PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

ENERGY DIVISION RESOLUTION E-3812

February 27, 2003

RESOLUTION

Resolution E-3812. PG&E requests approval of changes to its electric Rule 21, Generating Facility Interconnections, clarifying and defining issues as agreed upon in the on-going working group meetings. PG&E's request is approved.

By Advice Letter 2281-E-A Filed on December 27, 2002.

__________________________________________________________

SUMMARY
This resolution grants PG&E's request for a Commission resolution approving the proposed changes to its Electric Rule 21. All utilities and other parties in the Rule 21 Working group pursuant to D.00-12-037 agreed to these changes; none of them are significant. SCE's and SDG&E's Advice Letters (AL) incorporating these changes are already in effect.

BACKGROUND
This Advice Letter is one of a continuing series of revisions and improvements to Electric Rule 21.

On March 15, 2001 PG&E's AL 2056-E was approved, implementing the Rule 21 Model Tariff Language of D. 00-01-011. Supplemental Recommendations by the Energy Commission for changes to the Rule 21 Model Tariff were reflected in D. 00-12-037. PG&E's AL 2071-E implementing those changes was approved on January 5, 2001. D. 00-12-037 also directed the Rule 21 Working Group, led by the California Energy Commission (CEC), to continue discussing interconnection issues and building consensus on changes to Rule 21.

NOTICE
Notice of AL 2281-E-A was given by publication in the Commission's Daily Calendar. PG&E states that a copy of the Advice Letter was mailed and distributed in accordance with Section III-G of General Order 96-A.

PROTESTS
Advice Letter AL 2281-E-A was not protested. However PG&E requested approval by Resolution of its AL, because in contrast to the other utilities, it believes some changes may constitute modification of Commission Decisions D. 00-11-001 and D. 00-12-037. SCE and SDG&E did not request a Resolution to approve their nearly identically worded changes and their ALs are in effect.

DISCUSSION
Energy Division has reviewed PG&E's AL and agrees with PG&E that most changes to the Model Tariff are ministerial and do not change the meaning of the Model Tariff. The text changes, which could be construed as not ministerial and modifying Rule 21, are paraphrased below with the reasons for and the impact of the changes.

AL Rule 21 Section Paraphrased Change Reason and Impact

A. Definitions

Added that the definitions in Section H only apply to this Rule and may not apply to PG&E's other tariffs.

For clarification. No impact on Rule 21. Rule 1 defines general terms of the tariffs.

A. (Formerly: Enabling Documents)

Deleted the phrase that it is contemplated that the Applicant executes enabling documents...

Unnecessary repetition of Sections B.1, C.1. and others listing application and agreement forms. No impact on Rule 21.

B.1, C1.h and others

Changed the wording "interconnect" to "operate in parallel" as defining act requiring utility approval.

Allows a Producer to construct and operate isolated the Generating Facility prior to utility permission for parallel operation. Removes unnecessary restriction on Producer.

B.8

Deleted the reference to "CPUC standards for the Producer's particular Generating Facility".

There are no particular or general CPUC standards for Producer's Generating Facility other than Rule 21.

AL Rule 21 Section Paraphrased Change Reason and Impact

B.9

Added the requirement for utility's written explanation of reason for disconnection, upon request.

For Producer's protection of unjustified disconnection by utility.

C.1.b

Deleted the reference to electronic form of Application.

The option of electronic transmittal of the Application information is now shown on the Application form 79-974.

This is the document an applicant receives first.

C.1.c.3)

Deleted the reference to a written description of the requirements for interconnection of a Generating Facility qualifying for Simplified Interconnection.

An application qualifying for Simplified Interconnection does not have any further requirements.

C.1.e

Deleted the reference to Power Purchase Agreement.

Under Rule 21 there is no Sale of Power.

D.1.b.

Added the option of a transfer switch or scheme for momentary paralleling Generating Facilities in lieu of Protective Functions.

Clarifies requirements for momentary (less than 1 sec) paralleling Generating Facilities and provides lower cost options to Producers.

D.1

Deleted the definition of Certified Equipment.

The definition is already in Section H.

D.1

Deleted: Paragraph which says that this Section is not intended to address the requirements for generators that parallel momentarily or operate independently of the Electrical Corporation.

Rule 21 applies to momentarily paralleled and independent generators in terms of the utility verifying those operating modes.

PG&E always required notification of any generator in use.

AL Rule 21 Section Paraphrased Change Reason and Impact

H.

Added that definitions in this Section H are applicable to this Rule, the Application and Interconnection Agreements.

Clarifies applicability of the Definition Section to related documents of Rule 21.

H. "Distributed Generation", "Distributed Generator"

Deleted the definition "DG"

Term "DG" is not used in Rule 21 . "Generating Facilities" are the only "DG" types Rule 21 applies to.

H. "Distribution Service"

Added the exclusion of services directly related to the interconnection of a Generating Facility under Rule 21 from Distribution Service.

Clarification of term as used in Rule 21.

This distinguishes the physical aspect of distribution service referred to in Rule 21 from the more general definition in Rule 1.

H. "Initial Operation"

Deleted

This term is not used in Rule 21.

H. "Interconnection Facilities"

Added that the Interconnection Facilities (IF) are in addition to facilities required to provide electric Distribution Service to a Customer and that the IF may be located on either side of the Point of Common Coupling and may be integral to a Generating Facility or provided separately.

To exclude the Interconnection Facilities from the regular Distribution Service. Also, to clarify the location of the Interconnection Facilities per D. 02-03-057.

H. "ISO"

Deleted

This term is not used in Rule 21.

AL Rule 21 Section Paraphrased Change Reason and Impact

H. "Net Metering"

Deleted

Incorrect term for "Net Energy Metering" which is already defined in H.

H. "Power Purchase Agreement"

Deleted

This term is not used in Rule 21.

H "Rule 2"

Deleted

No definition required.

H. "Supplemental Review"

Added: Definition with the three possible results.

To clarify the purpose of this step in the application review.

H. "Transfer trip"

Added: Defined this type of protective function that trips a Generating Facility remotely by means of an automated communications link controlled by PG&E.

This is one of the options to prevent the formation of an unintended island as specified in D.3.b.1)

H. "Visible Disconnect"

Added: Defined that this switching device allows for visibly verifying contact separation and can be met by opening an enclosure.

This is one of the general interconnection requirements specified in D.1.e. Opening an enclosure provides for more flexibility in design.

Most changes to the model tariff of Rule 21 were discussed and agreed upon in the on-going Rule 21 working group and PG&E's changes are virtually identical to SCE's AL 1630-E-A and SDG&E's AL 1409-E-A. No protests were filed for those ALs and the utilities did not request a resolution for their adoption.

The following changes may be more noteworthy of further consideration:

Deletion of Power Purchase Agreement as one of potential ancillary agreements

Ancillary agreements may be signed in conjunction with a Generating Facility Interconnection, such as Net Energy Metering, Special Facilities or Power Purchase Agreements. In Section C.1.e, SCE and SDG&E still list a Power Purchase agreement as one of the potential agreements to be signed by the Producer. PG&E deleted the Power Purchase agreement in this Section because there is no requirement for the utilities to purchase power under Rule 21. Deletion here does not necessarily preclude a Power Purchase agreement, or for that matter any other agreement, to be signed in conjunction with an Interconnection Agreement.

Exclusion of Interconnection Facilities from Distribution Service Definition

Rule 1 defines Distribution Service as "The delivery of electrical supply and related services by PG&E to a customer over PG&E's Distribution System." Rule 21 also defines Distribution Service but all utilities changed it to exclude services directly related to interconnection of a Generating Facility under Rule 21.

The provision of interconnection for generation is not a service related to or necessary for distribution of electricity to a customer. There is no conflict with the more general definition of Distribution Service in Rule 1, because the introduction to Section H limits the revised definition's applicability to Rule 21 alone.

COMMENTS
This is an uncontested AL in which the resolution grants the relief requested. Accordingly, pursuant to PU Code 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

FINDINGS
1. PG&E filed AL 2281-E-A on December 27, 2002 requesting approval of certain changes to electric Rule 21.

2. The proposed changes are mostly ministerial. Potentially material changes have been recognized and analyzed for their impact in the table of the discussion section.

3. Except for the change to the definition of Distribution Service, these changes were agreed upon and proposed by the on-going Rule 21 working group under the leadership of the CEC.

4. The proposed changes are virtually identical to the changes made by SCE and SDG&E to their Rule 21 in uncontested earlier AL filings.

5. PG&E's deletion of the Power Purchase agreement as one of the potential documents to be signed by a Producer is immaterial because Rule 21 does not mandate the utility to purchase retail power.

6. The exclusionary definition of Distribution Service in Rule 21 does not conflict with the more general definition in Rule 1 because a caveat has been added to the Definition Section H of Rule 21, limiting the definitions to Rule 21.

7. The proposed changes to Rule 21 should be approved.

THEREFORE IT IS ORDERED THAT:
1. The changes to Rule 21 requested in PG&E Advice Letter AL 2281-E-A are approved.

2. This Resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed and adopted at a conference of the Public Utilities Commission of the State of California held on February 27, 2003; the following Commissioners voting favorably thereon:

_______________________

WILLIAM AHERN

Executive Director

MICHAEL R. PEEVEY

President

CARL W. WOOD

LORETTA M. LYNCH

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners

A. Definitions	Added that the definitions in Section H only apply to this Rule and may not apply to PG&E's other tariffs.	For clarification. No impact on Rule 21. Rule 1 defines general terms of the tariffs.
A. (Formerly: Enabling Documents)	Deleted the phrase that it is contemplated that the Applicant executes enabling documents...	Unnecessary repetition of Sections B.1, C.1. and others listing application and agreement forms. No impact on Rule 21.
B.1, C1.h and others	Changed the wording "interconnect" to "operate in parallel" as defining act requiring utility approval.	Allows a Producer to construct and operate isolated the Generating Facility prior to utility permission for parallel operation. Removes unnecessary restriction on Producer.
B.8	Deleted the reference to "CPUC standards for the Producer's particular Generating Facility".	There are no particular or general CPUC standards for Producer's Generating Facility other than Rule 21.

B.9	Added the requirement for utility's written explanation of reason for disconnection, upon request.	For Producer's protection of unjustified disconnection by utility.
C.1.b	Deleted the reference to electronic form of Application.	The option of electronic transmittal of the Application information is now shown on the Application form 79-974. This is the document an applicant receives first.
C.1.c.3)	Deleted the reference to a written description of the requirements for interconnection of a Generating Facility qualifying for Simplified Interconnection.	An application qualifying for Simplified Interconnection does not have any further requirements.
C.1.e	Deleted the reference to Power Purchase Agreement.	Under Rule 21 there is no Sale of Power.
D.1.b.	Added the option of a transfer switch or scheme for momentary paralleling Generating Facilities in lieu of Protective Functions.	Clarifies requirements for momentary (less than 1 sec) paralleling Generating Facilities and provides lower cost options to Producers.
D.1	Deleted the definition of Certified Equipment.	The definition is already in Section H.
D.1	Deleted: Paragraph which says that this Section is not intended to address the requirements for generators that parallel momentarily or operate independently of the Electrical Corporation.	Rule 21 applies to momentarily paralleled and independent generators in terms of the utility verifying those operating modes. PG&E always required notification of any generator in use.

H.	Added that definitions in this Section H are applicable to this Rule, the Application and Interconnection Agreements.	Clarifies applicability of the Definition Section to related documents of Rule 21.
H. "Distributed Generation", "Distributed Generator"	Deleted the definition "DG"	Term "DG" is not used in Rule 21 . "Generating Facilities" are the only "DG" types Rule 21 applies to.
H. "Distribution Service"	Added the exclusion of services directly related to the interconnection of a Generating Facility under Rule 21 from Distribution Service.	Clarification of term as used in Rule 21. This distinguishes the physical aspect of distribution service referred to in Rule 21 from the more general definition in Rule 1.
H. "Initial Operation"	Deleted	This term is not used in Rule 21.
H. "Interconnection Facilities"	Added that the Interconnection Facilities (IF) are in addition to facilities required to provide electric Distribution Service to a Customer and that the IF may be located on either side of the Point of Common Coupling and may be integral to a Generating Facility or provided separately.	To exclude the Interconnection Facilities from the regular Distribution Service. Also, to clarify the location of the Interconnection Facilities per D. 02-03-057.
H. "ISO"	Deleted	This term is not used in Rule 21.

H. "Net Metering"	Deleted	Incorrect term for "Net Energy Metering" which is already defined in H.
H. "Power Purchase Agreement"	Deleted	This term is not used in Rule 21.
H "Rule 2"	Deleted	No definition required.
H. "Supplemental Review"	Added: Definition with the three possible results.	To clarify the purpose of this step in the application review.
H. "Transfer trip"	Added: Defined this type of protective function that trips a Generating Facility remotely by means of an automated communications link controlled by PG&E.	This is one of the options to prevent the formation of an unintended island as specified in D.3.b.1)
H. "Visible Disconnect"	Added: Defined that this switching device allows for visibly verifying contact separation and can be met by opening an enclosure.	This is one of the general interconnection requirements specified in D.1.e. Opening an enclosure provides for more flexibility in design.

NOTICE Notice of AL 2281-E-A was given by publication in the Commission's Daily Calendar. PG&E states that a copy of the Advice Letter was mailed and distributed in accordance with Section III-G of General Order 96-A.

COMMENTS This is an uncontested AL in which the resolution grants the relief requested. Accordingly, pursuant to PU Code 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

NOTICE
Notice of AL 2281-E-A was given by publication in the Commission's Daily Calendar. PG&E states that a copy of the Advice Letter was mailed and distributed in accordance with Section III-G of General Order 96-A.

COMMENTS
This is an uncontested AL in which the resolution grants the relief requested. Accordingly, pursuant to PU Code 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.