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CPUC Commission Meeting - January 21, 2010

PUBLIC COMMENT

[view discussion of item 1] 12 minutes 24 seconds

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CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-34, items 1-42).

Item 5 withdrawn; Items 45, 51,54,55 and 57 taken up with Consent Agenda.

[view discussion of item 2] 36 seconds

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REGULAR AGENDA

Regular Agenda - Energy Orders

Item 43

[8994] Long-Term Resource Adequacy Policy
R05-12-013 Order Instituting Rulemaking to Consider Refinements to and Further Development of the Commission’s Resource Adequacy Requirements Program.
PROPOSED OUTCOME:
Adopts, as a matter of Commission policy, a multi-year forward capacity procurement requirement.
Provides for implementation of the adopted policy in a new rulemaking.
Closes the proceeding.
ESTIMATED COST:
No direct incremental cost foreseen.
(Comr Peevey - ALJ Wetzell)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=408881
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.
Agenda 3246, Item 61 12/17/2009 (Peevey)

Held for 2/4/10 Agenda

4. Item 44

[9010] California Solar Initiative Thermal Program to Provide Solar Water Heating Incentives
R08-03-008 Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.
PROPOSED OUTCOME:
Adopts California Solar Initiative (CSI) Solar Thermal Program to provide incentives for the installation of solar water heating systems on homes and businesses in the service territories of Pacific Gas and Electric Company (PG&E), Southern California Edison Company, San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas).
Establishes program budget of $250 million to fund incentives for solar water heating systems that displace gas usage.
Allows expenditures of up to $100.8 million, using funds authorized and collected through the CSI photovoltaic program, for solar water heating systems that displace electricity usage.
ESTIMATED COST:
$250 million to be collected through gas customer distribution rates for customers of PG&E, SDG&E and SoCalGas to fund incentives for gas-displacing solar water heating systems.
No additional cost for incentives to electric-displacing systems beyond the funds already authorized and collected through the CSI photovoltaic program.
(Comr Peevey - ALJ Duda)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=409321
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.
Agenda 3246, Item 62 12/17/2009 (Bohn )

[view discussion of item 4] 13 minutes 35 seconds

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5. Item 45

[9126] Incentive Framework to Motivate Optimal Natural Gas Hedging
R08-06-025 Order Instituting Rulemaking to Address the Gas Utilities’ Incentive Mechanisms and the Treatment of Hedging Under Those Incentive Mechanisms.
PROPOSED OUTCOME:
Adopts revised incentive treatment for natural gas hedging programs for Pacific Gas and Electric Company (PG&E) and Southern California Gas Company (SoCalGas)/San Diego Gas & Electric Company (SDG&E). Southwest Gas Corporation remains unchanged.
Adopts the proposed settlement for PG&E, resulting in a risk/reward sharing of hedging transactions between ratepayers and investors subject to a 1.5% of annual commodity cost cap.
Leaves winter hedging design and implementation with PG&E.
Revises the risk/reward sharing of hedging transactions for SoCalGas/SDG&E between ratepayers and shareholders to include a 25% ratio assigned to the Gas Cost Incentive Mechanism.
Leaves winter hedging design and implementation with SoCalGas.
Closes the proceeding.
ESTIMATED COST:
Uncertain.
(Comr Bohn - ALJ Pulsifer)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=412103
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Taken up with Consent Agenda

6. Item 46

[9127] Pacific Gas and Electric Company Peak Day Pricing
A09-02-022 Application of Pacific Gas and Electric Company for Approval of its 2009 Rate Design Window Proposals for Dynamic Pricing and Recovery of Incremental Expenditures Required for Implementation.
PROPOSED OUTCOME:
Continues implementation of the Commission’s policy to make dynamic pricing available for all electric customers by adopting and implementing default and optional critical peak pricing and time-of-use rates (together, referred to as Peak Day Pricing) beginning May 1, 2010, for Pacific Gas and Electric Company.
This decision also adopts appropriate customer outreach and education activities and measures to ensure customer awareness and understanding of the new rates and options.
The revenue requirement associated with authorized costs will be included in rates through Pacific Gas and Electric Company’s Annual Electric True-up advice letter filing.
Recovery of potential cost overruns, including contingencies, and costs associated with Customer Care and Billing conversions are deferred to after-the-fact reasonableness review applications.
Closes the Proceeding.
ESTIMATED COST:
Authorizes cost recovery of capital expenditures and operating expenses amounting to $92,072,000 for the years 2008-2010.
(Comr Peevey - ALJ Fukutome)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E27282
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Held for 2/4/10 Agenda

7. Item 47

[9134] Sempra Settlement (Pipeline Cases) and Price Indexing Cases Settlement
R09-07-029 Order Instituting Rulemaking Adopting Rules to Account for the Consideration Allocated to California Core Natural Gas Ratepayers Under Settlements of Natural Gas Antitrust Cases I-IV.
PROPOSED OUTCOME:
Allocates Sempra Settlement (Pipeline Cases) (8 installments of $7.85 million plus interest) and Price –Indexing Cases Settlement ($50.5 million) to Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Gas Company, Southwest Gas Company, and Long Beach Gas and Oil Department as approved in the Sempra Settlement.
Adopts accounting and ratemaking procedures included in Attachment A to this decision.
Closes the proceeding.
ESTIMATED COST:
None.
(Comr Simon - ALJ Grau)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=411843
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

[view discussion of item 7] 2 minutes 28 seconds

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8. Item 48

[9136] Pacific Gas and Electric Company to Recover Smart Grid Costs
A09-09-019 PROPOSED OUTCOME:
Grants Pacific Gas and Electric Company the authority to increase electric rates and charges to recover costs related to Smart Grid compressed air energy storage demonstration project.
Application 09-09-019 is closed.
ESTIMATED COST:
$24.9 million.
(Comr Peevey - ALJ MacDonald)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E27306
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

[view discussion of item 8] 3 minutes 48 seconds

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9. Regular Agenda - Energy Resolutions and Written Reports

Item 49

[8518] Moorpark-Newbury 66 kV Subtransmission Line Res E-4243, Advice Letter 2272-E, filed on October 2, 2008 - Related matters.
PROPOSED OUTCOME:
Affirms a prior Executive Director’s Action Resolution E-4225 findings related to Southern California Edison’s (SCE’s) proposed Moorpark-Newbury 66 kV Subtransmission line.
Finds that: (1) SCE complied with the notice requirements for the proposed construction of facilities; (2) The proposed facilities were exempt from Permit to Construct requirements; (3) Facts claimed in protests to Executive Director’s Action Resolution did not support a finding that General Order 131-D exemption criteria applied.
Dismisses protests.
ESTIMATED COST:
Moorpark-Newbury 66kV Subtransmission Line was filed as Advice Letter 2272-E Notice of Proposed Construction Project Pursuant to General Order 131-D; therefore, no cost information is provided or required for Permits to Construct.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=407741
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3235, Item 25 6/4/2009 (Staff); Agenda 3236, Item 43 6/18/2009 (Staff); Agenda 3237, Item 32 7/9/2009 (Staff); Agenda 3240, Item 46 9/10/2009 (Staff); Agenda 3241, Item 38 9/24/2009 (Staff); Agenda 3242, Item 46 10/15/2009 (Staff); Agenda 3243, Item 51 10/29/2009 (Staff); Agenda 3244, Item 64 11/20/2009 (Peevey); Agenda 3245, Item 34 12/3/2009 (Staff)

Held for 2/4/10 Agenda

10. Item 50

[8520] Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company Qualifying Facilities Contracts
Res E-4242, Advice Letter (AL) PG&E AL 3197-E, SDG&E AL 1958-E and SCE AL 2200-E, filed on January 14, 2008, Supplemental AL PG&E AL 3197-E-A, SDG&E AL 1958-E-A and SCE AL 2200-E-A, filed on July 11, 2008, and Supplemental AL PG&E AL 3197-E-B, et al. - Related matters.
PROPOSED OUTCOME:
Adopts, with modifications, the Qualifying Facility (QF) Standard Offer Contracts proposed by Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E). Upon adoption, there will be one QF Standard Offer Contract across all three electric Investor Owned Utilities (IOUs).
The new contract may be signed by new and existing QFs with expired contracts in addition to QFs pursuing other contracting methods such as participating in an IOU’s Request for Offer process or negotiating a bilateral contract.
ESTIMATED COST:
Adoption of this resolution does not imply any specific cost. However, upon adoption, the utilities may enter into contracts with new or existing QFs.
These contracts will form part of the utilities’ procurement costs for electricity.
It is impossible to know in advance the total cost of those contracts but, in the past, QF power has represented no more than 20% of the utilities’ portfolio.
Contracts executed with existing QFs should not result in any additional costs as the utilities were already purchasing power from these QFs in the past.
Contracts signed with new QFs will represent new incremental expenditures, but this spending will be offset by the reduced need for new generation as a result of contracting with the new QF.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=409745
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3235, Item 26 6/4/2009 (Staff); Agenda 3236, Item 44 6/18/2009 (Staff); Agenda 3237, Item 33 7/9/2009 (Staff); Agenda 3238, Item 47 7/30/2009 (Staff); Agenda 3239, Item 55 8/20/2009 (Staff); Agenda 3240, Item 47 9/10/2009 (Staff); Agenda 3241, Item 39 9/24/2009 (Staff); Agenda 3242, Item 47 10/15/2009 (Staff); Agenda 3243, Item 52 10/29/2009 (Staff); Agenda 3244, Item 65 11/20/2009 (Staff); Agenda 3245, Item 35 12/3/2009 (Staff); Agenda 3246, Item 69 12/17/2009 (Staff)

Held for 2/4/10 Agenda

11. Item 51

[9057] Implementation of Southern California Edison Company's Solar Photovoltaic Program
Res E-4299, Advice Letter 2364-E filed on July 20, 2009 - Related matters.
PROPOSED OUTCOME:
Implements Southern California Edison Company’s Solar Photovoltaic Program.
Adopts a competitive solicitation process, protocols and eligibility criteria.
Adopts a standard power purchase agreement.
Adopts annual compliance reporting requirements.
ESTIMATED COST:
Actual costs are unknown at this time.
Costs for any single power purchase agreement shall not exceed $260 per megawatt hour.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=412120
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3246, Item 66 12/17/2009 (Peevey)

Taken up with Consent Agenda

12. Regular Agenda - Communication Orders

Item 52

[8944] Guidelines for Customer Education Programs Regarding Backup Power Systems
R07-04-015 Order Instituting Rulemaking on the Commission’s Own Motion into Reliability Standards for Telecommunications Emergency Backup Power Systems and Emergency Notification Systems Pursuant to Assembly Bill 2393.
PROPOSED OUTCOME:
Adopts guidelines for customer education programs for facilities-based providers of telephony services (service providers) who provide service to residential customers using coaxial cable or fiber-optic cable to the customer’s building that requires backup power on the customer’s premises.
Directs service providers to enhance their existing customer education programs to meet the guidelines.
Requires service providers to make an advice letter filing within 180 days detailing their customer education programs.
Closes proceeding.
ESTIMATED COST:
No significant cost.
(Comr Simon - ALJ O'Donnell)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=408875
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.
Agenda 3244, Item 67 11/20/2009 (Chong); Agenda 3245, Item 37 12/3/2009 (Chong); Agenda 3246, Item 70 12/17/2009 (Bohn )

Item 52a

[9133] ALTERNATE TO ITEM 8944
The major difference between the Alternate and the PD is the discussion on jurisdiction. Notably, the actual requirements for customer notice are the same.
(Comr Peevey)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E27291
Pub. Util. Code § 311 – This item was mailed for Public Comment.

52a withdrawn

[view discussion of item 12] 13 minutes 45 seconds

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13. Regular Agenda - Communication Resolutions and Reports

Item 53

[8855] Funding for the Mother Lode Broadband Project of Rapid Link Inc. and Mother Lode Internet for Underserved Areas
Res T-17225
PROPOSED OUTCOME:
Adopts California Advanced Services Funding (CASF) for Mother Lode Broadband Project in underserved areas covering Alpine, Amador, Calaveras, Tuolumne, and Mariposa Counties.
ESTIMATED COST:
$3,110,064 from the CASF which represents 40% of the total project cost to provide a new level of speed throughout the Mother Lode region.
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3242, Item 51 10/15/2009 (Staff); Agenda 3244, Item 68 11/20/2009 (Staff); Agenda 3246, Item 71 12/17/2009 (Staff)

Withdrawn

14. Item 54

[9002] Funding for California Valley Broadband Middle and Last Mile Project From California Advanced Services Fund
Res T-17245
PROPOSED OUTCOME:
Adopts California Advanced Services (CASF) contingent funding for the California Valley Broadband Middle and Last Mile Project.
ESTIMATED COST:
$8,216,583 from the CASF which represents 10% of the total project cost of $82,165,826 to provide broadband service in the Sacramento, Solano, San Joaquin, Stanislaus, Merced, Madera and Fresno Counties.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=410939
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3245, Item 40 12/3/2009 (Staff); Agenda 3246, Item 73 12/17/2009 (Staff)

Taken up with Consent Agenda

15. Regular Agenda - Transportation/Rail Safety Orders

Item 55

[9131] California Moving and Storage Association Revising Maximum Rates and Charges
A08-03-005 In the Matter of the Application of California Moving and Storage Association requesting Elimination of Maximum Rate Tariff 4 Region 1 and Territories B and C for the State Purpose of Tariff Simplification. Petition to adopt, amend, or repeal a regulation pursuant to Public Utilities Code Section 1708.5.
PROPOSED OUTCOME:
Commission Maximum Rate Tariff 4 is revised and simplified as follows:
Hourly rate Territory C is eliminated, and Territory C counties are incorporated into current Territory B.
Distance rate Region 1 is eliminated, and Region 2 rates are made applicable to the entire state.
The productivity offset factor used in making annual rate adjustments is reset from .667 to .95 for five years, effective with the tariff increase in January 2010.
Commencing with the tariff increase in January 2015, the productivity offset factor will be re-evaluated and reset every two years. If productivity change is positive, the productivity offset factor will be set at .85; if productivity change is negative, it will be set at .95.
Application 08-03-005 is closed.
ESTIMATED COST:
May increase rate paid by a small number of customers in limited areas of the state.
(Comr Simon - ALJ Ryerson)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=411634
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Taken up with Consent Agenda

16. Regular Agenda - Legal Division Matters

Item 56 (Rev.)

[9147] Comments Before Federal Communications Commission Regarding Rural and Urban Rates
WC Docket No. 05-337, CC Docket No. 96-45
The Federal Communications Commission (FCC) responds to the decision of the United States Court of Appeals for the Tenth Circuit in Qwest Communications International, Inc. v. FCC, in which the court remanded the FCC’s rules for providing high-cost universal service support to non-rural carriers.
Given certain time constraints, the FCC is proposing to adopt only interim changes to the universal service support mechanism in response to the court’s decision.
Specifically, the FCC seeks comment on whether it should define “reasonably comparable” rural and urban rates in terms of rates for bundled local and long distance services.
The FCC asks whether it should require carriers to certify that they offer bundled local and long distance services at reasonably comparable rural and urban rates.
Staff seeks authority to prepare comments addressing issues raised in the FCC’s Public Notice.
01/14/2010 - This revision was not shown on the Agenda mailed to the public.

Held for 2/4/10 Agenda

17. Item 57

[9148] Comments Before Federal Communications Commission Regarding a Petition for Rulemaking
GN Docket No. 09-51, WC Docket No. 05-337, RM 11584
On November 5, 2009, the National Cable and Telecommunications Association (NCTA) filed with the Federal Communications Commission (FCC) a petition for rulemaking proposing new rules for universal service high-cost support.
Specifically, NCTA proposes that the Commission establish procedures to reduce the amount of universal service high-cost support provided to carriers in those areas of the country where there is extensive, unsubsidized facilities-based voice competition and where government subsidies no longer are needed to ensure that service will be made available to consumers.
Staff seeks authority to prepare comments addressing issues raised in the FCC’s Public Notice.

Taken up with Consent Agenda

18. Regular Agenda - Legislative and Other Matters

19. Regular Agenda - Commissioner's Reports

Item 58

[9156] Appointments to the Low Income Oversight Board Commissioner Grueneich Report
Discussion and action regarding the appointment of two public representatives to the Low Income Oversight Board (LIOB). The 11-member LIOB advises the Commission on low-income electric, gas, and water customer issues and serves as a liaison for the Commission to low income ratepayers and representatives. Public Utilities Code Section 382.1(b)(1) states that five of the members of the LIOB must “have expertise in the low-income community.”

[view discussion of item 19] 2 minutes 28 seconds

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20. Commissioner Simon Report

[view discussion of item 20] 2 minutes 38 seconds

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21. Commissioner Grueneich Report

[view discussion of item 21] 5 minutes 17 seconds

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22. Commissioner Bohn Report

[view discussion of item 22] 1 minutes 42 seconds

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23. President Peevey Report