CPUC Commission Meeting - May 21, 2009

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1.

PUBLIC COMMENT

[view discussion of item 1] 48 minutes 41 seconds

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2.

CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-11, items 1-28).

Items #6 and 23 held for 6/18 Agenda; Items #7 and 8 held for 7/9 Agenda; Items #14, 15, 25, 26, 28 held for 6/4 Agenda; Items #36, 37, 39, 42, 43, and 46 added to Consent Agenda

[view discussion of item 2] 1 minutes 29 seconds

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3.

REGULAR AGENDA

Regular Agenda - Energy Orders

29

[8386] A08-03-015 - Southern California Edison Company (Applicant).
This decision adopts a solar photovoltaic program (SPVP) to install 320 megawatts (MW) of solar photovoltaic (PV) on rooftops in the service territory of the Applicant. Under the adopted program, the Applicant will develop, own, operate and maintain 160 MW of solar PV rooftop projects and will seek competitive bids for the ownership, installation, and operation of another 160 MW of solar PV rooftop projects from independent power producers. 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.
Agenda 3232, Item 49 4/16/2009 (Staff); Agenda 3233, Item 31 5/7/2009 (Bohn )
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383453

29a (Rev.)

[8564] ALTERNATE TO ITEM 8386
This alternate decision differs from the ALJ's proposed decision in that it: a) Denies entirely the requested bonus on the utility's rate of return; b) Denies proposals for performance requirements and sharing of cost overruns for the utility-owned projects; and c)Authorizes both 250 MW of utility-owned projects and 250 MW of independent power projects, for a total program of 500 MW of solar projects over 5 years.
(Comr Bohn - ALJ Ebke)
Pub. Util. Code § 311 – This item was mailed for Public Comment.
05/19/2009 - This revision was not shown on the Agenda mailed to the public.

Item held for 6/18 Agenda

4. 30

[8483] A08-07-021 - Southern California Edison Company (SCE).
For approval of its 2009-2011 Energy Efficiency Program Plans and associated Public Goods Charge (PGC) and procurement funding requests. A08-07-022, A08-07-023, A08-07-031 - Related matters. This decision adopts changes in existing rules on the calculation of energy savings and portfolio cost-effectiveness for the 2009-2011 energy efficiency portfolio applications (A) of Pacific Gas and Electric Company (PG&E), SCE, Southern California Gas Company, and San Diego Gas & Electric Company (SDG&E). The adopted changes will enable the State’s Investor Owned Utilities (IOUs) to build portfolios of energy efficiency programs that are consistent with the strategic direction for energy efficiency investment set forth in the California Energy Efficiency Long Term Strategic Plan and the Commission's policy decisions. Today’s decision addresses eight specific issues. The Commission's determinations on these issues are summarized as follows: Cumulative Savings – Cumulative savings should be counted for the years 2006-2011 for this program cycle. Interactive Effects – Therm goals should be adjusted by 20% for SDG&E and PG&E to take into account updated information on interactive effects. The IOU's proposal to change attribution rules regarding savings credit for actions taken by customers supported by Utility programs, but who may also be motivated by external factors, is denied. The IOU’s proposal to allow the maximum expected useful lives of measures to increase to thirty years is denied. The Energy Division is directed to conduct a study on the issue of increasing the maximum expected useful lives of measures and report back to the Assigned Administrative Law Judge and Commissioner. The IOU’s proposal to allow Strategic Plan-related costs to be excluded from the risk/reward incentive mechanism is deferred to Rulemaking (R) 09-01-019. The IOU's request to use the individual utility weighted cost of capital adjusted for taxes for the 2009-2011 energy efficiency portfolios is granted. The IOU's request to revise the Commission's rule to allow mid-cycle funding augmentation to count towards the minimum performance standard is approved. The IOU’s request to use gross saving in the performance earnings benchmark is deferred to R09-01-019. These proceedings remain open.
(Comr Grueneich - ALJ Gamson)
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=384388

[view discussion of item 4] 7 minutes 49 seconds

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5. Regular Agenda - Communication Orders

31 (Rev.)

[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 April 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. Finally, the decision limits payments to carriers for administration, and eliminates payments for 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.
Agenda 3232, Item 52 4/16/2009 (Grueneich); Agenda 3233, Item 33 5/7/2009 (Grueneich)
05/20/2009 - This revision was not shown on the Agenda mailed to the public.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=384297

Item held for 6/4 Agenda

6. 32

[8482] R02-12-004 - Order Instituting Rulemaking on the Commission’s own Motion into the service quality standards for all Telecommunications Carriers and revisions to General Order 133-B.
This decision adopts General Order (GO) 133-C, which contains minimum service quality measures that apply in their entirety to general rate case incumbent local exchange carriers and apply in part to Uniform Regulatory Framework carriers. Wireless, Voice over Internet Protocol and IP-enabled carriers are exempt from these measures. GO 133-C also formalizes the Commission’s major service interruption reporting for all carriers. Wireless carriers are required to provide coverage maps on their websites and at retail locations, Pacific Bell Telephone Company is relieved from submitting out of service repair interval data under the standard established in Decision 01-12-021 and instead is required to report GO 133-C and ARMIS 005 data. This proceeding is closed.
(Comr Chong - ALJ Grau)
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=E21265

Item held for 6/4 Agenda

7. Regular Agenda - Communication Resolutions and Reports

33

[8452] Res T-17197 - Mother Lode Broadband Project of Rapid Link Inc. and Mother Lode Internet (Mother Lode Broadband Project).
This resolution conditionally adopts California Advanced Services funding for Mother Lode Broadband Project in underserved areas totaling $2,771,341.
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3233, Item 35 5/7/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=370609

Item withdrawn

8. Regular Agenda - Water/Sewer Resolutions and Reports

34

[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); Agenda 3232, Item 59 4/16/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=380701

Item withdrawn

9. Regular Agenda - Legal Division Matters

35

[8472] FCC Docket No. 09-28
In the Matter of High-Cost Universal Service Support / Federal-State Joint Board on Universal Service, FCC Docket No. 09-28. The Federal Communications Commission (FCC) seeks to refresh the record regarding the issues raised by the United States Court of Appeals for the Tenth Circuit in the Qwest II decision (FCC Docket No. 96-45).
Agenda 3233, Item 38 5/7/2009 (Staff)

Item withdrawn

10. Regular Agenda - Legislative and Other Matters

36 (Rev.)

[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. (Leg. Sub. Recommendation: SUPPORT WITH AMENDMENTS)
Agenda 3232, Item 61 4/16/2009 (Staff); Agenda 3233, Item 40 5/7/2009 (Staff)
05/15/2009 - This revision was not shown on the Agenda mailed to the public.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383890

Item taken up with Consent Agenda

[view discussion of item 10] 35 seconds

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11. 37

[8538] AB 380 (De la Torre)
This bill would establish the California Clean Energy Curriculum and Training Initiative of 2009, which would require the Labor and Workforce Development Agency to develop a standardized training curriculum. This bill would further require the California Public Utilities Commission to allocate monies, equivalent to the amount of an appropriation by the Legislature, from the Research, Development and Demonstration budget of the California Solar Initiative to fund this program. (Leg Sub Recommendation: OPPOSE UNLESS AMENDED)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383757

Item taken up with Consent Agenda

12. 38

[8503] AB 698 (Skinner)
This bill would streamline the Commission’s approval process for the sale, lease or other encumbrance or disposition of public utility property. (Leg Sub Recommendation: SUPPORT)
Agenda 3233, Item 44 5/7/2009 (Simon)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383830

Item held for 6/4 Agenda

13. 39

[8539] AB 758 (Skinner)
This bill would make the California Energy Commission responsible for developing and implementing a comprehensive program comprised of a portfolio of techniques, applications and practices that will achieve greater energy efficiency in existing residential and commercial structures that fall significantly below the current standards in Title 24 of the California Code of Regulations. It will require the California Public Utilities Commission to address the feasibility of utility financing for energy efficiency (EE) programs and authorize a targeted number of low or no-cost EE audits. (Leg Sub Recommendation: OPPOSE UNLESS AMENDED)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383743

Item taken up with Consent Agenda

14. 40

[8509] AB 1106 (Fuentes)
This bill would create a new feed-in tariff (FIT) program for projects up to 20 MW. The bill keeps the price at the market price referent and allows an existing project on net energy metering to switch to a FIT. (Leg Sub Recommendation: SUPPORT IF AMENDED)
Agenda 3233, Item 50 5/7/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=384412

[view discussion of item 14] 5 minutes 2 seconds

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15. 41

[8540] AB 1110 (Fuentes)
This bill would modify the definition of “cogeneration” to apply more widely to fuel cell technologies. The definition would change from the term “power production” to “generation of electricity” to be more inclusive of fuel cells. The bill would also reduce the minimum thermal efficiency requirements to be considered cogeneration from 42.5% to 40%, specifically for fuel cells. (Leg Sub Recommendation: OPPOSE UNLESS AMENDED)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383887

Item held for 6/4 Agenda

16. 42

[8494] AB 1315 (Ruskin)
This bill would make the Governor’s appointment of the Commission’s president subject to confirmation by the Senate, as well as remove the president’s administrative authority over the general counsel and executive director and transfer it to the Commission as whole. This bill would also require the Commission to hold its regular business meetings in Sacramento once a month. (Leg Sub Recommendation: OPPOSE)
Agenda 3233, Item 51 5/7/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383799

Item taken up with Consent Agenda

17. 43

[8510] AB 1316 (Ma)
This bill would require the Low-Income Oversight Board (LIOB) to review and make recommendations on the proposed budgets for low-income electricity, gas, and water programs prior to approval by the Commission. In addition, the bill would require the Commission, the LIOB, or both, to report the results, to the extent possible, of each Low Income Needs Assessment biannually to the Legislature. Further, this measure would delete the LIOB’s authority to establish a technical advisory committee, but instead would require the LIOB to establish a regulatory advisory. (Leg Sub Recommendation: OPPOSE)
Agenda 3233, Item 52 5/7/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383990

Item taken up with Consent Agenda

18. 44

[8499] SB 32 (Negrete McLeod)
This bill would modify the existing feed-in tariff (FIT) program established in the Public Utilities Code Section 399.20 to raise the applicable facility size of the program, from 1.5 Megawatts (MW) to 3 MW and to allow the Commission to adjust the price for "any other attributes of renewable generation." The bill allows third party ownership of generation facilities. The bill would require the publicly-owned utilities with 75,000 or more customers to offer this tarriff. (Leg Sub Recommendation: SUPPORT IF AMENDED)
Agenda 3233, Item 53 5/7/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=384411

[view discussion of item 18] 3 minutes 12 seconds

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19. 45

[8541] SB 626 (Kehoe)
This bill would require the California Public Utilities Commission (CPUC) to adopt rules by January 1, 2011 to address a number of barriers in electricity infrastructure and regulatory rules and tariffs that need to be overcome for widespread deployment and use of plug-in hybrid electric vehicles and battery electric vehicles, and evaluate multiple associated issues under existing CPUC proceedings and a potential new CPUC proceeding. (Leg Sub Recommendation: SUPPORT WITH AMENDMENTS)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=383756

[view discussion of item 19] 4 minutes 6 seconds

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20. Regular Agenda - Commissioner's Reports Commissioner Simon Report

[view discussion of item 20] 7 minutes 21 seconds

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21. Commissioner Grueneich Report

[view discussion of item 21] 4 minutes 8 seconds

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22. Commissioner Bohn Report

None

23. Commissioner Chong Report

[view discussion of item 23] 4 minutes 45 seconds

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24. President Peevey Report

[view discussion of item 24] 6 minutes 17 seconds

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25. Regular Agenda - Management Reports and Resolutions

46

[8512] Director Clark Report
Designation of Consumer Protection and Safety Division investigators authorized to exercise the limited powers of a peace officer within the scope of their duties as specified in Penal Code Section 830.11 and Pub. Util. Code Section 308.5. This matter will be presented before the Commission for discussion and action. http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=381893

Item taken up with Consent Agenda

Executive Director Paul Clanon Report
Awards Ceremony

Item held until 6/4 Agenda

26. Chief ALJ Karen Clopton Report
Review of Commission Processes

[view discussion of item 26] 23 minutes 27 seconds

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27.

CLOSED SESSION

Please see complete Closed Session agenda here (pages 24-32).

None