COM/CXW/sid Mailed 4/25/2002
Decision 02-04-060 April 22, 2002
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 11
3.1. Extend Rolling Blackout Reduction Program 11
3.2. Duration of All Programs 16
3.2.1. Extend to Next General Rate Case or Similar Proceeding 18
3.2.2. Modified Capacity and Dollar Limits 20
3.2.3. Utility Reports 24
3.2.4. Program Consolidation 26
3.2.5. Cost Benefit Analysis 27
3.3. Bill Limiter 28
3.4. Aggregation of More Than Two Circuits for OBMC 36
3.5. Alternate Workweeks 37
3.6. Other Modifications 38
3.6.1. SLRP 39
3.6.2. OBMC 39
3.6.2.1. Similar Days 40
3.6.2.2. Temperature Correction 40
3.6.2.3. Stage 1 and 2 Days 41
3.6.2.4. Real Time Profile Option 42
3.6.2.5. Days to Exclude From Baseline 44
3.6.2.6. Minimum 30-Minute Notice 46
3.6.2.7. Monthly Interruptible Contract Requirements 48
3.6.2.8. Lead Customer 49
3.6.2.9. Costs Allocated to Large Customers 51
3.6.3. CCPCFA Comments 51
3.6.4. SDG&E EAEI Program 56
3.6.5. CEC Proposals 59
3.6.6. SCE Petition for Modification Regarding Changes to FSLs 67
4. Curtailment Priorities 70
4.1. Hospitals With Fewer Than 100 Beds 71
4.2. Skilled Nursing Facilities 74
4.2.1. Background 74
4.2.2. Data 76
4.2.3. DHS Certification and Category C 77
4.2.4. Circuit Reconfiguration Studies 78
4.2.5. Other Conditions 79
4.2.6. Self-Generation 81
4.3. Category M 82
4.3.1. Expiration on September 6, 2003 83
4.3.2. Backup or Self-Generation 85
4.3.3. Energy Efficiency Alternatives 86
4.3.4. Eliminate Category M 86
4.3.5. Reminder of Notice 86
4.4. Water and Sewer Utilities 87
5. Extreme Temperature 101
5.1. Background 102
5.2. Extreme Temperature Rotating Outage Exemption 102
5.3. Alternatives: Reducing Duration or Imposing Outage at Another Time 105
5.4. Adopted Alternative: Education, Notification, Cooling and Heating Stations 106
5.5. Penalty for Outages Over 90 Minutes 110
6. Memorandum Account Balances 112
6.1 Background 112
6.2. Memorandum Account Totals 113
6.3. Require Collection of Balances 115
6.4. Ratemaking 122
6.5. Cal Steel Petition for Modification 123
7. Conclusion 127
8. Service of Decision on Category M Applicants 127
9. Comments on Draft Decision 128
Findings of Fact 129
Conclusions of Law 140
INTERIM ORDER ON INTERRUPTIBLE PROGRAMS AND
CURTAILMENT PRIORITIES 147
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 continue the bill limiter provision in the interruptible program tariffs of Southern California Edison Company (SCE). We continue its application to the portion of existing rates that were in effect before 2001, but end its application to the remainder of rates effective on the date of this order. We provide a limited, 15-day opt-out for bill-limited 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. We authorize a pilot program to test OBMC 10-day baseline measurement normalized to reflect current conditions.
· 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 Stations: We adopt utilities' proposal to use cooling 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, and the future of the demand bidding program (DBP). The proceeding remains open only for resolution of these two items.
