CPUC Unanimously Approves Peterman’s Revised PCIA Alternative Decision

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Today, the California Public Utilities Commission (CPUC) unanimously approved Commissioner Peterman’s revised Alternative Proposed Decision (APD) to conclude the cost allocation methodology portion of the Power Charge Indifference Adjustment Methodology (PCIA) proceeding. Phase II of the proceeding will address many important issues that still need resolution.

The PCIA determines the cost indifference calculation for how much community choice aggregator (CCA) customers, bundled investor owned utility (IOU) customers, and direct access (DA) customers will pay for generation resources previously procured on their behalf.  These costs are allocated to customers who departed or may depart IOU service territories to take service from a CCA or direct access provider (electric service providers (ESPs)).

Per the CPUC’s 10/11/18 press release: “Bill impacts will vary depending on customer class, service provider, energy usage, the energy markets, and a utility’s resources.  Evaluating CCA residential customers departing in 2018, there is an estimated 1.68 percent increase in bills of residential CCA customers over 2018 bills as a result of today’s decision in PG&E’s territory; in Edison’s territory, that figure is 2.50 percent; and in SDG&E’s territory, that number is 5.24 percent.  Any rate increases for one group of customers will be offset by rate decreases for other sets of customers.”

This post updates a previous post that explained the original proposed alternative decision.  This post focuses on explaining the differences between the original PD, APD, and the revised APD adopted today.

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2018 Chaptered Bill Update

On September 30th, Governor Brown signed or vetoed all enrolled bills passed by the legislature.  This completed the 2018 legislative session fulfilling one of Governor Brown’s last major duties before leaving office.  The 2017-2018 two year legislative session saw the introduction of approximately 482 energy, natural resource, land use, and climate related bills with the 2018 legislative session resulting in approximately 94 of these bills becoming law.  The following is a brief list of important bills that were chaptered or vetoed during the 2018 session. A full list of chaptered and vetoed bills can be found here.

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Governor Brown Signs SB 100 Making Carbon Free Energy Mandatory by 2045

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At a press conference that included speeches from State Assemblywomen Lorena Gonzalez and author State Senator Kevin De León, Governor Brown signed SB 100 into law today.  SB 100 amends the Renewable Portfolio Standard Program (RPS) targets for 2030 and makes the policy of California that electric utilities supply 100% of retail sales from renewable energy resources and zero-carbon resources by 2045.

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Enrolled Bill Update September 2018

The deadline for the Legislature to pass pending legislation and send it to the Governor’s desk was August 31st. The Governor sign, veto, or allow enrolled bills to become law by September 30, 2018. The Legislature passed many bills that address California’s short, medium, and long term climate, energy, transportation, and wildfire priorities.  Below is a short highlight of enrolled bills: Continue reading

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Update: Commissioner Peterman’s Alternative Proposed Decision on the PCIA

 

 

Tuesday afternoon, Assigned Commissioner Carla Peterman issued her alternative proposed decision on Modifying the Power Charge Indifference Adjustment (PCIA) Methodology.  This update follows my previous post on ALJ Roscow’s proposed decision from August 1, 2018.

The attached Digest of Differences on p. 2 of the alternative proposed decision (APD) states that the proposed decision (PD) excludes legacy utility-owned generation(UOG) from cost recovery from Community Choice Aggregators (CCAs) and retains a 10-year limit on PCIA cost recovery for post-2002 UOG and certain storage costs.  The PD also establishes a PCIA collar with an upper cap starting at 2.2 cents/kWh and a lower floor of 0 cents/kWh. The digest states that the APD differs substantively from the PD in four ways:

  • The APD finds that UOG is PCIA eligible and should be recovered from CCA customers.
  • The APD terminated the 10-year limit on PCIA cost recovery for post-2002 UOG and certain storage costs.
  • The APD establishes a PCIA collar starting in 2020 with a cap limiting upward or downward changes in the PCIA to 25% in either direction from the prior year.
  • For the 2019 ERRA forecast only, the APD adopts the Platt’s Portfolio Content Category 1 REC index value for the Market Price Benchmark’s (MPB) RPS Adder (see Appendix 1).

The digests state that “In all other ways, the alternative matches the outcome of the proposed decision.”  The following will address these changes.

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Summary of CPUC’s R. 17-06-026 Proposed Decision on Track 2 Power Charge Indifference Adjustment (PCIA) Proceeding

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With the increasing number of community choice aggregators (CCA) in California, the California Public Utilities Commission (CPUC) opened proceeding R. 17-06-026 on June 29, 2017 to “Review, Revise, and Consider Alternatives to the Power Charge Indifference Adjustment” (PCIA). The PCIA represents that exit fee that customers pay when they depart from an incumbent utility. The proceeding is divided into different tracks to address the various issues relate to the PCIA. This post will explain the reason for revising the PCIA, briefly address the Track I decision, and focus primarily on the recently noticed Track II proposed decision (PD).

It is important for readers to understand that this PD is exactly that, a proposed decision of Administrative Law Judge (ALJ) Roscow. It has no legal effect until the CPUC hears it as a noticed agenda item and votes to adopt the PD.  The earliest this may occur is September 13, 2018.  Parties must file comments on the PD within 20 days of its service on parties.  It is also possible for assigned Commissioner Peterman and/or for another Commissioner to propose an alternative decision.

To this end, Assigned Commissioner Peterman announced this morning at the August 9, 2018 CPUC Voting Meeting that she will submit an alternative proposed decision in this proceeding based on comments and the oral argument that occurred the day after ALJ Roscow noticed the PD.  Commissioner Peterman stated that this alternative proposed decision will be noticed in the near term and should still allow the Commission to vote on the proposals at the September 13, 2018 Voting Meeting. Once the alternative proposed decision becomes available, we will publish another blog to explain and compare the PD and Commissioner Peterman’s alternative proposed decision. Continue reading

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Legislative Update June 2018

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Legislative Update June 2018

The deadline for a bill to pass out of their house of origin occurred on June 1, 2018.  The following is a short list of important bills that met this deadline by subject area.  A full list of active bills we are currently tracking can be found at our Legislative Center.

Air Quality/Pollution:

SB 64 (Wieckowski):  This bill would require California balancing authorities to provide specified data on fossil fuel generation quarterly to the ARB.  ARB would then be authorized to provide this information to air districts who would be authorized to impose limits on generators on days in which emission are forecasted to exceed federal or state ambient air quality standards. The CPUC and Energy Commission would also be authorized to study how to reduce generation and prioritize the retirement of natural gas fired units to minimize localized air pollution in disadvantaged communities.  This would become part of the integrated resource planning process.

Energy Data

SB 782 (Skinner):  This bill would require the creation of global identifier system for each building in California, to match this with electric and gas utility customers in each building, and to further streamline data request authorization by customers.

 CAISO Expansion

 AB 813 (Holden): This bill would set requirements for the creation and participation in a multi-state regional transmission system organization.

 Climate Change/GHGs

AB 2195 (Chau): This bill would require the quantifying and reporting of the release, loss, and uncombusted natural gas or flared natural gas from all natural gas imported into the state from out-of-state sources.

AB 3119 (G. Fletcher):  This bill would create the San Diego International Airport Mobility and Sustainability Committee to address specified issues.

AB 3232 (Friedman): This bill would require the Energy Commission to assess the potential to reduce GHG emission from residential and commercial building stock by at least 40$ below 1990 levels by January 1, 2030 and require a report in the IEPR on emissions from these building stocks.

SB 1013 (Lara): This bill would regulate hydrofluorocarbons from refrigeration equipment in light of the federal SNAP regulation being vacated and withdrawn.

 General Plans

SB 1035 (Jackson): would address update requirements to safety elements of general plans to address climate adaptation and resiliency.

 Environmental Justice

AB 2636 (Garcia): This bill would create an environmental justice fund from penalties, settlements, and other funds from Attorney General actions that would be used to investigate and litigate environmental justice issues in specified communities.

 Nuclear

SB 1090 (Monning): This bill would address the funding of community impact mitigation settlements for decommissioning of PG&E’s Diablo Canyon Nuclear Power Plant.

 Rates and Tariffs

SB 819 (Hill): This bill would limit penalty rate recovery and uninsured expenses recovery where a gas or electric utility is found to have not reasonably maintained its facility rate recovery.

 Safety/Security

There is a major focus on Fire Prevention in this legislative section.  The following bills deal with fire and fire mitigation, among other issues:

AB 3257 (Committee on Nature Resources): this bill would require fire prevention reporting to the Legislature.

SB 901 (Dodd): This bill would require electric utilities to prepare wildfire mitigation plans, including when to denergize electric lines and deactivate reclosures, and notify customers under a defined priority for critical first responders, healthcare facilities, and telecom operators.

SB 1088 (Dodd): This bill would require adoption of standards and CPUC approved safety, reliability, and resiliency plans for major events, including wildfire.

SB 1205 (Hill): This bill would require gas and electrical corporations to report to the CPUC any self-identified statutory or regulatory violations that poses a significant safety threat, statewide impact, affects a large geographical regional or involves fraud, sabotage, or falsification of records, or other deception.

Transportation

SB 1328 (Beall): requires the assessment of mileage-based revenue collection systems as an alternative to existing gas tax system

A full list of active bills we are currently tracking can be found at our Legislative Center.

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