COM/CXW/sid DRAFT
4/22/2002
Agenda ID #366
Decision __________
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking into the operation of interruptible load programs offered by Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company and the effect of these programs on energy prices, other demand responsiveness programs, and the reliability of the electric system. |
Rulemaking 00-10-002 (Filed October 5, 2000) Phase 2 |
TABLE OF CONTENTS
Page
INTERIM OPINION ON INTERRUPTIBLE PROGRAMS AND CURTAILMENT PRIORITIES 2
1. Summary 2
2. Procedural Background 6
3. Interruptible Programs 9
3.1. Extend Rolling Blackout Reduction Program 9
3.2. Duration of All Programs 14
3.2.1. Extend to Next General Rate Case or Similar Proceeding 16
3.2.2. Modified Capacity and Dollar Limits 17
3.2.3. Utility Reports 20
3.2.4. Program Consolidation 22
3.2.5. Cost Benefit Analysis 23
3.3. Bill Limiter 23
3.4. Aggregation of More Than Two Circuits for OBMC 29
3.5. Alternate Workweeks 30
3.6. Other Modifications 30
3.6.1. SLRP 31
3.6.2. OBMC 32
3.6.2.1. Similar Days 32
3.6.2.2. Temperature Correction 33
3.6.2.3. Stage 1 and 2 Days 33
3.6.2.4. Real Time Profile Option 34
3.6.2.5. Days to Exclude From Baseline 35
3.6.2.6. Minimum 30-Minute Notice 36
3.6.2.7. Monthly Interruptible Contract Requirements 38
3.6.2.8. Lead Customer 40
3.6.2.9. Costs Allocated to Large Customers 42
3.6.3. CCPCFA Comments 42
3.6.4. SDG&E EAEI Program 46
3.6.5. CEC Proposals 48
3.6.6. SCE Petition for Modification Regarding Changes to FSLs 55
4. Curtailment Priorities 59
4.1. Hospitals With Fewer Than 100 Beds 59
4.2. Skilled Nursing Facilities 63
4.2.1. Background 63
4.2.2. Data 65
4.2.3. DHS Certification and Category C 66
4.2.4. Circuit Reconfiguration Studies 67
4.2.5. Other Conditions 68
4.2.6. Self-Generation 69
4.3. Category M 70
4.3.1. Expiration on September 6, 2003 71
4.3.2. Backup or Self-Generation 72
4.3.3. Energy Efficiency Alternatives 74
4.3.4. Eliminate Category M 74
4.3.5. Reminder of Notice 74
4.4. Water and Sewer Utilities 75
5. Extreme Temperature 87
5.1. Background 88
5.2. Extreme Temperature Rotating Outage Exemption 88
5.3. Alternatives: Reducing Duration or Imposing Outage
at Another Time 91
5.4. Adopted Alternative: Education, Notification, Cooling
and Heating Stations 92
5.5. Penalty for Outages Over 90 Minutes 96
6. Memorandum Account Balances 98
6.1 Background 98
6.2. Memorandum Account Totals 98
6.3. Require Collection of Balances 100
6.4. Ratemaking 106
6.5. Cal Steel Petition for Modification 106
7. Conclusion 110
8. Service of Decision on Category M Applicants 111
9. Need for Expedited Consideration 111
10. Comments on Draft Decision 112
Findings of Fact 113
Conclusions of Law 123
INTERIM ORDER ON INTERRUPTIBLE PROGRAMS AND CURTAILMENT PRIORITIES 129
ATTACHMENT A - Pilot Base Interruptible Program (PBIP)
ATTACHMENT B - Priority System for Rotating Outages
ATTACHMENT C - Application by Temperature Sensitive Customer
ATTACHMENT D - Modification of Decision 01-06-087
ATTACHMENT E - Changes to Current Interruptible Programs, New Pilot
Base Interruptible Program, and Essential Customers
ATTACHMENT F - Adopted Studies and Reports
1. Summary
Since the mid-1980s, electricity customers have been offered rate discounts for agreeing to interrupt their use of electricity when demand approaches supply. If demand exceeds supply after voluntary interruptions, utilities implement rotating outages based on Commission authorized curtailment priorities.
On April 3, 2001, in the midst of a serious electricity crisis, the Commission adopted important improvements to interruptible programs and curtailment priorities for Summer 2001. (Decision (D.) 01-04-006.) We now give further consideration to these matters for the period after Summer 2001. Specifically, we address (1) interruptible programs, (2) curtailment priorities, (3) priority for residential use in areas of extreme temperatures (Senate Bill (SB) 2X 68), and (4) disposition of certain memorandum account balances.
Regarding interruptible programs:
· Extend Programs: We extend the duration of programs now scheduled to terminate on or before December 31, 2002 for a period of about one year, to the conclusion of the rate design phase of each utility's next general rate case (GRC), or similar proceeding. We set a planning goal of 2,500 megawatts (MWs) for interruptible programs, and reduce authorized capacity and dollar limits accordingly. We decline to order a special report from utilities in August 2002, but continue to require monthly reports.
· Bill Limiter: We direct that the bill limiter provision in the interruptible program tariff of Southern California Edison Company (SCE) terminates on the effective date of this order. We provide a limited, 15-day opt-out for affected customers.
· Aggregation of more than two circuits for OBMC: We decline to authorize a tariff option for aggregation of more than two circuits by a single lead customer for participation in the Optional Binding Mandatory Curtailment (OBMC) Program.
· Alternate Workweeks: We do not recognize alternate workweek schedules for participation in OBMC, as recommended by California Steel Industries, Inc. (Cal Steel).
· SLRP: We modify the non-compliance provision of the Scheduled Load Reduction Program (SLRP) for consistency with meter data.
· OBMC: We authorize OBMC participation after an interruptible customer completes its monthly obligations under the interruptible program, but decline other proposed changes to OBMC.
· CCPCFA: We decline to adopt the interruptible program recommendations of the California Consumer Power and Conservation Financing Authority (CCPCFA or Power Authority).
· SDG&E EAEI Program: We decline to give further consideration to the proposal of San Diego Gas & Electric Company (SDG&E) for an Electric Appliance Equipment Interruption (EAEI) program.
· CEC Proposals: We decline to adopt the surcharge or specific modifications to existing programs proposed by California Energy Commission (CEC). We authorize a pilot program to test CEC's recommended modifications to the Base Interruptible Program (BIP).
· Change in Firm Service Level: We deny SCE's petition for modification of D.01-04-006 regarding decreases in firm service level (FSL). Customers may increase or decrease FSL during each annual opt-out opportunity.
Regarding curtailment priorities:
· Hospitals: We continue essential customer status for hospitals with fewer than 100 beds.
· SNFs: We expand essential customer Category C to include skilled nursing facilities (SNFs) licensed by the California Department of Health Services (DHS). We order utilities to file and serve reports on circuit reconfigurations regarding circuits that serve SNFs. SNFs in Category M are transferred to Category C.
· Category M: We decline to adopt procedures for continuation of Category M status beyond September 6, 2003, and we remove Category M from the list of essential customers effective September 7, 2003.
· Water and Sewer Utilities: We direct respondent utilities to (a) notify water and sewer customers of essential customer Category H, (b) conduct a test of Category H exemption or restoration procedures, and (c) report the results of those tests. We decline to order that water and sewer utilities install backup generation. We decline to adopt the joint recommendation of SCE and Los Angeles County (LAC) to modify essential customer Category H to provide for "immediate" restoration of service, but order utilities to discuss their response as part of their report on testing Category H.
Regarding extreme temperatures:
· Special Priority: We decline to adopt a special priority of use for some customers based on extreme temperatures.
· Customer Education and Advance Notification: We adopt utilities' alternative recommendation for customer education and advance notification, but permit self-certification rather than require medical certification.
· Cooling and Heating Stations: We adopt utilities' proposal to use "cooling stations," and expand the use to also include "heating stations." We encourage utilities to locate such stations, and consider working with customers to seek legislation, if necessary, to provide funding.
Finally, regarding memorandum account balances:
· Collection of Memorandum Account Balances: We require collection of balances in memorandum accounts that were created to track non-compliance penalties from October 1, 2000 through January 25, 2001. We permit a limited reconciliation of balances for Pacific Gas and Electric Company (PG&E) customers for the period from November 1, 2000 to April 30, 2001, and permit curtailment events during that period not to be counted toward the tolling of compliance for the level of non-compliance penalties in the subsequent year. We permit a limited opt-out for SDG&E customers who were interruptible customers for 12 months or less.
· Calculation of penalties: We deny Cal Steel's petition regarding scaling non-compliance penalties for the amount of compliance, but partially grant SCE's alternative proposal to the extent that we allow customers who originally opted-out of SCE Schedule I-6 in favor of OBMC to return to Schedule I-6 effective November 1, 2000. The customer may determine the FSL and may now exercise its November 2001 opt-out.
All matters are now resolved, with the exception of a petition for modification of D.01-09-020 filed on February 20, 2002 by Dr. Lee F. Walker. The proceeding remains open only for resolution of this one petition.
