AdminMonitor.com

CPUC Commission Meeting - July 9, 2009

Please click here for Commission Meeting presentations.

PUBLIC COMMENT

[view discussion of item 1] 4 minutes 29 seconds

[Send item as an eclip]

CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-13, items 1-30).

Items #2, 5, 12, 23, and 27 held for 7/30/09 Agenda. Items #34, 35, 42, and 43 taken up with Consent Agenda.

[view discussion of item 2] 43 seconds

[Send item as an eclip]

REGULAR AGENDA

Regular Agenda - Energy Orders

[8524] A06-08-010 - San Diego Gas & Electric Company (SDG&E).
PROPOSED OUTCOME: Approves, with a minor clarification and with specified reporting requirements to permit the Commission to monitor compliance, a settlement of Phase 3 of this proceeding by the Consumer Protection and Safety Division and SDG&E. Settlement provisions include: (1) SDG&E does not admit to any violation of Rule 1.1 of the Commission's Rules of Practice and Procedure but acknowledges its failure to fully comply with Rule 8.3 and tenders an apology for imprecision in its communications with decision-makers in connection with certain ex parte meetings held during Phase 2; (2) SDG&E commits shareholder funds for specified charitable contributions, reimbursement to the Commission for expenses related to this proceeding, and payment to the State's General Fund; (3) SDG&E commits shareholder funds for developing a professional responsibility class and an ex parte best practices manual, both in consultation with identified Commission staff. ESTIMATED COST: Shareholders will: (1) make payments of $200,000 to specified charities, $220,000 to the Commission as reimbursement of expenses, and $500,000 to the State's General Fund, and (2) fund a professional responsibility class for SDG&E staff, Commission staff, and outside practitioners for up to $200,000.
(Comr Grueneich - ALJ Vieth)
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Adjudicatory.
Agenda 3235, Item 24 6/4/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=385154

[view discussion of item 3] 4 minutes 13 seconds

[Send item as an eclip]

4. Regular Agenda - Energy Resolutions and Written Reports

[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. (Advice Letter 2272-E filed on October 2, 2008) 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); Agenda 3236, Item 43 6/18/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=388212

Item held for 9/10/09 Agenda.

5. 33

[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: (1) 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). (2) 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. (Advice Letter (AL) PG&E AL 3197-E, SDG&E AL 1958-E and SCE AL 2200-E, filed on January 14, 2008, Supplemental advice letters 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 Advice Letters PG&E (AL) 3197-E-B, SDG&E AL 1958-E-B, and SCE AL 2200-E-B, filed on December 10, 2008) ESTIMATED COST: (1) Adoption of this resolution does not imply any specific cost, however, upon adoption, the utilities may enter into contracts with new or existing QFs. (2) These contracts will form part of the utilities’ procurement costs for electricity. (3) 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. (4)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. (5) 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); Agenda 3236, Item 44 6/18/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=388185

Item held for 7/30/09 Agenda.

6. 34

[8529] Res E-4246 - Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE).
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. (PG&E Advice Letter (AL) 3180-E, SDG&E AL 1952-E, and SCE AL 2193-E filed on December 17, 2007) 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); Agenda 3236, Item 45 6/18/2009 (Staff)

Item taken up with Consent Agenda.

7. 35

[8584] Res E-4233 - San Diego Gas and Electric Company (SDG&E) and Southern California Gas Company (SoCalGas).
This resolution denies SDG&E and SoCalGas' requests for authorization to pay a capitation fee to outreach organizations for low income customer enrollments in the Low Income Energy Efficiency program. (SDG&E Advice Letter (AL) 2036-E, AL 1813-G filed on November 3, 2008 and SoCalGas AL 3916-G filed on November 3, 2008)
Pub. Util. Code § 311 – This item was mailed for Public Comment.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=390266

Item taken up with Consent Agenda.

8. Regular Agenda - Communication Orders

[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); Agenda 3236, Item 46 6/18/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=387754

Item withdrawn

9. 37

[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);
Agenda 3236, Item 47 6/18/2009 (Grueneich)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=390352

[view discussion of item 9] 12 minutes 8 seconds

[Send item as an eclip]

10. 38

[8621] R06-06-028 - Setting new filing plan for California Advanced Services Fund Projects.
Order Instituting Rulemaking into the review of the California High Cost Fund B Program. PROPOSED OUTCOME: Establishes new schedule and plan for filing review, and approval of additional round of California Advanced Services Fund broadband grants to coordinate with the American Recovery and Reinvestment Act. ESTIMATED COST: No incremental costs expected.
(Comr Chong - ALJ Pulsifer)
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=E22440

[view discussion of item 10] 10 minutes 58 seconds

[Send item as an eclip]

11. 39

[8640] R____________ - Revises the registration process for Non-dominant Interexchange Carriers.
Order Instituting Rulemaking on the Commission’s Own Motion to Revise the Simplified Registration Process for Non-dominant Interexchange Carriers Established by Decision (D) 97-06-107. PROPOSED OUTCOME: Adopts an Order Instituting Rulemaking to revise the requirements, established by D97-06-017 for registration of Non-Dominant Interexchange Carriers (NDIECs), including those that provide long-distance, high-speed data services, operator-assisted services, and prepaid debit card services (local exchange excluded). ESTIMATED COST: If revised rules are adopted as proposed, registered NDIECs will pay higher application fees and minimum user fees, and will incur additional undetermined costs to maintain performance bonds and for required expanded background checks. Overall costs for all registered NDIECs is undetermined.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=385866

[view discussion of item 11] 6 minutes 57 seconds

[Send item as an eclip]

12. Regular Agenda - Communication Resolutions and Reports

[8620] Res T-17197 - Conditional approval of funding for Mother Lode Broadband project from California Advanced Services Fund (CASF) amounting to $2,771,341.
PROPOSED OUTCOME: Conditionally adopts CASF funding for Mother Lode Broadband Project in unserved areas covering Alpine, Amador, Calaveras, Tuolumne, and Mariposa Counties. ESTIMATED COST: $2,771,341 from the CASF which represents 40% of the total project cost to develop and deploy broadband infrastructure.
Pub. Util. Code § 311 – This item was mailed for Public Comment.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=381568

[view discussion of item 12] 6 minutes 20 seconds

[Send item as an eclip]

13. Regular Agenda - Water/Sewer Orders

[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 Applications (A) 08-01-027 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.
Agenda 3236, Item 49 6/18/2009
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=387835

[view discussion of item 13] 11 minutes 2 seconds

[Send item as an eclip]

14. 42

[8450] A08-01-023 - California-American Water Company Monterey Wastewater District 2009-2011 Rates.
PROPOSED OUTCOME: (1) Approves a settlement agreement and sets aside consolidation with other proceedings. The settlement agreement changes monthly wastewater rates to $48.78 for four wastewater systems that use relatively inexpensive treatment processes; for four other systems that use more complex treatment processes the rates are increased to $107.81 per month. (2) Closes the proceeding. ESTIMATED COST: The 2009 wastewater revenue requirement is increased by $1,316,600 (a 77.4% increase).
(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.
Agenda 3236, Item 3 6/18/2009 (Staff)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=387717

Item taken up with Consent Agenda.

15. 43

[8562] A07-12-010 - California-American Water Company 's Conservation and Rationing Program for the Monterey District.
PROPOSED OUTCOME: (1) Adopts a rationing plan for the Monterey District that, in collaboration with actions of the regional Monterey Peninsula Water Management District, will restrict outdoor watering, allocate each customer a "water ration" based on customer category and number of household residents, authorize implementation of rationing rates, and provide for flow restrictors to be installed on customer meters for repeated water waste or non-essential water use, (2) Modifies the conservation plan adopted in Decision 09-02-006 to conform with the current version of Monterey Peninsula Water Management District's Regulation XV. The combined conservation and rationing plan revise California-American Water Company's existing Tariff Rule 14.1 for the Monterey District. (3) Closes the proceeding. ESTIMATED COST: None foreseen.
(Comr Bohn - ALJ Walwyn)
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=384317

Item taken up with Consent Agenda.

16. 44

[8618] A08-05-002 - Settlement on the Base Year 2009 Cost of Capital Adjustment Mechanism for California Water Service Company, California American Water Company, and Golden State Water Company.
A08-05-003, A08-05-004 - Related matters. PROPOSED OUTCOME: (1) Adopts a settlement for an adjustment mechanism for subsequent years to the base year 2009 ratemaking return on common equity for California Water Service Company, California American Water Company, and Golden State Water Company; (2) Determines there are no further actions necessary at this time to reflect the impact of the financial market dislocation on the 2009 base year return on equity; and (3) Closes these proceedings. ESTIMATED COST: Unknown; the adopted Water Cost of Capital Adjustment Mechanism adjusts the return on equity based on changes to a Moody’s bond index. For example, a plus or minus 5 basis point change in the return on equity results in a respective change of approximately 3 basis points to the after-tax cost of capital for each applicant.
(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.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E22435

Item held for 7/30/09 Agenda.

17. Regular Agenda - Legislative and Other Matters

18. Regular Agenda - Commissioner's Reports

Commissioner Simon Report

[view discussion of item 18] 7 minutes 31 seconds

[Send item as an eclip]

19. Commissioner Grueneich Report

[view discussion of item 19] 1 minutes 20 seconds

[Send item as an eclip]

20. Commissioner Bohn Report

[view discussion of item 20] 3 minutes 40 seconds

[Send item as an eclip]