CPUC Commission Meeting - June 18, 2009

1.

PUBLIC COMMENT

[view discussion of item 1] 43 minutes 55 seconds

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2.

CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-14, items 1-38).

Items #3, 5, and 15 held for 7/9 Agenda; Item #6 held for 7/30 Agenda; Items #41, 42, 48, and 50 taken up with Consent Agenda

[view discussion of item 2] 37 seconds

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3.

REGULAR AGENDA

Regular Agenda - Energy Orders

39

[8386] A08-03-015 - Southern California Edison Company Solar Photovoltaic Program.
PROPOSED OUTCOME: (1) Installation of 320 megawatts of solar photovoltaic projects on rooftops over five years in Southern California Edison Company’s (Edison) service territory; (2) Edison will own, operate and maintain 160 MW; (3) Edison will seek bids for the ownership, installation, and operation of another 160 MW of solar PV rooftops from independent power producers; (4) Projects will be approximately 1 to 2 MW in size; (5) If Edison owned projects do not produce sufficient power, Edison will pay a penalty equal to replacing that amount of power. ESTIMATED COST: $3.85/W installed cost target for Edison owned generation; Independent project bids capped at average cost of Edison installed projects over the life of the equipment (20 years).
(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 ); Agenda 3234, Item 29 5/21/2009 (Bohn )
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=385373

39a

[8564] ALTERNATE TO ITEM 8386
A08-03-015 - Southern California Edison Company Solar Photovoltaic Program.
PROPOSED OUTCOME: (1) Installation of 500 megawatts of solar photovoltaic projects on rooftops over five years in Southern California Edison’s (Edison) service territory; (2) Edison will own, operate and maintain 250 MW; (3) Edison will seek bids for the ownership, installation, and operation of another 250 MW of solar PV rooftops from independent power producers; (4) Projects will be approximately 1 to 2 MW in size; (5) Denies requested bonus on Edison’s rate of return; (6) Denies proposals for performance requirements and sharing of cost overruns for the utility-owned projects. ESTIMATED COST: $3.85/W installed cost target for Edison owned generation; Independent project bids capped at average cost of Edison installed projects over the life of the equipment (20 years).
(Comr Bohn )
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3234, Item 29a 5/21/2009 (Pub. Util. Code §311(e))
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=386989

[view discussion of item 3] 22 minutes 0 seconds

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4. 40

[8522] R08-08-009 - Order Instituting Rulemaking to continue implementation and administration of California Renewables Portfolio Standard Program.
PROPOSED OUTCOME: (1) Establishes a fast track procedure for review of procurement contracts of less than 10 years duration (short-term contracts) entered into by investor-owned utilities (IOUs) under the renewables portfolio standard (RPS); (2) Establishes price reasonableness benchmarks for short-term contracts eligible for fast-track review and for recovery of the cost in IOUs' rates; (3) Establishes requirements for terms and conditions of short-term contracts eligible for fast-track review; (4) Affirms that short-term contracts not eligible for fast-track review will continue to be reviewed using the Commission's standard procedures for RPS contracts; (5) Establishes methods for Commission review of reasonableness of RPS procurement contracts negotiated by IOUs outside of a competitive RPS solicitation. ESTIMATED COST: None foreseen.
(Comr Peevey - ALJ Simon)
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3235, Item 22 6/4/2009 (Peevey)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=387502

[view discussion of item 4] 4 minutes 49 seconds

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5. 41

[8543] R06-04-009 - Modification of Methodology for Calculating Greenhouse Gas Emissions Performance Standard for Cogeneration Facilities.
Order Instituting Rulemaking to implement the Commission’s procurement incentive framework and to examine the integration of Greenhouse Gas Emissions Standards into procurement policies. PROPOSED OUTCOME: (1) Clarifies the Methodology for Calculating Greenhouse Gas Emissions Performance Standard (EPS) for Cogeneration Facilities (Conversion Method) to ensure that regulation of GHG emissions for bottoming-cycle cogeneration facilities is consistent with the overall framework of Assembly Bill 32 and the Commission's decision in Phase II of this proceeding. (2) Modifies D07-08-009 to state that when calculating the EPS for bottoming-cycle cogeneration, the Conversion Method shall not include the emissions associated with the industrial or commercial process, but rather, shall only include emissions associated with any supplemental firing that might occur. ESTIMATED COST: None foreseen.
(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 Quasi-Legislative.

http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=385702

Item taken up with Consent Agenda

6. 42 (Rev.)

[8567] R____________ - New Rulemaking on California Department of Water Resources Annual Revenue Requirement.
Order Instituting Rulemaking to Consider the Annual Revenue Requirement Determination of the California Department of Water Resources. PROPOSED OUTCOME: (1) Opens a rulemaking to consider issues related to the future allocation of the allocation of the annual revenue requirement determinations of the California Department of Water Resources (DWR) and issues related to DWR's power purchase activities. The prior revenue requirement determinations of DWR were handled in Rulemaking (R) 06-07-010. (2) Closes R06-07-010. ESTIMATED COST: No costs to customers as a result of opening this new rulemaking and closing of R06-07-010.
06/12/2009 - This revision was not shown on the Agenda mailed to the public.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=382021

Item taken up with Consent Agenda

7. Regular Agenda - Energy Resolutions and Written Reports

43

[8518] Res E-4243 - Southern California Edison Company (SCE).
PROPOSED OUTCOME: This resolution affirms a prior Executive Director’s Action Resolution E-4225 findings related to SCE’s proposed Moorpark-Newbury 66 kV Subtransmission line. This resolution 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; (4) Protests should be dismissed. 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.
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3235, Item 25 6/4/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=381223

Item held for 7/9 Agenda

8. 44

[8520] Res E-4242 - Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE).
PROPOSED OUTCOME: Resolution adopts, with modifications, the Qualifying Facility (QF) Standard Offer Contracts proposed by PG&E, SCE and 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.
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3235, Item 26 6/4/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=382056

Item held for 7/9 Agenda

9. 45

[8529] Res E-4246 - Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company.
PROPOSED OUTCOME: (1) Resolution implements a Market Index Formula (MIF) used in calculating Qualifying Facility (QF) payments and originally defined by the Commission in D.07-09-040; (2) Approves in part and rejects in part, with modification, the methodology and data sets proposed by the utilities. ESTIMATED COST: This resolution adopts a specific cost formula for QF contracts. Part of the formula involves utilizing future market price indices, such that the cost impact of this decision, in aggregate, is difficult to predict, either in direction or magnitude.
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3235, Item 27 6/4/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=386149

Item held for 7/9 Agenda

10. Regular Agenda - Communication Orders

46

[8317] R06-05-028 - Rulemaking on the Commission’s Own Motion to review the Telecommunications Public Policy Programs.
PROPOSED OUTCOME: (1) Background: Legislative constraints on the basic phone rate expired at the end of 2008 and the CPUC proactively implemented rate caps for 2009 and 2010 to limit any increases to protect consumers from rate shock. Beginning in 2011, state law allows basic rate to be deregulated. Without reforms, current law requires the California LifeLine rate to change based on changes to the AT&T basic rate; (2) Reduces the amount LifeLine customers pay for telephone service; (3) De-links the California LifeLine rate from the AT&T basic rate structure; (4) Adopts a “Specific Support” discount of 55 percent of the highest basic rate of the state’s carriers of last resort, which will provide each LifeLine customer the same support amount, but adopts a minimum monthly price of $5.00; (5) LifeLine customer pricing will now be the specific carrier basic rate less the California LifeLine discount. The initial California LifeLine discount will be up to $12.20. The customer will pay the difference between the carrier’s otherwise applicable basic service rate minus the California LifeLine discount (e.g. $12.20); (6) Rejects “Set Price” option as this method would not comply with Moore Act which requires a 50% discount off basic rate; (7) Clarifies that since 2000, wireless carriers have been eligible to be reimbursed by California LifeLine for providing discounted service to customers if the carrier wants to participate in the program; (8) Limits extra payments to carriers for administration and eliminates extra payments for bad debt and to make-up for forgone federal support. ESTIMATED COST: Uncertain, parties acknowledge that without change, LifeLine fund could double in size from current $276 million. Reforms proposed will control growth in a legally compliant manner, but cost is not able to be quantified because it depends on the possibility of future basic rate increases and the impact on the size of the LifeLine fund.
(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); Agenda 3234, Item 31 5/21/2009 (Peevey); Agenda 3235, Item 28 6/4/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=384506

Item held for 7/9 Agenda

11. 47

[8482] R02-12-004 - Service Quality Standards for all Telecommunications Carriers and Revisions to General Order 133-B.
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. PROPOSED OUTCOME: Adopts General Order (GO) 133-C to establish minimum service quality measures and standards for the installation, maintenance and operator answer time (business office and repair) for local exchange telephone service that: (1) Apply in their entirety to general rate case incumbent local exchange carriers; (2) Apply in part to Uniform Regulatory Framework carriers; (3) Exempt wireless, Voice Over Internet Protocol and IP-enabled carriers and resellers and excludes medium and large businesses from installation and answer time measures; Adopts in GO 133-C major service interruption reporting for all facilities-based certificated and registered carriers the Federal Communications Commission’s significant disruption and outage reporting (Network Outage Reporting System) requirements with confidentiality protections; Requires wireless carriers to provide coverage maps on their websites and at retail locations; Relieves Pacific Bell Telephone Company from submitting out of service repair interval data under the standard established in Decision 01-12-021, but requires Pacific Bell Telephone Company to report GO 133-C and Automated Reporting Management Information System out of service data. ESTIMATED COST: No additional regulatory costs anticipated; compliance costs will vary by class of telephone carrier with carriers in general experiencing slightly greater compliance costs initially as they modify reporting requirements in response to positive reporting of new service quality measures and standards and eliminate or phase out other measures and reporting requirements.
(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.

Agenda 3234, Item 32 5/21/2009 (Staff); Agenda 3235, Item 29 6/4/2009 (Simon)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=387091

Item held for 7/9 Agenda

12. 48

[8517] R__________ - New Rulemaking on California High Cost Fund B Program.
Order Instituting Rulemaking Regarding Revisions to the California High Cost Fund B Program. PROPOSED OUTCOME: Opens new Rulemaking as successor to Rulemaking 06-06-028 to address outstanding issues concerning the reform of the California High Cost Fund B Program. ESTIMATED COST: Unknown at this time.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=386942

Item taken up with Consent Agenda

13. Regular Agenda - Water/Sewer Orders

49

[8534] A08-01-027 - California-American Water Company Monterey District Rates.
A08-01-024 - Related matters. PROPOSED OUTCOME: (1) Authorizes a 35% revenue increase for California-American Water Company's Monterey District and a 119% revenue increase for the Toro Service Area. (2) Allows over $7 million in new tanks, over $3 million in new mains and pipelines, and a tripled well rehabilitation program. (3) Disallows proposed new Carmel River wells and portion of Sand City Desalinization plant lease. (4) Orders reductions in unaccounted for water. (5) Limits General Office increases to 22%. (6) Approves Rate Design Settlement Agreement which eliminates summer rate discount and establishes steeply inverted tiered rates to encourage conservation. (7) Directs California-American Water Company to develop and implement program to restrict or prohibit the use of potable water for landscape irrigation during times of maximum system demand. (8) Closes proceedings A08-01-027 and A08-01-024. ESTIMATED COST: The 2009 revenue requirement is increased by $10,811,000 for the Monterey District and by $354,524 for the Toro Service Area.
(Comr Bohn - ALJ Bushey)
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=382218

Item held for 7/9 Agenda

14. Regular Agenda - Legislative and Other Matters

50

[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)
Agenda 3234, Item 41 5/21/2009 (Staff); Agenda 3235, Item 34 6/4/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=386041

Item taken up with Consent Agenda

15. Regular Agenda - Commissioner's Reports

Commissioner Simon Report

[view discussion of item 15] 8 minutes 15 seconds

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16. Commissioner Grueneich Report

[view discussion of item 16] 2 minutes 17 seconds

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17. Commissioner Bohn Report

None

18. Commissioner Chong Report

[view discussion of item 18] 49 seconds

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19. President Peevey Report

[view discussion of item 19] 2 minutes 23 seconds

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20. Regular Agenda - Management Reports and Resolutions

Chief ALJ Karen Clopton Report
Introduction of new interns

[view discussion of item 20] 1 minutes 20 seconds

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21. Regular Agenda - Management Reports and Resolutions

(if needed)

22. Regular Agenda - Management Reports and Resolutions

(if needed)

23.

CLOSED SESSION

Please see complete Closed Session agenda here (pages 26-35).

Approved Consent Items #52, 53, 55, and 57

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