10. Comments on Draft Decision
On _________, 2002, the draft decision of Presiding Officer and Assigned Commissioner Wood was served on, or notice of the draft decision provided to, parties in accordance with Sections 311(g)(1) of the Public Utilities Code, and Rule 77.7. The draft decision was also served by electronic mail on parties with electronic mail addresses. In addition, the draft decision was published on the Commission's web site.
The reduced comment cycle required that comments be filed and served by _____, and reply comments filed and served by ______. Timely comments were filed and served by _____________. Timely reply comments were filed and served by ________________.
1. SDG&E's RBRP has been well received by customers, it has had a successful implementation, and SDG&E has no other operational interruptible program that reaches the same level of participation and amount of interruptible load.
2. No Stage 3 events have been called since RBRP was approved, but the need for interruptible programs, such as RBRP, has not ended.
3. Cash and outage exemption are not equal or interchangeable benefits to all customers.
4. Reports submitted by utilities in August 2002 to use in determining whether or not to continue interruptible programs beyond December 2002 cannot contain much, if any, information on actual Summer 2002 experience.
5. Moving consideration of interruptible programs back to GRC or similar proceedings permits examination of interruptible rates and rate design in the context of each utility's overall rates and rate design.
6. An extension of interruptible programs through the final decision in the rate design phase of each utility's next GRC on similar proceeding provides an opportunity to pursue marketing of stable programs for Summers 2002 and 2003.
7. Total subscribed interruptible load through December 31, 2001 is about 1,420 MW (at the 5% level for OBMC, and minimum DBP response).
8. CEC recommends a planning goal of 2,500 MW for demand responsiveness programs in 2002.
9. Interruptible capacity of 2,500 MW will provide California system operators with about 5% of Summer 2002 projected load to be available for interruption based on system conditions.
10. SCE's Schedule I-6 bill limiter (for customers transitioning from Schedules I-3 and I-5 to I-6) began on January 1, 1993.
11. The bill limiter provision in Schedule I-6 is Special Condition 14, which in turn refers to Public Utilities Code Section 368(a).
12. Through March 31, 2002, the bill limiter will have been in effect for nine years and three months, reducing rates over this period by about $231.25 million (assuming $25 million per year based on the 1995 GRC estimate), or about $2.3 million per customer (assuming an average of about 100 customers).
13. The bill limiter has consistently been subject to termination, beginning in 1995, then deferred to 1996, to 1999, and finally to on or about March 31, 2002.
14. Ending the bill limiter implements a transition within one rate schedule that has been known for a long time; it does not increase any rate; and it will not cause instability, uncertainty or volatility in electricity prices.
15. Aggregation of more than two circuits for OBMC can pose administrative and tracking problems.
16. Limiting on-peak energy usage for SLRP to no more than 15% of the customer's posted baseline promotes consistency in non-compliance rules for those with and without interval meter data history.
17. Defining past similar days for OBMC baseline calculation as "days when the customer's business was in operation" complicates baseline calculations; increasingly moves away from clear, objective criteria toward individually tailored baselines; and will be relatively more difficult for utilities to administer.
18. A temperature adjusted OBMC baseline calculation eliminates the benefit of the customer knowing with certainty their targeted maximum load level for each curtailment event and it complicates the baseline calculation for each utility.
19. Excluding Stage 1 and 2 days from the OBMC baseline calculation allows a customer to maintain a relatively higher OBMC baseline, potentially resulting in the undesirable outcome of the customer providing less load reduction during Stage 3 than during Stages 1 and 2.
20. The likely contiguity of Stage 1, 2 and 3 days means that eliminating Stage 1 and 2 days from the definition of similar days for the OBMC calculation could result in a participant's baseline being calculated from "similar days" that are potentially weeks removed from current conditions.
21. OBMC customers with a real time baseline would have an incentive during the later part of a Stage 2 event to ramp-up their load, thereby reducing the burden of a subsequent 5%, 10% or 15% reduction.
22. There is only a limited amount of flexibility that can be permitted in OBMC baseline calculations since OBMC is designed to replace firm service interruptions and, if OBMC does not produce dependable load reductions when called, additional firm service customers must be interrupted at the time of system need.
23. An entire infrastructure to provide advance notification of rotating outages is now in place; several methods of advance notification, beginning up to 48 hours in advance, are available before outages occur; and advance notification procedures will improve with experience.
24. Further expansion of the notice requirement to OBMC customers in advance of a rotating outage, or measuring results over the first full hour rather than half hour, could have the effect of delaying delivery of load relief to the system, ultimately necessitating increased firm load curtailments.
25. An undesirable outcome of granting CIU's proposal that interruptible customers be permitted to participate in OBMC after meeting their monthly interruptible contract obligations is that during a simultaneous I-6/OBMC event (in which the customer satisfies the final increment of its 40-hour monthly requirement under I-6 but the event continues), some customers may increase load (e.g., from an I-6 FSL of zero to the OBMC baseline less the percentage required reduction of 5%, 10% or 15%) and be in compliance even though the Stage 3 emergency continues, thereby forcing additional rotating outage reductions on other customers.
26. Requiring all OBMC customers to participate in proportion to their load unnecessarily and unreasonably limits program flexibility, but OBMC customers may agree to proportional participation if they wish.
27. Industrial customers are not the only beneficiaries of OBMC, but the entire system benefits by having OBMC circuits reduce load by prescribed amounts generally equivalent to the reduction in system load resulting from rotating outages.
28. Utilities largely offer the same products to the same customers as aggregators, and load aggregators generally add another layer of cost on an already burdened electricity system.
29. SDG&E was ordered in March 2001 (D.01-03-073) to conduct a Residential Demand-Responsiveness (Smart Thermostat) Pilot Program, the program is underway, customers are being recruited, thermostats are being installed, and operation is expected by Summer 2002.
30. SDG&E's EAEI program has not been approved, a vendor contract has not been awarded, customer recruitment has not begun, and reaching the goal of significant program operation by Summer 2002 is unlikely.
31. The Commission has already addressed cost recovery for interruptible programs, and has specifically considered and rejected funding through a surcharge.
32. CEC's proposed interruptible program surcharge would generate an additional amount of approximately $200 million per year.
33. No evidence shows that funds collected in current rates are inadequate to fund existing programs, or are insufficient to fund expanded programs.
34. DWR reports that the DBP will again be available no later than June 2002, and it will be available to the same extent that it has at any time been available.
35. Most of the customers identified by CEC as potential participants for its proposed modified BIP program can participate in existing programs.
36. CEC's proposals to modify VDRP and BIP potentially involve significant implementation and operating costs, and the benefits in relation to those costs are uncertain.
37. A pilot test of CEC's proposed BIP will permit first assessing several issues including (a) the merits of opening interruptible programs to smaller customers; (b) the merits of measuring response on a "variable" basis (i.e., 10-day baseline) rather than a "fixed" basis (i.e., FSL); and (c) the cost-effectiveness of program modifications.
38. Allowing interruptible customers to annually make changes in FSL (both increases and decreases) permits California to (a) have a more secure base of interruptible load upon which it can rely, (b) reduce reliance on penalties to drive customer compliance, and (c) recognize normal variations in customer operations.
39. Including hospitals with fewer than 100 beds in essential customer Category C does not jeopardize the criterion that at least 40% of a utility's load be available for rotating outage.
40. Certification and licensure of a SNF by DHS is a relatively precise and objective method of identifying SNFs eligible for essential customer Category C.
41. Including DHS licensed SNFs in essential customer Category C does not jeopardize the criterion that at least 40% of a utility's load be available for rotating outage.
42. Regulations for hospitals regarding minimum backup generation do not result in sufficiently safe and reliable electricity to satisfy the Commission's expectation of essential uses for hospitals, and similar regulations for SNFs are just as likely to not satisfy Commission expectation of essential uses for SNFs.
43. The award of Category M status was not intended to be a government benefit that accrues indefinitely to only a select group of individually named customers, but was intended to address during a limited time the relative risk to public health and safety when some customers are exposed to a rotating outage.
44. Adequate notification of rotating outages will reduce, if not eliminate, the need for the total exemption awarded Category M customers.
45. Each customer can make its own evaluation of the best methods to be prepared for electricity outages (e.g., changing its production process or technology, updating equipment, instituting new safety procedures and measures, installing self-generation) and can implement necessary and reasonable solutions on its own without direction from the Commission.
46. Continuing Category M beyond September 6, 2003 will create an expectation of its continued use.
47. Water utilities, sewer utilities, and all authorities with emergency powers, may request either immediate or conditional exemption or restoration of electric service to a water or sewer utility under current provisions of Category H.
48. The Category H fire fighting example is the action and activity of fire fighting during an emergency, not the generalized condition of a fire department being poised in an emergency mode 24 hours per day ready to engage in fighting fires.
49. LAC and ACWA present no information on the number of circuits, megawatts, or percentage of system load that would remain for rotating outage if exempt status be given to circuits on which a water or sewer agency is served which PG&E cannot restore immediately upon a Category H exemption or restoration request.
50. "Best efforts" is consistent with "immediate processing" and "rapid restoration" for implementation of an exemption or restoration request under Category H.
51. The undisputed medical evidence is that health risks associated with short-term power interruptions (up to 90 minutes) are low, while health risks from extreme heat or cold occur most often after chronic or prolonged exposure generally in excess of eight hours.
52. There is no operationally feasible and fair method to implement rotating outages based on extreme temperature.
53. The adverse health effects of extreme heat and cold are known and are preventable with a good warning system, a focus on prevention and public awareness, and an appropriate community-based response.
54. There is limited potential for abuse of a notification system that alerts self-identified temperature sensitive customers of rotating outages by an individualized, automated telephone message.
55. The benefits of universally requiring medical certification of a customer's temperature sensitivity before the customer may receive an automated telephone message of rotating outage do not exceed the burdens on an already stressed medical system, and the undesirability of requiring release of otherwise confidential medical information.
56. Cooling and heating stations on circuits already exempt from rotating outages can provide air-conditioning or heating during periods of extreme temperature without reducing the number of circuits available for rotating outage.
57. Automatically penalizing a utility for an outage over 90 minutes (unless the utility can show extenuating circumstances to justify the outage) reduces operator flexibility that might be necessary given operational factors, is unnecessary given no evidence that the lack of penalties has adversely affected implementation of outages, and is unnecessary given the Commission's ability to investigate and sanction specific utility action in violation of law, or Commission order or rule.
58. Granting a wavier of non-compliance penalties tracked in memorandum accounts for customers who committed to a load reduction but did not comply would be inequitable to customers who similarly committed but did comply, and would be inequitable to customers who funded the interruptible rate discounts.
59. Interruptible customers generally had the opportunity to opt-out, but if they did not, they were obligated to perform only within the limits of the program.
60. Waiver of non-compliance penalties from October 1, 2000 through January 25, 2001 is not necessary to promote public health and safety.
61. Uniform treatment between PG&E and SCE customers of the limited opt-out back to November 1, 2000 is equitable.
62. A uniform date of November 1, 2000 to begin the limited opt-out period for PG&E customers promotes administrative ease, customer understanding, and minimization of disputes over effective dates and resulting dollar amounts.
63. A uniform date of April 30, 2001 to end the limited opt-out period for PG&E customers is consistent with the experience of SCE customers.
64. Unique market conditions in late 2000 and early 2001 justified the extraordinary opt-out opportunity permitted SCE customers, and justifies similar treatment for PG&E customers, including not tallying curtailment events during the memorandum account period toward the tolling of events to determine the level of subsequent non-compliance penalties.
65. SDG&E interruptible customers were free to switch to another tariff at any time, except those customers on the interruptible tariff for 12 months or less.
66. Cal Steel's proposal (for recalculating non-compliance penalties during the opt-out period) places a significant administrative burden on SCE (to review, revise, and recalculate rate discounts for all customers who opted-out by applying a scaling factor based on complex calculations of actual performance), and would create unknown but possibly significant revenue impacts.
67. The dilemma faced by Cal Steel in large part resulted from the Commission's decision in April 2001 not to permit a customer to participate in both a capacity based interruptible program and OBMC, with that decision changed in May 2001, only weeks after Cal Steel made its decision to opt-out.
68. A less complex remedy to Cal Steel's dilemma which provides similar relief is to allow customers placed in that unique situation to return to Schedule I-6 effective November 1, 2000 at a higher FSL, effectively eliminating noncompliance penalties while permitting participation in both programs.
69. Schedule I-6 curtailments were called in May and July 2001, but Cal Steel and other similarly situated customers had left I-6 and were on OBMC.
70. All issues identified in the Phase 2 Scoping memo are now resolved, are moot as a result of the decisions herein, or need no further consideration.
71. Notice of the availability of the draft and final decisions was served by letter using regular or electronic mail on over 10,000 Category M applicants (including those who applied either timely or late), with recipients of the letter directed to the Commission's web page to access a copy of the draft and final decisions, or to call the Commission for copies.
72. All parties stipulated to a reduced period of comment on the proposed decision.
73. The public interest in expeditiously reaching a final order in this proceeding outweighs the public interest in having the full 30-day comment cycle since a full comment cycle would delay reaching a decision on important, time-sensitive matters (e.g., the bill limiter, providing needed certainty to customers about interruptible programs and curtailment priorities for Summer
2002, creating the PBIP, clarifying the adjustment in FSL for SCE customers, providing essential customer status for SNFs, initiating tests of procedures for essential customer Category H, implementing the adopted extreme temperature program, disposing of memorandum account balances).
1. SDG&E's RBRP should be extended through completion of SDG&E's next rate design proceeding (with completion expected by April 2004), consistent with the extension of all interruptible programs, and RBRP should not be consolidated with OBMC.
2. The availability of all interruptible programs should be extended through the date of the final rate design decision in each utility's next GRC, or similar proceeding for SDG&E, and continue until modified or terminated thereafter.
3. A planning goal of 2,500 MW for interruptible load programs should be adopted through the date of the final rate design or similar decision of each utility, and total capacity and dollar limits should be reduced in the same proportion as previously authorized:
INTERRUPTIBLE PROGRAM
AND CURTAILMENT PRIORITY LIMITS
UTILITY |
INTERRUPTIBLE PROGRAM LIMIT (MW) |
TOTAL ANNUAL PROGRAM DOLLAR LIMIT ($ MILLION) |
PG&E |
1,000 |
100.0 |
SCE |
1,375 |
137.5 |
SDG&E |
125 |
12.5 |
TOTAL |
2,500 |
250.0 |
4. Utilities should continue to file and serve monthly reports on interruptible programs and curtailment priorities and, unless directed otherwise by subsequent order, each utility should terminate the filing and service of its monthly reports effective the date that the final decision is mailed in the next proceeding that addresses interruptible tariffs.
5. Utilities should meet with Energy Division staff to resolve issues regarding monthly reports.
6. Interruptible programs should not be combined into one or two programs but a portfolio of programs should continue to be offered.
7. Public Utilities Code Section 368(a) provides that rates shall remain at certain levels until the earlier of March 31, 2002 or the date on which certain Commission-authorized costs are fully recovered and, under current conditions, the earlier date will be March 31, 2002.
8. D.01-04-006 extended interruptible programs in general, including SCE Schedule I-6, but did not disturbed Public Utilities Code Section 368(a), or its application to I-6.
10. The bill limiter has served the purpose of mitigating the bill impact caused by transferring Schedule I-3 and I-5 customers to Schedule I-6, and has met the legislative intent of preserving a constant level of interruptible credit through March 31, 2002.
11. Ending the bill limiter on the effective date of this order does not conflict with the Settlement Agreement between SCE and the Commission.
12. SCE Schedule I-6 bill-limited customers should be permitted a special 15-day opt-out; the special opt-out should begin within 30 days of the effective date of this order; the customers should be permitted to opt-out effective the date the bill limiter ends, or effective with the beginning of their next billing period; and this special opt-out should not disturb any choices normally available to any customer during the next annual opt-out in November 2002.
13. A tariff option should not be adopted that allows for aggregation of more than two circuits with a single lead customer for the purpose of participation in the OBMC program, as proposed by Wolfsen.
14. The SLRP tariff should be modified such that the on-peak energy usage for the four weekdays following a curtailment cannot exceed the customer's posted baseline amount by more than 15%.
15. An interruptible customer should be permitted to participate in OBMC after meeting its monthly interruptible contract obligation, subject to the customer during an overlapping I-6/OBMC event being required to continue to reduce load to the lower of FSL or OBMC baseline during the entire length of that particular event.
16. All other proposals to change OBMC should be rejected (e.g., change OBMC baseline to recognize alternate workweek schedules, adjust for similar days, temperature correction, Stage 1 and 2 days, exclusion of more days in advance and after the fact; offer a real time profile option; provide more notice before being required to reduce load; measure non-compliance over the first hour rather than half-hour; modify the lead customer concept; allocate OMBC costs only to large power customers).
17. SDG&E's EAEI program should be cancelled, and Advice Letter 1320-E should be rejected.
18. CEC's proposed non-bypassable surcharge of $0.001/kWh, and CEC's proposed modified VDRP, should be rejected.
19. CEC's proposed modified BIP should be approved as a pilot test with limited further modifications.
20. PG&E should file an advice letter including the necessary tariffs to implement the PBIP, with the tariffs becoming effective 10 days thereafter, unless suspended by the Energy Division Director.
21. Protests to PG&E's PBIP advice letter, if intended to request suspension by the Energy Division Director, should be filed and served within nine days of the date of the advice letter.
22. SCE's December 18, 2001 petition for modification of D.01-04-006 regarding changes in FSL should be denied and, within 30 days of the date of this order, SCE should notify the approximately six customers whose FSL decrease request was denied in November 2001 that each customer has a 15-day window to elect to reduce their FSL effective the same day it would have been reduced if it had been granted by SCE in November 2001.
23. Hospitals with fewer than 100 beds should continue to be included in essential customer Category C.
24. Essential customer Category C should be amended to include SNFs, and eligible SNFs should be those licensed by the California DHS.
25. Each respondent utility should complete the circuit reconfiguration report on SNFs contemplated in our April 2001 order, and file and serve that report within 60 days.
26. The Energy Division Director may authorize respondent utilities to implement cost-effective, reasonable circuit reconfiguration projects, including those for SNFs, to isolate essential from non-essential customers up to the dollar amounts authorized in D.01-04-006.
27. Utilities should not be required to assess the adequacy of backup or standby generation for SNFs and consider excluding SNFs from essential customer Category C on the basis of that assessment, just as utilities are not required to do this for hospitals.
28. Category M status awarded to any customer should expire on September 6, 2003, and no replacement process should be adopted.
29. Category M should be removed from the list of essential customers effective September 7, 2003.
30. Each respondent utility should (a) notify each of its water and sewage treatment customers of Category H, plus file and serve a verified statement certifying completion of the notice, (b) test Category H emergency restoration procedures, and (c) file and serve a report on the test, including discussion of "immediate processing" and "best efforts" in restoring service pursuant to a Category H request.
31. Permanent exemption from rotating outage should not be provided to the 16 water agencies identified by LAC in areas of high risk for fire.
32. Special priority of electricity use, including an exemption from rotating outages, should not be provided for temperature-sensitive residential customers based on exposure to extreme temperature.
33. A modification of respondent utilities' alternative plan to address temperature sensitive residential customers should be adopted, including education, advance notification by automated telephone message (based on temperature-sensitive customer self-certification), and the use of cooling and heating stations.
34. ORA's proposal to penalized utilities for outages over 90 minutes absent extenuating circumstances should be rejected.
35. Respondent utilities should collect non-compliance penalties tracked in memorandum accounts for the period October 1, 2000 through January 25, 2001, subject to a one-time reconciliation of balances for PG&E customers, and a similar treatment for SDG&E customer on interruptible schedules 12 months or less.
36. PG&E's reconciliation of balances should be for the period of November 1, 2000 through April 30, 2001 (wherein PG&E customers may opt-out of interruptible service in part or whole and have penalties waived in exchange for paying firm service rates), and this reconciliation should not disturb any change the customer might have made in the November 2001 opt-out.
37. Curtailment events in the memorandum account period should not be counted toward the tolling of compliance as it relates to the non-compliance penalty in the subsequent year for PG&E.
38. Cal Steel's December 10, 2001 petition for modification of D.01-04-006 (with respect to the calculation of non-compliance penalties for interruptible customers who opted-out) should be denied, and SCE's alternative should be adopted in part with the customer allowed to choose the FSL.
39. This proceeding should remain open.
40. A paper copy of the draft and final decisions should not be served on Category M applicants unless requested by the applicant.
41. The period for public comment on the draft decision should be reduced.
42. This order should be effective today so that the important, time-sensitive decisions can be implemented in the public interest without unreasonable delay (e.g., end the bill limiter, provide needed certainty to customers about interruptible programs and curtailment priorities for Summer 2002, initiate the PBIP, clarify adjustment in FSL for SCE customers, provide essential customer status for SNFs, test procedures for essential customer Category H, implement the adopted extreme temperature program, dispose of memorandum account balances).
INTERIM ORDER ON INTERRUPTIBLE PROGRAMS
IT IS ORDERED that:
1. Within five days of the date this order is mailed, respondent utilities Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E) shall each file and serve an advice letter with revised tariffs. The advice letters with revised tariffs shall implement the directions in this order and Attachment E. Each advice letter with tariffs shall be in compliance with General Order 96-A. The advice letters and tariffs shall become effective five days after filing, unless suspended by the Energy Division Director. The Energy Division Director may require a respondent utility to amend its advice letter and tariffs to comply with the orders herein, and may require a respondent utility to file and serve individual advice letters and tariffs as needed to separately implement portions of today's order.
2. The November 9, 2001 petition for modification of Decision (D.) 01-06-087 filed by California Manufacturers and Technology Association (regarding changes in the Optional Binding Mandatory Curtailment (OBMC) program baseline measurement and calculation of penalties during the first hour of an OBMC event) is denied.
3. The November 13, 2001 petition for modification of D.01-04-006 filed by California Industrial Users (regarding interruptible customers participation in OBMC after monthly interruptible obligations are met) is granted to the extent provided herein.
4. SDG&E's Advice Letter 1320-E (regarding a proposed Electric Appliance Equipment Interruption program) is rejected.
5. Within seven days of the date this order is mailed, PG&E shall file and serve an advice letter that includes a tariff to implement the Pilot Base Interruptible Program (PBIP). The tariff shall become effective 10 days after filing, unless suspended by the Energy Division Director. A protest to PG&E's PBIP advice letter shall be filed and served within nine days of the date the advice letter is filed if the party filing the protest seeks tariff suspension.
6. The priority system for rotating outages stated in this order and in Attachment B shall supercede the existing priority system 30 days from today, and shall be implemented by each respondent utility. Each skilled nursing facility (SNF) licensed by the California Department of Health Services shall be included in essential customer Category C. SNFs in Category M shall be transferred to Category C effective 30 days from today. Within 30 days of today, each respondent utility shall notify each SNF customer of its inclusion in essential customer Category C. Each SNF shall be exempt from rotating outages regardless of the status of backup or standby generation.
7. Respondent utilities shall file and serve the adopted reports and studies shown in Attachment F. Unless directed otherwise by subsequent order, each utility may terminate the filing and service of its monthly report on interruptible programs and curtailment priorities effective upon the date that the final decision is mailed in the next rate design phase of its general rate case, or similar proceeding, in which the Commission addresses interruptible programs. PG&E shall continue to file monthly reports through the completion of the PBIP test. Respondent utilities shall meet with Energy Division staff to discuss bringing monthly reports into compliance with prior and current orders, adopting a consistent report and table format, and addressing the subject and timing of the inclusion of additional information discussed in this order.
8. The December 18, 2001 petition for modification of D.01-04-006 (regarding changes in firm service levels) filed by SCE is denied. Within 30 days of the date of this order, SCE shall notify each customer whose request in November 2001 to reduce its firm service level was denied that each such customer has a 15-day window to now elect to reduce its firm service level. The reduction shall be effective the same date as if SCE had granted the original request in November 2001.
9. The Energy Division Director may authorize respondent utilities to implement cost-effective, reasonable circuit reconfiguration projects, including circuit reconfigurations involving SNFs, to isolate essential from non-essential customers up to the total dollars authorized in Ordering Paragraph 5 of D.01-04-006 (i.e., a cumulative total of $5 million for PG&E, $5 million for SCE, and $1 million for SDG&E).
10. Essential customer Category M shall expire on September 6, 2003, and Category M shall be removed from the essential customer list effective September 7, 2003. No later than August 7, 2003, each respondent utility shall notify each customer awarded Category M status that the customer's Category M status expires on September 6, 2003.
11. Each respondent utility shall, within 15 days of the date of this order, provide a draft notice to the Commission's Public Advisor. The draft notice shall inform water and sewer customers of Category H. Each respondent utility shall include the comments of the Public Advisor in preparing the final notice. Each respondent utility shall, within 45 days of the effective date of this order, serve a copy of the final notice on each of its water and sewer customers. Within 45 days of the date of this order, each respondent utility shall file and serve a verified statement certifying service of the final notice on each such customer, with a copy of the final notice attached to the statement. The statement shall also include any other relevant information necessary to reasonably inform the Commission about completion of the notice.
12. Within 120 days of the date of this order, each respondent utility shall conduct a test of the emergency exemption and restoration procedure permitted in Category H. Each respondent utility shall take the lead role and responsibility to develop, organize, conduct, analyze, and report the results of its test. The test shall include a reasonable sample of water and sewer customers. Each respondent utility shall accommodate input from all entities that will participate in the test, and include each entity's suggestion to the extent reasonable. Each respondent utility shall file and serve a report on the test and its results within 60 days of the date the test is completed. The report shall also include a discussion of the amount of time required for each utility to respond to a request for exemption or restoration, including an explanation of "immediate processing" or "best efforts." The report shall be served on each party who requests a copy, and on each participant. Except for service on the Commission, each respondent utility may serve a Notice of Availability on parties, even if the report is less than 75 pages (unless a party has previously informed respondent utility of its desire to receive a complete copy).
13. Each respondent utility shall, within 15 days of the date of this order, provide a draft bill insert to the Commission's Public Advisor. The draft bill insert shall inform customers and other persons about reasonable health and safety precautions that may be taken during times of extreme temperature. Each respondent utility shall include the comments of the Public Advisor in preparing the final notice. Within 60 days of the date of this order, each respondent utility shall serve the final notice as a bill insert. The bill insert shall be repeated periodically, as reasonable and necessary. Each utility shall also include reasonable similar education material in their use of mass media at the time of extreme temperature. Each respondent utility shall also make a reasonable effort to target outreach to vulnerable populations, such as persons who live in assisted living facilities that are not SNFs.
14. Each respondent utility shall employ a system of advance notice by individualized, automated telephone message (or other reasonable individualized message) to each residential customer or person in the customer's household whose health is identified to be at risk when exposed to extreme temperature. Each respondent utility shall use the form in Attachment C for this purpose. The availability of this form shall be noticed to all customers by bill insert within 60 days of the date of this order. A draft of the bill insert notice shall be provided to the Public Advisor within 15 days of the date of this order, and utilities shall incorporate the suggestions of the Public Advisor for the final bill insert. The certification shall be for a period of up to two years, and the customer or person shall re-certify by December 31 of the year the certification is due to expire. A utility shall not remove a customer or person if for any reason the re-certification form is not mailed to the customer or person at least 60 days before the customer's eligibility for this advance message is due to expire.
15. Each respondent utility shall undertake a reasonable effort to identify cooling and heating stations within its service area, and include information on those stations in bill inserts and mass media, as appropriate.
16. Each respondent utility shall collect balances in memorandum accounts established by D.01-01-056 (used to track non-compliance penalties for the period October 1, 2000 through January 25, 2001). PG&E and SDG&E shall allow affected customers to make a one-time reconciliation as provided in Attachment E.
17. The December 10, 2001 petition for modification of D.01-04-006 filed by California Steel Industries, Inc. is denied. D.01-06-087 is modified as provided in Attachment D. Respondent utilities shall, within 30 days of the date of this order, provide notice to each customer affected by modification of D.01-06-087 of those modifications. The SCE customers affected by the timing of D.01-04-006 and D.01-05-090 shall have 15 days after the date of notice to accept or reject the opportunity provided in the modification of D.01-06-087. (Attachment D, Item 2.4.9.5.)
18. The following program and dollar limits shall apply effective the date of this order to program implementation by respondent utilities until later modified or eliminated:
INTERRUPTIBLE PROGRAM
AND CURTAILMENT PRIORTY LIMITS
UTILITY |
INTERRUPTIBLE PROGRAM LIMIT (MW) |
TOTAL ANNUAL PROGRAM DOLLAR LIMIT ($ MILLION) |
PG&E |
1,000 |
100.0 |
SCE |
1,375 |
137.5 |
SDG&E |
125 |
12.5 |
TOTAL |
2,500 |
250.0 |
The megawatt limits apply to the total megawatts that may be subscribed to interruptible programs at any one time without further Commission authorization, including currently subscribed amounts. If a currently subscribed megawatt transfers from an existing program to a new program (e.g., by exercising an opt-out option), that megawatt shall not be counted twice against the program total. The dollar limits apply to the total dollars to be spent by each respondent utility on an annual basis for total interruptible program costs, and new costs implementing changes to curtailment priorities, without further authorization. These limits shall apply separately for each calendar year. These dollar totals include amounts funded in current rates, and those recorded in the memorandum account of each respondent utility.
19. A paper copy of this decision shall not be served on any Category M applicant, unless that applicant specifically requests a paper copy.
20. This proceeding remains open solely to address the petition for modification of D.01-09-020 filed on February 20, 2002 by Dr. Lee F. Walker.
This order is effective today.
Dated ____________________, at San Francisco, California.
ATTACHMENT A
Pilot Base Interruptible Program (PBIP)
Note: The PBIP is numbered in sequence based on programs adopted in Phase 1. (D.01-04-006, Attachment A.)
2.6. Pilot Base Interruptible Program (PBIP)
2.6.1. Limit to one four-hour event per day, and no more than three consecutive days.
2.6.2. Limit to 10 events per month, and 120 hours per calendar year.
2.6.3. Annual opt-out option in November, effective in January.
2.6.4. Incentive of $8.00 per kW-month as a credit on the customer's bill for committed interruptible capacity.
2.6.5. There is no energy payment for load reductions specified in the participation agreement for which there is a capacity (incentive) payment. The customer is eligible to be paid for energy reductions beyond the customer's load reduction commitment at an energy rate of $0.15/kWh. The total energy payment shall be calculated as the difference between recorded energy usage and the baseline less the committed load curtailment amount times the energy rate.
2.6.6. Baseline for evaluating load responses shall be the average of the immediate past 10-days prior to the curtailment event, excluding weekends, holidays, curtailment events, and when a customer was subject to a rotating outage. The baseline will be calculated on an hourly basis using the average of the same hour for the 10 days.
2.6.7. A load curtailment event may be triggered when a Stage 2 emergency is called or when transmission system contingencies justify calling a localized block of participants. The utility and California Independent System Operator (CAISO) may arrange to segment participants into more than one block with one or more blocks called upon individually. If more than one block is created, then the CAISO and utility shall arrange to call upon blocks in an unbiased manner relative to the nature of the emergency.
2.6.8. Failure to satisfy the load reduction commitment shall result in a penalty of $6.00 per kWh for each kWh of load curtailment that is not provided. Participants have 30 minutes from the time they are notified of the event by the utility to accomplish the agreed upon load curtailment.
2.6.9. This program is open to customers with peak demands greater than 200 kW with an interval or real time metering system who can commit to curtail at least 15% of their maximum load or 50 kW, whichever is greater, per event.
2.6.10. Load can only be committed to one program at a time, and participants shall only be paid once for a load reduction. Customers currently enrolled in another utility interruptible program must complete all annual obligations in that program before being eligible for the PBIP.
2.6.11. The PBIP shall last two years, and be conducted in the San Jose area. Subscribed megawatts of interruptible load for the test shall not exceed 50 MW.
2.6.12. All customers who subscribe to the PBIP must agree to complete an annual customer survey that will assess and evaluate customer participation and program operation.
(END OF ATTACHMENT A)
ATTACHMENT B
PRIORITY SYSTEM FOR ROTATING OUTAGES
1. Essential Customers - Normally Exempt from Rotating Outages
A. Government and other agencies providing essential fire, police, and prison services.
B. Government agencies essential to the national defense.
C. Hospitals and skilled nursing facilities.
D. Communication utilities, as they relate to public health, welfare and security, including telephones.
E. Navigation communication, traffic control, and landing and departure facilities for commercial air and sea operations.
F. Electric utility facilities and supporting fuel and fuel transportation services critical to continuity of electric power system operation.
G. Radio and television broadcasting stations used for broadcasting emergency messages, instructions, and other public information related to the electric curtailment emergency.
H. Water and sewage treatment utilities may request partial or complete rotating outage exemption from electric utilities in times of emergency identified as requiring their service, such as fire fighting.
I. Areas served by networks, at serving utility's discretion.
J. Rail rapid transit systems as necessary to protect public safety, to the extent exempted by the Commission.
K. Customers served at transmission voltages to the extent that (a) they supply power to the grid in excess of their load at the time of the rotating outage, or (b) their inclusion in rotating outages would jeopardize system integrity.
L. Optional Binding Mandatory Curtailment Program (OBMC): Any customer, or customers, meeting the following criteria.
The customer must file an acceptable binding energy and load curtailment plan with the utility. The customer must agree to curtail electric use on the entire circuit by the amount being achieved via rotating outages. The customer's plan must show how reduction on the entire circuit can be achieved in 5 percent increments to the 15 percent level, and show how compliance can be monitored and enforced. The customer must maintain the required reduction during the entire rotating outage period. The required curtailment level is requested prior to commencement of Stage 3. Several customers on a circuit may file a joint binding plan to guarantee the required curtailment from the entire circuit. Each utility shall facilitate communication between customers on a circuit if any customer expresses interest in enrolling in the OBMC program.
Note: Protection cannot be guaranteed because daily circuit switching may temporarily change a customer's outage block and priority classification.
M. Limited other customers as necessary to protect public health and safety, to the extent exempted by the Commission.
Note: Category M is removed from the essential customer list effective September 7, 2003.
N. Petroleum refineries, vital ancillary facilities, and other customers in the critical fuels chain of production, to the extent exempted by the Commission. Petroleum refineries are facilities that separate or alter the components in crude oil, and convert the components into usable fuels or feedstock for further processing. Vital ancillary facilities are facilities that, if curtailed during a rotating outage, would cause one or more petroleum refineries to significantly curtail production, initiate a controlled shutdown, or initiate an emergency shutdown. Eligible refineries and vital ancillary facilities must be firm electricity service customers served at transmission level, or served at distribution level in an outage block exempt from rotating outages.
2. Outage Notification
A. Life Support, Critical Care and Temperature Sensitive Customers
Life support, critical care and temperature sensitive customers shall be notified by recorded or other message of a rotating outage to which they will be affected. The call is not required until a rotating outage is imminent. Utilities must undertake their best efforts to inform these customers. Individual timely warning cannot be assured because of time, manpower, or communication limits, or due to daily circuit switching which may temporarily change a customer's outage block number.
B. Large Customers, Economic Damage Customers, and Danger to Health and Safety
As circumstances permit, individual warning of rotating outages will be given to large customers having demand of 300 kW or more. It will also be given to other customers upon their showing to the utility of major economic damage, or clear and imminent danger to personal health or safety. Individual timely warning cannot be guaranteed, however, because of time, manpower, or communication limits, or due to daily circuit switching which may temporarily change a customer's outage block number.
C. All Other Customers
Warning and other relevant information may be provided by mass media, with no special treatment or individual notification generally given.
(END OF ATTACHMENT B)
ATTACHMENT C
APPLICATION BY TEMPERATURE SENSITIVE CUSTOMER
IMPORTANT INFORMATION
This application provides the means for a customer who has a health condition which places the customer at increased health risk from temperature extremes to receive advance notification of rotating power outages (rolling blackouts) in the customer's area. The application may also be used by a customer for a person living in the customer's immediate household with a temperature sensitive health condition. The advance notification will be by phone call to the telephone number designated by the customer.
Persons who qualify for this advance notification are those with a health condition that places them at increased risk, compared to the average person, for poor health and illness when exposed to temperature extremes. These conditions include, but are not limited to:
cystic fibrosis, cardiac conditions, peripheral vascular disease, chronic illnesses, or the use of any of several medications, such as beta-adrenic blockers, diuretics, seizure medications, tricyclic antidepressants, or calcium channel blockers.
Completion and acceptance of this form will enable the utility to attempt to notify the customer in advance of a planned outage. Individual timely notification, however, cannot be guaranteed because of time, manpower, or communication limits, or because of daily circuit switching which may temporarily change the customer's rotating outage block. Acceptance of this form will not provide an exemption from rotating outages.
Incomplete or false information on this application may cause us to postpone, deny adding, or to remove your name from the advanced notification list. You must also agree to let us know if:
1. The person with the qualifying status no longer lives at this address.
2. The medical condition or medication at issue is no longer a factor.
COMPLETE THIS PORTION. (PLEASE PRINT)
1. Name of customer or qualifying resident: _____________________________________________________________________
NAME
2. If qualifying resident is not the utility customer, please state the utility customer's name and the relationship of the qualifying resident:
____________________________________________________________________
CUSTOMER NAME RELATIONSHIP OF QUALIFYING RESIDENT
3. Telephone number for advanced notification: _____________________________________________________________________
4. Customer's Electric Utility Account Number: _____________________________________________________________________
5. Service Address:
_____________________________________________________________________
STREET UNIT NUMBER
____________________________________________________________________
CITY STATE ZIP CODE
6. Mailing address for qualifying resident (if different than service address):
_____________________________________________________________________
STREET UNIT NUMBER
____________________________________________________________________
CITY STATE ZIP CODE
I hereby certify that the above information is true and correct, reflecting my increased sensitivity to extreme temperatures, or that of a member of my immediate household.
__________________________________ __________________ SIGNATURE OF APPLICANT DATE
__________________________________ __________________
SIGNATURE OF APPLICANT DATE
Note: The completion of this application will provide advanced notification to qualifying resident for 2 years. A new application must be submitted and approved by the utility no later than December 31 of the year the application is set to expire for the customer to continue to receive notification.
UTILITY USE ONLY Time approved: 2 yr
Customer account number:
_____________________________ Approved/Denied by:
Date received: _____________________ ____________________________________
