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CPUC Commission Meeting - September 10, 2009

PUBLIC COMMENT

[view discussion of item 1] 11 minutes 40 seconds

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CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-21, items 1-41).

Items#2, 3, 6, 7, 8, 13, 14, 15, 20, and 25 held for future Agenda; Item 48 taken up with Consent Agenda

[view discussion of item 2] 17 seconds

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REGULAR AGENDA

Regular Agenda - Energy Orders

Item 42 (Rev.)

[8616] Compensation to Sustainable Conservation for Substantial Contributions to Decision 07-07-027
R06-05-027 Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program. PROPOSED OUTCOME: Awards Sustainable Conservation $21,482.75 in compensation for its substantial contributions to Decision 07-07-027. Closes the proceeding. ESTIMATED COST: Payment will be made by Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company based on their proportional gas and electric revenues for 2007.
(Comr Peevey - ALJ Division)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=392639
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.
Agenda 3237, Item 27 7/9/2009 (Staff); Agenda 3238, Item 41 7/30/2009 (Pub. Util. Code §311(e))
09/01/2009 - This revision was not shown on the Agenda mailed to the public.

Item 42a (Rev.)

[8732] ALTERNATE TO ITEM 8616
PROPOSED OUTCOME: Unlike the Proposed Decision, the Alternate denies Sustainable Conservation intervenor compensation for its substantial contributions to Decision 07-07-027 because its request for intervenor compensation does not comply with the Public Utilities Code Sections 1802(b)(1) and 1804(b)(1). Closes the proceeding. ESTIMATED COST: None
(Comr Bohn )
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398493
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.
Agenda 3238, Item 41a 7/30/2009 (Pub. Util. Code §311(e))
09/01/2009 - This revision was not shown on the Agenda mailed to the public.

Item held for future Agenda

4. Item 43 [8713] Establishes Commission's Processes and Criteria for Review of Smart Grid Projects and Investments by Investor-Owned Utilities Seeking Recovery Act Funding from the US Department of Energy
R08-12-009 Order Instituting Rulemaking to Consider Smart Grid Technologies Pursuant to Federal Legislation and on the Commission’s own Motion to Actively Guide Policy in California’s Development of a Smart Grid System. PROPOSED OUTCOME: Establishes Commission processes and adopts criteria for review of Smart Grid projects and investments by investor-owned utilities seeking Recovery Act funding from the US Department of Energy. ESTIMATED COST: No costs to government or ratepayers result from this decision.
(Comr Chong - ALJ Sullivan)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398398
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.
Agenda 3239, Item 51 8/20/2009 (Bohn )

[view discussion of item 4] 10 minutes 31 seconds

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5. Item 44 (Rev.)

[8757] San Diego Gas & Electric Company’s Power Shut-Off Plan
A08-12-021 Application of San Diego Gas & Electric Company (SDG&e) for Review of its Proactive De-Energization Measures and Approval of Proposed Tariff Revisions. PROPOSED OUTCOME: Denies SDG&E's Application, without prejudice. Directs the parties to use a collaborative process to consider issues that will be identified in a subsequent assigned Commissioner's ruling. Keeps the proceeding open, and directs the parties to file a status update by December 10, 2009 on the progress made in the collaborative process. Since the Proposed Decision (PD) denies authority to SDG&E to implement its Emergency Power Shut Off as proposed, the PD does not decide whether the proposed revisions to Tariff Rule 14 are appropriate. Requires SDG&E to submit an Advice Letter by November 1, 2009 containing a schedule for the upgrading of the lines and the re-closer policy in the high-fire area that is the subject of the instant Application. ESTIMATED COST: None.
(Comr Simon) http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398486
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.
09/09/2009 - This revision was not shown on the Agenda mailed to the public.

Item 44a

[8758] ALTERNATE TO ITEM 8757
PROPOSED OUTCOME: Deny, without prejudice, San Diego Gas & Electric Company’s proposal to shut off power to certain areas and communities during periods of high fire danger; Deny, without prejudice, San Diego Gas & Electric Company’s proposed revisions to Electric Tariff Rule 14; and Closes the proceeding. ESTIMATED COST: None.
(Comr Simon - ALJ Kenney) http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398459
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 5] 41 minutes 22 seconds

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6. Item 45

[8777] Southern California Gas Company Request to Issue New Long-Term Debt
A09-03-009 Application of Southern California Gas Company for Authorization to: (1) Obtain Long-term Debt Capital Not to Exceed the Equivalent of U.S. $800,000,000; (2) Include Certain Features in Debt Securities or Enter into Certain Derivative Transactions; (3) Hedge Issuances of Debt Securities and Preferred or Preference Securities; (4) Obtain Exemptions from the Competitive Bidding Rule; and (5) Take All Other Necessary, Related Actions. PROPOSED OUTCOME: Grants Southern California Gas Company authority to issue up to $570 million of its requested $800 million of long-term Debt Securities. Debt Securities include: (a) secured debt, (b) unsecured debt, (c) debt placed in foreign capital markets, (d) medium-term notes, (e) direct long-term loans, (f) accounts receivable financing, (g) variable-rate debt, (h) “fall-away” mortgage bonds initially secured and subsequently convertible into unsecured debt, and (i) subordinated debt. Denies the remaining $230 million of its request because Southern California Gas Company already has access to $230 million of unused long-term debt authority to help satisfy its 2009 through 2011 long-term debt needs. Allows Southern California Gas Company to encumber utility property, including its accounts receivable, to secure Debt Securities and use hedges to manage interest rate risk. Authorizes Southern California Gas Company to enter into: (a) put options, (b) call options, (c) sinking funds, (d) interest rate swaps, (e) swaptions to enter or exit swap agreements under specified terms and conditions, (f) caps and collars, (g) currency swaps, (h) credit enhancements, (i) capital replacement, (j) interest deferral, (k) special-purpose entity transactions, and (l) delayed draw downs. Exempts certain Debt Securities from the Commission’s Competitive Bidding Rule as enumerated in the decision and authorizes Southern California Gas Company to report all required General Order 24-B Debt Securities information to the Commission on a quarterly basis unless directed to report on a monthly basis by the Commission staff. Closes the proceeding. ESTIMATED COST: None
(Comr Simon - ALJ Galvin) http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=394956
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Item held for future Agenda

7. Regular Agenda - Energy Resolutions and Written Reports

Item 46

[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=391225
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)

Item held for future Agenda

8. Item 47 (Rev.)

[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 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 - 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=396510
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)
09/01/2009 - This revision was not shown on the Agenda mailed to the public.

Item held for future Agenda

9. Item 48

[8718] San Diego Gas & Electric Company Increased Funding for its Charitable Neighbor-to-Neighbor Customer Assistance Program.
Southern California Gas Company Increased Funding for its Charitable Gas Assistance Fund Customer Assistance Program Res E-4251, SDG&E Advice Letter (AL) 2065-E/1842-G and SoCalGas AL 3963-G filed on February 20, 2009 respectively - Related matters. PROPOSED OUTCOME: Approves San Diego Gas & Electric Company's (SDG&E) request to transfer $1 million from its over-collected Rate Design Settlement Account and $0.3 million from its over-collected Post-2005 Gas Energy Efficiency Balancing Account to augment Neighbor-to-Neighbor Program. Approves Southern California Gas Company's (SoCalGas) request to transfer $3 million from its over-collected Self Generation Program Memorandum Account to augment its Gas Assistance Fund program. ESTIMATED COST: None. http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398488
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3239, Item 56 8/20/2009 (Grueneich)

Taken up in Consent Agenda

10. Item 49

[8754] Energy Efficiency 2006-2008 Interim Verification Report
Res E-4272 PROPOSED OUTCOME: Adopts the interim Verification Report prepared by the Energy Division to verify the costs and installations of the Investor Owned Utilities’ energy efficiency program activities during the 2006-2008 program period. ESTIMATED COST: None.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=393735
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Item held for future Agenda

11. Item 50

[8770] Southern California Gas Company Natural Gas Supply Contracts Res G-3435, Advice Letter 3976 and Advice Letter 3976-A filed on March 26, 2009 and June 1, 2009 respectively. - Related matters.
PROPOSED OUTCOME: Resolves Southern California Gas Company's (SoCalGas) request for expedited approval of contracts to support SoCalGas’ minimum flow requirements on its Southern System. Does not approve the gas supply contract with SoCalGas’ Gas Acquisition Department and the capacity purchase contract with El Paso Natural Gas Pipeline. Approves all other gas supply contracts ESTIMATED COST: The estimated cost of the approved contracts is $2.6 million.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398445
Pub. Util. Code § 311 – This item was mailed for Public Comment.

[view discussion of item 11] 5 minutes 2 seconds

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12. Regular Agenda - Legislative and Other Matters

13. Regular Agenda - Commissioner's Reports

Commissioner Simon Report

[view discussion of item 13] 2 minutes 41 seconds

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14. Commissioner Grueneich Report

Item 51

[8748] Appointments to the Low Income Oversight Board
Discussion and action regarding the appointment to the Commission’s Low Income Oversight Board (LIOB) of Ortensia Lopez and Louise Perez as public representatives and Allan Rago as the private contractor representative. 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.
Agenda 3239, Item 59 8/20/2009 (Grueneich)

[view discussion of item 14] 3 minutes 51 seconds

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15. Commissioner Bohn Report

[view discussion of item 15] 2 minutes 6 seconds

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16. Commissioner Chong Report

[view discussion of item 16] 5 minutes 33 seconds

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17. President Peevey Report

[view discussion of item 17] 1 minutes 56 seconds

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18. Regular Agenda - Management Reports and Resolutions