CPUC Commission Meeting - October 29, 2009

1.

PUBLIC COMMENT

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2.

CONSENT AGENDA

Please see complete Consent Agenda here (pages 2-44, items 1-50).

Items 2,4,6,8,9,11,12,13,14,16,19,21,23, and 31 Held for 11/20/09 Agenda; Item 20 taken up with Regular Agenda

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3. Item 20

[8882] Gill Ranch Storage, LLC's and Pacific Gas and Electric Company's Request to Construct and Operate a Gas Storage Facility

A08-07-032, A08-07-033 -Related matters
PROPOSED OUTCOME:
Approves Gill Ranch Storage, LLC's (GRC's) and Pacific Gas and Electric Company's (PG&E's) applications for certificates of public convenience and necessity to construct and operate the Gill Ranch Storage Project, a competitive natural gas storage facility;
Approves PG&E's request for a permit to construct and electric substation and a 115 kilovolt electric power line to provide electric service to the project.
As a result of this Decision, GRS and PG&E will offer up to 20 billion cubic feet of competitive natural gas storage services to non-core customers.
Approves the settlement agreement between the Division of Ratepayer Advocates, Lodi Gas Storage, LLC, GRS, and PG&E which resolves concerns about project ownership, preferential treatment, and cross-subsidization, and establishes reporting and disclosure requirements.
Closes the Proceeding


ESTIMATED COST:
The project is estimated to cost $200 to $225 million. However, the project will not serve core ratepayers, and customers will not bear project costs.
PG&E has the burden of justifying the reasonableness of any of its project costs that may be sought for recovery in gas transmission and storage rates.
PG&E is fully at risk for all costs deemed unreasonable in any subsequent review of PG&E's share of project costs.

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 3] 4 minutes 5 seconds

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4.

REGULAR AGENDA

Regular Agenda - Energy Resolutions and Written Reports

Item 51

[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=402431
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); Agenda 3241, Item 38 9/24/2009 (Staff); Agenda 3242, Item 46 10/15/2009 (Staff)

Held for 11/20/09 Agenda.

5. Item 52

[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 AL 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 AL PG&E AL 3197-E-B, et al. - 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=402435
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); Agenda 3241, Item 39 9/24/2009 (Staff); Agenda 3242, Item 47 10/15/2009 (Staff)

Held for 11/20/09 Agenda.

6. Item 53

[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=402440
Pub. Util. Code § 311 – This item was mailed for Public Comment.
Agenda 3241, Item 42 9/24/2009 (Staff); Agenda 3242, Item 49 10/15/2009 (Staff)

Taken up with Consent Agenda.

7. Item 54

[8896] San Diego Gas & Electric Company Request to Establish a Memorandum Account
Res E-4281, Advice Letter 2101-E Filed on August 4, 2009 - Related matters. Establishment of memorandum account for correcting infractions of General Order 95 by communication infrastructure providers on joint poles owned by San Diego Gas and Electric Company.
PROPOSED OUTCOME:
Denies San Diego Gas & Electric Company’s Request to establish a Pole Attachment Communication Maintenance Memorandum Account.
ESTIMATED COST:
None.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400837
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Taken up with Consent Agenda.

8. Regular Agenda - Communication Orders

Item 55

[8940] Joint Application of Frontier Communications Corporation and Verizon Communications, Inc.
A09-06-005
PROPOSED OUTCOME:
Approves the transfer of 13 California telephone exchanges from Verizon Communications Inc. and its subsidiaries to Frontier Communications Corporation and its subsidiaries.
Approves a settlement between the telephone companies and the Division of Ratepayer Advocates and The Utility Reform Network, which protects the public from rate increases and service deterioration for a period of one year.
ESTIMATED COST:
None.
(Comr Peevey - ALJ Barnett)
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=E25725
Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

[view discussion of item 8] 3 minutes 4 seconds

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9. Regular Agenda - Communication Resolutions and Reports

Item 56

[8879] California Advanced Services Fund Application for Broadband Providers
Res T-17233
PROPOSED OUTCOME:
Adopts application requirements and guidelines for non-licensed broadband providers applying for California Advanced Services Fund grant money in conjunction with an application for American Recovery and Reinvestment Act funding to support broadband infrastructure.
ESTIMATED COST:
None
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400172
Pub. Util. Code § 311 – This item was mailed for Public Comment.

[view discussion of item 9] 2 minutes 49 seconds

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10. Item 57

[8887] Funding for the Inyo Networks Inc., Last Mile Project from the California Advanced Services Fund
Res T-17229
PROPOSED OUTCOME:
Conditionally adopts California Advanced Services Fund (CASF) funding for Inyo Networks, Inc., Last Mile Project in Mono, Inyo, Kern, and San Bernardino Counties.
The project is contingent on Inyo receiving an American Recovery and Reinvestment Act grant for 80% of the total project cost.
ESTIMATED COST:
$2,247,308 from the CASF, which represents 10% of the total project cost.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400243
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Taken up with Consent Agenda.

11. Item 58

[8890] Funding for Citizens Telecommunications Company from California Advanced Services Fund
Res T-17234
PROPOSED OUTCOME:
Conditionally adopts California Advanced Services Fund (CASF) funding for Citizens Telecommunications Co. of California’s Alturas Middle Mile Project extending fiber for 74 miles along State Highway 299.
The project is contingent on Citizens receiving an America Recovery and Reinvestment Act grant for 80% of the total project cost.
ESTIMATED COST:
$225,918 from the CASF which represents 10% of the total project cost.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=403155
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Taken up with Consent Agenda.

12. Item 59

[8892] TracFone Wireless, Inc. Request for Eligible Telecommunication Carrier Designation
Res T-17235, Advice Letter (AL) 1, filed August 20, 2008; Supplemental AL (SAL) 1A, filed December 16, 2008; SAL 1B, filed March 2, 2009; SAL 1C, filed March 16, 2009; SAL 1D, filed July 24, 2009; and SAL 1E, filed September 16, 2009 - Related matters.
PROPOSED OUTCOME:
Denies the request of TracFone Wireless, Inc. (TracFone) to be designated as an Eligible Telecommunication Carrier for the purpose of receiving federal Lifeline support.
Directs the Communications Division to prepare an Order Instituting Investigation and Order to Show Cause why TracFone should not be ordered to pay all outstanding user fees and surcharges, applicable interest and penalties.
ESTIMATED COST:
None.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400548
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Held for 12/03/09 Agenda.

13. Item 60

[8893] Fundings for The California Broadband Cooperative of California's Digital 395 Middle Mile Project From the California Advanced Services Fund
Res T-17232
PROPOSED OUTCOME:
Construction of middle-mile broadband project in underserved area along US Highway 395 in Mono, Inyo, Kern and San Bernardino Counties under the California Advanced Services Fund (CASF) program.
ESTIMATED COST:
$10,149,422 from the CASF representing 10% of the total project cost.
http://docs.cpuc.ca.gov/Cyberdocs/AgendaDoc.asp?DOC_ID=400657
Pub. Util. Code § 311 – This item was mailed for Public Comment.

Held for 11/20/09 Agenda.

14. Regular Agenda - Legal Division Matters

Item 61

[8905] Comments Before Federal Communications Commission Regarding Broadband Deployment
GN Docket No. 09-47; GN Docket No. 09-51; GN Docket No. 09-137; NBP Public Notice #5, DA 09-2093
In the Matters of International Comparison and Consumer Survey Requirements In the Broadband Data Improvement Act, GN Docket No. 09-47; A National Broadband Plan for Our Future, GC Docket No. 09-51; 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; NBP Public Notice #5, DA 09-2093
The Federal Communications Commission (FCC) seeks comment on identifying and remedying barriers to broadband deployment and adoption on Tribal lands. The FCC intends for these comments to contribute to and facilitate its development of a National Broadband Plan. Staff requests authority to submit comments to the FCC identifying projects on tribal lands the California Public Utilities Commission has funded through the Rural Telecommunications Infrastructure (AB 140) program.

This Item was withdrawn.

15. Item 62

[8906] Comments Before Federal Communications Commission Regarding Broadband Technology
GN Docket No. 09-47; GN Docket No. 09-51; GN Docket No. 09-137; NBP Public Notice #7, DA 09-2122
In the Matters of International Comparison and Consumer Survey Requirements In the Broadband Data Improvement Act, GN Docket No. 09-47; A National Broadband Plan for Our Future, GC Docket No. 09-51; 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; NBP Public Notice #7, DA 09-2122
The Federal Communications Commission seeks comment about how governments at all levels promote broadband deployment and adoption, and and how digital technologies and broadband deployment can improve civic engagement, government at all levels, and the lives and welfare of residents and businesses. Staff requests authority to submit comments identifying the ways in which California has employed broadband technology to improve the lives of its residents. Specific examples include the California Advanced Services Fund, the California Teleconnect Fund, the Deaf and Disabled Telecommunications Program, and telemedicine projects.

This Item was withdrawn.

16. Item 63

[8939] Comments Before the Federal Energy Regulatory Commission Regarding Transmission Planning Processes Under Order No. 890
FERC Docket No. AD09-8-000
In Order No. 890, the Federal Energy Regulatory Commission (FERC) directed all transmission providers to develop a transmission planning process. In September of this year, FERC held three regional technical conferences to:
Determine the progress and benefits realized by each transmission provider’s transmission planning process.
Examine whether existing transmission planning processes adequately consider needs and solutions on a regional or interconnection-wide basis to ensure adequate and reliable supplies at just and reasonable rates.
Explore whether existing processes are sufficient to meet emerging challenges to the transmission system, such as the integration of large amounts of location-constrained generation, and the interconnection of distributed energy resources.

In the October 8, 2009 Notice establishing this Docket, FERC expressed concern, based on the comments it received at the three regional technical conferences, that there appears to be a lack of consistency across existing transmission planning processes regarding the treatment of certain types of resources. For example, FERC was concerned that planning transmission facilities necessary to meet state renewable resource requirements must be integrated with existing transmission planning processes that are based on metrics or tariff provisions focused on reliability or in some cases production cost savings. The California Public Utilities Commission previously provided comments to FERC on various issues relating to transmission planning processes, especially in connection with the FERC Docket that led to the adoption of Order No. 890. However, the concerns raised in FERC’s October 9 Notice go beyond the scope of what was addressed in Order No. 890, and appear to raise some issues that staff would like to comment on, which have not been the subject of previous Commission authorizations. Accordingly, staff seeks Commission authority to address such issues.

This Item was withdrawn.

17. Regular Agenda - Legislative and Other Matters

18. Regular Agenda - Commissioner's Reports

Commissioner Simon Report

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19. Commissioner Grueneich Report

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20. Commissioner Bohn Report

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21. Commissioner Chong Report

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22. President Peevey Report

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23. Regular Agenda - Management Reports and Resolutions

If needed

24. Regular Agenda - Management Reports and Resolutions

If needed

25.

CLOSED SESSION

Please see complete Closed Session agenda here (pages 59-67).

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