Public Agenda 3228

Thursday, January 29, 2009 10:00 a.m.

San Francisco, California

Michael R. Peevey, President

John A. Bohn

Rachelle B. Chong

Dian M. Grueneich

Timothy Alan Simon

Scheduled Commission Meetings

505 Van Ness Avenue, San Francisco

For each agenda item, a summary of the proposed action is included; the Commission's decision may,

however, differ from that proposed.

Ratesetting Deliberative Meeting*

Room 5305

(1:30 p.m.)

Closed to the Public

Commission Meeting

Auditorium

(10 a.m.)

Open to the Public

Friday, February 13, 2009 (San

Francisco)

Thursday, January 29, 2009 (San

Francisco)

Friday, February 20, 2009 (San

Francisco)

Monday, March 09, 2009 (San

Francisco)

Thursday, March 12, 2009 (San

Francisco)

Monday, March 23, 2009 (San

Francisco)

Monday, April 13, 2009 (San

Francisco)

Thursday, March 26, 2009 (San

Francisco)

Thursday, April 16, 2009 (San

Francisco)

Monday, May 04, 2009 (San

Francisco)

*Ratesetting Deliberative Meeting dates are reserved as noted but will be held only if there are ratesetting matters to be

considered and a Commissioner has requested that a Ratesetting Deliberative Meeting be held.

This location is accessible to people with disabilities.  If specialized accommodations for the disabled

are needed, e.g. sign language interpreters, please call the Public Advisor at (415) 703-2074 or TTY#

(415) 703-5282 or toll free # 1-866-836-7825 three business days in advance of the meeting.

The following items are not subject to public comment:

· All items on the closed session agenda.

· 13, 32, 36, 40, 49

1

[8201]

Ratification of preliminary determination of category for proceedings initiated by application. The

preliminary determinations are pursuant to Rule 7.1 of the Commission's Rules of Practice and

Procedure.

2

[8124]

For Authority to Increase Rates Charged for Water Service for the years 2009-2011.    This decision

authorizes Applicant to increase rates for the years 2009-2011 in the following amounts:  for year

2009, 11.08% increase with an amount of $5,570,563;  for year 2010, 2.70% increase with an

estimate amount of $1,508,585; for year 2011, 2.22% increase with an estimate amount of

$1,280,008. This decision also approves a related settlement agreement between Suburban and the

Commission’s Division of Ratepayer Advocates.  As a result of the settlement, the rates authorized

today are approximately 18% less than the rates initially requested. This proceeding is closed.

(Comr Bohn  - ALJ Koss)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

3

[8127]

For Expedited Approval of the Miramar Energy Facility II Project (MEF II).   This decision approves

the request of Applicant for a project with MEF II for an Engineering, Procurement and Construction

contract with Wellhead Services, Inc. and a contract with General Electric for the supply of a simple

cycle gas-fired combustion turbine with a capacity of approximately 46.5 megawatts to provide

peaking energy and capacity.  The MEF II project will interconnect to the Applicant's system via the

existing Miramar substation that also serves the Miramar Energy Facility I Project unit that is on the

same site and was brought on-line in summer 2005.  Applicant owns the Miramar site, as well as the

turbine/generator, and offered the MEF II project to the market for a competitive bid on a turnkey

basis in its 2008 Peaker Request for Offers.  Upon completion, the project will be owned and

operated by Applicant.  Applicant is authorized to collect full cost recovery in rates for MEF II.  This

proceeding is closed.

(Comr Peevey - ALJ Brown)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

4

[8149]

This resolution affirms Field Citation 195 issued to Air Ride Moving & Storage, Inc. but reduces the

fine by $500.

5

[8178]

To Establish Regulatory Authority Over the Access for Natural Gas Provided by California Gas

Producers.   Applicant filed a petition to modify Decision 07-08-029 by expanding the monitoring of

non-hydrogen sulfide constituents on a four to eight minute interval to California-produced gas that is

connected to Applicant's transmission line.  Based on the information contained in Applicant's petition,

the Commission declines to rule on the petition at this point in time.  Instead, the Commission will

reopen the proceeding to take additional evidence on two issues raised by Applicant's petition.  This

proceeding remains open.

(Comr Peevey - ALJ Wong)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

6

[8185]

This resolution dismisses a $1,500 penalty assessed for late delivery of Sempra Energy Solutions

LLC's August 2008 Month-Ahead Resource Adequacy Compliance Filing.

7

[8186]

The Commission authorizes Applicant an increase of $330.8 million to its 2009 Energy Resource

Recovery Account (ERRA) revenue requirement.  While the adopted 2009 forecast reflects a

significant reduction in the cost of natural gas, an ERRA revenue requirement increase is needed to

offset undercollection in the balancing account.  The Commission also authorizes Applicant to

consolidate into one advice letter filing all pending Commission-authorized Applicant's revenue

requirements from other proceedings to avoid multiple rate changes.  This proceeding is closed.

(Comr Peevey - ALJ Patrick)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

8

[8187]

This resolution approves the assigned Commissioner's ruling changing the preliminary determination of

"no need for a hearing" to "the need for a hearing" in A08-06-006 filed by Southern California Gas

Company and San Diego Gas & Electric Company.

9

[8188]

This resolution approves with certain exceptions PG&E’s Advice Letter (AL) 3336-E seeking

approval under Public Utilities Code Section 851 to sell its non-operating Kern Power Plant facility,

associated equipment, and approximately 120-acres of the 152-acre facility property, located within

the City of Bakersfield, to World Oil Corp. This resolution has been prepared pursuant to a pilot

program specified in Resolution ALJ-202 granting expedited treatment to utility proposals meeting

certain requirements.  (AL 3336-E filed  September 4, 2008)

10

[8191]

SCE filed this application for a Test Year 2009 General Rate Case (GRC) for its Santa Catalina Island

gas service.  SCE seeks a $0.751 million increase over 2009 estimated present rate revenues.  SCE

requests that the proposed gas base rate increase be fully reflected in gas customers’ rates effective

January 1, 2009.  Because SCE agreed to delay the filing of this GRC for over a year to

accommodate the Division of Ratepayer Advocates, the Commission will authorize SCE to establish a

memorandum account to record the difference between the revenues beginning on the effective date of

this decision until a final decision is issued.  This proceeding remains open.

(Comr Bohn  - ALJ Barnett)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

11

[8193]

This decision grants Applicant a Certificate of Public Convenience and Necessity pursuant to Public

Utilities Code Section 1001 to provide limited facilities-based and resold competitive local exchange

and interexchange services.  This proceeding is closed.

(Comr Simon - ALJ Patrick)

12

[8195]

R08-03-008 - Order Instituting Rulemaking Regarding Policies, Procedures and Rules for

the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed

Generation Issues.

This decision adopts a budget of $83 million for the Commission’s Self Generation Incentive Program

(SGIP) in 2009.  The SGIP budget for 2010 and 2011 will be set later in 2009 after the Commission

performs further review of prior years’ unspent SGIP funds and program participation rates.  Other

aspects of SGIP operation, including the administrative budget, budget allocations between the utilities,

and allocation of funds between renewable and non-renewable projects, will continue unchanged

based on previous Commission guidance.   Finally, the decision directs San Diego Gas & Electric

Company to extend its contract with the California Center for Sustainable Energy for SGIP

administration in the San Diego area through December 31, 2011.

(Comr Peevey - ALJ Duda)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

13

[8196]

(ECP) C08-08-018 - Eric and Sarah Kubly (Complainants)  vs. William Lawrence Ostrom aka

Larry Ostrom, Ostrom Family Trust, dba R.R. Lewis Small Water Company (Defendant).

The Defendant is ordered to refund the full amount of the connection fee paid by Complainants within

thirty (30) days of the effective date of this decision.  This proceeding is closed.

(Comr Bohn  - ALJ Ryerson)

14

[8197]

This resolution confirms the President of the Commission's selection of William F. Conway, Arnold

Gundersen, and Peter Lam for consideration by the California Energy Commission for appointment to

the July 1, 2009 vacancy on the Diablo Canyon Independent Safety Committee.

15

[8198]

A04-12-004 - San Diego Gas & Electric Company,  Southern California Gas Company and

Southern California Edison Company (SCE).

For Authority to Integrate Their Gas Transmission Rates, Establish Firm Access Rights, and Provide

Off-System Gas Transportation Services.   SCE seeks to modify Decision 06-12-031 by adding

language to clarify how tolling agreements should be treated under Step 2 of the open season for firm

access rights.  The Commission grants SCE’s petition.  This proceeding is closed.

(Comr Peevey - ALJ Wong)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

16

[8202]

For approval of 2008-2010 Air Conditioning Direct Load Control Program.   This decision grants

Petition to Modify Decision 08-02-009, authorizing PG&E to accelerate installation of air conditioning

direct load control devices.  This proceeding is closed.

(Comr Chong - ALJ Bemesderfer)

17

[8204]

This resolution addresses PG&E's request for approval of one contract for procurement of renewable

energy resources resulting from PG&E’s Power Purchase Agreement with Topaz Solar Farms, LLC.

(Advice Letter 3313-E filed, August 14, 2008)

18

[8205]

By this decision, the Commission denies the motions of Applicant for leave to withdraw its application

for registration as an interexchange carrier telephone corporation pursuant to Public Utilities Code

Section 1013.  The Commission also rejects Applicant’s argument that it is not required to register

with the Commission pursuant to Section 1013 for the reasons that its telephone prepaid debit cards

are marketed to the international market, the Commission lacks jurisdiction, and the de minimus

intrastate revenue Applicant receives is generated by visitors to the state who simply find use of an

international phonecard a matter of convenience.  The registration is approved.  This proceeding is

closed.

(Comr Chong - ALJ Patrick)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

19

[8206]

This resolution addresses an order authorizing GSWC to enter into a $7,352,632 contract for a new

customer information/customer relationship management system (CIS/CRM), to file a Tier 3 rate base

offset not exceeding $6,014,574 for the CIS/CRM system when the CIS/CRM system is used and

useful, and to track in a memorandum account additional costs up to $2,612,583 to be requested by

an advice letter (AL) if uncontested or in an application if contested. (AL 1297-W filed, October 16,

2008)

20

[8208]

This decision modifies Decision 05-09-031, at the request of Applicant, to authorize changes to the

previously approved refinancing of the utility’s short-and long-term debt by substituting a new lender,

reducing the total loan amount, and providing better repayment terms for Applicant's ratepayers.  This

proceeding is closed.

(Comr Bohn  - ALJ Vieth)

21

[8213]

This resolution adjusts the rates in Maximum Rate Tariff 4, governing the transportation of used

household goods and personal effects by household goods carriers.

22

[8215]

This resolution authorizes the disclosure of certain records concerning the California Public Utilities

Commission Consumer Protection and Safety Division’s investigation of fires in California.

23

[8216]

This resolution approves PG&E’s Advice Letter (AL) 2978-G requesting the approval of a proposed

sale of limited sole-customer public utility facilities, including a quitclaim of a gas distribution easement

and sale of accompanying gas main and associated appurtenances to the State of California,

Department of Corrections and Rehabilitation.  (AL 2978-G filed December 17, 2008)

24

[8218]

For Arbitration of a Compensation Agreement with Cingular Wireless Pursuant to 47 C.F.R. §

20.11(e). A06-02-029, A06-02-030, A06-02-031, A06-02-032, A06-02-033, A06-02-034,

A06-02-035, A06-02-036, A06-02-037, A06-02-038, A06-02-040 - Related matters.   This

decision approves Interconnection Agreements between certain Wireless carriers and certain Small

Local Exchange Carriers.  This proceeding is closed.

(Comr Chong - ALJ Bemesderfer)

25

[8219]

This resolution conditionally approves Cal Am's request to put into place a Distribution System

Improvement Charge (DSIC), as requested in revised Advice Letter (AL) No. 694, AL 703, and AL

707.  Pursuant to Decision (D.) 07-08-030, as modified by D.08-10-045, Cal Am, seeks to place

into effect a DSIC and associated tariffs, related to the completion of certain infrastructure projects.

(AL 694 filed May 30, 2008, AL 703 filed August 13, 2008, AL 707 filed September 29, 2008.)

26

[8223]

For Authority to obtain a new Zone of Rate Freedom (ZORF) in Local Tariff No. 1-B CA P.U.C.

No. 3 containing rates and fares for transportation of passengers and their baggage and the

performance of specified services related thereto, as authorized by Section 452.2, Public Utilities

Code and for authority to depart from the terms of Section 491 of said code when accomplishing such

publication.   This decision authorizes Applicant to increase fares for its passenger stage corporation

service and to continue to apply a ZORF that was authorized by Decision 95-06-042.  This

proceeding is closed.

(Exam Clark)

27

[8224]

This decision authorizes Mammoth Mountain Ski Area to transfer its passenger stage corporation

certificate to Mammoth Mountain Ski Area, LLC.  This proceeding is closed.

(Exam Clark)

28

[8225]

Applicant is authorized to operate as a passenger stage corporation between points in Napa, Solano,

Sonoma, and Yolo Counties, on the one hand, and San Francisco, Oakland, and Sacramento

International Airports, on the other hand; and to establish a zone of rate freedom.  This proceeding is

closed.

(Exam Clark)

29

[8227]

This resolution addresses an order authorizing a general rate increase producing additional annual

revenue of $3,741 or 3.91% in 2009 for DOWC, Country Estates District.

30

[8228]

This resolution addresses an order authorizing a general rate increase, producing additional annual

revenues of $4,582 or 26.6% in test year 2009 for Hat Creek.

31

[8229]

This resolution addresses an order authorizing a general rate increase to produce additional annual

revenue of $142,146 or 33.6% in test year 2007 for Little Bear.

32

[8231]

C08-03-018 - Joan E. Richardson, Steve Pegram, Carl J. Meir, Kathleen Thayer, Tracey

Raybon, John L. Barnes, Donald H. Dawson, Patricia O. King, Jerry Amiss, James H.

Pelley, Dorothy Reed, James Vitale, and others similarly situated (Complainants) vs Phillip

and Linda Shuey, dba Shell Canyon Water Company (Defendants).

Public Utilities Code § 1701.2(d) provides that adjudication cases shall be resolved within 12 months

of initiation unless the Commission makes findings why that deadline cannot be met and issues an order

extending that deadline.  In this proceeding, the 12-month deadline is March 24, 2009.  Because

settlement discussions proved fruitless and a hearing is necessary, this order extends the statutory

deadline until September 24, 2009.

(Comr Bohn  - ALJ Barnett)

33

[8232]

This resolution addresses an order authorizing BMWC recovery costs associated with repair of water

tank producing additional revenue of $10,691 or $137.06 spread over three years.  (Advice Letter 10

filed January 7, 2009)

34

[8235]

This resolution addresses an order authorizing a general rate increase, for Klein producing additional

annual revenues of $6,566 or 18.1% for test year 2008.

35

[8236]

This resolution addresses an order authorizing a rate base offset increase in rates producing additional

gross annual revenues of $353,861 or 1.06% for Cal Am. (Advice Letter 709 filed October 6, 2008)

36

[8240]

Pursuant to Public Utilities Code Section 1701.2(d), this decision extends the 12-month deadline

applicable to this adjudicatory proceeding from February 15, 2009 to February 15, 2010.

(Comr Chong - ALJ McKenzie)

37

[8241]

This decision grants Caltrans the authority to remove and reconstruct five grade-separated highway

rail-crossing of I-215 freeway and BNSF Railway Company’s Cajon Subdivision railroad tracks, in

the City and County of San Bernardino.  The crossings are identified as Ninth Street, Baseline Street,

16th Street, Massachusetts Avenue, and Highland Avenue.  This proceeding is closed.

(Exam Clark)

38

[8244]

The Commission approves SDG&E's 2007 Energy Resource Recover Account compliance filing.  The

Commission finds that SDG&E’s utility retained fuel procurement, administration of its power purchase

agreements, and its least-cost dispatch activities for the Record Period beginning January 1, 2007 and

ending December 31, 2007, were reasonable and prudent.  The approval of this application does not

result in a rate change for SDG&E ratepayers.  This proceeding is closed.

(Comr Simon - ALJ Patrick)

39

[8245]

R06-04-010 - Order Instituting Rulemaking to Examine the Commission's post-2005 Energy

Efficiency Policies, Programs, Evaluation, Measurement, and Verification, and Related

Issues.

This decision extends the statutory deadline for this rulemaking until March 1, 2009.  This proceeding

remains open.

(Comr Grueneich - ALJ Gamson)

40

[8252]

C07-12-030 - Fones4All Corporation  vs Pacific Bell Telephone Company dba AT&T

California.

C08-02-009 - Related matters. This order extends the statutory deadline 180 days pending the

outcome of Fones4All Corporation’s bankruptcy proceeding and the presiding officer’s decision on

any unresolved issues in the consolidated docket.  These proceedings remain open.

(Comr Simon - ALJ Reed)

41

[8253]

A08-09-014 - Champion Broadband California, LLC  and CBC Broadband Holdings, LLC

(Joint Applicants).

This decision grants Joint Applicants' request to transfer the Certificate of Public Convenience and

Necessity, operating assets, operating authorities, customer base, and accounts of Champion

Broadband California, LLC to CBC Broadband Holdings, LLC under Public Utilities Code Sections

851 and 854.  This proceeding is closed.

(Comr Simon - ALJ Farrar)

42

[8256]

This decision grants Applicant a Certificate of Public Convenience and Necessity to provide inter –

and intra – local access and transport area services in California as a non-dominant interexchange

carrier.  This proceeding is closed.

(Comr Simon - ALJ Patrick)

43

[8051]

For Adoption of an Advanced Metering Infrastructure Deployment Scenario and Associated Cost

Recovery and Rate Design.   This decision awards Utility Consumers’ Action Network $460,324.00

in compensation for its substantial contributions to Decision 07-04-043, a decrease of $5,967 from the

amount originally requested.  This proceeding is closed.

(Comr Grueneich - ALJ Gamson)

Agenda 3225, Item 30 11/21/2008 (Chong);

Agenda 3226, Item 33 12/4/2008 (Staff);

Agenda 3227, Item 52 12/18/2008 (Staff)

44

[8174]

R06-04-009 - Order Instituting Rulemaking to Implement the Commission’s Procurement

Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions

Standards into Procurement Policies.

This decision awards $34,206.05 in compensation to the Community Environmental Council (CE

Council) for its substantial contributions to Decision (D.) 07-01-039 and

D.07-09-017.  This represents a decrease of $4,767.50 from the amount requested due to a lack of

substantial contribution on the issue of lifecycle net emissions, failure to justify the contribution of CE

Council’s research associate, and failure to justify certain expenses.  This proceeding remains open.

(Comr Peevey - ALJ Lakritz, ALJ TerKeurst)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Quasi-Legislative.

45

[8179]

For authority to update its gas and electic revenue requirement and base rates effective on January 1,

2008. A06-12-010, I07-02-013 - Related matters.   This decision awards Utility Consumers’ Action

Network (UCAN) $586,488.00 in compensation for its substantial contributions to Decision

08-07-046.  This represents a reduction of $24,113.61 from the amount requested due to

miscalculations by UCAN, an adjustment in the hourly rate for one of its experts, and reductions for

excess hours.  Today’s award payment will be paid by SDG&E and Southern California Gas

Company.  These proceedings remain open to address other matters.

(Comr Bohn  - ALJ Long)

46

[8190]

R06-04-009 - Order Instituting Rulemaking to Implement the Commission’s Procurement

Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions

Standards into Procurement Policies.

This decision awards Community Environmental Council (CE Council) $39,411.00 in compensation

for its substantial contributions to Decision (D.) 08-03-018.  This represents a decrease of $3,901.25

from the amount requested due to a reduction in the hourly rate requested for Tamlyn Hunt in 2008

and to correct a miscalculation by CE Council in the number of hours reported by Hunt.  This award

will be paid from the intervenor compensation program fund, pursuant to D.00-01-020.  This

proceeding remains open to consider remaining issues in Phase 1 and Phase 2.

(Comr Peevey - ALJ Lakritz, ALJ TerKeurst)

47

[8203]

For authority to update its gas and electric revenue requirement and base rates effective on January 1,

2008.  A06-12-010, I07-02-013 - Related matters.   This decision awards Disability Rights

Advocates $74,885.11 in compensation for its substantial contribution to A.06-12-009,

A.06-12-010, and I.07-02-013.  The award represents a decrease of 26% from the amount

requested.  Today’s award payment will be paid by SDG&E and Southern California Gas Company.

This proceeding remains open to address other matters.

(Comr Bohn  - ALJ Long)

48

[8220]

For authority to update its gas and electric revenue requirement and base rates effective January 1,

2008.  A06-12-010, I07-02-013 - Related matters.   This decision awards Aglet Consumer Alliance

$99,902.82 in compensation for its substantial contributions to Decision 08-07-046.  This represents a

decrease of 7% from the amount requested due to the disallowance of travel compensation and related

expenses.  Today’s award will be paid by SDG&E and Southern California Gas Company.  This

proceeding remains open to address other matters.

(Comr Bohn  - ALJ Long)

49

[8248]

This decision awards Robert Sarvey $14,028.75 in compensation for his substantial contribution to

Decision 08-02-001.  The award is reduced by $525.00 (3.6%) to disallow clerical work.  Today’s

award will be paid by PG&E.  A Settlement Agreement between the parties resolved all issues in the

complaint, and closes the proceeding.

(Comr Simon - ALJ Prestidge)

50

[7564]

A07-07-015 - Pacific Gas and Electric Company (PG&E) and San Diego Gas & Electric

Company (SDG&E).

This decision authorizes Emerging Renewable Resource Programs (ERRP) for PG&E and SDG&E,

and allows PG&E and SDG&E to expend up to $30 million and $15 million, respectively for a period

of two years.  The decision provides ERRP oversight through the Energy Division, assisted by

consultants and approves ERRP spending for the University of California Merced Solar Center, a

wastewater bio-methane project, and a wave energy project.  This proceeding is closed.

(Comr Simon - ALJ DeBerry)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3214, Item 25 5/29/2008 (Simon);

Agenda 3216, Item 37 6/26/2008 (Staff);

Agenda 3218, Item 29 7/31/2008 (Staff);

Agenda 3219, Item 37 8/21/2008 (Peevey);

Agenda 3220, Item 30 9/4/2008 (Chong);

Agenda 3221, Item 29 9/18/2008 (Peevey);

Agenda 3222, Item 23 10/2/2008 (Staff);

Agenda 3223, Item 32 10/16/2008 (Staff);

Agenda 3224, Item 51 11/6/2008 (Simon);

Agenda 3225, Item 36 11/21/2008 (Pub. Util. Code §311(e));

Agenda 3227, Item 58 12/18/2008 (Staff)

50a

[8118]

Today’s alternate decision denies without prejudice the proposed Emerging Renewable Resource

Programs (ERRP).  ERRP would have allowed Pacific Gas and Electric Company (PG&E) and San

Diego Gas & Electric Company to expend up to $30 million and $15 million, respectively, on external

costs for a period of two years.  The decision, nonetheless, authorizes assessment expenditures for the

WaveConnect project of up to $2 million.  The three projects proposed concurrently with the

establishment of ERRP could potentially aid the state in its efforts to increase renewable generation and

decrease greenhouse gas emissions.  However, as currently conceived, ERRP represents a significant

ratepayer investment with an uncertain return, and therefore would expose ratepayers to greater risk in

an adverse economy when we are already asking them to fund an increasing number of policy

programs.  Moreover, ERRP is also too narrowly designed, involving only two Investor Owned

Utilities (IOUs).  If such a program is to successfully address statewide goals, it should include all

IOUs, Independent Energy Producers, and other relevant market participants.

While the ERRP program is flawed, this decision recognizes the importance of its goals, and in

particular, the need to further investigate the potential of ocean energy.  California is singularly situated

to harvest a potentially enormous supply of baseload renewable generation.  While there are a number

of projects moving forward globally, no meaningful ocean energy project is currently in production

along California’s coast.  In order to ensure that ratepayer funds are spent on the most promising and

most effective technologies, a means of testing competing options should be established.  Accordingly,

this decision authorizes PG&E to spend up to $2 million in funds to cover the expenditures necessary

pursue the first year of WaveConnect, described in 5.3, while Energy Division continues to examine

the project.  This proceeding is closed.

(Comr Simon)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3225, Item 36a 11/21/2008 (Pub. Util. Code §311(e));

Agenda 3227, Item 58a 12/18/2008 (Staff)

51

[8058]

R06-02-012 - Order Instituting Rulemaking to Develop Additional Methods to Implement

the California Renewables Portfolio Standard Program.

This decision authorizes the use of unbundled and tradable renewable energy credit (TRECs) for

compliance with the California renewables portfolio standard (RPS) program.  It also delineates the

structure and rules for a TREC market and for the integration of TRECs into the RPS flexible

compliance system.  The use of TRECs for RPS compliance will provide more options and flexibility

for RPS-obligated load-serving entities to comply with RPS mandates in both the near and longer

term.  It will also provide additional resources and incentives for the development of RPS-eligible

generation over time.  This proceeding is closed.

(Comr Peevey - ALJ Simon)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3226, Item 37 12/4/2008 (Simon);

Agenda 3227, Item 59 12/18/2008 (Bohn )

52

[8120]

R04-04-003 - Order Instituting Rulemaking to Promote Policy and Program Coordination

and Integration in Electric Utility Resource Planning.

R04-04-025 - Related matters.   This decision addresses a joint petition filed by the Independent

Energy Producers Association, and the Cogeneration Association of California, the Energy Producers

and Users Coaliton and the California Cogeneration Council (collectively, QF Parties) to modify

Decision (D.) 08-007-048.  The Commission denies QF Parties' request to suspend the November

2008, filings for retroactive true-up of the Market Index Formula.  The Commission also declines to

adopt QF Parties' request to revise the procedures for any future adjustments to short-run avoided

cost (SRAC) payments.  Although the Commission denies QF Parties' Petition, the Commission

modifies D.08-07-048 to clarify the procedures for retroactive true-up of SRAC payments.  The

Commission believes that these procedures, as modified, provide the regulatory certainty that QF

Parties maintain is necessary to ensure continued operation of QFs in California.

(Comr Peevey - ALJ Yip-kikugawa)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

53

[8125]

A07-12-006 - San Diego Gas & Electric Company, Southern California Gas Company, and

Pacific Gas and Electric Company (collectively Applicants).

This decision denies the joint request of Applicants, to change the cost allocation methods by which

their natural gas customers are charged for the costs of their public purpose programs from the various

cost allocation method currently in use to a single cost allocation method.  This proceeding is closed.

(Comr Simon - ALJ Galvin)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

54

[8129]

For Authority to, Among Other Things, Increase Its Authorized Revenues For Electric Service in

2009, And to Reflect That Increase In Rates.   I08-01-026 - Related matters.   This decision

authorizes a $4.743 billion base revenue requirement for test year 2009 for SCE.  The Commission

finds that the authorized revenue requirement provides SCE with sufficient funding to provide safe and

reliable service at just and reasonable rates.  The adopted revenue requirement represents a 26.5%

increase over the 2006 authorized revenue requirement of $3.749 billion, a 15.5% increase over

SCE’s 2006 recorded revenue requirement of $4.106 billion, a 9.42% increase over the projected

revenue requirement at present rate levels of $4.334 billion, and a 8.88% reduction from the 2009

revenue requirement requested by SCE of $5.205 billion, which represented a 20.1% increase over

the revenue requirement at present rates.  The adopted methodology for calculating post-test year

revenue requirement results in a revenue requirement for 2010 of $4.885 billion and for 2011 of

$5.032 billion.  This decision also authorizes a 22% increase in SCE’s rate base.

In 2006, the authorized rate base was $10.4 billion.  Today, the Commission increases the authorized

rate base to $12.7 billion.  As a result of our decision today, SCE’s projected total company revenue

requirement for 2009 is approximately $12.468 billion.  This proceeding is closed.

(Comr Peevey - ALJ DeAngelis)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

54a

[8132]

I08-01-026 - Related matters. This alternate decision authorizes a $4.889 billion base revenue

requirement for test year 2009 for Southern California Edison Company (SCE).  The alternate

decision finds that the authorized revenue requirement provides SCE with sufficient funding to provide

safe and reliable service at just and reasonable rates.  The adopted revenue requirement represents a

30.4% increase over the 2006 authorized revenue requirement of $3.749 billion, a 19.1% increase

over SCE’s 2006 recorded revenue requirement of $4.106 billion, a 12.8% increase over the

projected revenue requirement at present rate levels of $4.334 billion, and a 6.1% reduction from the

2009 revenue requirement requested by SCE of $5.205 billion, which represented a 20.1% increase

over the revenue requirement at present rates.  The adopted methodology for calculating post-test year

revenue requirement results in an approximate revenue requirement for 2010 of $5.118 billion and for

2011 of $5.367 billion.  This alternate decision also authorizes a 22.8% increase in SCE’s rate base.

In 2006, the authorized rate base was $10.4 billion.  Today, this alternate decision increases the

authorized rate base to $12.8 billion.  As a result of this alternate decision today, SCE’s projected

total company revenue requirement for 2009 is approximately $12.614 billion.  This proceeding is

closed.

(Comr Peevey)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

55

[8207]

By this decision, the Commission authorizes Applicant to proceed with its proposed SmartMeter

Program Upgrade at a cost of $495,205,000, subject to the conditions and costs specified in this

decision, and to increase revenue requirements to recover the related costs.  The principal components

of this electric meter upgrade include an integrated load-limiting connect/disconnect switch, a home

area network gateway device and an advanced solid state meter.  With the authorization of the

upgrade to Applicant's previously authorized advanced metering infrastructure program, the devices

and functionalities are now comparable to that previously authorized for San Diego Gas & Electric

Company and Southern California Edison Company.  This proceeding is closed.

(Comr Chong - ALJ Fukutome)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

56 (Rev.)

[8243]

R________ - Order Instituting Rulemaking to Examine the Commission's Energy Efficiency

Risk/Reward Incentive Mechanism.

This Order Instituting Rulemaking will consider changes to the Commission's energy efficiency

risk/reward incentive mechanism developed in Decision 07-09-043 and other decisions, both for

energy effciency activities in 2006 through 2008 and for 2009 and beyond. This Rulemaking

supercedes Rulemaking 06-04-010 for these purposes.

57

[7988]

Res E-4123 - Pacific Gas & Electric Company (PG&E), Southern California Edison

Company (SCE), and San Diego Gas & Electric Company (SDG&E).

This resolution requests approval of filers' respective tariffs containing modified Community Choice

Aggregation (CCA) Cost Responsibility Surcharge (CRS) calculations pursuant to D.07-01-025,

D.07-04-007 and D.07-05-005.

(Advice Letters 3002-E (PG&E), 1881-E (SDG&E), and 2109-E (SCE), filed March 12, 2007.

SCE filed supplemental AL 2109-E-A on May 14, 2007, replacing AL 2109-E in its entirety.)

Agenda 3224, Item 57 11/6/2008 (Staff);

Agenda 3225, Item 42 11/21/2008 (Staff);

Agenda 3227, Item 66 12/18/2008 (Staff)

58

[8212]

Res E-4220 - Pacific Gas & Electric Company (PG&E), Southern California Edison

Company (SCE), and San Diego Gas & Electric Company (SDG&E) (collectively

Applicants).

Applicants are authorized to modify the trigger condition for the Base Interruptible Program.  (Advice

Letter (AL) 3360-E filed on November 12, 2008 by PG&E, AL 2288-E filed November 12, 2008

by SCE, and AL 2040-E filed November 12, 2008 by SDG&E)

59

[8217]

This resolution approves in part and denies in part SCE's request to establish a memorandum account

and recover up to $30 million in costs for a California Integrated Gasification Combined Cycle study.

(Advice Letter 2274-E filed October 10, 2008)

59a (Rev.)

[8269]

Res E-4227 -A

Southern California Edison Company (SCE). This resolution approves in part and denies in part

Advice Letter (AL) 2274-E.  The Commission approves SCE’s request to establish a memorandum

account to record up to $30 million in costs for the Hydrogen Energy California (HECA) study.

Further, the Commission approves SCE’s request to authorize recovery of certain costs recorded in

the HECAMA via this resolution.  SCE may recover costs stemming from SCE’s participation in

Phase I of the HECA study, up to $17 million.

(Comr Peevey)

60

[7729]

R93-04-003 - Rulemaking on the Commission’s Own Motion to Govern Open Access to

Bottleneck Services and Establish a Framework for network Architecture Development of

Dominant Carrier Networks.

I93-04-002 - Related matters.   This decision determines that the adopted Unbundled Network

Element (UNE) reexamination process will apply to Pacific Bell Telephone Company dba AT&T

California (AT&T), as well as Verizon California Inc. (Verizon).  A price cap mechanism is adopted

for annual updates to the UNE rates adopted for Verizon and AT&T, but the Commission finds that §

252 of the Telecommunications Act of 1996 requires the state to conduct periodic cost-study

proceedings to update UNE rates, based on the Total Element Long Run Incremental Cost (TELRIC)

methodology.  A schedule is established for future TELRIC costing proceedings for AT&T and

Verizon, and the use of the HM 5.3 model is mandated for use in those costing proceedings.  This

proceeding remains open.

(Comr Peevey - ALJ Duda)

Agenda 3218, Item 38 7/31/2008 (Staff);

Agenda 3222, Item 30 10/2/2008 (Staff);

Agenda 3226, Item 43 12/4/2008 (Peevey);

Agenda 3227, Item 68 12/18/2008 (Staff)

61

[8075]

This resolution authorizes California High Cost Fund -A support for Calaveras of $1,943,960 with an

overall Intrastate Rate of Return of 10.00% for test year 2009, resulting in an Intrastate revenue of

$6,177,181.  (Advice Letter No. 303 filed, December 21, 2007)

Agenda 3226, Item 45 12/4/2008 (Staff);

Agenda 3227, Item 69 12/18/2008 (Staff)

62

[8077]

This resolution authorizes California High Cost Fund-A support for Ducor of $2,434,584 with an

overall Intrastate Rate of Return of 10.00% for test year 2009, resulting in an Intrastate revenue of

$3,981,993.  (Advice Letter (AL) 318, AL 318A filed, December 19, 2007 and July 21, 2008)

Agenda 3226, Item 46 12/4/2008 (Staff);

Agenda 3227, Item 70 12/18/2008 (Staff)

63

[8088]

This resolution authorizes California High Cost Fund-A support for Pinnacles of $245,181, with an

overall Intrastate Rate of Return of 10.00% for test year 2009. resulting in an Intrastate revenue of

$775,798.  (Advice Letter (AL) Nos. 231, AL 231A Filed, December 19, 2007, and July 21, 2008)

Agenda 3226, Item 47 12/4/2008 (Staff);

Agenda 3227, Item 71 12/18/2008 (Staff)

64

[8139]

This resolution authorizes California High Cost Fund-A (CHCF-A) support for Cal-Ore of $455,461

with an overall Intrastate Rate of Return of 10.00% for test year 2009, resulting in an Intrastate

revenue of $3,593,720.  (Advice Letter No. 320 filed, December 27, 2007)

65

[8140]

This resolution authorizes California High Cost Fund-A (CHCF-A) support for Ponderosa of

$3,576,223, with an overall Intrastate Rate of Return of 10.00% for test year 2009, resulting in an

Intrastate revenue of $15,255,024.  (Advice Letter (AL) No. 374, filed, December 28, 2007 and AL

No. 374A, filed, June 10, 2008)

66

[8222]

This resolution authorizes Sunesys’ request to deploy an aerial fiber optic strand and related facilities

on existing utility poles along Highway 9 in Santa Clara County. (Advice Letter 12 filed August 29,

2008)

67

[8211]

This resolution adopts a California High Cost Fund-A support for each of the 17 Small Local

Exchange Carriers for Calendar Year 2009.

68

[8199]

For Authority to Establish its authorized Cost of Capital for the period from January 1, 2009 through

December 31, 2011. A08-05-003, A08-05-004 - Related matters.   This decision adopts 2009 Cost

of Capital and a return on equity for Cal Water, California American Water Company, and Golden

State Water Company.  These proceedings remain open.

(Comr Bohn  - ALJ Long)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

69

[8200]

This resolution addresses citations to enforce compliance with the Commission’s orders and the Public

Utilities Code and procedures for appeal of citations.

70

[8050]

A06-12-020, A07-01-004, A07-01-017, A07-01-044, A07-02-007, A07-02-017, A07-03-004,

A07-03-012, A07-03-013 - Related matters.   The Exposition Metro Line Construction Authority

filed the 10 subject applications in this consolidated proceeding requesting authority to construct 38 rail

crossings along the new Exposition Boulevard Corridor Light Rail Transit Line in Los Angeles County.

Interim Decision (D.) 07-12-029 authorized construction of 36 of the 38 crossings.  Today’s decision

addresses the two remaining crossings, at Farmdale Avenue and Harvard Boulevard, requested in

Application (A.) 07-05-013 and A.06-12-020, respectively.  Both crossings are located in the City of

Los Angeles adjacent to school sites.  A.07-05-013, for an at-grade crossing at Farmdale Avenue, is

denied.  Grade-separated crossings provide a higher level of safety than at-grade crossings and the

Commission finds here that it is practicable to construct a grade-separated pedestrian bridge and close

Farmdale to vehicular traffic.  The application for a grade-separated pedestrian tunnel crossing at

Harvard Boulevard, one of the 11 crossings requested in A.06-12-020, also is denied.  The

Commission finds that the proposed Harvard Boulevard crossing would not comply with the

Americans with Disabilities Act, and further that it would not provide an adequate level of general

public access or safety. The Commission finds that a pedestrian bridge at Harvard would provide a

better alternative.  Today’s decision also adds environmental impacts to the list of issues the

Commission will use as criteria for judging practicability.  These consolidated proceedings remain open

to allow the applicant to amend its applications regarding Farmdale Ave. and Harvard. Blvd.

(Comr Simon - ALJ Koss)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

Agenda 3225, Item 20 11/21/2008 (Staff);

Agenda 3226, Item 12 12/4/2008 (Simon);

Agenda 3227, Item 74 12/18/2008 (Chong)

70a

[8214]

A06-12-020, A07-01-004, A07-01-017, A07-01-044, A07-02-007, A07-02-017, A07-03-004,

A07-03-012, A07-03-013 - Related matters. The Exposition Metro Line Construction Authority

filed the 10 subject applications in this consolidated proceeding requesting authority to construct 38 rail

crossings along the new Exposition Boulevard Corridor Light Rail Transit Line in Los Angeles County.

Interim Decision (D.) 07-12-029 authorized construction of 36 of the 38 crossings.  This alternate

proposed decision addresses the two remaining crossings, at Farmdale Avenue and Harvard

Boulevard, requested in  Application (A.) 07-05-013 and A.06-12-020, respectively.  Both crossings

are located in the City of Los Angeles adjacent to school sites. Commissioner Chong's proposed

alternate decision approves the application for a grade-separated crossing over the existing Harvard

tunnel, as requested by the Applicant. The alternate proposed decision also denies the proposed

at-grade crossing at Farmdale (Dorsey High).  The proposed alternate decision leaves the flyover and

the pedestrian overcrossing as options.  Additional language regarding the California Environmental

Quality Act and the Commission's legal authority is also included.

(Comr Chong)

Pub. Util. Code § 311 – This item was mailed for Public Comment.

Pub. Util. Code §1701.1 -- This proceeding is categorized as Ratesetting.

71

[8210]

R________ - Order Instituting Rulemaking to Consider Roadway Worker Protections by

Transit Agencies in California.

This Order Instituting Rulemaking will consider California Transit Agencies' Roadway Worker

Protections.

72 (Rev.)

[8239]

1) Modify Public Utilities Code Section 781 to encourage installation of water meters.

2) Create a narrow exception in the Bagley-Keene Act to permit Deaf and Disabled

Telecommunications Program Advisory Board members to conduct teleconference meetings.

3) Create the Clean Distributed Energy Resources program for incentives for ultra-clean technologies.

73

[8192]

74

[8167]

I93-04-002  - Related matters.   Disposition of Application for Rehearing of Decision (D.) 06-03-025

filed by Verizon California Inc. (Verizon).  In D.06-03-025, the Commission adopted final unbundled

network element rates and price floors for Verizon.

75

[8221]

Disposition of Application for Rehearing of Decision (D.) 08-09-027 filed by Global NAPS California,

Inc. (GNAPs). In D.08-09-027 the Commission directed GNAPs to pay Pacific Bell Telephone

Company d/b/a AT&T California (AT&T) approximately $18.5 million through December 2007, plus

any accrued charges, for interconnection and transport services AT&T provides to GNAPs under a

joint interconnection agreement.

76

[8234]

Disposition of Applications for Rehearing of D.08-07-046, filed by the Greenlining Institute

(Greenlining), and Division of Ratepayer Advocates (DRA) and The Utility Reform Network (TURN).

D.08-07-046 involves the Test Year 2008 general rate cases for San Diego Gas & Electric Company

(SDG&E) and Southern California Gas Company (SoCalGas).  The Commission adopted a settlement

on many of the issues.

77

[8237]

R04-04-025 - Related matters. Disposition of Application for Rehearing of Decision (D.) 08-07-048,

filed jointly by the Cogeneration Association of California and the Energy Producers and Users

Coalition.  In D.07-09-040, the Commission adopted specific policies and pricing mechanisms

applicable to the electric utilities’ purchase of energy and capacity from Qualifying Facilities pursuant to

the Public Utilities Regulatory Policy Act of 1978 (16 U.S.C. § 824a-3).  Several parties filed

rehearing applications of D.07-09-040.  D.08-07-048 modified D.07-09-040 in several respects, and

denied rehearing of D.07-09-040, as modified.

78

[8242]

Disposition of applications for rehearing filed by Californians for Renewable Energy (CARE),

Independent Energy Producers Association (IEP), and jointly by the Cogeneration Association of

California (CAC) and the Energy Producers and Users Coalition (EPUC) of Decision (D.)

06-12-030.  The underlying proceeding, Rulemaking (R.) 05-06-040, concerns implementation of

Senate Bill (SB) 1488 and resolves questions posed by an earlier decision in this docket,

D.06-06-066 as modified by D.07-05-032 (Modified D.06-06-066).  In D.06-12-030, the

Commission defines the terms market participant, non-market participant and reviewing representative.

D.06-12-030 further assigns some, but not all, of the parties who submitted comments in

R.05-06-040 to the categories of market or non-market participants.  D.06-12-030 also adopts a

process that protects the confidentiality of market sensitive information submitted to the Commission in

accordance with Public Utilities Code section 454.5, subdivision (g). This process is applicable

whether the confidential market sensitive information is sought via a request pursuant to the California

Public Records Act (CPRA) or pursuant to discovery in certain Commission proceedings.  In addition,

D.06-12-030 expands the process adopted in Modified D.06-06-066, as it pertains to Commission

proceedings, to permit a limited discovery process for reviewing representatives of active market

participant parties to access confidential market sensitive information provided such parties agree to

abide by the Commission’s confidentiality requirements.  D.06-12-030 further adopts rules for who

may be a reviewing representative.  Among other things, D.06-12-030 also prohibits simultaneous

representation in various Commission proceedings by attorneys, expert witnesses, and/or consultants

of parties that are non-market and market participants.

Consideration of possible Commission initiation of, or intervention in, litigation.

Gov. Code § 11126(e)(2)(C)(i) and/or § 11126(d)(2), allows this item to be considered in Closed

Session.

79

[8209]

Deliberation on Institution of Investigation of proceedings or disciplinary actions against persons or

entities under the Commission's jurisdiction. Disclosure of the case name would fail to protect the

private economic or business reputation of the person or entity if the proceeding or disciplinary actions

is not commenced.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

Gov. Code § 11126(d)(2), allows this item to be considered in Closed Session.

80

[8238]

Deliberation on Institution of Investigation of proceedings or disciplinary actions against persons or

entities under the Commission’s jurisdiction.  Disclosure of the case name would fail to protect the

private economic or business reputation of the person or entity if the proceeding or disciplinary actions

is not commenced.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

Gov. Code § 11126(d)(2), allows this item to be considered in Closed Session.

Significant exposure to litigation

Gov. Code § 11126(e)(2)(B), allows this item to be considered in Closed Session

Significant exposure to litigation in federal agency or court proceedings.

Gov. Code § 11126(e)(2)(B), allows this item to be considered in Closed Session

Consideration of possible Commission initiation of, or intervention in, federal agency or court

proceedings.

Gov. Code § 11126(e)(2)(C)(i), allows this item to be considered in Closed Session.

81

[8189]

FERC Docket No. ER06-615 and Related Items. - Conference with Legal Counsel- Existing

Litigation

FERC Docket No. ER06-615 and Related Items.  California Independent System Operator

Corporation, FERC Docket No. ER06-615, also known as Market Redesign and Technology

Update (MRTU).

Conference with Legal Counsel - Existing Litigation; San Diego Gas & Electric Co., FERC Docket

No. EL00-95, Investigation of Practices of the California Independent System Operator and the

California Power Exchange, FERC Docket EL00-98, and related dockets, CPUC v. FERC, Ninth

Circuit Nos. 01-71051, et al., and 01-71934, et al., and related dockets.

Gov. Code § 11126(e)(2)(A), allows this item to be considered in Closed Session.

Consideration of appointment, employment, evaluation of performance, or dismissal of a public

employee or to hear complaints or charges brought against that employee by another person or

employee.

Gov. Code § 11126(a), allows this item to be considered in Closed Session