STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
March 19, 2001
TO: PARTIES OF RECORD IN RULEMAKING 99-10-025
This is the proposed decision of Commissioner Bilas which has been identified as Item 7 on the March 27, 2001 agenda. However, this decision will be considered at the regular meeting scheduled for April 19, 2001. This matter was categorized as quasi-legislative and is subject to Pub. Util. Code § 1701.4.
The Commission may act at the regular meeting on April 19, 2001, or it may postpone action until later.
When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Parties to the proceeding may file comments on the proposed decision as provided in the attached section of the Commission's "Rules of Practice and Procedure." Please read them carefully and note the filing dates, the limitations on content of comments, and the requirement of service on all other parties. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served on the ALJ separately, and I suggest hand delivery, overnight mail, or other expeditious method of service on the ALJ.
/s/ LYNN T. CAREW
Lynn T. Carew, Chief
Administrative Law Judge
LTC:t93
Attachments
COM/RB1/t94 DRAFT Item 7
3/27/2001
Decision PROPOSED DECISION OF COMMISSIONER BILAS
(Mailed 3/19/2001)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking into Distributed Generation. |
Rulemaking 99-10-025 (Filed October 21, 1999) |
(See Appendix A for List of Appearances)
TABLE OF CONTENTS
Page
INTERIM DECISION ADOPTING STANDY RATE DESIGN POLICIES 1
1. Summary 2
2. Background 2
3. Procedural History 4
4. Standby Rates Today 5
5. Positions of the Parties 11
5.1 Pacific Gas and Electric Company 11
5.2 Southern California Edison Company 14
5.3 San Diego Gas & Electric Company 17
5.4 Sierra Pacific Power Company 19
5.5 Federal Executive Agencies 20
5.6 Office of Ratepayer Advocates 22
5.7 The Utility Reform Network et al. 24
5.8 State Consumers 27
5.9 California Independent System Operator 28
5.10 Enron Energy Service Inc. and Enron North America Corp. 30
5.11 Capstone Turbine Corp., Inc. et al. 31
5.12 Cogeneration Association of California/ Energy Producers and User Coalition 32
5.13 City and County of San Francisco 34
6. Major Issues 35
6.1 Nature of Costs to Serve Standby Customers 35
6.2 Types of Standby Service 36
6.3 Diversity and Reliability 40
6.4 Should Distribution Costs be Recovered through Fixed or Variable Charges? 45
6.5 Should Standby Rates Reflect Embedded or Incremental Costs? 48
6.6 Transmission Charges/Gross Load Metering 49
6.7 Interruptible or Non-Firm Standby Rates 50
6.8 Valuation 53
7. Discussion and Summary of Adopted Standby Rate Design Framework 55
8. Independent Clean Energy Tariff 65
9. Comments on Proposed Decision 72
Findings of Fact 72
Conclusions of Law 75
Interim Order 78
INTERIM DECISION ADOPTING STANDBY RATE DESIGN POLICIES
1. Summary
This decision adopts interim standby rate design policies for self-generation facilities that are interconnected to and operate in parallel with the distribution system in accordance with Rule 21. The utilities are directed to file standby rate design applications consistent with the interim policy guidelines within 60 days; the permanent rates will be adopted within utility-specific proceedings. The rate design policy we approve today provides guidelines for appropriate rate design of the standby rates charged to customers employing onsite generation to cover all or some portion of their load. These policies will apply to any onsite generation facility requiring some level of standby service, whether for supplemental, backup, or maintenance purposes. Such facilities include distributed generation, cogeneration, microcogeneration, and qualifying facilities (QFs). We also adopt the Independent Clean Energy Tariff (ICE-T) proposal recommended by the California Solar Energy Industry Association (CalSEIA). Respondent utilities are directed to submit advice letters to implement the ICE-T proposal within 15 days of the effective date of this order.
