3. Procedural Background
Joint Applicants filed Application (A.) 07-07-015 (Application) on July 18, 2007, requesting approval for separate ERRP programs to support the expansion of renewable energy development and undertake specific projects leading to commercialization of identified technologies. PG&E and SDG&E request authorization for ERRP funding of $30 million, and $15 million, respectively, for two years. PG&E and SDG&E propose that ERRP costs will be recovered in the Energy Resource Recovery Account (ERRA) and charged to bundled service customers, but will not include administrative costs. PG&E and SDG&E expect to coordinate with other utilities, government entities and non-market participants involved in renewable energy technologies and seek joint funding and partnership funding for ERRP projects.
The Application requests that ERRP projects be approved through the Tier I advice letter (AL) process, thereby delegating authority to Commission staff for project acceptability and eligibility for rate recovery. Joint Applicants propose establishing an Emerging Renewable Resources Coordinating Council (ERRCC), which would meet quarterly to facilitate information-sharing, coordination and potential cost-sharing of projects. ERRCC members would include representatives of the California Energy Commission (CEC), the Commission Energy Division (ED), the Division of Ratepayer Advocates (DRA), The Utility Reform Network, Joint Applicants and other California utilities.
The Application proposes that information deemed proprietary by project participants be protected, and that commercially sensitive information about emerging technology or resource projects not be publicly available. PG&E and SDG&E would share such information with their respective Procurement Review Groups and through confidential AL filings.
In addition to establishing separate programs, the Application requests approval of three ERRP projects.9
DRA timely protested the Application requesting that the proceeding consider whether other sources of ERRP project funding were available. DRA also questioned whether ratepayers should bear all of the costs if utility shareholders and other states benefit from the ERRP studies, and whether ERRP will produce intellectual property that should accrue rights to ratepayers. On August 27, 2007, PG&E and SDG&E responded.
At a September 14, 2007 prehearing conference (PHC), DRA explained that it was obtaining information from the Joint Applicants and was unsure whether it would continue to protest the Application. During the PHC the assigned Administrative Law Judge (ALJ) asked the utilities a series of questions regarding ERRP. On September 24, 2007, PG&E and SDG&E filed a joint response to the ALJ's questions.
On October 11, 2007, the assigned ALJ issued a ruling asking PG&E and SDG&E additional questions about ERRP. On October 23, 2007, PG&E responded (PG&E Response), and on October 26, 2007, SDG&E responded (SDG&E Response).
At a second PHC on October 30, 2007, the Independent Energy Producers Association (IEP) stated its desire to make ERRP research public. IEP also indicated its concern that PG&E's proposed WaveConnect project could be viewed as utility-owned project development. IEP argued that research towards project development may not comply with competitive project solicitations required under Decisions (D.) 04-12-048, D.06-05-016, and D.07-12-052. Also, at the second PHC, Southern California Edison Company (SCE) indicated it would be filing an application similar to A.07-07-015 but with a focus on grid integration of renewable energy.10 SCE also stated it was willing to participate in the ERRCC. No party requested an evidentiary hearing. Parties filed briefs and reply briefs on November 19 and 29, 2007, respectively.
The proceeding was submitted on November 29, 2007.
9 PG&E proposes to expend up to $2 million towards the Solar Center and $6 million towards WaveConnect. WaveConnect consists of two wave power projects off the coast of Northern California. SDG&E proposes to expend up to $4 million on the Wastewater Biomethane Demonstration (WBD) project in SDG&E's service territory.
10 SCE filed A.08-03-014 for a Renewable Integration and Advancement Program on March 18, 2008.
