CPUC Public Agenda 3246Thursday, December 17, 2009, 9:30 a.m.

505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey Dian M. Grueneich

John A. Bohn Rachelle Chong

Timothy Alan Simon

www.cpuc.ca.gov

Public Comment

• Any member of the public who wishes to address the CPUC about matters before the Commission, must first sign up with the Public Advisor before the meeting begins.

• Once called, at the discretion of the President of the CPUC, each speaker has up to 2 minutes.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

The following items are NOT subject to Public Comment: Items: 15, 48, 50 All items on the Closed Session Agenda

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, 3, 6, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 21, 22, 23, 24, 25, 26, 27, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56 & 57.

• 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: 59, 65, 66 & 67 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.

• Item: 28 has been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 1/21/10: 2, 4, 5, 7, 20, 40, 61, 62, 69, 70, 71 & 73

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: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

Regular Agenda – Energy OrdersItem #58 [8987] Policies and Procedures for Purchase of Excess Electricity Under Assembly Bill 1613

R08-06-024 Order Instituting Rulemaking on the Commission's Own Motion into Combined Heat and Power Pursuant to Assembly Bill 1613.

Quasi-Legislative Comr. Peevey/ ALJ Yip-Kikugawa-----------------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Adopts the policies and procedures to implement Assembly Bill 1613.• Determines that customers to be allocated costs and benefits under this program shall include bundled service customers

and customers receiving electric service from electric service providers or community choice aggregators.• Adopts a 500 megawatt (MW) interim cap on amount of excess electricity to be purchased under the program.• Determines price for excess electricity shall be based on the costs of a combined cycle gas turbine and comprised of a

fixed and a variable component.• Includes a 10% location bonus applied to eligible combined heat and power (CHP) located in high-value areas and a pass

through of any greenhouse gas compliance costs.• Adopts a standard contract to be offered to all eligible CHP up to 20 MW, and a simplified contract to be offered to eligible

combined heat and power systems that export up to 5 MW.• Adopts Energy Division staff’s proposed changes to the standard and simplified contracts, with some modifications.

ESTIMATED COST:• Unknown.• Cost will depend on the actual price of contracts entered into under this program.

Regular Agenda – Energy OrdersItem #60 [8993] Southern California Edison Company's TehachapiRenewable Transmission Project

A07-06-031

Ratesetting Comr. Grueneich/ ALJ Kolakowski ----------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Grants Certificate of Public Convenience and Necessity for the Tehachapi Renewable Transmission Project (Segments 4-11) (TRTP).

• Certifies Environmental Impact Report.

• Imposes mitigation measures and conditions.

• Finds overriding considerations for approving the TRTP.

• Closes the proceeding.

ESTIMATED COST:

• $1,522,920,000 construction costs without financing costs.

• $1,784,740,000 (estimated) total cost.

Regular Agenda – Energy OrdersItem #63 [9048] Incentive Earnings for 2006-2008 Energy Efficiency Savings

R09-01-019 Order Instituting Rulemaking to Examine the Commission’s Energy Efficiency Risk/Reward Incentive Mechanism.

Ratesetting Comr. Bohn / ALJ Pulsifer ---------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Authorizes Second installment of interim 2006-2008 incentive earnings for energy

efficiency savings achieved by the major electric and gas utilities.• Authorizes a schedule and process for a final true-up of 2006-2008 incentive payments to

be completed by year-end 2010.

ESTIMATED COST:• The interim incentive earnings will increase costs to ratepayers in the following amounts

for 2009 and 2010.• Pacific Gas and Electric Company - $14,697,960 and $30,260,440.• Southern California Edison Company - $9,869,278 and $18,614,227.• Southern California Gas Company - $1,191,296 and $3,441,467.

Regular Agenda – Energy Orders

Item #63a [9049] ALTERNATE TO ITEM 9048---------------------------------------------------------------------------------------------------• This alternate decision differs from the ALJ's proposed

decision in that it:• Uses a shared savings rate of 12% for setting the incentive

payments for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company.

• Based on the higher shared savings rate, increases the 2009 incentive payments to PG&E from $14.7 million to $33.4 million, and to SCE from $9.9 million to $21.4 million.

Regular Agenda – Energy OrdersItem #64 [9052] Policies and Findings to Fulfill Regulatory ObligationsPursuant to the Energy Information and Security Act of 2007

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.

Quasi-Legislative Comr. Chong / ALJ Sullivan --------------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:• Finds that for Sierra Pacific Power Company, Mountain Utilities, PacifiCorp, and Bear Valley Electric Company,

the adoption of Energy Information and Security Act of 2007 (EISA) requirements would be inconsistent with the purposes of EISA.

• Finds that for San Diego Gas & Electric Company (SDG&E), Pacific Gas and Electric Company (PG&E), and Southern California Edison Company (SCE), adopting EISA requirements pursuant to Smart Grid investment would be inconsistent with the purposes of EISA.

• Finds that for SDG&E, PG&E, and SCE, prior Commission action makes no further action necessary at this time.

• Because of these findings, declines to adopt EISA requirements for Investor-Owned Utilities.• Orders a new phase of this proceeding to determine cost-effective ways of providing access to customer usage

data by the end of 2011 and sets a policy objective of providing price information by the end of 2010.

ESTIMATED COST:• None.

Regular Agenda – Energy OrdersItem #68 [9103] Residential Electric Rates Revised in Response to Senate Bill 695

A09-10-013, A09-10-014, A09-10-015 - Related matters. Application of Pacific Gas and Electric Company for Expedited Authorization to Change Residential Electric Rates Effective January 1, 2010, as Permitted by Newly Enacted Public Utilities Code Section 739.9.

Ratesetting Comr. Peevey/ ALJ Pulsifer

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PROPOSED OUTCOME:

• Pursuant to AB695 (Stats. 2009, Ch. 337) authorizes increases in Tier 1 and Tier 2 residential electric rates for three applicants.

• Establishes procedure for advice letters for related adjustments in future years.

• Closes the proceeding.

ESTIMATED COST:

• No net cost to residential class as whole but usage cost to individual customers

may vary.

Regular Agenda – Communication Resolutions and Reports

Item #72 [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.

Regular Agenda – Water/ Sewer Orders

Item #74 [9097] New Order Instituting Rulemaking

R___________ Order Instituting Rulemaking on the Commission’s Own Motion to Determine Whether Sharing of Customer Information Between Regulated Water Utilities and Regulated Energy Utilities/Municipal Energy Providers Should be Required; and if so, to Develop the Rules and Procedures Governing Such Sharing.

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PROPOSED OUTCOME:

• Opens a rulemaking that explores the sharing of customer information between water and energy utilities to enhance participation in low-income assistance programs for regulated water customers, while determining if such sharing should be required, and to consider and develop the rules and procedures governing the sharing of customer information, should such sharing be required.

ESTIMATED COST:

• None.

Commissioners’ Reports

Management Reports

The Obama Administration’s Public Transportation Program Act of 2009

Report of December 8, 2009 Testimony of Richard W. Clarkbefore the US House of Representatives

Committee on Transportation and Infrastructure

Richard ClarkConsumer Protection and Safety Director

What the Act ProposesWhat the Act Proposes• Requires the Secretary of Transportation to establish and enforce

minimum federal safety standards for rail transit systems not regulated by the FRA.

• Establish a program whereby a state would be eligible for federal transit assistance to carry out a federally approved public transportation safety program.– States would not be preempted from developing more stringent

standards

– Secretary of Transportation would enforce the federal minimum standards if a state opts out

– State programs have to be well-staffed and adequately empowered by state governments in order to receive federal funding

• Ensure that the safety oversight agency is fully financially independent from the transit systems it oversees

Further Provisions of the ActFurther Provisions of the Act

• FTA and State participating agencies would be authorized to conduct inspections, investigations, audits, and examinations, as well as test public transportation systems’ equipment, facilities, rolling stock, operations and persons engaged in the business of a public transportation system, have the authority to issue reports and subpoenas, require the production of documents, take depositions, and prescribe recordkeeping and reporting requirements.

Why Change Existing Federal Law?Why Change Existing Federal Law?

• The federal government has been statutorily prohibited, since 1965, from directly imposing safety standards upon Rail Transit Agencies, and has instead implemented an unfunded mandate that states have a designated state safety oversight agency.

• Serious accidents are on the rise – in large part due to aging infrastructure and increased ridership.

• 50 Rail Transit systems with 27 different state regulatory regimes• Many systems with only one (or less than one) safety oversight staff• Many safety oversight staff activities are funded by the rail transit

system they are tasked to oversee

Rail Transit Safety in CaliforniaRail Transit Safety in California• 12 Systems Under CPUC Jurisdiction12 Systems Under CPUC Jurisdiction

– Bay Area Rapid Transit (BART)Bay Area Rapid Transit (BART)– Los Angeles County Metropolitan Transportation Authority (LACMTA)Los Angeles County Metropolitan Transportation Authority (LACMTA)– Sacramento Rapid Transit District (SRTD)Sacramento Rapid Transit District (SRTD)– San Francisco Metropolitan Transportation Authority (SFMTA)San Francisco Metropolitan Transportation Authority (SFMTA)– Santa Clara Valley Transportation Authority (VTA)Santa Clara Valley Transportation Authority (VTA)– San Diego Trolley, INC. (SDTI)San Diego Trolley, INC. (SDTI)– North County Transit District SprinterNorth County Transit District Sprinter– San Francisco Airport AirTrainSan Francisco Airport AirTrain– Port of Los Angeles Red Cars (POLA)Port of Los Angeles Red Cars (POLA)– The Grove at Farmers Market The Grove at Farmers Market – Americana on Brand TrolleyAmericana on Brand Trolley– Angels Flight RailwayAngels Flight Railway

• 20.5 CPUC Rail Transit Safety Staff20.5 CPUC Rail Transit Safety Staff– Safety engineersSafety engineers– Specialized inspectorsSpecialized inspectors– AnalystAnalyst– Strength based teams with freight rail, inter-city rail, commuter rail and rail crossings Strength based teams with freight rail, inter-city rail, commuter rail and rail crossings

safety staff (such as the accident review committee)safety staff (such as the accident review committee)

Questions or Comments?Questions or Comments?

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

January 21, 2010, at 10:00 a.m.