CPUC Public Agenda 3262 Thursday, October 14, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco...

CPUC Public Agenda 3262Thursday, October 14, 2010, 10:00 a.m.

505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey Dian M. Grueneich

John A. Bohn Timothy Alan Simon

Nancy E. Ryan

www.cpuc.ca.gov

http://www.cpuc.ca.gov/

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment: Items: 15, 16 & 36 All items on the Closed Session Agenda

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Once called, each speaker has up to 2 minutes to address the Commission.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment: Items: 15, 16 & 36 All items on the Closed Session Agenda

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, 8, 10, 14, 15, 16, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33 & 34

• 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: 35, 41, 43 & 45 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. Item: None have been moved to the Regular Agenda.

• Items: 5, 12, 38, 38a & 42 have been withdrawn.

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

Held to 10/28/10: 2, 3, 4, 9, 11, 20, 36, 39, 44 & 47

Held to 11/19/10: 13, 21, 40 & 49

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.

http://www.cpuc.ca.gov/

Regular Agenda – Energy Orders Item #37 [9521] Southern California Edison Company's Petition to Modify Decision 07-01-039

R06-04-009 Order Instituting Rulemaking to Implement the Commission’s Procurement Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions Standards into Procurement Policies.

Quasi-Legislative Comr. Peevey/ALJ Vieth--------------------------------------------------------------------------------------------------------------------------------------------------------------------------PROPOSED OUTCOME:• Grants, in part, the petition to modify Decision 07-01-039 and authorizes, subject to reasonableness review, a partial exemption from

the Adopted Interim Emissions Performance Standard Rules for Four Corners Units 4 and 5 (Four Corners), limited to capital expenditures made under the co-tenancy agreements prior to January 1, 2012.

• Reasonableness review will occur in Southern California Edison Company’s (SCE) test year 2012 general rate case, to be filed in 2010.• For capital expenditures of less than $1 million, SCE must establish reasonableness.• For capital projects of $1 million or more, SCE’s reasonableness showing must establish necessity based upon consideration of four

factors, including prevention of imminent safety hazard and continuation of basic operation through 2016, when SCE’s contractual obligations terminate.

• SCE must conduct a study on the feasibility of continuing to maintain its interest in Four Corners after the end of 2011 and submit this study in the 2012 general rate case, prior to determination of any recovery of investment at Four Corners in the general rate case.

• SCE may not extend any of its existing co-tenancy agreements or expand or extend its ownership in Four Corners without first obtaining Commission approval.

• SCE must report its test year 2012 general rate case on its remedial activities to ensure that its pleadings are complete, accurate, and fully explain the bases for its positions.

• Closes the proceeding.

ESTIMATED COST:• Subject to a finding of reasonableness in SCE’s test year 2012 general rate case, some or all capital expenditures made in

Four Corners prior to January 1, 2012, in an amount not to exceed $178,593,000, will be recoverable in rates.• Other costs associated with SCE’s continued ownership of Four Corners may be determined in SCE’s test year 2012

general rate case.

Regular Agenda – Energy OrdersItem #39 [9721] Use of Tradable Renewable Energy Credits to Comply With the California Renewables Portfolio Standard

R06-02-012 Order Instituting Rulemaking to Develop Additional Methods to Implement the California Renewables Portfolio Standard Program..

Ratesetting Comr. Peevey/ ALJ Simon ------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Grants in part and denies in part petitions for modification of Decision (D) 10-03-021.• Lifts stay imposed by D10-03-018.• Ends moratorium on approval of certain Renewable Porfolio Standard procurement contracts.

ESTIMATED COST:• None.

Regular Agenda – Water/Sewer OrdersItem #46 [9693] Accounting Treatment of Contamination Proceeds from Government Grants and Loans, Damage Awards, Settlements, Government Orders and Insurance

R09-03-014 Order Instituting Rulemaking on the Commission’s Own Motion to Develop Rules and Procedures to Ensure That Investor-Owned Water Utilities Will not Recover Unreasonable Return on Investments Financed by Contamination Proceeds, Including Damage Awards, and Public Loans Received Due to Water Supply Contamination.

Quasi-Legislative Comr. Bohn/ALJ Weatherford-----------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Adoption of policies, rules and framework for analysis concerning accounting treatment of contamination proceeds.

ESTIMATED COST:

• Nominal cost of establishing sub-accounts within Account 265 (Contribution in Aid of

Construction).

Regular Agenda – Water/Sewer OrdersItem #48 [9772] Affiliate Transactions Rules for Water and Sewer Utilities

R09-04-012 Order Instituting Rulemaking on the Commission’s Own Motion to Develop Standard Rules and Procedures for Regulated Water and Sewer Utilities Governing Affiliate Transactions and the Use of Regulated Assets for Non-Tariffed Utility Services (formerly called Excess Capacity).

Quasi-Legislative Comr. Bohn/ALJ Gamson------------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Adopts standard affiliate transaction rules for Class A and B water and sewer companies (see Appendix A)

• Adopts a rule (Rule X) governing the provision of non-tariffed products and services within water and sewer utilities.

• Adopts rules consistent with Commission goals of protecting ratepayers, ensuring utility financial health, and preventing anti-competitive behavior. The rules also minimize the regulatory burden on water and sewer utilities.

• Addresses unique circumstances, including: (a) exceptions to rules governing not-for-profit affiliates which provide financing and other services to the utility; (b) placing cost allocation issues in general rate cases for firms with multiple regulated utilities; and (c) certain exemptions for affiliates with only out-of-state operations.

• Closes the proceedings.

ESTIMATED COST:

• Unquantifiable benefits to ratepayers and competitive markets outweighing unquantifiable regulatory compliance costs.

Edward RandolphDirector, Office of Governmental Affairs

October 14, 2010

CALIFORNIA PUBLIC UTILITIES COMMISSION

2010 Legislative Wrap Up

Presentation Overview

• ENERGY BILLS

• SUPPLIER DIVERSITY BILLS

• TELECOMMUNICATIONS BILLS

• TRANSPORTATION BILLS

• WATER BILLS

• MISCELLANEOUS BILLS

• BUDGET

• TASKS

2010 Legislative Wrap UpRPS

SB 722 (SIMITIAN) – 33% RPS Mandate

Codified a 33% by 2020 RPS mandate Last minute amendments:

Sliding scale of % of resources that must be directly connected to California control area. Increased “off ramps” or “flexible compliance” for IOU compliance. Continued to contain enforcement language that ED and Legal believe would make issuing

penalties difficult.

Final set of amendments given to the public at 4:00 on last day of session. Passed out of Assembly Rules at 9:00 pm, the last night of session, off the Assembly Floor at

11:35, and was not brought up in the Senate before midnight. Issue still alive?

– CPUC POSITION: SUPPORT– RESULT: Held in Senate

2010 Legislative Wrap UpTRANSMISSION

AB 1954 (SKINNER) – RPS Related Transmission

Allows CPUC to authorize backstop cost recovery for pre-application cost for transmission lines “necessary to facilitate” the RPS.

Contains language that allows the CEC to determine that a renewable facility can count 100% of its output as renewable even if up to 5% of the output is from fossil fuel if very specific conditions are met.

– CPUC POSITION: NEUTRAL

– Governor Action: Signed

2010 Legislative Wrap UpENERGY EFFICIENCY

SB 730 (Wiggins) – Program Design Participation

Required CPUC to ensure the interests of regional climate protection authorities are incorporated into the design of energy-efficiency programs.

Required CPUC to encourage local governments, community-based organizations, and energy efficiency service providers to participate in program design, revision, and implementation.

Sponsored by the Sonoma County Regional Climate Protection Agency. They want more direct say in how efficiency funds are spent in Sonoma County.

− CPUC POSITION: NEUTRAL

− Governor Action: Veto

• Governor stated that the CPUC already has a process in place to allow all interested stakeholders to participate in energy efficiency proceedings and that process should be maintained.

2010 Legislative Wrap UpCALIFORNIA SOLAR INITIATIVE

AB 2724 (Blumenfield)

Final version of the bill allows solar projects UP TO 5MW in CAPACITY on state owned land to qualify for CSI rebates.

All other utility customers are limited to projects up to 1 MW in capacity. DGS sponsored.

− CPUC POSITION: OPPOSE− Governor Action: Signed

AB 1923 (Evans)

Authorized the CPUC to use funds dedicated for RD&D from the California Solar Initiative for the study of antitheft technologies.

− CPUC POSITION: OPPOSE− Governor Action: Vetoed

• Governor believed the bill was unnecessary since the CPUC already has this authority.

2010 Legislative Wrap UpCALIFORNIA SOLAR INITIATIVE

AB 51 (BLAKESLEE) An aggregate net metering bill. It would have permitted agricultural customers who have installed solar or wind generation

systems to use the systems to offset the electricity use of multiple meters on adjacent properties.

– CPUC POSITION: OPPOSE UNLESS AMENDED– This bill was held in Senate Appropriations.

AB 2132 (CARTER) Would have allowed funds in the Renewable Resource Trust Fund, which supports the CEC’s

New Solar Home Program, to be used for energy efficiency improvements, until January 1, 2012.

– CPUC POSITION: OPPOSE UNLESS AMENDED– This bill was held in Senate Appropriations.

2010 Legislative Wrap UpENERGY

AB 2514 (SKINNER) STORAGE

Requires the CPUC to set storage procurement targets, if any, AND gives the CPUC the ability to consider and implement other options to promote storage beyond/instead of procurement targets.

The bill initially required the CPUC to set an energy storage portfolio standard for each investor owned utility.

The “if amended” portion of our support position was asking for the resources the CPUC will need to implement the bill.

− CPUC POSITION: SUPPORT IF AMENDED− Governor Action: Signed

2010 Legislative Wrap Up ENERGY

AB 1879 (BEALL)

Required the CPUC to reconsider current rules on utility back-billing for small commercial customers.

The CPUC has already opened a proceeding on the matter which should be completed before the end of 2010. The bill provides that this proceeding would comply with the intent of the bill.

− CPUC POSITION: SUPPORT− Governor Action: Vetoed

• The bill was vetoed due the fact that the CPUC has already done what is required by the bill.

2010 Legislative Wrap Up SMART GRID

SB 1476 (PADILLA) Outlines requirements for utilities using smart meters to protect customers' energy usage data

from unauthorized access or disclosure. Prohibits the utilities from conditioning customer’s access to their data on the payment of an

incentive or discount. − CPUC POSITION: SUPPORT− Governor Action: Signed

SB 837 (FLOREZ) Required the CPUC to evaluate the impact of smart meters on the frequency of utility

disconnections and adopt policies to minimize any adverse impacts. Requires that each smart grid deployment plan authorized by the CPUC after January 1, 2012 to

include testing and technology standards. Bill originally contained extensive language on smart grid privacy issues that could have made

deployment of smart grid very difficult.− CPUC POSITION: NEUTRAL (ORIGINALLY OPPOSED UNLESS AMENDED)− Bill was “gut and amended to remove all smart grid language and became a non-energy related bill.

2010 Legislative Wrap UpELECTRIC VEHICLES

SB 1435 (PADILLA)

Codified the CPUC Decision on Phase 1 of the EV proceeding that charging satiations are not public utilities.

Included additional language directing the CPUC to adopt rules for EV charging. Charging station companies opposed the language requiring additional rules. The

author and the opposition could not come to final agreement. − CPUC POSITION: SUPPORT IF AMEMDED. − Author Held the bill in the Assembly.

SB 1455 (KEHOE) Directs the CEC, in consultation with the CPUC, to develop a consumer website with

information on purchasing electric vehicles.− CPUC POSITION: SUPPORT− Governor Action: Signed

2010 Legislative Wrap Up SUPPLIER DIVERSITY

AB 1918 (Davis)

Directs the CPUC to require wireless telecommunications service providers to annually report on their progress in increasing contracting with women and minority owned businesses and disabled veteran business enterprises.

− CPUC POSITION: NEUTRAL− Governor Action: Signed

AB 2758 (Bradford)

Expands and clarifies the procurement categories subject to the CPUC’s Utility Supplier Diversity Program by including renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.

Requires the CPUC to provide more detailed procurement information in its annual report to the Legislature.


2010 Legislative Wrap Up TELECOMMUNICATIONS

AB 1315 (Fuentes)

Requires the CPUC to participate in forbearance proceedings at the FCC where a California telephone company has filed a petition to forebear from rules requiring them to provide competitors wholesale access to their network.

CPUC already participates in these proceedings.

− CPUC POSITION: OPPOSE− Governor Action: Signed

AB 2213 (Fuentes)

Amends the Moore Universal Telephone Service Act so that the statutes are technology neutral. The intent is to give the CPUC clear authority to modify the Lifeline program so that Lifeline customers have more choices in service providers.


2010 Legislative Wrap UpTELECOMMUNICATIONS

SB 1040 (Padilla)

Extends the California Advanced Services Fund (CASF) by authorizing an additional $125 million in spending authority from the fund.

Establishes a Rural and Urban Regional Broadband Consortia and a Broadband Infrastructure Revolving Loan Account.

− CPUC POSITION: SPONSOR

− Governor Action: Signed

SB 1462 (Padilla)

Establishes the California Broadband Council to promote broadband deployment throughout the State.

− CPUC POSITION: SUPPORT



SB 1375 (Price)

Eliminates the “warm line” requirement that requires local telephone corporations to provide 9-1-1 access to all residential connections, even if the household is no longer a customer of the telephone corporation.

Limits the ability of the telephone company to terminate warm lines for delinquent accounts but allows for full disconnections after 120 days and notice to the customer.

− CPUC POSITION: NO POSITION− Governor Action: Signed

SB 1154 (Cedillo)

Required utilities to provide Lifeline and CARE customers with information about the Earned Income Tax Credit (EITC) through an insert with program applications.

− CPUC POSITION: NEUTRAL− Governor Action: Vetoed

The bill was vetoed due to the Governor’s concern that the requirement to provid outreach materials on federal tax programs is outside the responsibility of the CPUC and electrical and telephone corporations.


AB 2545 (De La Torre)

Required the CPUC to hold an “interested parties process” to make recommendations on establishing a uniform method for collection of state and local communications taxes, fees, and surcharges applicable to prepaid wireless.

An effort by the author to find a way to collect fees for 911 service and other public goods charges on prepaid calling cards. Over the past two years the author has tried multiple approaches to the problem.

Final version was opposed by wireless industry (they wanted the BOE to oversee he interested party process) and the California League of Cities (they were concerned that the bill was addressing utility user taxes).

− CPUC POSITION: NEUTRAL (HAD BEEN OPPOSE UNLESS AMENDED)

− Bill was held on the Senate Floor

2010 Legislative Wrap UpTRANSPORTATION

AB 2572 (Bradford)

Expands the definition of a charter-party carrier to include any person or entity engaged in providing transportation service where the vehicle is rented and is operated by a for-hire driver.

Increases certificate renewal fees and imposes additional enforcement provisions.

− CPUC POSITION: SUPPORT


2010 Legislative Wrap UpPROCESS

SB 1414 (KEHOE)

Initially required the CPUC to complete all applications for rehearing with 180 days or the application is deemed denied. The 180 deadline could have been extended by a vote of the Commission, but in all cases the deadline could not be extended beyond 12 months.

At end of the session, the author and sponsor (TURN) agreed to amend the bill to require the CPUC to complete the application within 120 days but allowed the CPUC to vote to extend that deadline for 120 days at a time, but there is no final deadline that the CPUC cannot vote to extend.

− CPUC POSITION: NEUTRAL (HAD BEEN OPPOSE)− Governor Action: Vetoed

• The Governor was concerned that the bill could in some cases undercut a party’s ability to go to court and that the bill did not address the real problems that are leading to backlog in applications for rehearing.

AB 2561 (VILLINES) Was the Governor’s energy reorganization bill.

− CPUC POSITION: NO POSITION− Held in Senate Rules Committee

Budget

Formally requested 30 new PYs in 2010-2011 budget.

21.3 were approved (denied 7 new PY to implement 33% RPS).

Funding for new elevators was approved.

2010 Legislative Wrap UpTASKS

Legislation enacted this session requires the CPUC to:

Assist the CEC in developing a consumer website containing links to the websites of the IOUs, POUs and other websites containing information on plug-in hybrid vehicles and/or electric vehicles. (SB 1455 (Kehoe)) Deadline: July 1, 2011.

Set storage procurement targets, if any, and examine other options to promote storage beyond procurement targets. (AB 2514 (Skinner)) Open a proceeding by March 1, 2012. Set targets, if any, by October 1, 2013. Revisit the issue every 3 years. Targets shall be for 2015 and 2020.

Expand the CASF to include the Rural and Urban Consortia and the Broadband Infrastructure Revolving Loan Account. Add new reporting requirements. (SB 1040 (Padilla)) Interim findings due April 1, 2011. Annual reports beginning January 1, 2012.

Convene and Chair the first meeting of the California Broadband Council. (SB 1462 (Padilla))

In total legislation approved this year will require 13 additional PYs in future years.

Team Effort

Thank you.– Alicia Priego– Dan Chia – Yvonne Wilson– All the Division staff and Advisors that worked

on legislation this year.

Commissioners’ Reports

Regular Agenda – Commissioner’s Reports

Item #50 [9810] Energy Efficiency Marketing Education and Outreach Program

Commissioner Grueneich Report-------------------------------------------------------------------------------------

The California Public Utilities Commission's 2008 Long Term Energy Efficiency Strategic Plan and Decision 09-09-047 called for a statewide Energy Efficiency Marketing Education and Outreach Program (ME and O) to create behavior change and motivate consumers to take action on energy efficiency/conservation measures. The Commissioners will be updated on the new ME and O plan, clean energy brand, and energy efficiency web portal.

Introducing California’s New Energy Efficiency Brand

October 14, 2010

| Introducing California's New Energy Efficiency Brand | CPUC | October 14, 201034

California’s 2020 Goal: Smart Energy Living

Creating a change in behavior that will effect a meaningful, long-term reduction in energy consumption

Unprecedented Collaboration

35 | Introducing California's New Energy Efficiency Brand | CPUC | October 14, 2010

ResearchMarketing & Brand Strategy

Verbal Identity

Visual Identity

Brand Training & Brand Asset Management

Campaign Development& Launch

The Development Process

Web Portal Development


Brand Strategy: What the Brand Stands for

Progressive Inspiration

We find the next ways to help you make the most practical, relevant energy choices every day

Meaningful Change

We lead change and measure progress to make the movement meaningful to everyone

Trusted Source

We are a go-to authority for all smarter energy developments and information


Introducing . . .


The Website: engage360.com

Low-Income Energy Efficiency


Objective of the LIEE Program: help income-qualified customers reduce their energy consumption and costs.

This new brand is an effort to create one statewide name that will increase awareness of the energy savingopportunities available to income qualified customers.

Strategy Focus Group Testing

Visual Identity

Naming Messaging Rollout

The Development Process


Energy Savings Assistance Program

The New Name Will Replace These Current Names


Energy Savings Assistance Program

PG&E: Energy Partners Program

SCE: Energy Management Assistance Program (EMA)

SCG: Direct Assistance Program (DAP)

SDG&E: Energy Team Program


Item #50 [9810] Energy Efficiency Marketing Education and Outreach Program

Commissioner Grueneich Report-------------------------------------------------------------------------------------

The California Public Utilities Commission's 2008 Long Term Energy Efficiency Strategic Plan and Decision 09-09-047 called for a statewide Energy Efficiency Marketing Education and Outreach Program (ME and O) to create behavior change and motivate consumers to take action on energy efficiency/conservation measures. The Commissioners will be updated on the new ME and O plan, clean energy brand, and energy efficiency web portal.


Item #57 [9841] San Bruno Pipeline Explosion - Independent Review Panel

President Peevey Report------------------------------------------------------------------------

Pursuant to Resolution L-403 adopted by the Commission on September 23, 2010, vote to confirm members of the Independent Review Panel selected by Commission President.

Commissioners’ Reports

Management Reports

Regular Agenda – Management Reports and Resolutions

Item #51 [9617] Annual Report From the California Emerging Technology Fund

Director Clanon Report------------------------------------------------------------------------

Annual Report to the Commission from the California Emerging Technology Fund.

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

October 28, 2010, at 10:00 a.m.

CPUC Public Agenda 3262 Thursday, October 14, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco...

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