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CPUC Commission Meeting
Public Agenda 3232



Thursday, April 16, 2009
10:00 a.m. PT



Commission Auditorium


505 Van Ness Ave


San Francisco, CA



1 .

PUBLIC COMMENT





2 .

CONSENT AGENDA



Please see complete Consent Agenda at links below (pages 2-15, items 1-44).


PDF

HTML




3 .

REGULAR AGENDA



Regular Agenda - Energy Orders



45



[8051]

A05-03-015 - San Diego Gas & Electric Company.


For Adoption of an Advanced Metering Infrastructure Deployment Scenario and Associated Cost

Recovery and Rate Design. This decision (D) awards Utility Consumers’ Action Network $460,324

in compensation for its substantial contributions to D07-04-043, a decrease of $5,967 from the

amount originally requested. This proceeding is closed.


(Comr Grueneich - ALJ Gamson)


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



Agenda 3225, Item 30 11/21/2008 (Chong);

Agenda 3226, Item 33 12/4/2008 (Staff);

Agenda 3227, Item 52 12/18/2008 (Staff);

Agenda 3228, Item 43 1/29/2009 (Peevey);

Agenda 3229, Item 39 2/20/2009 (Bohn );

Agenda 3231, Item 25 3/26/2009 (Pub. Util. Code §311(e))


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=378497





45a



[8400]

ALTERNATE TO ITEM 8051


This Alternate Decision (D) awards the Utility Consumers’ Action Network $254,324 in

compensation for its substantial contributions to D07-04-043 in the second phase of this proceeding, a

decrease of $211,967 from the amount originally requested. This proceeding is closed.


(Comr Bohn )


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Agenda 3231, Item 25a 3/26/2009 (Pub. Util. Code §311(e))


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380283


4 . 46



[8120]

R04-04-003 - Order Instituting Rulemaking to Promote Policy and Program Coordination

and Integration in Electric Utility Resource Planning.



R04-04-025 - Related matters. This decision addresses a joint petition filed by the Independent

Energy Producers Association, and the Cogeneration Association of California, the Energy Producers

and Users Coaliton and the California Cogeneration Council (collectively, QF Parties) to modify

Decision (D.) 08-07-048. The Commission denies QF Parties' request to suspend the November

2008 filings for retroactive true-up of the Market Index Formula. The Commission also declines to

adopt QF Parties' request to revise the procedures for any future adjustments to short-run avoided

cost (SRAC) payments. Although the Commission denies QF Parties' Petition, the Commission

modifies D.08-07-048 to clarify the procedures for retroactive true-up of SRAC payments. The

Commission believes that these procedures, as modified, provide the regulatory certainty that QF

Parties maintain is necessary to ensure continued operation of QFs in California.


(Comr Peevey - ALJ Yip-kikugawa)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



Agenda 3227, Item 63 12/18/2008 (Staff);

Agenda 3228, Item 52 1/29/2009 (Simon);

Agenda 3229, Item 49 2/20/2009 (Staff);

Agenda 3231, Item 36 3/26/2009 (Grueneich)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=379687


5 . 47



[8322]

A08-04-022 - Pacific Gas and Electric Company (Applicant).


For recovery of costs deemed reasonable in Generation Divestiture Transaction Costs Memorandum

Account pursuant to Decision (D.) 03-02-028. This Decision authorizes the Applicant to transfer

transition costs accrued in preparing for the appraisal, sale, or divestiture of hydroelectric generation

facilities into the Modified Transition Cost Balancing Account. Costs were deemed reasonable in

D03-02-028. This proceeding is closed.


(Comr Peevey - ALJ Sullivan)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



Agenda 3231, Item 37 3/26/2009 (Bohn )


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=378345


6 . 48



[8336]

R04-04-003 - Order Instituting Rulemaking to Promote Policy and Program Coordination

and Integration in Electric Utility Resource Planning.



R04-04-025 - Related matters. This decision address the petition for modification (Petition) of

Decision (D) 07-09-040 filed by the California Cogeneration Council (CCC) and motions filed by

CCC and jointly by the Cogeneration Association of California and the Energy Producers and Users

Coalition (CAC/EPUC) to adjust the January 2008 avoided cost posting of Pacific Gas and Electric

Company (PG&E). D07-09-040 addresses the policies and price of energy purchased from

qualifying facilities (QFs) by the investor owned utilities. Specifically, this decision denies CCC’s

Petition requesting to reinstate the non-price contract terms of firm capacity QFs currently on interim

Standard Offer 1 contracts and to update as-available capacity and firm capacity prices on an annual

basis. This decision modifies D.07-09-040 to clarify that the Market Index Formula (MIF) and newly

adopted as-available capacity prices are effective as of September 20, 2007, the date the decision

was adopted. As a result of the modifications ordered in response to the Petition, CCC and

CAC/EPUC’s motions are granted in part and denied in part. The motions are granted to the extent

that PG&E may not utilize the new as-available capacity price until the Commission issues a resolution

approving the Tier 3 advice letter implementing the MIF. CCC and CAC/EPUC’s motions are denied

in all other respects.


(Comr Peevey - ALJ Yip-kikugawa)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



Agenda 3231, Item 38 3/26/2009 (Peevey)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=378089





48a



[8337]

ALTERNATE TO ITEM 8336


R04-04-025 - Related matters. The alternate decision recommends that the petition filed by the

California Cogeneration Council (CCC) to modify Decision (D) 07-09-040 be granted in part and

denied in part. Similar to the ALJ's proposed decision, the alternate decision would deny CCC's

request to: (1) reinstate the non-price contract terms of firm capacity qualifying facilities currently on

interim Standard Offer 1 contracts and (2) update as available capacity and firm capacity prices on an

annual basis. The alternate decision would grant CCC's request to clarify the effective date of the

Market Index Formula (MIF) and would set the effective date the first month following the

Commission's adoption of the resolution approving the Investor Owned Utilities' (IOU's) joint Tier 3

advice letter implementing the MIF. The alternate decision would also grant in part motions filed by

CCC and jointly by the CCC and Energy Producers and Users Coalition to adjust the 2008 avoided

cost posting of Pacific Gas and Electric Company (PG&E). PG&E may not utilize the new

as-available capacity price adopted in D07-09-040 until the Commission issues a resolution approving

the IOU's joint Tier 3 advice letter implementing the MIF.


(Comr Peevey)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



Agenda 3231, Item 38a 3/26/2009 (Peevey)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380242


7 . 49



[8386]

A08-03-015 - Southern Calfornia Edison Company (Applicant).


This decision adopts a solar photovoltaic program (SPVP) to install 250 megawatts (MW) of solar

photovoltaic (PV) on rooftops in the service territory of the Applicant. Under the adopted program,

the Applicant will own, operate and maintain 160 MW of solar PV rooftop projects and will seek

competitive bid for the ownership, installation, and operation of another 90 MW of solar PV rooftops

from independent, non-utility solar providers. This proceeding is closed.


(Comr Peevey - ALJ Ebke)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E20364


8 . Regular Agenda - Energy Resolutions and Written Reports



50



[8315]

Res G-3424 - Pacific Gas and Electric Company (PG&E).


This resolution denies PG&E's request for authorization to establish a new category of nontariffed

service entitled Home Services Program. (Advice Letter (AL) 2937-G and AL 3294-E both filed,

July 11, 2008)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Agenda 3230, Item 37 3/12/2009 (Peevey);

Agenda 3231, Item 39 3/26/2009 (Staff)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380123


9 . 51



[8343]

Res G-3427 - Southern Calfornia Edison Company (SCE).


This resolution approves SCE's request to establish its Credit/Debit Card Bill Payment Option and

rejects SCE's proposal to discontinue its Pay-by-Phone payment option. (Advice Letter (AL) 152-G,

AL 2269-E and AL 67-W all filed, September 22, 2008)


Pub. Util. Code § 311 – This item was mailed for Public Comment.



Agenda 3231, Item 40 3/26/2009 (Staff)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=378501


10 . Regular Agenda - Communication Orders



52



[8317]

R06-05-028 - Rulemaking on the Commission’s Own Motion to review the

Telecommunications Public Policy Programs.



In 2006, the Commission opened this Rulemaking to evaluate California’s universal service public

policy programs in light of the competitive forces that had irrevocably changed how consumers

purchase communication services. The Commission recognized that "business as usual" monopoly

regulatory practices around traditional voice telephone were not sustainable in a competitive

communication marketplace with various types of carriers with different technologies competing.

Through this Rulemaking, the Commission set out to reform California LifeLine in order to ensure

high-quality communication services were affordable and widely available to all. This decision

recognizes significant technological and regulatory changes in the telecommunications industry and the

flexibility of the statutory structure underlying the Moore Universal Telephone Service Act, which we

now refer to as the California LifeLine Program (California LifeLine). The decision reviews the current

state of California LifeLine including how, absent change, the fund will grow by more than 60% to

almost $500 million over the next few years. The decision recognizes that the current methodology is

not in the best long-term interest of consumers and reviews the options for change. The decision

“de-links” California LifeLine from the AT&T basic rate structure in order to ensure ongoing

compliance with Section 874 of the Public Utilities Code, and determines that a Specific Support

methodology is the best option to continue to meet the goals of the Moore Act and our overall

universal service goals. The decision sets a Specific Support discount at 55 percent of the highest

basic rate of the state’s communications companies without regard to the telecommunication provider

or technology of service selected. This has the advantage of providing each customer the same

support amount and may provide greater flexibility to low income customers to select services beyond

basic residential landline phone service, including voice services from cable providers or from wireless

communications services. Such an approach acknowledges the range of providers of voice

communications services beyond traditional landline telephones, and enhances technology neutrality by

allowing a LifeLine customer to choose the provider that best meets his or her unique needs. The initial

California LifeLine discount under the revised methodology will be $12.20 effective on January 1,

2010. The decision also expands the LifeLine program to include data services for consumers that

receive wireless equipment through the Commission's Deaf and Disabled Telecommunications Program

(DDTP). Customers who meet the eligibility requirements for both the DDTP and California LifeLine

programs can apply their California Lifeline discount to data services provided by carriers. The

decision clarifies that wireless carriers may be reimbursed by California LifeLine for providing

discounted service to customers, and modifies the income-based criteria to match the low income

energy program (CARE) income-based criteria on an interim basis pending the outcome of the review

the CPUC is conducting of the interim CARE income-based criteria. Finally, the decision eliminates

extra payments to carriers for administration, bad debt, and to make-up for forgone federal support.

This proceeding is closed.


(Comr Chong - ALJ Bushey)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.



http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E20786


11 . 53



[8432]

R_______ - Rulemaking on the Commission’s own Motion into the Exemption from Public

Utilities Code Section 851 for Uniform Regulatory Framework and other Competitive

Carriers.



The Commission initiates a rulemaking to consider a full exemption from Public Utilities Code Section

851’s requirements for the disposition or encumbrance of necessary and useful property for all

telecommunications carriers in California except general rate case incumbent local exchange carriers.


The rulemaking also considers whether conditions under Section 853(b) should be placed on that

exemption.


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380273


12 . Regular Agenda - Communication Resolutions and Reports



54



[8389]

Res T-17199 - AT&T California (AT&T).


This resolution adopts funding for five (5) AT&T broadband projects in underserved areas totaling

$389,154 from the California Advanced Services Fund.


Pub. Util. Code § 311 – This item was mailed for Public Comment.



http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=379206


13 . 55



[8394]

Res T-17203 - AT&T California (AT&T).


This resolution approves AT&T's Advice Letter (AL) requesting authority to detariff certain residential

and business services. (AL 33423 filed August 29, 2008 and revised February 9, 2009)


Pub. Util. Code § 311 – This item was mailed for Public Comment.



http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380101


14 . Regular Agenda - Water/Sewer Orders



56



[8199]

A08-05-002 - California Water Service Company (Cal Water).


For authority to establish its authorized Cost of Capital for the period from January 1, 2009 through

December 31, 2011. A08-05-003, A08-05-004 - Related matters. This decision adopts 2009 Cost

of Capital and a return on equity for Cal Water, California American Water Company, and Golden

State Water Company. These proceedings remain open.


(Comr Bohn - ALJ Long)


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.



Agenda 3228, Item 68 1/29/2009 (Staff);

Agenda 3229, Item 59 2/20/2009 (Staff);

Agenda 3230, Item 40 3/12/2009 (Bohn );

Agenda 3231, Item 41 3/26/2009 (Bohn )


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=378487


15 . 57



[8347]

R________ - 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 Proper Use of Regulated Assets for Non-Tariffed Utility Operations

(formerly called Excess Capacity).



This Order Instituting Rulemaking is designed to create generic rules for all water and sewer companies

with regard to transactions with a parent company and/or affiliates and with regard to the use of

regulated assets for non--tariffed services.


Agenda 3230, Item 42 3/12/2009 (Staff);

Agenda 3231, Item 42 3/26/2009 (Staff)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380306


16 . 58



[8421]

I07-06-020 - In the Matter of the Order Instituting Investigation into the Water and Service

Quality of Alco Water Company.



After reviewing appeals of the Presiding Officer's decision and finding no legal error, this modified

Presiding Officer's Decision finds it in the public interest for Alco Water Company to serve additional

customers in its newly filed service area, takes steps to improve service quality and fines Alco for

discovery abuses. This proceeding is closed.


(Comr Bohn - ALJ Rochester)


Pub. Util. Code § 1701.2(c), allows this modified Presiding Officer’s Decision to be considered

in Closed Session.


Pub. Util. Code §1701.1 -- This proceeding is categorized as Adjudicatory.


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380317


17 . Regular Agenda - Water/Sewer Resolutions and Reports



59



[8200]

Res W-4732


This resolution approves the procedures for delegation of authority to staff to issue citations to water

and sewer corporations to enforce compliance with the Commission's Orders and the Public Utilities

Code and procedures for appeal of citations.


Pub. Util. Code § 311 – This item was mailed for Public Comment.


Agenda 3228, Item 69 1/29/2009 (Staff);

Agenda 3230, Item 43 3/12/2009 (Staff)


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=377499


18 . Regular Agenda - Legislative and Other Matters



60



[8434]

SB 17 (Padilla) - Electricity: Smart Grid Systems.


This bill requires the California Public Utilities Commission, by July 1, 2010, in consultation with the

State Energy Resources Conservation and Development Commission and the Independent System

Operator, to determine the requirements for a smart grid deployment plan.


19 . 61



[8435]

AB 44 (Blakeslee) - Energy Storage Facilities.


This bill would authorize the California Public Utilities Commission (Commission) to approve an

increase in the rate of return for investment by a corporation in energy storage facilities. This bill would

also require the Commission to develop a time-variant tariff that creates incentives for eligible storage

facilities.


20 . 62



[8437]

SB 14 (Simitian) - Utilities: Public Utilities Commission: Energy: Renewable Energy

Resources: Rates.



This bill would increase the Renewables Portfolio Standard to 33% by 2020 and make several

changes to the program.


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=379534


21 . 63



[8438]

SCR 8 (Padilla) - Information and Telecommunication Technologies Digital Literacy.


This resolution calls for the Governor of the State of California to create the California Information and

Communication Technologies (ICT) Digital Literacy Leadership Council to provide leadership to

promote ubiquitous and affordable broadband access and accelerate workforce readiness through the

provision of digital literacy skills.


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=379536


22 . 64



[8439]

AB 49 (Feuer) - Water Conservation: Urban Water Use.


This bill would amend the Water Code to require that the state achieve a 20% reduction in urban per

capita water use in California by December 31, 2020.


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=379535


23 . 65



[8440]

SB 42 (Corbett) - Coastal Resources: Sea water intake.


This bill would prohibit a state agency from approving a new power plant or industrial facility from

using an open ocean intake; prohibit an existing power plant or industrial facility with a capacity factor

of 20% or less from using a once-through-cooling system on or after January 1, 2015; require the

State Water Quality Control Board to develop a plan to phase out other power plants and impose a

fee on a power plant or industrial facility using once-through-cooling, based on the amount of seawater

used.


http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=379533


24 . Regular Agenda - Commissioner's Reports



Commissioner Simon Report



25 . Commissioner Grueneich Report


26 . Commissioner Bohn Report


27 . Commissioner Chong Report


28 . President Peevey Report


29 . Regular Agenda - Management Reports and Resolutions



66



[8442]

Executive Director Clanon Report


Pacific Forest and Watershed Lands Stewardship Council Biannual Report to the California Public

Utilities Commission.


30 . Other Management Reports and Resolutions


(if needed)



31 . Other Management Reports and Resolutions


(if needed)



32 .

CLOSED SESSION



Please see complete Closed Session agenda at links below (pages 24-33).


PDF

HTML






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