commission’s rulemaking and the electric utilities role in determining PSPS events are out of Cal Water’s control. As mentioned above, Cal Water must be ready and equipped to handle power loss events as they arise.

• The expense cannot have been reasonably foreseen in the utility’s last general rate case and will occur before the utility’s next scheduled rate case;

Recent wildfires and the Commission’s subsequent rulemakings and decisions have occurred well after the time of Cal Water’s July 1, 2018 GRC filing. Costs will be incurred well before the next GRC filing in 2021.

• The expense is of a substantial nature as to the amount of money involved when any offsetting costs decreases are taken into account;

Cal Water has evaluated its most immediate needs but it is likely that the overall costs may change as the program evolves and information from the second phase of the rulemaking becomes available. Currently, the preliminary cost estimates developed to procure the backup power and/or facilities necessary to ensure power loss readiness exceeds eleven million dollars.

• The ratepayers will benefit by the memo account treatment.

The work to be performed under the memorandum account will create significant ratepayer benefits by working to maintain a reliable supply of water during power loss events. Otherwise, customers would be without water for the duration of the event. The lack of supply would also hinder any potentially needed emergency response efforts. Additionally, there are health and safety benefits. When a system loses pressure, as it would under a power outage, it can cause contaminants to enter the drinking water system which can lead to serious health concerns. Having a solution in place to help maintain a reliable supply during a power loss event also avoids the costs of restarting the water system for items such as flushing and water quality testing, etc.

Requested Effective Date

This advice letter is submitted with a Tier 2 designation pursuant to Water Industry Rules 7.3.2(5) of General Order 96-B. On Saturday, June 8, 2019, PG&E had a power shut-off event that affected part of Cal Water’s Oroville District. This event – which was generally considered to be unusually early in the season –


is the first one to impact Cal Water. Cal Water requests that the new PSPL Memorandum Account become effective on June 8, 2019 to coincide with this first de-energization.

Notice

Customer Notice: This is a Tier 2 advice letter that does not require customer notice because there is no increase in rates.

Service List: In accordance with General Order 96-B, General Rules 4.3 and 7.2, and Water Industry Rule 4.1, a copy of this advice letter will be mailed or electronically transmitted on June 11, 2019 to competing and adjacent utilities and other utilities or interested parties having requested such notification.

Response or Protest

Anyone may respond to or protest this advice letter. When submitting a response or protest, please include the utility name and advice letter number in the subject line. A response supports the filing and may contain information that proves useful to the Commission in evaluating the advice letter. A protest objects to the advice letter in whole or in part and must set forth the specific grounds on which it is based. These grounds are:

(1) The utility did not properly serve or give notice of the advice letter; (2) The relief requested in the advice letter would violate statute or Commission order, or is not authorized by statute or Commission order on which the utility relies; (3) The analysis, calculations, or data in the advice letter contain material error or omissions; (4) The relief requested in the advice letter is pending before the Commission in a formal proceeding; or (5) The relief requested in the advice letter requires consideration in a formal hearing, or is otherwise inappropriate for the advice letter process; or (6) The relief requested in the advice letter is unjust, unreasonable, or discriminatory (provided such a protest may not be made where it would require re-litigating a prior order of the Commission.)

A protest shall provide citations or proofs where available to allow staff to properly consider the protest. A response or protest must be made in writing or by electronic mail and must be received by the Water Division within 20 days of the date this advice letter is filed. The address for mailing or delivering a protest is:

Tariff Unit, Water Division, 3rd floor California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102 [email protected]

On the same date the response or protest is submitted to the Water Division, the respondent or protestant shall send a copy by mail (or e-mail) to Cal Water at the following address:


Natalie Wales California Water Service Company 1720 North First Street, San Jose, California 95112 Fax 408/367-8430 or E-mail [email protected]

Cities and counties requiring Board of Supervisors or Board of Commissioners approval to protest should inform the Water Division within the 20-day protest period so a late-filed protest can be entertained. The informing document should include an estimate of the date the proposed protest might be voted on. The advice letter process does not provide for any responses, protests or comments, except for the utility’s reply, after the 20-day comment period.

Replies: The utility shall reply to each protest and may reply to any response. Each reply must be received by the Water Division within 5 business days after the end of the protest period and shall be served on the same day to the person who filed the protest or response. If you have not received a reply to your protest within 10 business days, contact California Water Service Company at (408) 367-8200.

CALIFORNIA WATER SERVICE COMPANY

/s/ ____________________________ Todd Pray, Regulatory Program Manager

cc: Ting-Pong Yuen, Public Advocates Office

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California Water Service Wildfire Risk Assessment for Public Safety Power Losses

6-10-2019

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Table of Contents

Executive Summary ............................................................................................................................3

Purpose ......................................................................................................................................................3

Risk Identification Method Overview ........................................................................................................3

Public Safety Power Shutoff Program – Effect on Cal Water ....................................................................3

Results .......................................................................................................................................................5

Recommendations .....................................................................................................................................6

Risk Identification Methodology: ........................................................................................................8

Risk Metrics ...............................................................................................................................................8

California Department of Forestry and Fire Protection (CalFire) Fire Threat and Hazard Data: ...............8

CPUC Fire-Threat Map ...............................................................................................................................9

Public Safety Power Shutoff Program (PSPS): ........................................................................................ 13

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Executive Summary

Purpose The purpose of this document is to outline recommended improvements necessary to prepare the California Water Service Company’s (Cal Water) California water systems for power loss events, particularly those that are more likely to occur due to the Public Safety Power Shutoff (PSPS) program of the California Public Utilities Commission (CPUC). The PSPS requires electric utilities to consider the need to de-energize power lines during periods of high fire danger and when there’s a specific risk of electrical utilities causing a fire. Cal Water may receive up to 48 hours notification, but is not guaranteed such warning. According to communications with Cal Water’s main electric providers, Southern California Edison (SCE) and Pacific Gas and Electric (PG&E), PSPS events may last up to 5 days and could significantly impact facilities within the water systems. This document aims to identify potential issues and recommend measures to prepare critical system facilities for PSPS events. If implemented, the benefits of these measures will extend beyond the PSPS program, and will help mitigate the repercussions of power loss occurring within Cal Water’s system for any reason.

Risk Identification Method Overview To evaluate the risk and consequence of a wildfire and to identify potential system vulnerabilities, a recent effort analyzed systems zone-by-zone and assessed wildfire risk based on key metrics. The two PSPS-related risk metrics used in that effort were wildfire threat as determined by the California Department of Forestry and Fire Protection (CalFire) and the availability of backup power to each Cal Water zone. The CPUC tiered fire-threat map was also consulted for comparative purposes. The recent wildfire risk assessment was utilized to inform initial capital projects recommendations for wildfire risk mitigation. Internal discussion and refinement of the project recommendations is currently ongoing within Cal Water.

Public Safety Power Shutoff Program – Effect on Cal Water The PSPS program will increase the need for backup power generation within Cal Water’s distribution systems and subsequently increase the need for generator fuel commensurate with the duration of power shutoffs. There will also be a necessary increase in generator and electrical equipment maintenance activities to ensure reliability of the auxiliary power sources for a PSPS event. SCE and PG&E identified facilities that may be impacted by a PSPS event and provided this data to Cal Water in April 2019. The electric utilities identified the following Cal Water distribution systems as affected and thus additional backup power may be required. The systems include:

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District System

Antelope Valley Grand Oaks

Lake Hughes

Leona Valley

Bayshore San Carlos

San Mateo

South San Francisco

Bear Gulch Bear Gulch

Kern River Valley Kernville

Lakeland

Lower Bodfish

Onyx

South Lake

Split Mountain

Squirrel Mountain

Upper Bodfish

Livermore Livermore

Hermosa Redondo Hermosa/Redondo

Palos Verdes Palos Verdes

Redwood Valley Armstrong Woods

Lucerne

Noel Heights

Rancho del Paradiso

Salinas Salinas Hills

Visalia Mullen

Westlake Westlake

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Results The following table presents the results of the recent risk assessment – please note that Visalia was not included in the analysis and, due to incomplete system operations data, backup power was assumed to be a vulnerability in Antelope and Kern River Valley system zones.

District System Zones w/in 500 ft

of “VH” or “E” CalFire Threat

Zones w/in 500 ft of Tier 2 or 3 CPUC Threat

Backup power constrained

zones

Antelope Valley Grand Oaks All All All

Lake Hughes All All All

Leona Valley All All All

Bayshore San Carlos 14 of 22 14 of 22 8 of 22

San Mateo 13 of 17 6 of 17 9 of 17

South San Francisco 14 of 17 0 of 17 2 of 17

Bear Gulch Bear Gulch All 41 of 60 20 of 60

Kern River Valley Kernville All All Majority

Lakeland All All All

Lower Bodfish All All All

Onyx All All 1 of 2

South Lake All All All

Split Mountain All All All

Squirrel Mountain All All All

Upper Bodfish All All All

Livermore Livermore All 4 of 8 5 of 8

Hermosa Redondo Hermosa/Redondo 3 of 7 2 of 7 2 of 7

Palos Verdes Palos Verdes All All 89 of 108

Redwood Valley Armstrong V All All 1 of 1

Lucerne All All 1 of 2

Noel Heights All All 1 of 1

Rancho del Paradiso All All 1 of 1

Salinas Salinas Hills 18 of 18 17 of 18 16 of 18

Visalia Mullen [not included] [not included] 1

Westlake Westlake 8 of 8 8 of 8 5 of 8

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Recommendations In anticipation of PSPS events, a subset of specific capital projects recommended for wildfire risk mitigation at PSPS-affected facilities or pressure zones were identified as particularly urgent based on data received from the electric utilities and Cal Water’s experience with these types of projects. While the acceleration of the projects is driven by PSPS, as a practical matter the projects also protect Cal Water customers from the repercussions of power loss occurring within Cal Water’s system for any reason. The identified projects are predominantly generator installations and also associated fittings projects. Visalia and the Valley systems (Antelope Valley, Kern River Valley, and Redwood Valley) were not included in the recent wildfire risk assessment and thus no projects were developed in those districts. Please also note that identification of facilities affected by the PSPS program was informed by electric utilities and could change in the future as the program and conditions continue to develop. A summary of the costs of identified capital projects by district is included below:

System Cost of Recommended Capital Projects (in million $)

At PSPS-affected stations For PSPS-affected zones

Bear Gulch 1.50 --

Hermosa/Redondo 0.30 0.65

Livermore -- 0.10

Palos Verdes 2.25 --

Salinas Hills 0.925 0.30

San Carlos 1.275 --

San Mateo 0.85 --

South San Francisco -- --

Westlake 0.60 0.35

Total 7.70 1.40

There are a number of facilities that require a generator 20KW or smaller for backup power. Since these

generators will likely not require an air board permit due to the size of the engine, Cal Water will most likely

elect to purchase these directly and stage them at appropriate sites prior to a PSPS event. Cal Water

anticipates needing approximately 15 of these smaller generators to provide backup power for pumping

equipment and potentially another 20 generators to provide power to SCADA and other control equipment

for a total of approximately 35 portable 20 KW generators. The total estimated costs for these portable

generators is $350,000.

Due to the time required to design, permit, and construct a backup generator, Cal Water will need to obtain a temporary backup power solution ahead of any PSPS event in 2019. The typical generator needed to power most of Cal Water’s facilities is required to have an air board permit. As the typical permitting process

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requires several months, Cal Water needs to obtain generators that already have an air board permit. Cal Water will need to work with generator leasing companies who provide generators with current air board permits. Additionally the generator sizes required are not readily available in all cases and Cal Water will need to be prepared by leasing the necessary generators for a period longer than any PSPS event. Installing a temporary generator requires time and, in some cases, specialized labor such that the leased generators will need to be either staged in an appropriate location or connected to the existing electrical system in a semi-permanent manner. A further consideration for each generator are the cables required and potentially additional electrical equipment, such as transfer switches and transformers, needed to power facilities safely and reliably. Cal Water has evaluated its immediate needs for backup power and has estimated the number and sizes of generators required for the upcoming 2019 fire season. Based on recent cost estimates for similarly-sized generators and rough estimates received from generator vendors, Cal Water has developed the recommendations below for the generators that are required in case of a PSPS event anywhere within the state. It is likely that these costs may change as the PSPS program evolves and more information on the program becomes available.

Generator Category # to Lease Estimated Leasing Cost ($ per month)

50 – 100 kW 10 $26,000

100 – 200 kW 15 $59,000

1000 kW2 1 $19,000

Combination 1000 + 1500 kW2 1 $49,000

2000 kW2 1 $33,000

Total $186,000 1 – Includes tax (assumed 9%) 2 – Specialized large size generators are required at Palos Verdes stations 22, 23, and 30. The initial estimated costs for the backup power necessary for PSPS readiness is summarized in the following

table:

Type Cost

Permanent generators and other capital project costs $9.1M

Small portable generator purchases $350,000

Leased generators for PSPS preparedness $186,000/month

Note that the permanent generator costs may increase as permanent generators for Antelope Valley, Kern

River Valley, and Redwood Valley are evaluated.

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Risk Identification Methodology:

Risk Metrics To evaluate the risk and consequence of a wildfire and to identify potential system vulnerabilities, a recent Wildfire Preparedness effort analyzed systems zone-by-zone and developed a wildfire risk score based on key risk metrics. The two PSPS-related risk metrics used were:

Fire threat rating - maximum within 500 feet based on CalFire wildland fire threat raster data (see next section for detailed description). A zone within 500 ft. of an “Extreme” area was denoted “Extreme”. If a zone was not within 500 ft. of an “Extreme” area but was within 500 ft. of a “Very High” area, the zone’s threat level was be denoted as “Very High”. All other zones were not included in the risk analysis.

Backup Power rating - based on whether or not supply to the zone is dependent on pumping. Zones dependent on pumping but lacking backup power at the supply sources to the zone or for zones that are supplied through gravity from other zones but where those zones are also dependent on pumping but do not have backup power, were categorized as “No backup power is available” (“N”). Zones supplied directly off of supply points from wholesale agencies, zones supplied through sources that have backup power, and zones supplied by gravity flow through zones whose supply sources have backup power, were categorized as “Yes, backup power is available or unnecessary” (“Y”). A power outage is the most likely failure to occur during a widespread wildfire event and the Public Safety Power Shutoff program will only increase the likelihood of loss of power to facilities necessary for fire protection.

Each metric is summarized the following table:

Component Category Explanation

CalFire Wildfire Threat Very High Zone is within 500 feet of “Very High” threat area1

Extreme Zone is within 500 feet of “Extreme” threat area1

Backup Power Constraint Y Backup power available for zone supply sources OR unnecessary.

N No backup power available for zone supply sources and necessary. 1 – All other threat levels not considered; Note that the analysis did not include hydraulic calculations and did not evaluate if existing backup power was sufficient to meet max day demands plus fire. Further explanation of analysis source data and data source evaluation is included in the following two sections.

California Department of Forestry and Fire Protection (CalFire) Fire Threat and Hazard Data: For the analysis, Cal Water downloaded CalFire-published GIS shapefiles, including a raster file representing wildland fire threat levels across the state and polygons representing fire hazard in individual state and local responsibility areas by county. The fire threat raster data and State Responsibility Area (SRA) fire hazard files were analyzed for pressure zones throughout Cal Water. The Local Responsibility Areas (LRAs) fire hazard data were not included in this state-wide analysis as it was not readily apparent that GIS data was provided in all counties. The LRA data was included in a county-specific analysis however. In a quick review of the

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separate data sources it does appear that the raster data threat levels are consistent with the State Responsibility hazards; however, the raster does not appear to take into account the urban fuel model included in the LRA hazard threat determination and estimates a subsequently lower threat in spot-checked locations such as the City of Paradise.

The analysis performed initially converted the fire threat raster data into polygons representing the fire threat so that a more detailed analysis could be done to determine the areas that intersect the “Very High” and the “Extreme” fire threat areas. This process simplified the borders of the “Very High” and “Extreme” threat areas. Cal Water then analyzed the pressure zones that were within 500 feet of these “Extreme” or “VeryHigh” wildfire threat designation polygons in order to focus the analysis effort and ensure the highest threat areas were addressed first. Zones and systems (such as Stockton, Visalia, and Willows) that did not fall within 500 feet of such areas are subsequently not included in this report.

CPUC Fire-Threat Map Beginning in 2009, the California Public Utilities Commission (CPUC) adopted new fire-safety regulations. Several of the adopted fire-safety regulations apply only to "high fire-threat areas," where there is an elevated risk for power line fires igniting and spreading rapidly. These high fire-threat areas are designated by a single statewide fire-threat map, adopted on January 18, 2018, which designates areas where (1) there is an elevated risk for destructive power line fires, and (2) where stricter fire-safety regulations should apply. CalFire agreed to take the lead role in development of the Fire-Threat Map by organizing and leading a team of utility mapping experts to create an initial map depicting areas of California where there is an elevated hazard for the ignition and rapid spread of powerline fires due to strong winds, abundant dry vegetation, and other environmental conditions. This map was then refined with oversight from a CalFire-led Independent Review Team (IRT) of independent experts. This refinement included an interactive, engagement process whereby map alteration requests from many stakeholders, including investor-owned and publicly owned electric utilities, communications infrastructure providers, and local public safety agencies, could be submitted to the IRT via a ticketing system. The IRT consulted a wide range of data sources, including CalFire-developed Fire Threat (2005) and California Fire Perimeters (1878-2015) data and an Integrated Utility Threat Index model developed by a member of the IRT, to determine whether to approve or deny requests and delineate appropriate “Tiers” of fire threat. The Tiers and general guide for Tier designation utilized by the IRT is shown in the following figure (CPUC, 2017, p. 6) and the published CPUC Fire-Threat Map is included on the following page.

Esri, Garmin, GEBCO, NOAA NGDC, and other contributors

State of California - Public Utilities Commission

CPUC Fire-Threat Map Adopted by CPUC January 19, 2018

µ 0 30 60 90 12015 MilesFor more information about the data and map depicted, or other matters related to Utility wildfire safety, please contact Terrie Prosper at [email protected] sourced from ESRI (World Oceans).

The data portrayed in the CPUC Fire-Threat Map were developed under Rulemaking 15-05-006,following procedures in Decision (D.) 17-01-009, revised by D.17-06-024, which adopted a work plan forthe development of a utility High Fire-Threat District (HFTD) for application of enhanced fire safetyregulations. The aforementioned decisions ordered that the HFTD be comprised of two individual mapproducts. One of those map products is this CPUC Fire-Threat Map. The CPUC Fire-Threat Map depictsareas where enhanced fire safety regulations found in Decision 17-12-024 will apply. The final CPUC Fire-Threat Map was submitted to the Commission via a Tier 1 Advice Letter that was adopted by theCommission's Safety and Enforcement Division (SED) with a disposition letter on January 19, 2018. Alldata and information portrayed on the CPUC Fire-Threat Map are for the expressed use called out inD.17-12-024, and any other use of this map are not the responsibility or endorsed by the Commission orit's supporting Independent Review Team.

Fire-Threat AreasTier 2 - ElevatedTier 3 - ExtremeCounties

https://apps.cpuc.ca.gov/apex/f?p=401:56:0::NO:RP,57,RIR:P5_PROCEEDING_SELECT:R1505006

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While much of the data used to develop and refine the CPUC Fire-Threat Map and Tiers are relevant to Cal Water’s current wildfire preparation effort, overall the map was developed specifically with powerline utilities risks and associated increased regulatory needs in mind. The map is used, in part, by the powerline utilities for the Public Safety Power Shutoff Program. The CPUC Map excludes areas of key interest for Cal Water, for example “non-burnable landscapes” such as densely populated areas with substantial impervious cover, because the sole focus was identifying areas which would benefit from additional regulation aimed at reducing powerline fire ignition. It was therefore determined that the more widely applicable CalFire Fire Threat data would be used to identify vulnerabilities and develop initial capital project recommendations. The following table summarizes CalFire vs. CPUC for CWS zones.

CWS System Zones w/in 500ft of CalFire Threat Zones w/in 500ft of CPUC Threat

VeryHigh Extreme Tier 2 Tier 3

Bear Gulch 60 0 10 31

Bakersfield (BK) 12 0 0 0

BK North Garden 1 0 0 0

Chico 3 4 4 0

Country Meadows 3 0 0 0

Hermosa/Redondo 3 0 2 0

King City 1 0 0 0

Kernville 14 0 0 14

Los Altos 23 0 4 0

Lower Bodfish 4 0 0 4

Leona Valley 0 2 0 2

Livermore 8 0 4 0

Las Lomas 3 0 0 0

Lucerne 2 0 2 0

Oak Hills 1 0 0 0

Onyx 2 0 0 2

Oroville 4 0 2 0

Palos Verdes 108 0 108 0

San Carlos 14 0 14 0

Salinas 2 0 0 0

Salinas Hills 18 0 17 0

San Mateo 13 0 6 0

Split Mountain 3 0 0 3

S. Lake/Squirrel Mt. 4 0 0 4

South San Francisco 14 0 0 0

Upper Bodfish 3 0 0 3

Westlake 2 6 0 8

Entirely outside of CPUC Fire-Threat rankings Rated less threatened by CPUC than Cal Water

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Public Safety Power Shutoff Program (PSPS): Based on the Tier 2 and Tier 3 fire risk areas identified in the CPUC Fire-Threat Map, power utilities have implemented a power shutoff protocol that will affect zones in 23 systems across 10 Cal Water operating districts. The power shutoffs are a precautionary action taken by power utilities to reduce the likelihood of igniting a fire. Various factors will be taken into account by the power utilities including the map, weather forecasts and site conditions when initiating a PSPS event. The areas and specific service sites affected by the PSPS depend on the power utilities’ transmission lines and substations in relation to the fire threat areas which have been identified by the power utilities and listed below. Power utilities’ protocol consists of providing 48 and 24-hour advance notices but weather and environmental conditions may quickly elevate conditions to extreme fire threat and coordination/notification efforts may be immediate. The duration of PSPS events will be based on a case by case assessment of the factors considered. Cal Water must be ready and equipped to maintain water service during PSPS events that may be initiated with short notice and for unknown durations. The PSPS program will result in long term power outages for facilities that are wholly dependent on electricity from the electric utilities to supply water to the distribution system and to customers. These PSPS related outages will also occur during the highest demand periods of the year. There are situations where facilities that will be impacted by a PSPS event and do not have adequate backup power, will not necessarily require additional backup power if there are other facilities that can supply the same pressure zone adequately during high demand periods. An evaluation of each zone affected by a PSPS event needs to be performed to assess the level of backup power required to meet max day demands while maintaining adequate fire protection and emergency storage. However, there are minimum levels of backup power that can be identified based on the sites affected by the PSPS events (both Tier 2 and Tier 3) and knowing the facilities that supply each particular zone. At a minimum there should be backup power to supply water to every zone that is affected by a PSPS event or an alternate means of providing reliable supply to that particular zone such as a Pressure Reducing Valve (PRV) from an adjacent zone that already has adequate backup power to supply any dependent zones in addition to the adjacent zone. The facilities affected by the PSPS program are subject to change over time and it is likely that nearby facilities designated by the electric utilities as not affected by the PSPS program could still be impacted by a PSPS event. Cal Water needs to be prepared to supply water to these areas and will likely need to provide backup power to more than the facilities initially listed by the electric utilities. The PSPS program is also likely to change in the future as the condition of the electric utility’s facilities warrant higher safety standards. It is also likely that during a wildfire event more electrical facilities will be shutoff than originally contemplated in the PSPS planning effort. Cal Water will need to be prepared for the likelihood that the PSPS program will impact more than the list of facilities identified by the electrical utilities and used to develop the recommendations contained within this report.

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Some of Cal Water’s systems and many zones in the larger systems are deemed reliable as they may have resources or alternative means of water supply due to onsite auxiliary power, available portable units, hydraulic controls or the interconnectedness of the water distribution system. The remaining systems are not entirely equipped to supply emergency auxiliary power and hence water supply and/or pressure in case of a PSPS event. For those systems Cal Water has identified backup generator projects that are both required for wildfire risk mitigation and necessary due to the PSPS program. Those generator projects are considered critical. The PSPS program is responsible for driving an acceleration of the power-related recommendations of the Wildfire Preparedness program but, as a practical matter, the projects recommended also protect Cal Water customers from other losses of power. Such losses of power could result from natural disasters, such as a major earthquake or tsunami, or from man-made disasters.


1720 North First Street, San Jose, CA 95112 Revised CPUC Sheet No. XXXXX-W

(408) 367-8200 Canceling CPUC Sheet No. XXXXX-W

Table of Contents - Page 1

The following listed tariff sheets contain all effective rates and rules affecting the rates and service of the Utility together with information relating thereto:

Sheet Subject Matter Service Area Schedule No. CPUC Sheet No.

Title Page 5613-WTable of Contents

Page 1 Table of Contents XXXXX-W (C)Page 2 Preliminary Statements 12048-WPage 3 Preliminary Statements 12054-WPage 4 Preliminary Statements XXXXX-W (C)Page 5 Rate Schedules - All Districts 12057-WPage 6 Rate Schedules - District Specific 12068-WPage 7 Rate Schedules - District Specific 12064-WPage 8 Rate Schedules - District Specific 12047-WPage 9 Rate Schedules - District Specific 12023-WPage 10 Rate Schedules - District Specific 12073-WPage 11 Service Area Maps 12029-WPage 12 Rules 11860-WPage 13 Rules 11643-WPage 14 Sample Forms 12061-WPage 15 Sample Forms 2926-W

(continued)

(To be inserted by utility) Issued by (To be inserted by CPUC)

Advice Letter No. GREG A. MILLEMAN Date Filed

Decision No. Name Effective

Vice President Resolution No.

TITLE

2342


1720 North First Street, San Jose, CA 95112 Revised CPUC Sheet No. XXXXX-W

(408) 367-8200 Canceling CPUC Sheet No.

Table of Contents - Page 4

Preliminary Statements

Sheet Subject Matter Service Area CPUC Sheet No.

Preliminary Statements (continued)

AI Chromium 6 Memorandum Account (CHROMIUM-6 MA) 11317-WAJ Low-Income Ratepayer Assistance Balancing Account (LIRA BA) 9671-WAK 2012 GRC Interim Rate Memorandum Account (2012 IRMA) 10101-WAL Drought Memorandum Account (DRMA) 10208-WAM Rate Support Fund Balancing Account (RSF BA) 11316-WAN Infrastructure Memorandum Account (IMA) 10447-WAO Memorandum Account Water Contamination (WCL MA) 10448-W

Litigation AP General District Balancing Accounts (District BAs) 10449-WAQ East Los Angeles Memorandum Account (ELA MA) 10450-WAR Sales Reconciliation Mechanism Balancing Account (SRM BA) 10467-WAS Asbestos Remediation Memorandum Account

Page 1 10868-WPage 2 10869-W

AT School Lead Testing Memorandum Account (SLTMA) 11359-WAU Phase 1 Sites Reservoir Memorandum Account (PHASE 1 SITES MA) 11468-WAV 2018 Tax Accounting Memorandum Account (TAMA) 11626-WAW Cost of Capital Interim Rate Memorandum Account (COC IMA) 11667-WAX Lead Service Memorandum Account (LSMA) 12016-WAY Public Safety Power Loss Memorandum Account (PSPLMA) XXXXX-W (N)

(continued)

(To be inserted by utility) Issued by (To be inserted by CPUC)

Advice Letter No. GREG A. MILLEMAN Date Filed

Decision No. Name Effective

Vice President Resolution No.

TITLE

XXXXX-W

2342

CALIFORNIA WATER SERVICE COMPANY New CPUC Sheet No.

1720 North First Street, San Jose, CA 95112

(408) 367-8200 CPUC Sheet No.

AY. Public Safety Power Loss Memorandum Account (PSPL MA) ( N )|

1. PURPOSE: The purpose of the memorandum account is to track the incremental costs |associated with the preparation and installation of facilities to address public safety needs |in the event of potential power losses. |

|

2. APPLICABILITY: The PSPL MA may be applicable to all regulated operations in California. |A request for recovery of amounts in this account will identify the proposed ratemaking areas |from which recovery is being sought. |

The PSPL MA shall include, but will not be limited to: |a. Costs to evaluate potential system impacts from additional requirements. |b. Project management costs |c. Equipment costs (e.g. purchased or leased generators, cabling, other electrical equipment) |d. Contractor costs for equipment installation |e. New facilities used to supply water in a power loss event |f. Operations and maintenance costs |

3. RATES: The memorandum account currently has no rate component. |

4. ACCOUNTING PROCEDURE: The entries made to the memorandum account may include | the following: |

These entries are not cumulative and are tracked in order to preserve the range of potential |regulatory outcomes the Commission may elect if recovery is granted. |

Expenditure Entries |

a. Cal Water shall record all PSPL MA related costs including but not limited to, |the cost of engineering and design, permitting, equipment, installation, outside |

contractors, administrative support, compliance review, verification and inspection, |

operations and maintenance costs.

Revenue Requirement Entries |

b. Amounts equal to the revenue requirement of each capital expenditure as if it |were shareholder-funded (including return on investment, income taxes, ad valorem tax, |depreciation, other taxes and fees). |

Interest |

c. Interest calculated based on the average balance in each segment of the account |multiplied by 1/12th of the most recent month’s interest rate on Commercial Paper (prime, |90-day), published in Federal Reserve Statistical Release H-15. |

5. REGULATORY PROCEDURE: |

Requests for recovery of any balance in the memorandum account shall be made in a general |rate case, separate application, or Tier 3 advice letter. Requests for recovery shall include a |showing that the costs requested for recovery are not included in rates. |

|

( N )

(To be inserted by utility) (To be inserted by Cal. P.U.C.)

Advice Letter No. 2342 Date Filed

Decision No. Effective

Resolution No.

Issued by

XXXXX-W

Original

Preliminary Statement(continued)

Title

GREG A. MILLEMANName

Vice President

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CALIFORNIA PUBLIC UTILITIES COMMISSION DIVISION OF WATER … · CALIFORNIA PUBLIC UTILITIES...

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