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CPUC Commission Meeting - September 24, 2009

PUBLIC COMMENT

[view discussion of item 1] 1 minutes 34 seconds

CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-22, items 1-32).

Items #2, 3, 4, 5, 6, 9, 10, and 11 held for 10/15 Agenda; Item #32 withdrawn; Items #35, 41, 44, and 46 taken up with Consent Agenda

[view discussion of item 2] 1 minutes 51 seconds

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REGULAR AGENDA

Regular Agenda - Energy Orders

Item 33

[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=393668
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)); Agenda 3240, Item 42 9/10/2009 (Simon)

Item 33a

[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=400126
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));
Agenda 3240, Item 42a 9/10/2009 (Simon)

[view discussion of item 3] 11 minutes 51 seconds

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4. Item 34

[8617] San Diego Gas & Electric Company for Approval of the Celerity Distributed Generation Supply Contract
A08-10-003 PROPOSED OUTCOME:
Denies San Diego Gas & Electric Company's application for approval of the Celerity Distributed Generation Supply Contract.
Closes the proceeding.
ESTIMATED COST:
None.
(Comr Bohn - ALJ Farrar)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400049
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 6 7/30/2009 (Bohn ); Agenda 3239, Item 7 8/20/2009 (Bohn ); Agenda 3240, Item 3 9/10/2009 (Pub. Util. Code §311(e))

Item 34a

[8847] ALTERNATE TO ITEM 8617
PROPOSED OUTCOME:
This alternate decision differs from the Administrative Law Judge’s proposed decision in that it:
Determines that the low cost capacity and emission reductions provided by the contract justify its approval;
Approves the contract contingent upon the contract capacity qualifying to meet resource adequacy requirements and upon installation of air emission filters on the generation units involved in the contract.
ESTIMATED COST:
The contract costs are confidential at this time.
Application 08-10-003 is closed.
(Comr Bohn )
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=399952
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Item held for future Agenda

5. Item 35 (Rev.)

[8777] Southern California Gas Company Request to Issue New Long-Term Debt
A09-03-009
PROPOSED OUTCOME:
Grants Southern California Gas Company authority to issue up to $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.
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=400045
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.
Agenda 3240, Item 45 9/10/2009 (Staff)
09/21/2009 - This revision was not shown on the Agenda mailed to the public.

Item taken up with Consent Agenda

6. Item 36

[8801] 2010 to 2012 Energy Efficiency Portfolios and Budgets
A08-07-021 Application of Southern California Edison Company for Approval of its 2009-2011 Energy Efficiency Program Plans and Associated Public Goods Charge and Procurement Funding Requests, A08-07-022, A08-07-023, A08-07-031 - Related matters.
PROPOSED OUTCOME:
Adopts 2010 to 2012 energy efficiency budgets for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas).
Adopts cost-effective portfolios of energy efficiency measures which provide the utilities a reasonable opportunity to reach adopted energy savings goals.
Substantially implements the California Long-Term Energy Efficiency Strategic Plan adopted in D.08-09-040 through 12 statewide programs.
Establishes the California Statewide Program for Residential Energy Efficiency, a residential retrofit program aimed at a 20% reduction in annual energy consumption of 130,000 homes.
Modifies energy savings goals based on updated data; decreases SDG&E energy savings goals to align its goals with other utilities.
Reduces utility-proposed budgets for administrative costs, marketing, education and outreach, and non-resource support costs to levels more consistent with national averages.
Tentatively reduces evaluation, measurement and verification budgets, subject to a detailed follow-up decision.
Reduces utility-proposed budgets for compact fluorescent light subsidies because the market is nearly transformed.
Extends bridge funding adopted in D.08-10-027 to the end of 2009.
Creates a new marketing brand to coordinate messages about energy efficiency, renewable energy and demand-side management, alongside those of climate action.
ESTIMATED COST:
Increases the three-year energy efficiency budget by 30%, from $2.2 billion for 2006 to 2008 to $2.9 billion for 2010 to 2012.
Increases the “Bridge Funding” budgets for 2009 adopted in D.08-10-027 by 11%.
Compared to adopted 2006 – 2008 energy efficiency budgets, SCE’s budget increases by $397 million, PG&E’s budget increases by $248 million, SDG&E’s budget decreases by $13 million, and SoCalGas’ budget increases by $95 million.
(Comr Grueneich - ALJ Gamson)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=399874
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 6] 27 minutes 57 seconds

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7. Item 37

[8815] Petition to Modify Self Generation on Incentive Program Rules Regarding Renewable Fuels
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:
Grants a petition by Bloom Energy Corporation to modify program rules for the Self-Generation Incentive Program (SGIP).
Directs the SGIP program administrators to implement handbook changes to authorize SGIP-eligible distributed generation projects to receive Level 2 incentives of $4.50 per watt if the renewable fuel for the facility is obtained from a directed biogas contract (i.e., where biogas is nominated and delivered to customers via a natural gas pipeline).
ESTIMATED COST:
Implementation cost is expected to be minimal and can be absorbed within the administrative budget for Self-Generation Incentive Program.
(Comr Peevey - ALJ Duda)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=399928
Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

[view discussion of item 7] 3 minutes 45 seconds

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8. Regular Agenda - Energy Resolutions and Written Reports

Item 38

[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=399039
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)

Item held for 10/15 Agenda

9. Item 39

[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=399043
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)

Item held for 10/15 Agenda

10. Item 40

[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=399042
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3240, Item 49 9/10/2009 (Staff)

Item held for 10/15 Agenda

11. Item 41

[8797] Pacific Gas and Electric Company Power Purchase Agreements
Res E-4269, Advice Letter 3459-E filed on May 13, 2009 - Related matters.
PROPOSED OUTCOME:
Approves cost recovery for five power purchase agreements (PPAs) resulting from bilateral negotiations between Pacific Gas & Electric Company (PG&E) and BrightSource Energy, Inc., pursuant to California’s renewables portfolio standard program.
Approves the PPAs with modifications.
Proceeds from the Royalty Agreement entered in to by PG&E and BrightSource Energy, Inc. in connection with these PPAs will be credited to PG&E’s Energy Resource Recovery Account for the benefit of PG&E’s ratepayers.
ESTIMATED COST:
Actual costs are confidential at this time.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=399922
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Item taken up with Consent Agenda

12. Item 42

[8804] Pacific Gas and Electric Company and Southern California
Edison Company Departing Service Charges Res E-4226, PG&E Advice Letter (AL) 3446-E, Filed on April 2, 2009; and SCE AL 2320-E, Filed on February 9, 2009 - Related matters.
PROPOSED OUTCOME:
Clarifies that New World Generation Charges Do Not Apply to Customer Generation or Municipal Departing Load.
Clarifies that Vintaged Cost Responsibility Surcharge (beginning with the 2009 vintage) will be effective for non-exempt customers departing bundled service on or after the effective date of this resolution.
The Power Charge Indifference Adjustment shall vary by customer class in the same proportion as ongoing Competition Transition Charges.
ESTIMATED COST:
No cost impact.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=396896
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Item held for 10/15 Agenda

13. Regular Agenda - Communication Resolutions and Reports

Item 43

[8795] Contingent Approval of Funding for Lookout Unserved Broadband Project
Res T-17224
PROPOSED OUTCOME:
Conditionally adopts California Advanced Services Fund (CASF) funding for the Lookout Project providing broadband service to an unserved area in Modoc County. The project is contingent on receiving an American Recovery and Reinvestment Act grant for 80% of the total project cost.
ESTIMATED COST:
$50,707 from the CASF which represents 10% of the total project cost.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=398992
Pub. Util. Code § 311 – This item was mailed for Public Comment.

[view discussion of item 13] 3 minutes 48 seconds

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14. Regular Agenda - Legal Division Matters Item

[8820] Comments Before Federal Communications Commission Regarding Extension of Truth-In-Billing Rules to Additional Services
CG Docket No. 09-158 et. al.
In the Matter of Consumer Information and Disclosure, CG Docket No. 09-158, Truth-in Billing and Billing Format, CC Docket No. 98-170, and IP-Enabled Services, WC Docket No. 08-225; Notice of Inquiry, FCC 09-68.
The Federal Communications Commission (FCC) seeks comment on whether truth-in-billing rules should be extended to additional services, such as broadband Internet access and subscription video service. The FCC hopes to build a record for assessing whether there are opportunities to protect and empower consumers through policies addressing information disclosure.
Staff is recommending that the California Public Utilities Commission file comments informing the FCC of California’s relevant statutes, regulations and consumer protection experience in these areas, and making policy recommendations consistent with California law and CPUC policy.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400082

Item taken up with Consent Agenda

15. Item 45

[8821] Comments Before Federal Communications Commission Regarding Wireless Markets
WT Docket No. 09-66
In the Matter of Implementation of Section 6002(b) of the Omnibus Budget Reconciliation Act of 1993, Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless including Commercial Mobile Services, WT Docket No. 09-66; Notice of Inquiry, FCC 09-67.
The Federal Communications Commission seeks to expand and enhance its analysis of competitive conditions in the entire wireless market.
Staff recommends that the California Public Utilites Commission file comments supporting this inquiry into competition in the wireless market, and supporting use of the existing four indicators for CMRS competition which include assessment of market share and integration.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=399580

Item held for 10/15 Agenda

16. Item 46

[8822] Comments Before Federal Communications Commission Regarding Timely Deployment of Broadband Services
GN Docket No. 09-137 et. al.
In the Matters of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, as Amended by the Broadband Data Improvement Act, GN Docket No. 09-137, A National Broadband Plan for Our Future, GC Docket No. 09-51; Notice of Inquiry, FCC 09-65.
The Federal Communications Commission (FCC) seeks comment on whether broadband services are being deployed to all Americans in a reasonable and timely fashion.
Staff recommends that the California Public Utilities Commission file comments in a number of areas, including the following:
the definition of broadband,
the definition of geographic areas used for certain types of reports,
proposing that the FCC share with the states raw data on broadband availability, and
proposing that the FCC consider satellite-based broadband services in evaluating access to broadband.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=399548

Item taken up with Consent Agenda

17. Item 47

[8845] Comments Before Federal Communications Commission Regarding Universal Service Charges for Voice Over Internet Protocol Services
WC Docket No. 06-122
Petition of Nebraska Public Service Commission and Kansas Corporation Commission for Declaratory Ruling or, in the Alternative, Adoption of Rules Allowing State Universal Service Funds to Assess Charges on Nomadic Voice over Internet Protocol Intrastate Revenues
The Federal Communications Commission (FCC) seeks comment on a Petition for Declaratory Ruling (Petition) filed by the Nebraska Public Service Commission and the Kansas Corporation Commission (Petitioners) on July 16, 2009.
Petitioners ask the FCC to issue a declaratory ruling that the FCC has not pre-empted the states from assessing universal service charges on the intrastate revenues collected by providers of “nomadic” interconnected Voice over Internet Protocol (VoIP) services.
Petitioners also ask the FCC to declare that states have discretion to adopt certain mechanisms and procedures for identifying and assessing intrastate revenues.
In the alternative, Petitioners ask the FCC to propose and then adopt relevant rules.
Staff seeks authority to submit comments in support of state authority to require universal service contributions from interconnected VoIP providers.

Item withdrawn

18. Regular Agenda - Legislative and Other Matters

Legislative report - Pam Loomis

[view discussion of item 18] 33 minutes 42 seconds

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19. Regular Agenda - Commissioner's Reports

Item 48

[8748] Appointments to the Low Income Oversight Board

Commissioner Grueneich Report
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); Agenda 3240, Item 51 9/10/2009 (Grueneich)

Item held for 10/15 Agenda

20. Commissioner Simon Report

[view discussion of item 20] 5 minutes 34 seconds

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21. Commissioner Grueneich Report

[view discussion of item 21] 45 seconds

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22. Commissioner Bohn Report

None

23. Commissioner Chong Report

[view discussion of item 23] 5 minutes 48 seconds

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