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Senate Bill 790 San Diego Energy District Foundation

Carlos VelasquezCCA Regulatory Analyst

California Public Utilities CommissionJune 21, 2012

Assembly Bill 117(Preceded SB 790)

• AB 117: enabled cities and/or counties to implement the CCA program

* codified the CCA program statute in the Public Utilities Code

• R.03-10-003: created rules for the CCA program –Decision 04-12-046

• addressed utility costs that would be assumed by the CCAs

–Decision 05-12-041• addressed issues concerning transactions between the

CCAs/Utilities/Customers.2

Local Governments try CCA• San Joaquin Valley Power Authority (2008)

– Settlement Agreement: set mutually-agreeable marketing standards

• Marin Energy Authority (2010)– Resolution E-4250: early customer opt-outs

• San Francisco (2010) – D.10-05-050: enabled CCA to control opt-out mechanism

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Senate Bill 790• requires the CPUC to develop a utility code of conduct relative

to CCA program in order to:• facilitate CCA program implementation• foster fair competition• prevent ratepayer subsidization

– March 1, 2012: a rulemaking needed to be opened

– January 1, 2013: code of conduct, rules, and enforcement procedures need to be finalized

• clarified a CCA’s right to administration of EE Funds• expanded the definition of the entities that are permitted to

form CCAs4

What’s happened so far? • February 23, 2012: Rulemaking 12-02-009 was issued

& Judge was assigned• “It is the Commission’s intent to have a proposed decision on the

Commission’s agenda by December 2012.” (Section 5.3:

Preliminary Schedule)

• March 26, 2012: opening comments• April 16, 2012: reply comments • April 23, 2012: motions for hearing

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Proposed Rules•a utility can only market or lobby against a CCA program through an independent shareholder funded marketing division

•support services rendered by ratepayer funded divisions to a utility’s marketing division will be provided at full-cost

•ensure that a utility marketing division should not have access to competitively sensitive information or proprietary information

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Question posed by CPUC

• What enforcement procedures are needed to enable an expedited resolution of complaints when a local government believes a utility is not cooperating with CCA program implementation?

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Proposed Rules Regarding Enforcement Procedures

• a complaint shall be served on the utility and shall be accompanied by evidence and testimony supporting that complaint

• the complaint shall be answered within 15 days

• the CPUC will assigned a Judge and conduct evidentiary hearings

• the CPUC can impose fines and injunctive relief

• a complaint will be resolved within 180 day

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How to get involved?

• to add to the R.12-02-009 service list: email Process Office Process_Office@cpuc.ca.gov

• or, contact the CPUC’s Public Advisor– Public.advisor@cpuc.ca.gov (415) 703-2074

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