Results of Public Agenda 3208

Meeting Held on Thursday, February 14, 2008 10:00 a.m.

San Francisco, California

Michael R. Peevey, President

John A. Bohn

Rachelle B. Chong

Dian M. Grueneich

Timothy Alan Simon

Scheduled Commission Meetings

505 Van Ness Avenue, San Francisco

Ratesetting Deliberative Meeting*

Room 5305

(1:30 p.m.)

Closed to the Public

Commission Meeting

Auditorium

(10 a.m.)

Open to the Public

Monday, February 25, 2008 (San

Francisco)

Thursday, February 28, 2008 (San

Francisco)

Thursday, March 13, 2008 (San

Francisco)

Monday, March 10, 2008 (San

Francisco)

Thursday, April 10, 2008 (San

Francisco)

Monday, April 07, 2008 (San

Francisco)

Monday, April 21, 2008 (San

Francisco)

Thursday, April 24, 2008 (San

Francisco)

Monday, May 12, 2008 (San

Francisco)

Thursday, May 15, 2008 (San

Francisco)

*Ratesetting Deliberative Meeting dates are reserved as noted but will be held only if there are ratesetting matters to be

considered and a Commissioner has requested that a Ratesetting Deliberative Meeting be held.

This location is accessible to people with disabilities.  If specialized accommodations for the disabled

are needed, e.g. sign language interpreters, please call the Public Advisor at (415) 703-2074 or TTY#

(415) 703-5282 or toll free # 1-866-836-7825 three business days in advance of the meeting.

The following items are not subject to public comment:

· All items on the closed session agenda; these are HEX and EX items.

·

1

[7266]

The Commission reviews the recent rejection of Advice Letter (AL) 1241-W by the Division of Water

and Audits, approves the new water service contract between GSWC and Calipatria State Prison, and

authorizes recovery of revenue shortfalls occurring after the effective date of this resolution.  (AL

1241-W filed March 20, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

2

[7334]

Ratification of preliminary determination of category for proceedings initiated by application.  The

preliminary determinations are pursuant to Rule 7.1 of the Commission's Rules of Practice and

Procedure.

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

3

[7283]

This decision grants the joint motion for approval of a settlement agreement in this case and approves

the settlement agreement, pursuant to Rule 12.1(d).  The Commission also finds that Resolution

SU-58, which previously granted PG&E a waiver of certain requirements related to its natural gas

pipeline located under property on which the City of Tracy is developing a youth athletic facility, is now

moot and is no longer in effect.  This proceeding is closed.

(Comr Simon - ALJ Prestidge)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

4

[7287]

R03-10-003 - Order Instituting Rulemaking to Implement Portions of AB 117 Concerning

Community Choice Aggregation.

This decision directs Pacific Gas and Electric Company, San Diego Gas & Electric Company and

Southern California Edison Company (“the utilities”) to modify their tariffs with respect to certain

aspects of customer notifications and the open season applicable to Community Choice Aggregators

(CCA).  The changes will conform the utilities’ tariffs to the Commission’s intent in the Decision (D.)

05-12-041, which governs California’s CCA program.

This decision also clarifies the Commission’s intent in D.05-12-041 with regard to the requirements for

CCAs’ insurance, self-insurance or bonds and the types of liabilities those instruments would cover.

This proceeding is closed.

(Comr Peevey - ALJ Malcolm)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

5

[7288]

R06-03-004 - Order Instituting Rulemaking Regarding Policies, Procedures and Rules for

California Solar Initiative, the Self-Generation Incentive Program and Other Distributed

Generation Issues.

This decision denies the petition of FuelCell Energy to raise the cap on incentives in the

Self-Generation Incentive Program.  The proceeding remains open.

(Comr Peevey - ALJ Duda)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

6

[7298]

R06-03-004 - Order Instituting Rulemaking Regarding Policies, Procedures and Rules for

California Solar Initiative, the Self-Generation Incentive Program and Other Distributed

Generation Issues.

This decision directs the electric utilities to modify their tariffs to provide Net Energy Metering services

to Community Choice Aggregation (CCA) customer-generators.  The Commission directs the electric

utilities to allow CCA customer-generators with solar, biogas and fuel cell generators up to 1 megawatt

and wind generators up to 50 kilowatts to receive generation credits from the CCA and transmission

and distribution credits from the serving utility.

(Comr Peevey - ALJ Duda)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

7

[7301]

To market value hydroelectric generating plants and related assets.  This decision denies the joint

request of Friends of the Eel River and California Sportfishing Protection Alliance for additional

intervenor compensation in the amount of $7,805 because the supplemental information provided on

two of the four issues should have been provided in the original request and therefore constitutes an

unproductive effort/excessive hours; the argument/analysis on the other two issues did not influence the

underlying decision and therefore made no substantial contribution.

(Comr Peevey - ALJ Vieth)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

8

[7305]

This decision grants PG&E a Certificate of Public Convenience and Necessity to construct and own a

230 kilovolt transmission line in the City of Hayward.  The transmission line will connect to the grid a

new 600 megawatt power plant owned by Russell City Energy Center LLC (RCEC).  All costs to

construct, operate and maintain the transmission line will be borne by RCEC.  This proceeding is

closed.

(Comr Simon - ALJ Kenney)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

9

[7306]

This resolution denies SCE’s request for deviation from Electric Rule 20A.  Resolution E-4001

prohibits granting the request for more than five year’s mortgaging of the City of La Habra’s

Undergrounding Conversion Fund Balance.  Instead SCE is to notify certain communities that unused

funds previously allocated to them may be transferred to La Habra’s account, effective 90 days from

the effective date of this Resolution or approximately June 1, 2008.  (Advice Letter 2110-E filed

March 15, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

10

[7308]

This resolution authorizes Twin Valley a surcharge for recovery of water quality memorandum account

and user fee memorandum account balances for a total amount of $8,287 or 6.5%.  (Advice Letter 25

filed December 4, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

11

[7313]

This resolution confirms the reappointment of G. Timothy Haight to the Committee of its

Decommissioning Trust Funds.  (Advice Letter 2178-E filed November 5, 2007.)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

12

[7317]

This resolution approves PG&E’s Advice Letter (AL) 3028-E. This resolution has been prepared

pursuant to a pilot program specified in Resolution ALJ-202 granting expedited treatment to utility

proposals meeting certain requirements.  (AL 3028-E filed April 3, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

13

[7318]

This resolution approves Happy Valley's request for approval of a Compensation Agreement between

Happy Valley and Pac-West Telecomm, Inc., pursuant to Section 252 of the Telecommunications Act

of 1996.  (Advice Letter 301 filed December 18, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

14

[7319]

This resolution approves a Compensation Agreement between Hornitos and Pac-West Telecomm,

Inc., pursuant to Section 252 of the Telecommunications Act of 1996.  (Advice Letter 271, filed

December 18, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

15

[7321]

This resolution grants Time Warner's request for approval of a Traffic Termination Agreement between

Time Warner and Pac-West Telecomm, Inc., pursuant to Section 252 of The Telecommunications Act

of 1996.  (Advice Letter 386 filed December 14, 2007)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

16

[7327]

This decision grants SCE a Permit to Construct (PTC) the project known as the Ritter Ranch

Substation Project (project).  The project consists of:  (1) construction of a 66/12 kilovolt (kV)

substation on an approximate three-acre graded site located at the northwest corner of Westland Drive

and Ranch Center Drive in the city of Palmdale; (2) construction of four 66 kV subtransmission line

segments (each approximately 500 feet in length) on approximately eight tubular steel poles to loop the

existing 66 kV subtransmission lines into the proposed substation; (3) construction of four new

underground 12 kV distribution line getaways; and (4) installation of new fiber optic cable and

communications equipment to connect the proposed Ritter Ranch Substation to SCE’s existing

telecommunication system.  SCE sought Commission approval for a PTC for the project pursuant to

General Order 131-D.  As the Lead Agency for environmental review, the Commission finds the Final

Mitigated Negative Declaration prepared for this project meets the requirements of the California

Environmental Quality Act.  This proceeding is closed.

(Comr Grueneich - ALJ Walwyn)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

17

[7330]

For authorization to recover costs incurred in 2005 and 2006 and recorded in the Bark Beetle

Catastrophic Event Memorandum Account.   This decision grants SCE (1) Recovery of $42.160

million in Operational and Maintenance expenses recorded in SCE’s Bark Beetle Catastrophic Event

Memorandum Account for the period of January 1, 2005 through December 31, 2006; (2) authorizes

the transfer of $44.306 million, plus interest to the effective date of today’s decision, to the Distribution

Sub-account of the Base Revenue Requirement Balancing Account for recovery in rates; and (3)

authorizes SCE to terminate the Bark Beetle Property Owner Tree Removal Reimbursement Program.

This proceeding is closed.

(Comr Simon - ALJ DeBerry)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

18

[7331]

This resolution approves PG&E’s Advice Letter (AL) 3158-E seeking approval under Public Utilities

Code Section 851 to consent to Dana L. Ryan and Kimberly A. Ryan a non-exclusive road and utility

easement to use an existing maintenance road on and over a portion of PG&E electric transmission fee

strip property. This resolution has been prepared pursuant to a pilot program specified in Resolution

ALJ-202 granting expedited treatment to utility proposals meeting certain requirements.  (AL 3158-E

filed November 28, 2007)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

19

[7333]

This decision authorizes Applicant to increase fares for its passenger stage corporation service,

establish a new zone of rate freedom, and charge reduced fares for service at specific hotels.  This

proceeding is closed.

(Exam Clark)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

20

[7337]

This decision authorizes Applicant to discontinue the provision of regulated, circuit-switched local

exchange and intrastate interexchange telecommunications services in portions of 21 cities in Southern

California.  Applicant has complied with the Mass Migration Guidelines adopted by Decision

06-10-021.  Applicant’s remaining customers who have not selected another carrier will be

transitioned to one of three carriers, depending on where they are located.  This proceeding is closed.

(Comr Simon - ALJ Reed)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

21

[7338]

R_________ - Order Instituting Rulemaking to Integrate and Refine Procurement Policies

Underlying Long-Term Procurement Plans.

The Commission opens this rulemaking to continue efforts to ensure a reliable and cost-effective

electricity supply in California through integration and refinement of a comprehensive set of

procurement policies, practices and procedures underlying long-term procurement plans (LTPPs).

The LTPP proceeding is the successor to Rulemaking (R.) 06-02-013, R.04-04-003, and

R.01-10-024, and it will be the forum in which the Commission considers, in an integrated fashion, the

Commission's electric resource procurement policies and programs.

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

22

[7340]

This decision dismisses the Complaint.  Defendant has corrected billing disputes.  This proceeding is

closed.

(Comr Chong - ALJ Barnett)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

23

[7341]

Ratification of nomination of Freada Kapor Klein as consensus board member to California ALL, a

nonprofit organization dedicated to improving the diversity of workers available to the utilities and other

companies by ensuring that the education pipeline is filled with all members of California's diverse

community.

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

24

[7229]

R07-05-025 - Rulemaking regarding whether, or subject to what conditions, the suspension

of direct access may be lifted consistent with Assembly Bill 1X and Decision 01-09-060.

Pursuant to Phase I of this rulemaking, the Commission herein determines the nature, extent, and timing

of the Commission’s discretionary authority under applicable statutes to lift the suspension that

currently applies to the provision of retail electric service through “direct access.”

(Comr Peevey - ALJ Pulsifer)

Agenda 3206, Item 34 1/10/2008 (Staff);

Agenda 3207, Item 24 1/31/2008 (Bohn)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

25 (Rev.)

[7284]

R06-05-027 - Order Instituting Rulemaking to Continue Implementation and Administration

of California Renewables Portfolio Standard Program.

Pursuant to the Renewable Portfolio Standard Program (Pub. Util. Code § 399.11 et seq.), electrical

corporations are required to prepare procurement plans for the solicitation of electricity from facilities

using renewable resources.  This decision conditionally accepts the 2008 Procurement Plans of

Southern California Edison Company, San Diego Gas & Electric Company (SDG&E), and Pacific

Gas and Electric Company.  As conditionally accepted, these Plans may include solicitation for

short-term contracts, are subject to revised flexible compliance provisions (applicable to all load

serving entities), must include four specific non-modifiable standard terms and conditions, and must

increase the minimum size of projects that may bid from 1.0 MW to 1.5 MW.  SDG&E’s proposal for

a non-zero integration cost is rejected.  A schedule for the 2008 solicitation is adopted.  Each utility

shall file and serve an amended Plan within 14 days, and, unless suspended by the Energy Division

Director within 21 days, shall use its amended Plan for the 2008 solicitation.  The proceeding remains

open.

(Comr Peevey - ALJ Mattson)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

26

[7293]

This decision modifies and approves, as modified, SCE's request to conduct a study to evaluate the

feasibility of a Clean Hydrogen Power Generation plant.  This proceeding is closed.

(Comr Peevey - ALJ Yip-kikugawa)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

28

[7328]

For approval of 2008 – 2020 Air Conditioning Direct Load Control Program.   This decision

approves settlement among PG&E, the Division of Ratepayer Advocates and The Utility Reform

Network and grants application as modified by settlement.  This proceeding is closed.

(Comr Chong - ALJ Bemesderfer)

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

29

[7150]

Res E-4137 - Pacific Gas and Electric Company (PG&E), Southern California Edison

Company  (SCE), San Diego Gas & Electric Company (SDG&E), Pacific Power, Sierra

Pacific, Mountain Utilities (MU), and Golden State Water Company (GSWC) operating as

Bear Valley Electric Service (BVES) (Collectively Respondents).

This resolution approved with modifications Respondents' proposed Tariffs for Purchase of Eligible

Renewable Generation.  (PG&E Advice Letter (AL) 3100-E and 3098-E filed August 3, 2007, SCE

AL 2148-E filed August 2, 2007, SDG&E AL 1918-E submitted August 2, 2007, Pacific Power AL

350-E filed August 3, 2007, Sierra Pacific AL 331-E filed August 3, 2007, MU AL 73-E filed August

14, 2007, and BVES AL 219-E filed August 13, 2007)

Agenda 3205, Item 54 12/20/2007 (Staff);

Agenda 3207, Item 27 1/31/2008

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

39 (Rev.)

[7302]

This resolution approves PG&E's request for approval of an amended power purchase agreement

(PPA) between PG&E and Tres Vaqueros Wind Farm, LLC.  The PPA is approved without

modification.  (Advice Letter 3107-E filed August 20, 2007)

02/07/2008 - This item appeared as (27) under Regular Agenda/Energy Orders section on the agenda

distributed to the public

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)

30

[7300]

I07-01-022  - Order Instituting Investigation to Consider Policies to Achieve the

Commission’s Conservation Objectives for Class A Water Utilities.

Application (A) 06-09-006, A06-10-026, A06-11-009, A06-11-010, and A07-03-019 - Related

matters.   This Phase 1A decision adopts seven settlements concerning:  (1) the conservation rate

designs and revenue adjustment mechanisms of California Water Service Company (settlement

adopted in part), Park Water Co. (Park), and Suburban Water Systems (Suburban); (2) Suburban’s

low-income ratepayer assistance program; (3) Suburban’s return on equity adjustment; (4) Park’s

conservation memorandum account; (5) Park’s data collection and reporting; and (6) Suburban’s

customer outreach and education and data collection and reporting.  The decision also approves

Suburban’s memorandum account for extraordinary expenses.

(Comr Bohn - ALJ Grau)

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

31

[7291]

In the Matter of Implementation of Section 224 of the Act; Amendment of the Commission’s Rules

and Policies Governing Pole Attachments, WC Docket No. 07-245, RM-11293, RM-11303; Notice

of Proposed Rulemaking (FCC 07-187), adopted Oct. 31, 2007; rel. Nov. 20, 2007.   The Federal

Communications Commission seeks comment on a variety of issues relating to Section 224 of the

1996 Federal Telecommunications Act pertaining to rules for pole attachments and whether existing

confer any rights on carriers regarding pole attachments.  Staff seeks authority to file comments.

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

32

[7320]

Yes: (none)

No: (none)

Abstain: (none)

Absent: (none)

34

[7310]

Disposition of Applications for Rehearing of Decision (D.) 07-07-027 filed by the Southern California

Edision Company (SCE) and the Center for Energy Efficiency and Renewable Technologies

(CEERT).  D.07-07-027 adopts tariffs and standard contracts for the purchase of electricity from

water and wastewater customers as required by §399.20.  D.07-07-027 also gives participating

sellers the option to sell to the electrical corporation either all the power produced (full buy/sell) or the

power produced that is in excess of their on-site consumption (excess sales).  In addition,

D.07-07-027 adopts similar tariffs and standard contracts for the purchase of electricity from other

non-water, non-waster water (small customer generators) customers of SCE and Pacific Gas and

Electric Company (PG&E).

Yes: (Bohn, Chong, Grueneich, Peevey, Simon)

No: (none)

Abstain: (none)

Absent: (none)