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CPUC Public Agenda 3262 Thursday, October 14, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John.

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Presentation on theme: "CPUC Public Agenda 3262 Thursday, October 14, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John."— Presentation transcript:

1 CPUC Public Agenda 3262 Thursday, October 14, 2010, 10:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Timothy Alan Simon Nancy E. Ryan

2 Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins. Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers. A sign will be posted when 1 minute remains. A bell will ring when time has expired. Those who sign up after 10:00 a.m. will only have 1 minute. The following items are NOT subject to Public Comment:  Items: 15, 16 & 36  All items on the Closed Session Agenda

3 Public Comment Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins. Once called, each speaker has up to 2 minutes to address the Commission. A sign will be posted when 1 minute remains. A bell will ring when time has expired. Those who sign up after 10:00 a.m. will only have 1 minute. The following items are NOT subject to Public Comment:  Items: 15, 16 & 36  All items on the Closed Session Agenda

4 Agenda Changes Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting. Items on Today’s Consent Agenda are: 1, 6, 7, 8, 10, 14, 15, 16, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33 & 34 Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting. Items: 35, 41, 43 & 45 from the Regular Agenda have been added to the Consent Agenda. Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Item: None have been moved to the Regular Agenda. Items: 5, 12, 38, 38a & 42 have been withdrawn. The following items have been held to future Commission Meetings: Held to 10/28/10: 2, 3, 4, 9, 11, 20, 36, 39, 44 & 47 Held to 11/19/10: 13, 21, 40 & 49

5 Regular Agenda Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote. For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed. The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: Late changes to agenda items are available on the Escutia Table.

6 Regular Agenda – Energy Orders Item #37 [9521] Southern California Edison Company's Petition to Modify Decision R Order Instituting Rulemaking to Implement the Commission’s Procurement Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions Standards into Procurement Policies. Quasi-Legislative Comr. Peevey/ALJ Vieth PROPOSED OUTCOME: Grants, in part, the petition to modify Decision and authorizes, subject to reasonableness review, a partial exemption from the Adopted Interim Emissions Performance Standard Rules for Four Corners Units 4 and 5 (Four Corners), limited to capital expenditures made under the co-tenancy agreements prior to January 1, Reasonableness review will occur in Southern California Edison Company’s (SCE) test year 2012 general rate case, to be filed in For capital expenditures of less than $1 million, SCE must establish reasonableness. For capital projects of $1 million or more, SCE’s reasonableness showing must establish necessity based upon consideration of four factors, including prevention of imminent safety hazard and continuation of basic operation through 2016, when SCE’s contractual obligations terminate. SCE must conduct a study on the feasibility of continuing to maintain its interest in Four Corners after the end of 2011 and submit this study in the 2012 general rate case, prior to determination of any recovery of investment at Four Corners in the general rate case. SCE may not extend any of its existing co-tenancy agreements or expand or extend its ownership in Four Corners without first obtaining Commission approval. SCE must report its test year 2012 general rate case on its remedial activities to ensure that its pleadings are complete, accurate, and fully explain the bases for its positions. Closes the proceeding. ESTIMATED COST: Subject to a finding of reasonableness in SCE’s test year 2012 general rate case, some or all capital expenditures made in Four Corners prior to January 1, 2012, in an amount not to exceed $178,593,000, will be recoverable in rates. Other costs associated with SCE’s continued ownership of Four Corners may be determined in SCE’s test year 2012 general rate case.

7 Regular Agenda – Energy Orders Item #39 [9721] Use of Tradable Renewable Energy Credits to Comply With the California Renewables Portfolio Standard R Order Instituting Rulemaking to Develop Additional Methods to Implement the California Renewables Portfolio Standard Program.. Ratesetting Comr. Peevey/ ALJ Simon PROPOSED OUTCOME: Grants in part and denies in part petitions for modification of Decision (D) Lifts stay imposed by D Ends moratorium on approval of certain Renewable Porfolio Standard procurement contracts. ESTIMATED COST: None.

8 Regular Agenda – Water/Sewer Orders Item #46 [9693] Accounting Treatment of Contamination Proceeds from Government Grants and Loans, Damage Awards, Settlements, Government Orders and Insurance R Order Instituting Rulemaking on the Commission’s Own Motion to Develop Rules and Procedures to Ensure That Investor-Owned Water Utilities Will not Recover Unreasonable Return on Investments Financed by Contamination Proceeds, Including Damage Awards, and Public Loans Received Due to Water Supply Contamination. Quasi-Legislative Comr. Bohn/ALJ Weatherford PROPOSED OUTCOME: Adoption of policies, rules and framework for analysis concerning accounting treatment of contamination proceeds. ESTIMATED COST: Nominal cost of establishing sub-accounts within Account 265 (Contribution in Aid of Construction).

9 Regular Agenda – Water/Sewer Orders Item #48 [9772] Affiliate Transactions Rules for Water and Sewer Utilities R Order Instituting Rulemaking on the Commission’s Own Motion to Develop Standard Rules and Procedures for Regulated Water and Sewer Utilities Governing Affiliate Transactions and the Use of Regulated Assets for Non-Tariffed Utility Services (formerly called Excess Capacity). Quasi-Legislative Comr. Bohn/ALJ Gamson PROPOSED OUTCOME: Adopts standard affiliate transaction rules for Class A and B water and sewer companies (see Appendix A) Adopts a rule (Rule X) governing the provision of non-tariffed products and services within water and sewer utilities. Adopts rules consistent with Commission goals of protecting ratepayers, ensuring utility financial health, and preventing anti-competitive behavior. The rules also minimize the regulatory burden on water and sewer utilities. Addresses unique circumstances, including: (a) exceptions to rules governing not-for-profit affiliates which provide financing and other services to the utility; (b) placing cost allocation issues in general rate cases for firms with multiple regulated utilities; and (c) certain exemptions for affiliates with only out-of-state operations. Closes the proceedings. ESTIMATED COST: Unquantifiable benefits to ratepayers and competitive markets outweighing unquantifiable regulatory compliance costs.

10 Edward Randolph Director, Office of Governmental Affairs October 14, 2010 C ALIFORNIA P UBLIC U TILITIES C OMMISSION 2010 Legislative Wrap Up

11 Presentation Overview ENERGY BILLS SUPPLIER DIVERSITY BILLS TELECOMMUNICATIONS BILLS TRANSPORTATION BILLS WATER BILLS MISCELLANEOUS BILLS BUDGET TASKS

12 2010 Legislative Wrap Up RPS SB 722 (SIMITIAN) – 33% RPS Mandate  Codified a 33% by 2020 RPS mandate  Last minute amendments:  Sliding scale of % of resources that must be directly connected to California control area.  Increased “off ramps” or “flexible compliance” for IOU compliance.  Continued to contain enforcement language that ED and Legal believe would make issuing penalties difficult.  Final set of amendments given to the public at 4:00 on last day of session.  Passed out of Assembly Rules at 9:00 pm, the last night of session, off the Assembly Floor at 11:35, and was not brought up in the Senate before midnight.  Issue still alive? –CPUC POSITION: SUPPORT –RESULT: Held in Senate

13 2010 Legislative Wrap Up TRANSMISSION AB 1954 (SKINNER) – RPS Related Transmission  Allows CPUC to authorize backstop cost recovery for pre-application cost for transmission lines “necessary to facilitate” the RPS.  Contains language that allows the CEC to determine that a renewable facility can count 100% of its output as renewable even if up to 5% of the output is from fossil fuel if very specific conditions are met. –CPUC POSITION: NEUTRAL –Governor Action: Signed

14 2010 Legislative Wrap Up ENERGY EFFICIENCY SB 730 (Wiggins) – Program Design Participation  Required CPUC to ensure the interests of regional climate protection authorities are incorporated into the design of energy-efficiency programs.  Required CPUC to encourage local governments, community-based organizations, and energy efficiency service providers to participate in program design, revision, and implementation.  Sponsored by the Sonoma County Regional Climate Protection Agency. They want more direct say in how efficiency funds are spent in Sonoma County. −CPUC POSITION: NEUTRAL −Governor Action: Veto Governor stated that the CPUC already has a process in place to allow all interested stakeholders to participate in energy efficiency proceedings and that process should be maintained.

15 2010 Legislative Wrap Up CALIFORNIA SOLAR INITIATIVE AB 2724 (Blumenfield)  Final version of the bill allows solar projects UP TO 5MW in CAPACITY on state owned land to qualify for CSI rebates.  All other utility customers are limited to projects up to 1 MW in capacity.  DGS sponsored. −CPUC POSITION: OPPOSE −Governor Action: Signed AB 1923 (Evans)  Authorized the CPUC to use funds dedicated for RD&D from the California Solar Initiative for the study of antitheft technologies. −CPUC POSITION: OPPOSE −Governor Action: Vetoed Governor believed the bill was unnecessary since the CPUC already has this authority.

16 2010 Legislative Wrap Up CALIFORNIA SOLAR INITIATIVE AB 51 (BLAKESLEE)  An aggregate net metering bill.  It would have permitted agricultural customers who have installed solar or wind generation systems to use the systems to offset the electricity use of multiple meters on adjacent properties. –CPUC POSITION: OPPOSE UNLESS AMENDED –This bill was held in Senate Appropriations. AB 2132 (CARTER)  Would have allowed funds in the Renewable Resource Trust Fund, which supports the CEC’s New Solar Home Program, to be used for energy efficiency improvements, until January 1, –CPUC POSITION: OPPOSE UNLESS AMENDED –This bill was held in Senate Appropriations.

17 2010 Legislative Wrap Up ENERGY AB 2514 (SKINNER) STORAGE  Requires the CPUC to set storage procurement targets, if any, AND gives the CPUC the ability to consider and implement other options to promote storage beyond/instead of procurement targets.  The bill initially required the CPUC to set an energy storage portfolio standard for each investor owned utility.  The “if amended” portion of our support position was asking for the resources the CPUC will need to implement the bill. −CPUC POSITION: SUPPORT IF AMENDED −Governor Action: Signed

18 2010 Legislative Wrap Up ENERGY AB 1879 (BEALL)  Required the CPUC to reconsider current rules on utility back-billing for small commercial customers.  The CPUC has already opened a proceeding on the matter which should be completed before the end of The bill provides that this proceeding would comply with the intent of the bill. −CPUC POSITION: SUPPORT −Governor Action: Vetoed The bill was vetoed due the fact that the CPUC has already done what is required by the bill.

19 2010 Legislative Wrap Up SMART GRID SB 1476 (PADILLA)  Outlines requirements for utilities using smart meters to protect customers' energy usage data from unauthorized access or disclosure.  Prohibits the utilities from conditioning customer’s access to their data on the payment of an incentive or discount. −CPUC POSITION: SUPPORT −Governor Action: Signed SB 837 (FLOREZ)  Required the CPUC to evaluate the impact of smart meters on the frequency of utility disconnections and adopt policies to minimize any adverse impacts.  Requires that each smart grid deployment plan authorized by the CPUC after January 1, 2012 to include testing and technology standards.  Bill originally contained extensive language on smart grid privacy issues that could have made deployment of smart grid very difficult. −CPUC POSITION: NEUTRAL (ORIGINALLY OPPOSED UNLESS AMENDED) −Bill was “gut and amended to remove all smart grid language and became a non-energy related bill.

20 2010 Legislative Wrap Up ELECTRIC VEHICLES SB 1435 (PADILLA)  Codified the CPUC Decision on Phase 1 of the EV proceeding that charging satiations are not public utilities.  Included additional language directing the CPUC to adopt rules for EV charging.  Charging station companies opposed the language requiring additional rules. The author and the opposition could not come to final agreement. −CPUC POSITION: SUPPORT IF AMEMDED. −Author Held the bill in the Assembly. SB 1455 (KEHOE)  Directs the CEC, in consultation with the CPUC, to develop a consumer website with information on purchasing electric vehicles. −CPUC POSITION: SUPPORT −Governor Action: Signed

21 2010 Legislative Wrap Up SUPPLIER DIVERSITY AB 1918 (Davis)  Directs the CPUC to require wireless telecommunications service providers to annually report on their progress in increasing contracting with women and minority owned businesses and disabled veteran business enterprises. −CPUC POSITION: NEUTRAL −Governor Action: Signed AB 2758 (Bradford)  Expands and clarifies the procurement categories subject to the CPUC’s Utility Supplier Diversity Program by including renewable energy, wireless telecommunications, broadband, smart grid, and rail projects.  Requires the CPUC to provide more detailed procurement information in its annual report to the Legislature. −CPUC POSITION: NEUTRAL −Governor Action: Signed

22 2010 Legislative Wrap Up TELECOMMUNICATIONS AB 1315 (Fuentes)  Requires the CPUC to participate in forbearance proceedings at the FCC where a California telephone company has filed a petition to forebear from rules requiring them to provide competitors wholesale access to their network.  CPUC already participates in these proceedings. −CPUC POSITION: OPPOSE −Governor Action: Signed AB 2213 (Fuentes)  Amends the Moore Universal Telephone Service Act so that the statutes are technology neutral. The intent is to give the CPUC clear authority to modify the Lifeline program so that Lifeline customers have more choices in service providers. −CPUC POSITION: NEUTRAL −Governor Action: Signed

23 2010 Legislative Wrap Up TELECOMMUNICATIONS SB 1040 (Padilla)  Extends the California Advanced Services Fund (CASF) by authorizing an additional $125 million in spending authority from the fund.  Establishes a Rural and Urban Regional Broadband Consortia and a Broadband Infrastructure Revolving Loan Account. −CPUC POSITION: SPONSOR −Governor Action: Signed SB 1462 (Padilla)  Establishes the California Broadband Council to promote broadband deployment throughout the State. −CPUC POSITION: SUPPORT −Governor Action: Signed

24 2010 Legislative Wrap Up TELECOMMUNICATIONS SB 1375 (Price)  Eliminates the “warm line” requirement that requires local telephone corporations to provide access to all residential connections, even if the household is no longer a customer of the telephone corporation.  Limits the ability of the telephone company to terminate warm lines for delinquent accounts but allows for full disconnections after 120 days and notice to the customer. −CPUC POSITION: NO POSITION −Governor Action: Signed SB 1154 (Cedillo)  Required utilities to provide Lifeline and CARE customers with information about the Earned Income Tax Credit (EITC) through an insert with program applications. −CPUC POSITION: NEUTRAL −Governor Action: Vetoed The bill was vetoed due to the Governor’s concern that the requirement to provid outreach materials on federal tax programs is outside the responsibility of the CPUC and electrical and telephone corporations.

25 2010 Legislative Wrap Up TELECOMMUNICATIONS AB 2545 (De La Torre)  Required the CPUC to hold an “interested parties process” to make recommendations on establishing a uniform method for collection of state and local communications taxes, fees, and surcharges applicable to prepaid wireless.  An effort by the author to find a way to collect fees for 911 service and other public goods charges on prepaid calling cards. Over the past two years the author has tried multiple approaches to the problem.  Final version was opposed by wireless industry (they wanted the BOE to oversee he interested party process) and the California League of Cities (they were concerned that the bill was addressing utility user taxes). −CPUC POSITION: NEUTRAL (HAD BEEN OPPOSE UNLESS AMENDED) −Bill was held on the Senate Floor

26 2010 Legislative Wrap Up TRANSPORTATION AB 2572 (Bradford)  Expands the definition of a charter-party carrier to include any person or entity engaged in providing transportation service where the vehicle is rented and is operated by a for-hire driver.  Increases certificate renewal fees and imposes additional enforcement provisions. −CPUC POSITION: SUPPORT −Governor Action: Signed

27 2010 Legislative Wrap Up PROCESS SB 1414 (KEHOE)  Initially required the CPUC to complete all applications for rehearing with 180 days or the application is deemed denied. The 180 deadline could have been extended by a vote of the Commission, but in all cases the deadline could not be extended beyond 12 months.  At end of the session, the author and sponsor (TURN) agreed to amend the bill to require the CPUC to complete the application within 120 days but allowed the CPUC to vote to extend that deadline for 120 days at a time, but there is no final deadline that the CPUC cannot vote to extend. −CPUC POSITION: NEUTRAL (HAD BEEN OPPOSE) −Governor Action: Vetoed The Governor was concerned that the bill could in some cases undercut a party’s ability to go to court and that the bill did not address the real problems that are leading to backlog in applications for rehearing. AB 2561 (VILLINES)  Was the Governor’s energy reorganization bill. −CPUC POSITION: NO POSITION −Held in Senate Rules Committee

28 Budget  Formally requested 30 new PYs in budget.  21.3 were approved (denied 7 new PY to implement 33% RPS).  Funding for new elevators was approved.

29 2010 Legislative Wrap Up TASKS Legislation enacted this session requires the CPUC to:  Assist the CEC in developing a consumer website containing links to the websites of the IOUs, POUs and other websites containing information on plug-in hybrid vehicles and/or electric vehicles. (SB 1455 (Kehoe))  Deadline: July 1,  Set storage procurement targets, if any, and examine other options to promote storage beyond procurement targets. (AB 2514 (Skinner))  Open a proceeding by March 1, Set targets, if any, by October 1,  Revisit the issue every 3 years.  Targets shall be for 2015 and  Expand the CASF to include the Rural and Urban Consortia and the Broadband Infrastructure Revolving Loan Account. Add new reporting requirements. (SB 1040 (Padilla))  Interim findings due April 1,  Annual reports beginning January 1,  Convene and Chair the first meeting of the California Broadband Council. (SB 1462 (Padilla))  In total legislation approved this year will require 13 additional PYs in future years.

30 Team Effort  Thank you. –Alicia Priego –Dan Chia –Yvonne Wilson –All the Division staff and Advisors that worked on legislation this year.

31 Commissioners’ Reports

32 Regular Agenda – Commissioner’s Reports Item #50 [9810] Energy Efficiency Marketing Education and Outreach Program Commissioner Grueneich Report The California Public Utilities Commission's 2008 Long Term Energy Efficiency Strategic Plan and Decision called for a statewide Energy Efficiency Marketing Education and Outreach Program (ME and O) to create behavior change and motivate consumers to take action on energy efficiency/conservation measures. The Commissioners will be updated on the new ME and O plan, clean energy brand, and energy efficiency web portal.

33 Introducing California’s New Energy Efficiency Brand October 14, 2010

34 | Introducing California's New Energy Efficiency Brand | CPUC | October 14, California’s 2020 Goal: Smart Energy Living Creating a change in behavior that will effect a meaningful, long-term reduction in energy consumption

35 Unprecedented Collaboration 35 | Introducing California's New Energy Efficiency Brand | CPUC | October 14, 2010

36 Research Marketing & Brand Strategy Verbal Identity Visual Identity Brand Training & Brand Asset Management Campaign Development & Launch The Development Process Web Portal Development 36 | Introducing California's New Energy Efficiency Brand | CPUC | October 14, 2010

37 Brand Strategy: What the Brand Stands for Progressive Inspiration We find the next ways to help you make the most practical, relevant energy choices every day Meaningful Change We lead change and measure progress to make the movement meaningful to everyone Trusted Source We are a go-to authority for all smarter energy developments and information 37 | Introducing California's New Energy Efficiency Brand | CPUC | October 14, 2010

38 Introducing... | Introducing California's New Energy Efficiency Brand | CPUC | October 14,

39

40 The Website: engage360.com

41 Low-Income Energy Efficiency | Introducing California's New Energy Efficiency Brand | CPUC | October 14,

42 Objective of the LIEE Program: help income-qualified customers reduce their energy consumption and costs. This new brand is an effort to create one statewide name that will increase awareness of the energy saving opportunities available to income qualified customers.

43 Strategy Focus Group Testing Visual Identity NamingMessagingRollout The Development Process 43 | Introducing California's New Energy Efficiency Brand | CPUC | October 14, 2010

44 Energy Savings Assistance Program

45 The New Name Will Replace These Current Names | Introducing California's New Energy Efficiency Brand | CPUC | October 14, Energy Savings Assistance Program PG&E: Energy Partners Program SCE: Energy Management Assistance Program (EMA) SCG: Direct Assistance Program (DAP) SDG&E: Energy Team Program

46 Regular Agenda – Commissioner’s Reports Item #50 [9810] Energy Efficiency Marketing Education and Outreach Program Commissioner Grueneich Report The California Public Utilities Commission's 2008 Long Term Energy Efficiency Strategic Plan and Decision called for a statewide Energy Efficiency Marketing Education and Outreach Program (ME and O) to create behavior change and motivate consumers to take action on energy efficiency/conservation measures. The Commissioners will be updated on the new ME and O plan, clean energy brand, and energy efficiency web portal.

47 Regular Agenda – Commissioner’s Reports Item #57 [9841] San Bruno Pipeline Explosion - Independent Review Panel President Peevey Report Pursuant to Resolution L-403 adopted by the Commission on September 23, 2010, vote to confirm members of the Independent Review Panel selected by Commission President.

48 Commissioners’ Reports

49 Management Reports

50 Regular Agenda – Management Reports and Resolutions Item #51 [9617] Annual Report From the California Emerging Technology Fund Director Clanon Report Annual Report to the Commission from the California Emerging Technology Fund.

51 Management Reports

52 The CPUC Thanks You For Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: October 28, 2010, at 10:00 a.m.


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