COM/HMD/RB1/acb Item 6a
3/27/2001
Decision ALTERNATE DRAFT ORDER OF COMRS DUQUE AND BILAS (Mailed 3/26/01)
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) |
INTERIM OPINION
TABLE OF CONTENTS
Page
INTERIM OPINION 2
1. Summary 2
2. Interruptible Tariffs Background 3
3. Curtailment Priorities Background 7
4. Proceeding Background 9
5. Adopted Improvements to Current Interruptible Programs and New Programs 12
5.1 Opt-Out and Realignment of Firm Service Level 12
5.2 Other Modifications 17
5.4 Lift Suspension of Penalty Provisions 23
5.5 New Base Interruptible Program 23
5.6 Voluntary Demand Response Program 25
5.7 Air Conditioner Cycling Programs Plus Agricultural Pumping Programs 27
5.8 Optional Binding Mandatory Curtailment Program 29
5.9 SDG&E HVAC Program 31
5.10 Regional Load Curtailment 31
6. Rotating Outage Programs 32
6.1 Modifications for Equity 32
6.1.1 Study Narrowing Exempted Load by Reconfiguring Circuits 32
6.1.2 Include Most Transmission Level Customers in Rotating Outages 35
6.1.3 Essential Customers 36
6.1.4 Fossil Fuel Producers 38
6.1.5 SCADA and Non-SCADA 39
6.2 Modifications to Increase Protection 41
6.2.1 Outbound Calling Program 41
6.2.2 Offices of Emergency Services 44
6.2.3 BART and MUNI 45
6.2.4 Other Rail Transit 46
6.2.5 Utility Outage Notification Plans 47
6.2.6 Hospitals 49
6.3 Update Utility Action Plans 50
7. Other Issues 50
7.1 Customer Recognition Program 50
7.2 Exempting Water and Sewer Districts, and Ancillary Government Services 51
7.3 Continue Networks as Essential Customers 54
7.4 Advance Notification 54
7.5 Scheduled Load Reduction Program 55
7.6 Other Recommendations 57
8. Funding and Program Limits 57
9. Implementation 65
Comments on Alternate Decision............................................................65
Findings of Fact...................................................................................65
Conclusions of Law..............................................................................72
INTERIM ORDER................................................................................78
ATTACHMENT A - Changes to Current Interruptible Programs, New Interruptible Programs, and Rotating Outage Programs
ATTACHMENT B - Decision No. 91584: Priority System for Rotating Outages
ATTACHMENT C - Adopted Priority System for Rotating Outages
ATTACHMENT D - Adopted Studies and Reports
INTERIM OPINION
1. Summary
This decision adopts important and valuable improvements to the interruptible tariffs and rotating outage programs of Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). These changes will improve the reliability of California's electric system for the near term, particularly Summer 2001.
The adopted programs are described in Attachment A. These programs largely implement the February 9, 2001 recommendations of the Energy Division, which we clarify and modify based on reasonable proposals and suggestions made in the February 14, 2001 Joint Proposal, the February 22, 2001 comments, and the February 26, 2001 reply comments.
This order provides a broad range of short-term and mid-term tools to help California get through the challenges of the immediate future, while additional steps are taken elsewhere to implement a more comprehensive response to the situations that Californians now face.
This order also approves a surcharge mechanism to allow for interim funding of the programs. This surcharge should amount to a mere fraction of one cent per kWh, which is cost-effective insurance against further outages this year. We direct the utilities to file an advice letter filing in no later than 15 days to demonstrate the allocation of program funding that can be recovered through current funds and through penalties. They should also present a calculation of the interim surcharge, subject to true- up, that can be implemented immediately. In Phase 2, we will also pursue ideas for a funding mechanism through the Department of Water Resources (DWR) revenue requirement and a regional load curtailment program.
