CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles...

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CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Timothy Alan Simon Nancy E. Ryan www.cpuc.ca.gov

Transcript of CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles...

Page 1: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

CPUC Public Agenda 3252Thursday, April 22, 2010, 10:00 a.m.

300 South Spring Street, Los Angeles

Commissioners: Michael R. Peevey Dian M. Grueneich

John A. Bohn Timothy Alan Simon

Nancy E. Ryan

www.cpuc.ca.gov

Page 2: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Public Comment

• Any member of the public who wishes to address the CPUC about matters before the Commission, must first sign up with the Public Advisor before the meeting begins.

• Once called, at the discretion of the President of the CPUC, each speaker has up to 2 minutes.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

The following items are NOT subject to Public Comment: Item: 26 All items on the Closed Session Agenda

Page 3: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Agenda Changes• Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting.

• Items on Today’s Consent Agenda are: 1, 6, 7, 9, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 23, 27, 29, 30 & 31.

• Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting.Items: 38 & 41 from the Regular Agenda have been added to the Consent Agenda.

• Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Items: 5, 8, 22, 24, 25 & 26 have been moved to the Regular Agenda.

• Items: 40, 43, 45 & 48 have been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 5/6/10: 2, 10, 13, 28, 33, 34, 35, 39, 42, 46, 51 & 53

Held to 5/20/10: 3 & 4

Page 4: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda

• Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote.

• For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed.

• The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

Page 5: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy OrdersItem #5 [9267] Southern California Gas Company Certificate of Public Convenience and Necessity

A09-07-014 Application of Southern California Gas Company to Amend its Certificate of Public Convenience and Necessity for the Honor Rancho Natural Gas Storage Facility.

Ratesetting Comr Simon/ALJ Smith-----------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves the Southern California Gas Company’s (SoCalGas) request to amend the Certificate

of Public Convenience and Necessity for the Honor Rancho natural gas storage facility (Facility) toconstruct and operate the facilities to increase storage capacity at the Facility (Expansion Project).

• Finds that the Expansion Project is categorically exempt from the California Environmental QualityAct (CEQA) pursuant to CEQA Guideline § 15301, and confirms the Commission’s preemptoryauthority over conflicting local zoning regulations, ordinances, codes, or requirements.

• Denies SoCalGas’ request for approval of the proposed revenue requirement for the ExpansionProject, and authorizes SoCalGas to establish the Honor Rancho Storage Memorandum Account torecord the cost to construct, operate, and maintain the Expansion Project, pending a Commissiondecision in a future general rate case proceeding addressing the recovery of reasonable andprudent costs associated with the Expansion Project.

• Closes the proceeding.

ESTIMATED COST:• $48.9 million (plus ongoing incremental operations and maintenance costs).

Page 6: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Transportation/Rail Safety Orders

Item #8 [9302] Interim Decision Certifying Addendum to Final Environmental Impact Statement/Final Environmental Impact Report

A06-12-005 , A06-12-020, A07-01-004, A07-01-017, A07-01-044, A07-02-007, A07-02-017,A07-03-004, A07-05-012, A07-05-013 - Related matters.In the Matter of the Application of the Exposition Metro Line Construction Authority for an order authorizing the construction of a two-track at-grade crossing for the Exposition Boulevard Corridor Light Rail Transit Line across Jefferson Boulevard, Adams Boulevard, and 23rd Street, all three crossings located along Flower Street in the City of Los Angeles, County of Los Angeles, California.

Ratesetting Comr Simon/ALJ Bushey-----------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Interim Decision certifies Addendum to Final Environmental Report.

ESTIMATED COST:• None.

Page 7: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #22 [9344] Southern California Edison Company's Request to Establish a New Program That Will Provide Utility Bill Payment Assistance

Res E-4327, Advice Letter 2448-E/U 338-E filed on March 8, 2010, and Supplemental Advice Letter 2448-E-A filed on March 12, 2010 - Related matters.-----------------------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves Southern California Edison Company’s (SCE) Request to use up to $2 million of

California Alternate Rate for Energy (CARE) Funds to Leverage Emergency Temporary Assistance for Needy Families.

ESTIMATED COST:• Authorizes use of up to $2 million from SCE’s CARE balancing account.• This amount is already funded through the Public Purpose Charge and this resolution does

not increase SCE’s revenue requirements.

Page 8: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #24 [9363] Southern California Gas Company's Request to Establish a New Program to Provide a One-Time Emergency Credit

Res G-3446, Advice Letter 4086/ U 904-G-G filed on March 8, 2010 and Supplemental Advice Letter 4086-A/ U 904-G filed on March 15, 2010 - Related matters.-----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves Southern California Gas Company’s (SoCalGas) Request to Use up to $2

million of California Alternate Rate for Energy (CARE) Funds to leverage Emergency Temporary Assistance for Needy Families.

ESTIMATED COST:• Authorizes use of up to $2 million from SoCalGas’ CARE balancing account.• This amount is already funded through the Public Purpose Charge and this

resolution does not increase SoCalGas’ revenue requirement.

Page 9: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #25 [9364] San Diego Gas & Electric Company 's Request to Establish a New Program to Provide a One-Time Emergency Credit

Res E-4328, Advice Letter 2151-E/1937-G filed on March 8, 2010 and Supplemental Advice Letter 2151-E-A/1937-G-A filed on March 15, 2010 - Related matters.-----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves San Diego Gas & Electric Company’s (SDG&E) request to use up to $1 million of

California Alternate Rate for Energy (CARE) Funds to leverage Emergency Temporary Assistance for Needy Families.

ESTIMATED COST:• Authorizes use of up to $1 million from SDG&E’s CARE balancing accounts.• This amount is already funded through the Public Purpose Charge and this resolution does

not increase SDG&E’s revenue requirements.

Page 10: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title style

Resolution E-4327, G-3446 & E-4328 (Items 22, 24 & 25)

Approval to Utilize up to $2 Million in SCE CARE Funds, $2 Million in SoCalGas CARE Funds, and $1 Million in SDG&E CARE Funds to Leverage with the ARRA

Temporary Assistance to Needy Families (TANF) Funds

Julie Fitch

Energy Division Director

April 22, 2010

Page 11: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleBackground/Summary

The American Recovery and Reinvestment Act of 2009 (ARRA) Temporary Assistance to Needy Families (TANF) Emergency Funds:

TANF is a block grant program to help move recipients into work, with the aim of moving them off welfare

Under ARRA, an extra $5 billion in emergency funding over fiscal years 2009-2010 will be made available to TANF during the economic downturn

The TANF emergency fund will provide a 4 to 1 match to IOU CARE funds ($4 in TANF funds for every $1 in CARE funds)

The period for using this emergency assistance expires on September 30, 2010, unless extended

(R.)10-02-005, which continues the Commission’s efforts to reduce the number of gas and electric utility service disconnections due to non-payment of bills by improving customer notification and education, required the investor-owned utilities (IOUs) to file Tier 3 advice letters to take advantage of the TANF Emergency Funds

Page 12: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleObjectives of the SCE, SoCalGas & SDG&E CARE/TANFProgram Proposals

Objectives of the IOU proposed CARE/TANF Programs:

Utilize up to a total of $25M towards the Utilities’ bill payment assistance programs

Assist CARE and TANF qualifying families with their past due bill payments to help reduce and avoid service disconnections in the SCE, SoCalGas and SDG&E service territories

The SCE, SoCalGas and SDG&E CARE/TANF programs will closely mirror PG&E’s CARE/TANF program approved by the Commission on April 8, 2010, in which up to $5M in PG&E’s CARE funds would be leveraged with a 4 to 1 match or $20M in TANF funds

Page 13: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleFunding of the CARE/TANF Program

TANF Funds are administered by the U.S. Department of Health and Human Services $5 Billion nationally in TANF Emergency Funds is available over fiscal years

2009-2010; $1.8 billion is available for California Proposed Funding for 3 IOUs’ CARE/TANF Programs

$2 Million of SCE CARE Funds $2 Million of SoCalGas CARE Funds $1 Million of SDG&E CARE Funds $20 Million or four times the amount in TANF Emergency Funds (combined

for 3 Southern California IOUs) Resulting in potentially $25 Million in total CARE/TANF Program Budget

Allocation of Administrative Funds SCE is requesting 15% of total program costs in administrative costs SoCalGas and SDG&E are requesting 15-20% of total program costs in

administrative costs 80% of administrative costs for each utility will be covered by TANF Funds

Page 14: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title style Program Activities and Tentative Schedule

April 30, 2010 State applies for TANF Emergency Funds on behalf of the counties to the

Department of Health and Human Services

May 2010 Department of Health and Human Services issues fund awards

May– September 2010 The Salvation Army, or another program administrator selected by the

IOU, distributes funds to eligible customers

September 30, 2010 Program is projected to end, unless extended by the Federal Government

Page 15: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleFor Further Information

CPUC Energy Division Technical Contact:Sarita Sarvate

Program and Project Supervisor

Low Income Programs

Phone: (415) 703-5574

Email: [email protected]

Page 16: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #22 [9344] Southern California Edison Company's Request to Establish a New Program That Will Provide Utility Bill Payment Assistance

Res E-4327, Advice Letter 2448-E/U 338-E filed on March 8, 2010, and Supplemental Advice Letter 2448-E-A filed on March 12, 2010 - Related matters.-----------------------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves Southern California Edison Company’s (SCE) Request to use up to $2 million of

California Alternate Rate for Energy (CARE) Funds to Leverage Emergency Temporary Assistance for Needy Families.

ESTIMATED COST:• Authorizes use of up to $2 million from SCE’s CARE balancing account.• This amount is already funded through the Public Purpose Charge and this resolution does

not increase SCE’s revenue requirements.

Page 17: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #24 [9363] Southern California Gas Company's Request to Establish a New Program to Provide a One-Time Emergency Credit

Res G-3446, Advice Letter 4086/ U 904-G-G filed on March 8, 2010 and Supplemental Advice Letter 4086-A/ U 904-G filed on March 15, 2010 - Related matters.-----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves Southern California Gas Company’s (SoCalGas) Request to Use up to $2

million of California Alternate Rate for Energy (CARE) Funds to leverage Emergency Temporary Assistance for Needy Families.

ESTIMATED COST:• Authorizes use of up to $2 million from SoCalGas’ CARE balancing account.• This amount is already funded through the Public Purpose Charge and this

resolution does not increase SoCalGas’ revenue requirement.

Page 18: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #25 [9364] San Diego Gas & Electric Company 's Request to Establish a New Program to Provide a One-Time Emergency Credit

Res E-4328, Advice Letter 2151-E/1937-G filed on March 8, 2010 and Supplemental Advice Letter 2151-E-A/1937-G-A filed on March 15, 2010 - Related matters.-----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves San Diego Gas & Electric Company’s (SDG&E) request to use up to $1 million of

California Alternate Rate for Energy (CARE) Funds to leverage Emergency Temporary Assistance for Needy Families.

ESTIMATED COST:• Authorizes use of up to $1 million from SDG&E’s CARE balancing accounts.• This amount is already funded through the Public Purpose Charge and this resolution does

not increase SDG&E’s revenue requirements.

Page 19: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda - Energy OrdersItem #26 [9365] The Witch/Rice and Guejito Fire Investigation Settlements

I08-11-006, I08-11-007 - Related matters.Investigation on the Commission’s Own Motion into the Operations and Practices of San Diego Gas & Electric Company Regarding the Utility Facilities linked to the Witch and Rice Fires of October 2007.

Adjudicatory Comr Simon/ALJ Reed ----------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Resolves the alleged violations related to the October 2007 Witch/Rice and Guejito Fire Investigation.• San Diego Gas & Electric Company (SDG&E) will make a settlement payment of $14,350,000 to the General

Fund of the State of California within 60 days after the issuance of the decision.• CoxCom Inc. and Cox California Telcom LLC will make a settlement payment of $2,000,000 within 60 days after

the issuance of the decision.• SDG&E will reimburse the Consumer Protection and Safety Division (CPSD) up to an additional $400,000 in

order to implement a computer work module designed to assist the CPSD in future utility safety audits and investigations.

• SDG&E shall remit any unused balance of the $400,000 to the General Fund of the State of California at the direction of the CPSD.

• Closes the Proceeding.

ESTIMATED COST:• Approximately several million dollars on an annual basis due to fire-related remedial measures under

the settlements.

Page 20: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Orders

Item #32 [9195] Pacific Gas and Electric Company's Solar Photovoltaic

A09-02-019 Application of Pacific Gas and Electric Company to Implement and Recover in Rates the Costs of its Photovoltaic Program.

Ratesetting Comr Peevey/ALJ Ebke ------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Adopts a new program to 500 Megawatts of photovoltaic facilities by Pacific Gas and

Electric Company (PG&E) and independent power producers in PG&E’s service territory.• Closes the proceeding.

ESTIMATED COST:• Prices for utility-owned generation and power purchase agreements will be capped at the

weighted average price of photovoltaic projects from PG&E’s 2009 renewables portfolio standard solicitation.

Page 21: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy OrdersItem #32a [9196] Pacific Gas and Electric Company's Solar Photovoltaic Program- Alternate of President Peevey

A09-02-019 Application of Pacific Gas and Electric Company to Implement and Recover in Rates the Costs of its Photovoltaic Program.

-----------------------------------------------------------------------------------------------------

The Alternate Proposed Decision (APD) differs from the Proposed Decision (PD) in the following substantive ways:• The APD authorizes Pacific Gas and Electric Company (PG&E) to recover the costs of up to 250 MW of utility owned

generation (UOG) solar PV projects through cost-of-service ratemaking treatment. The APD adopts revised operations and maintenance (O&M) costs, and contingency amounts. With regard to PG&E’s O&M costs, the APD find that the cost estimates are reasonable however authorizes PG&E to collect only the actual costs it incurs.

• The APD establishes a minimum performance standard whereby PG&E’s O&M costs will be subject to a reasonableness review should system performance fall, on average, below 80% of anticipated output.

• The APD allows PG&E to pursue some limited number of UOG projects on roof-tops and/or sized less than 1 MW, provided these deployments constitute less that 5% of the overall authorized capacity.

• Although the APD relies on the same competitive solicitation process as the PD for projects undertaken by independent power producers, the APD adopts a different cost cap for projects pursued for the PPA portion of the program.

• The APD encourages PG&E to deploy UOG projects on utility owned land near its substations, however, unlike the PD, it does not require PG&E to file advice letters if it elects to pursue projects on land not currently owned by the utility or near a substation.

• The APD requires independent project developers to make reasonable efforts to pay prevailing wage. • The APD adopts a cost savings incentive mechanism by which realized capital costs savings below an average capital

cost of $3920 per kW over the life of the program are shared between ratepayers and shareholders, with 90% of the savings retained by ratepayers and 10% of the savings retained by PG&E shareholders.

• The APD limits the number of undeployed MW on the UOG side of the program that PG&E may roll forward from any given year to a subsequent year to 10 MW.

Page 22: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #36 [9316] Southern California Edison Company's Proposal to Delete Underground Equipment

Res E-4329, Advice Letter 2334-E filed March 27, 2009 and Supplemental Advice Letter 2334-E-A Filed on March 12, 2010 - Related matters.-----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves, in part, and denies, in part, Southern California Edison Company’s (SCE)

request to install distribution system terminal equipment (not including wires) above ground and not underground for new line and service extensions.

• SCE’s request is approved for private premises, but is denied without prejudice with respect to public rights of way at this time.

• If SCE wishes to propose amending its rules with respect to above-ground equipment in public rights of way, SCE is required to file an application for that purpose.

ESTIMATED COST:• None.

Page 23: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title style

Resolution E-4329 (Item 36)

Approves SCE Tariff Revisions that Delete the Underground Option for Distribution Equipment in

Limited Circumstances

Julie Fitch

Energy Division Director

April 22, 2010

Page 24: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleBackground/Summary

Tariffs 2, 15, and 16 allows SCE to underground certain distribution equipment at the request of an applicant. SCE proposed that future applications only consider above-ground installation.

Currently, tariffs allow an applicant to request the undergrounding of certain distribution equipment (such as transformers, switches, capacitors and junction bars).

The cost of underground placement of distribution equipment is paid by the applicant.

Only 20% of distribution equipment service applications' request underground placement.

Above-ground equipment (pad mount transformers) are already standard for residential areas based on prior Commission policy and decisions.

Maintenance of underground equipment is more expensive than above ground.

Underground equipment potentially posses a larger worker safety issue.

Page 25: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleObjectives of SCE’s Tariff Revision Proposal

Objectives of SCE’s proposed tariff revisions to their Above Ground/ Under Ground Program for distribution equipment:

Reduce difficult installation and maintenance procedures caused by underground installation of distribution equipment in enclosed spaces.

Reduce electric service outages that last longer because it takes more time to locate and repair them.

Reduce the use of complex safety procedures required for underground vault entry, such as hot scans for hot spots and testing for gases.

Eliminate trucking of water or contaminants that collect in underground vaults.

Page 26: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleProtests and Comments

Numerous local government representatives protested SCE’s proposal due to concerns with public access, adherence to local ordinances, and aesthetics

Prior version of resolution was circulated for public comment but remained controversial

The Commission encouraged SCE to address local concerns during a November 2009 workshop in Los Angeles

SCE re-filed a modified advice letter with a more limited proposal in March 2010

New Resolution mailed for public comment; numerous changes and clarifications made in response to comments from local government representatives and SCE

Page 27: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleResolution Conclusions

Resolution E- 4329 only authorizes the modification of tariffs 2, 15, and 16 to delete the option for undergrounding of distribution equipment in the following limited circumstances: New construction for privately owned property (not public

property or public rights of way as defined in Resolution). Change in use or occupancy for privately owned property. On public property or in public rights of way with agreement of

the local public authority on a case by case basis. Tariff changes are effective 90 days after Commission

approval of this resolution. If SCE wishes to propose deletion of underground option

for any other circumstances, a formal application must be filed.

Page 28: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #36 [9316] Southern California Edison Company's Proposal to Delete Underground Equipment

Res E-4329, Advice Letter 2334-E filed March 27, 2009 and Supplemental Advice Letter 2334-E-A Filed on March 12, 2010 - Related matters.-----------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Approves, in part, and denies, in part, Southern California Edison Company’s (SCE)

request to install distribution system terminal equipment (not including wires) above ground and not underground for new line and service extensions.

• SCE’s request is approved for private premises, but is denied without prejudice with respect to public rights of way at this time.

• If SCE wishes to propose amending its rules with respect to above-ground equipment in public rights of way, SCE is required to file an application for that purpose.

ESTIMATED COST:• None.

Page 29: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Energy Resolutions and Written Reports

Item #37 [9317] Establishment of a Schedule for Local Government Renewable Energy Self-Generation Program

Res E-4283, Pacific Gas and Electric Company Advice Letter (AL) 3476-E, filed on June 25th, 2009, San Diego Gas and Electric Company AL 2092-E, filed on June 10th, 2009, Southern California Edison Company AL 2351-E, filed on June 10th, 2009 - Related matters. ---------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Within seven days, Pacific Gas and Electric Company, San Diego Gas & Electric Company, and

Southern California Edison Company will re-file tariffs called “Schedule for Local Government Renewable Energy Self-Generation Bill Credit Transfer (RES-BCT)” to comply with this Resolution and Public Utilities Code 2830. The original proposed tariffs are adopted with modifications below.

• The revised tariffs will specify that participation under this code will not affect California Solar Initiative/Self-Generation Incentive Program eligibility, that customers cannot take net energy metering service in conjunction with RES-BCT, and that credits will be valued at the generation-only rate.

• Some protests are rejected for being outside the scope of this Resolution.

ESTIMATED COST:• None.

Page 30: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleResolution E- 4283 (Item 37)

Tariffs Compliant with PU Code 2830 relating to Establishment of a Schedule for Local Government

Renewable Energy Self-Generation Program

Or

Renewable Energy Self-Generation

Bill Credit Transfer (RES-BCT) Tariffs

Julie Fitch

Energy Division Director

April 22, 2010

Page 31: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleRES-Bill Credit Transfer (BCT) Tariffs

Background:

Public Utilities Code 2830, established by AB 2466 (Laird, 2008), requires utilities to establish a tariff which allows local government entities to generate electricity at a primary account and transfer any excess credits to another ‘benefiting’ account so long as both facilities are owned or operated by the same local government.

Eligibility:

Any ‘Local government’, defined as a city and or county, political subdivision, school district, or UC or CSU campus may participate in RES-BCT. Joint powers authorities and state agencies are not eligible.

Page 32: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleStatutory Requirements

Generating systems limited to 1 MW capacity Bill credits are valued at the generation component of the Time of Use

(TOU) rate Benefiting Account must receive service under a TOU schedule Electricity exported by the local government may not be sold Remaining credits are carried over to the next month, but expire at the end

of 12 months Local government must give 60 days advance notice before operation,

within 30 days utility must file an advice letter with the CPUC, CPUC must respond within 30 days

Renewable Energy Credits (RECs) associated with energy remain property of the generators

Statewide, there is a limit of 250 MW allocated as follows: 50% SCE, 48% PG&E, 8% SDG&E

Local government is responsible for metering and interconnection CPUC is responsible for preventing RES-BCT from shifting costs to bundled

service customers IOU is responsible for maintaining transmission and distribution

infrastructure and billing

Page 33: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleAdvice Letters (ALs) Filed

The three IOUs filed ALs in June of 2009 as follows: By PG&E Advice Letter (AL) 3476-E By SDG&E AL 2092-E By SCE AL 2351-E

Key components of the Advice Letter proposals: Bill credits are calculated based on the time-of-use generation component of the

electricity usage charge of the Generating Account, excluding the Department of Water Resources (DWR) surcharges, if any

Participating generating facilities in PG&E and SCE territories are not allowed to take service under a NEM tariff, this issue is unclear in SDG&E territory

The local government is required to establish allocation percentages and or Benefiting Accounts no more than once per year

Specifically in the case of PG&E, the number of Benefiting Accounts is limited to 50 for each Arrangement to minimize administrative burden

Administration and implementation costs will be covered via monthly fees to the Generating and Benefiting Accounts

Page 34: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title style

34

Protests to Advice Letters

Protests were filed by the following: The Solar Alliance Community Renewable Solutions City of San Jose City of San Diego

Key issues disputed were: Eligibility for California Solar Initiative and Self Generation Incentive

Program Participation in Net Energy Metering Administration & Implementation fees RPS Standards for eligible technologies Participation in Critical Peak Pricing tariffs Schedule DG-R (San Diego) Several other miscellaneous technical issues

Page 35: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleResolution Conclusions

Eligibility for California Solar Initiative and Self Generation Incentive Program

Program eligibility is outside the scope of these tariffs

Net Energy Metering participation A Generating Account customer can take service under either a NEM tariff or a

RES-BCT tariff, but not both

Administration & Implementation fees The utilities may charge a one-time set up fee per Generating Account of up to

$500, and a maximum $30 monthly administration fee

Eligible Technologies RPS Standards will be used and interpreted to refer to technologies, not the

manner in which they are installed (any restrictions of distributed generation projects shall be disregarded)

Critical Peak Pricing (CPP) participation Generating and Benefiting Accounts may participate in CPP service

Schedule DG-R (San Diego) Benefiting Accounts are not allowed to take service under SDG&E’s DG-R rate

Page 36: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Click to edit Master title styleRegular Agenda – Energy Resolutions and

Written ReportsItem #37 [9317] Establishment of a Schedule for Local Government Renewable Energy Self-Generation Program

Res E-4283, Pacific Gas and Electric Company Advice Letter (AL) 3476-E, filed on June 25th, 2009, San Diego Gas and Electric Company AL 2092-E, filed on June 10th, 2009, Southern California Edison Company AL 2351-E, filed on June 10th, 2009 - Related matters. ---------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Within seven days, Pacific Gas and Electric Company, San Diego Gas & Electric Company, and

Southern California Edison Company will re-file tariffs called “Schedule for Local Government Renewable Energy Self-Generation Bill Credit Transfer (RES-BCT)” to comply with this Resolution and Public Utilities Code 2830. The original proposed tariffs are adopted with modifications below.

• The revised tariffs will specify that participation under this code will not affect California Solar Initiative/Self-Generation Incentive Program eligibility, that customers cannot take net energy metering service in conjunction with RES-BCT, and that credits will be valued at the generation-only rate.

• Some protests are rejected for being outside the scope of this Resolution.

ESTIMATED COST:• None.

Page 37: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Legislative and Other Matters

Item #44 [9361] Energy: Solar Energy Systems

AB 2296 (Saldana) -----------------------------------------------------------------------------------

This bill would allow Solar Energy Systems eligible for solar rebates to be located on “near-site” locations. (Leg Subcommittee Recommendation: Oppose)

Page 38: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Legislative and Other Matters

Item #47 [9354] Charter-party Carriers of Passengers

AB 2572 (Bradford) -----------------------------------------------------------------------------------

This bill would eliminate the requirement that a charter-party carrier renew its operating authority every three years. (Legislative Subcommittee Recommendation: Support With Amends)

Page 39: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Legislative and Other Matters

Item #49 [9359] Telecommunications Universal Service Programs: California Advanced Services Fund

SB 1040 (Padilla) -----------------------------------------------------------------------------------

This bill would extend the current California Advanced Services Fund program for 5 more years and authorize $125 million to the program. (Legislative Subcommittee Recommendation: Support/Co-sponsor)

Page 40: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Legislative and Other Matters

Item #50 [9356] Gas and Electric Utility Service: Master-meter Customers

SB 1097 (Strickland) -----------------------------------------------------------------------------------

This bill will create new monitoring requirements for the investor-owned utilities' purchases for master-metered mobile home parks. (Legislative Subcommittee Recommendation: Oppose)

Page 41: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Regular Agenda – Legislative and Other Matters

Item #52 [9358] Electricity: Plug-in Hybrid and Electric Vehicles

SB 1437 (Kehoe) -----------------------------------------------------------------------------------

This bill requires the Commission to determine by July 2011 for each class of ratepayers, the portion of billings that are used for subsidizing electricity for plug-in hybrid electric vehicles and battery electric vehicles. (Legislative Subcommittee Recommendation: Support w/Amends)

Page 42: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Commissioners’ Reports

Page 43: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

Management Reports

Page 44: CPUC Public Agenda 3252 Thursday, April 22, 2010, 10:00 a.m. 300 South Spring Street, Los Angeles Commissioners: Michael R. Peevey Dian M. Grueneich John.

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

May 6, 2010, at 10:00 a.m.